Assessment of Acquisition Functions Under OMB Cir A-123

1. Assessment of Acquisition Functions Under OMB Cir A-123 December 18, 2008 Mr. Richard K. Sylvester Deputy Director, Acquisition Resources and Analysis for Acquisition Management Office of the Under Secretary of Defense (Acquisition, Technology and Logistics)

2. Assessment of Acquisition Functions Under A-123 OMB’s New Guidelines • “OMB Guidelines for Assessing the Acquisition Function”released May 2008 from OMB Office of Federal Procurement Policy (OFPP) • Requires use of Acquisition Assessment Template--must be incorporated into existing internal control review and reporting processes …and must implement in FY 2009!

3. Assessment of Acquisition Functions Under A-123 OMB Template • Largely based on GAO’s “Framework for Assessing the Acquisition Function at Federal Agencies” • Organized by four interrelated cornerstones as the foundation for evaluating the acquisition function: • Organizational Alignment and Leadership • Policies and Processes • Human Capital • Information Management and Stewardship

4. Assessment of Acquisition Functions Under A-123 DoD Approach to Conducting Acquisition Assessments • OUSD( AT&L) creating a DoD template • DoD template helps guide the assessment: • Based on the control environment (policy goals identified by OSD), determine the risks to proper implementation • Evaluate existing controls and monitoring activities • Consider the corresponding “guideposts” and success factors in the OMB template • Determine if any new deficiencies or material weaknesses Components will use the DoD template and OMB Template to evaluate acquisition functions

5. Assessment of Acquisition Functions Under A-123 DoD Assessment Reporting • In TAB A of the annual Statement of Assurance, briefly explain how the DoD and OMB templates were used to identify deficiencies and weaknesses • Components not required to submit their completed template assessments (unless requested) • Report material weaknesses in your annual Statement of Assurance in accordance with FMFIA and annual OUSD (Comptroller) guidance…just as currently done for all other (non-financial reporting) weaknesses

6. Assessment of Acquisition Functions Under A-123 In Summary… • Components must implement Acquisition Assessments beginning with the FY 2009 cycle using the new guidance • OSD(AT&L) will be sending out the guidance in mid-to-late February • Guidance will include a DoD template to be used in conjunction with the OMB Acquisition Assessment Template • OSD-level reporting not required, but may be asked to provide the completed templates if there are questions or concerns

7. Assessment of Acquisition Functions Under A-123 In Summary…cont. • Components must address how they used the DoD and OMB templates to determine deficiencies and weaknesses in the TAB A section of the annual Statement of Assurance • Implementation in future cycles will be refined based on lessons-learned

8. Assessment of Acquisition Functions Under A-123 Helpful Links • “OMB Guidelines for Assessing the Acquisition Function,”May 2008, Office of Management and Budget, Office of Federal Procurement Policy: http://www.whitehouse.gov/omb/assets/omb/procurement/memo/a123_guidelines.pdf • “Framework for Assessing the Acquisition Function at Federal Agencies,” September 2005, Government Accountability Office: www.gao.gov/new.items/d05218g.pdf

9. Back Up

10. Assessment of Acquisition Functions Under A-123 Acquisition Assessment Template • Cornerstones further broken down into Elements and corresponding Critical Success Factors