The Changing Role of the Interagency Agreement (IAA) Financial Acquisition Coalition Team

1. The Changing Role of the Interagency Agreement (IAA)Financial Acquisition Coalition Team Lori Sakalos, CFCM Senior Procurement Analyst, GSA Robin Gilliam, CPA, PMP GWA Systems & Standards Integrator Department of Treasury Tom Howder Director, Acquisition Operations and Systems, GSA Tracey Malick Director, Financial Operations Division May 2011

2. Agenda • FAR Subpart 17.5, Interagency Acquisitions • Interagency Agreement (IAA) • Internet Payment Platform (IPP) Intra-Gov Module Briefing

3. FAR Subpart 17.5, Interagency Acquisitions Lori Sakalos, CFCMSenior Procurement AnalystGSA Office of Governmentwide Policy

4. Interagency Agreement • Direct acquisition • Assisted acquisition • For orders over $500,000, the requiring agency shall make a determination that use of the Federal Supply Schedule is the best procurement approach

5. Determination of Best Procurement Approach • Satisfies the requesting agency’s schedule, performance, and delivery requirements • Is cost effective, taking into account the reasonableness of the servicing agency’s fees • Will result in the use of funds in accordance with appropriation limitations and compliance with the requesting agency’s laws and policies

6. Written Interagency Agreements • Assisted acquisitionsmust be accompanied by written agreements between the requesting agency and the servicing agency • Documenting the roles and responsibilities of the respective parties • Including the planning, execution, and administration of the contract, task order or delivery order • Direct acquisitions:The requesting agency administers the order; therefore, no written agreement with the servicing agency is required

7. Interagency Agreement (IAA) Robin Gilliam, CPA, PMAGWA Systems & Standard IntegratorDept of Treasury, Financial Management Service

8. The IAA is a standard template for doing reimbursable business between federal trading partners, with standard data elements to: • Account for and reconcile intra-governmental transactions between trading partners • Address the long-standing audit finding on the US Government’s financial report (FR) • $25 billion elimination entry between departments • Reduce future elimination entries between agencies • Provide correct information for receipt and acceptance of authorized work

9. IAA History • March 2009 – November 2010: • Developed Standard IAA • Tiger Team • Finance, Budget, Acquisition, Legal • GSA, GSA-FAS, DoD, Education, NSF, Health agencies, IC • Identified standard data elements using 9 different agency Interagency Templates including the OFPP June 2008 policy guidance for assisted acquisitions • Developed Standard IAA Form • Version 1: Oct 2009 • Version 2: July 2010 • Introduced to Agencies • NSF piloted form starting in March 2010 V.1

10. History of IAA (cont) • December 2010 – February 2011: IAA “Paper” Pilot • IAA Agency Pilots used the paper IAA form (version 2) for actual reimbursable business transactions • Collected comments by each data element (IAA Block) • March 2011: consolidated and analyzed pilot comments • April – June 2011 (Version 3): • Update standard IAA data elements • Develop data dictionary • Develop automated requirements • Work with OMB on updated policy

11. IAA - One Form - Two Sections • Developed from OFPP’s June 2008 Interagency Acquisition Document • Part A = General Terms and Conditions (GT&C) Section • Captures the partnership/relationship between the parties • Part B = Order Requirements and Funding Information Section (Order) • Each IAA must include one GT&C and at least one order

12. Communication is the Key; the IAA is the Tool initiates IAA Buyer Seller approves IT Legal Legal IT

13. Managing Reimbursable Agreements - Governmentwide S E L L E R B U Y E R IAA Invoice Receipt & Acceptance $$$

14. Reducing Elimination Entries Reconciliation Issues

15. Automated IAA Functionalityin the Treasury, FMSInternet Payment Platform (IPP) Intra-Governmental Module

16. Automation • The Internet Payment Platform (IPP) is a U.S. Treasury program for processing electronic orders, invoices and payment information • It is provided by U.S. Treasury at no charge to agencies • IPP was originally set up to handle commercial transactions between agencies and suppliers • It has been enhanced to support intra-governmental transactions between agencies

17. Project Goals • Facilitate a standard business process for agencies to transact and reconcile reimbursable activity • Implement a digital version of the new standard IAA • Improve buy/sell management • Support the complete process flow from the IAA to settlement confirmation in one central location • Provide visibility for both trading partners throughout the transaction lifecycle

18. Implementation Challenges • The new standard IAA is in the process of being introduced to agencies today, and is being finalized • There is no central digital system available to all agencies to implement the new standard business process • Migration to a single standard across agency trading partners with multiple processes and systems is difficult

19. Project Approach • Leverage the current IPP commercial capabilities and best practices • Leverage Intra-governmental Payment and Collection (IPAC) intra-governmental transaction settlement capabilities • Enhance and integrate the two platforms to allow IPP to serve as a front-end to IPAC and automate support for reimbursable transactions

20. Project Approach (continued) • Support new standard IAA through IPP-Intra-Gov automation. • Proactive controls to ensure that only valid reference data values are used (BPN, TAS/BETC, etc.) • Incorporate agency feedback on proposed changes • Implement the new standard process and automated solutions government-wide

21. IPP – IAA Automation – November 2011 Release • Standard IAA data elements and relationships captured for and between GT&Cs and Orders • Buyer or Seller creates/approves IAA GT&C online • Buyer creates IAA Order from open GT&C

22. IPP – IAA Automation – November 2011 Release (cont) • Seller creates invoice from IAA Order • Buyer approves invoice • IPP creates IPAC schedule for agency or automatic processing • IPP receives and displays IPAC confirmation data 22

23. Agency Leadership – Help to Lead this Change • Be proactive • Develop an implementation plan • Identify your “population/inventory” of reimbursable activity • Identify how to move each activity to the IAA

24. Develop Your Agency Implementation Plan • How do you process reimbursable activity? • Paper • Automated process • Review standard IAA data elements • Gap analysis • Create agency specific standard operating procedures • Work with your trading partners • Contact us for working/training sessions

25. Agency Implementation Financial Acquisition Coalition is working to develop a phased Government-wide implementation strategy In the meantime: Request that Agencies processing IAAs using Paper forms use the automated IAA functionality in IPP beginning in November 2011

27. References • Financial Management and Budget Standardization Web Page: http://go.usa.gov/gXz • Receive email updates for IAA and FM standardization information • FAR subpart 17.5 • GSAM • Internet Payment Platform • Intergovernmental business rules

28. Contact Information • Lori Sakalos, CFCMSenior Procurement Analyst, GSA Office of Governmentwide Policy lori.sakalos@gsa.gov (202) 208-0498 • Robin Gilliam, CPA, PMP GWA Systems and Standards Integrator, Treasury, FMS robin.gilliam@fms.treas.gov (202) 874-9133 • Paul Lionikis IPP Strategic Agency Relations Director, Treasury, Boston Federal Reserve Bank Paul.Lionikis@bos.frb.org (617) 973-3637 • IAA@fms.treas.gov for email questions