REE BPPI Workshop Acquisitions

1. REE BPPI Workshop Acquisitions February 21-24, 2006 Washington, DC

2. Agenda • IAS Goals and Objectives • Functional Scope of IAS • Overview of IAS Processes • IAS Implementation Lifecycle • Purpose and Goals for Today • Standard USDA Procurement Process • Detailed Process Steps • Contracting Buyer Assignments • Awards (Simplified and Formal) • Contract Close-out and Additional Questions

3. IAS Goals and Objectives • Ensure reliable and accurate USDA-wide, procurement-related financial information • Make the most efficient use of IT investments and comply with electronic commerce directives and digital Department initiatives • Support an integrated policy, planning, and budgeting process • Improve customer service and reduce program office and administrative burden in the acquisition management process • Lower purchasing costs • Provide a robust security environment that meets or exceeds USDA’s Common Criteria standards • Automate tracking system for requisition approvals and contract writing and review • Provide a platform for advanced future acquisition management business processes

4. FY05 IAS Functional Vision e-Catalog Asset Management Interface (CPAIS) Requisition Processing Contract Management e-Invoicing Review and Approval System Administration and Reporting Financial Interface Solicitation Preparation Purchase Orders Reconciliation Data Warehouse RFP Advertisement & Receiving e-RFx Distribution / Fed Biz Opps Proposal Acceptance Award Contract Modification Auctions Contract Closeout Audit Support Functional Scope of IAS • The functional scope of IAS is to support procurement at USDA, and to support interfaces with appropriate controls and pertinent data for other processes at USDA • IAS currently covers the procurement lifecycle from requisition through contract closeout, with an interface to FFIS • PSD is examining future capabilities that will extend system capabilities, consistent with the vision

5. Overview of IAS Processes Payment Backfeed Order / Contract Requisition Receipt Invoice • Agency designee reviews payment backfeed for accuracy • Requisition user creates or modifies a request • Request is approved by manager in program office • Request is approved by others (e.g.: property or IT. Optional setup per agency.) • Request is approved by Finance for Commitment • Contracting Officer completes all pre-award research, processes, and documentation • Synopsis abstracts can be sent to FBO from IAS; Otherwise, CO must post IAS- created documents to FBO • Contracting Officer completes obligating document including all terms and conditions • Contracting Officer releases obligating document and completes FPDS-NG reports • Requisitioner or other designee enters receipt and acceptance into IAS • Contracting Officer or other designee may review off-line for official acceptance prior to entry in IAS • ACFO-FO COD APB enters the invoice into IAS • ACFO-FO COD APB resolves issues related to discrepancies • ACFO-FO COD APB transmits invoice to schedule payment

6. Outreach / Education Training Management & Delivery Identify Agency Team Data Gathering / Validation Configuration Prep Transition to Customer Care Data Entry Go Live Signoff Business Process Policy Integration IAS Implementation Lifecycle

7. Purpose and Goals for Today • Obtain a detailed understanding of current REE “As-Is” Buyer Assignments, Simplified and Formal buying processes, and Contract Close-out processes • Identify potential changes or gaps for REE based on new “To Be” IAS processes (systems, forms, staff, etc.) • Identify any non-standard or unusual transactions

8. Program/Budget Program Approve Requisition Create Requisition NFC InvoiceEntry Standard USDA Procurement Process Budget Requestor Acquisitions • Does this map to your current process? • Are there deviations from the example above? If so, what? Budget Receives Invoice Generate Award CO Budget FaxReceipt to NFC COTR Review • Receipt & Acceptance (Requestor) • Verify distribution (AFM)

9. Contracting Buyer Assignments Order / Contract Requisition Receipt Invoice • Routing and Assignment of Requisition • Do you have a central Procurement shop? If not, where are your major Procurement Shops located? • How are Requisitions assigned amongst Contracting Officers (e.g., is there a Supervisory Contracting Officer who determines to which Contracting Officer to assign the requisition?) • What criteria (e.g., requisition amount, program type, etc.) is currently being used to determine which Contracting Officer should process which Requisition? • Do you have Purchasing Specialists and Contracting Officers? What are there responsibilities? • How does this process differ at the Area Office or Location Area level? Review Requisition Assign to Staff Receive Requisition

10. Order/Contract (Simplified) Order / Contract Requisition Receipt Invoice • Simplified Acquisitions Process • Who creates the Purchase Orders (COs, Purchasing Specialists or both)? What other individuals are involved in developing and/or releasing the Purchase Order? • What form(s) are being used in the creation of the PO (other than the AD838)? • What systems, if any, are used for creating the Purchase Order/Contract? • Do you process any Purchase Orders outside of PRCH? • Who enters the obligation into FFIS? • How do you handle cost modifications? • Are you allowed to award to vendors outside of CCR? • Describe any unusual transactions you process (from a funding, FFIS, systems perspective). Post Award to FBO (optional) Conduct Research (optional) Determine Payment Method/ Vehicle Develop PO Release PO

11. Order/Contract (Formal) Order / Contract Requisition Receipt Invoice Receive and Review RFI Response (optional) Conduct Research Develop RFI (optional) Post RFI to FBO (optional) Develop Milestones or Acquisition Plan (optional) Post Synopsis (optional) Develop SOW Develop Solicitation Develop Bidders List Choose Vendor Release Solicitation Review Responses Create Award Obligate Funds

12. Order/Contract (Formal) cont’d Order / Contract Requisition Receipt Invoice • Formal Acquisitions Process • Who creates the formal contracts? • What form(s) are being used in the creation of the contract or award? • What systems or databases are used for contract generation? • Who enters the obligation in FFIS? • Who does FPDS-NG reporting and when (upon release or in bulk)? • How does your standard formal acquisition process differ from 8a or Sole Source Selection? • How do you handle cost modifications? • Describe any unusual transactions you process (from a funding, FFIS or other systems perspective).

13. Contract Close-Out and Additional Questions Close Out Requisition Receipt Invoice Order/Contract • Contract Close-Out Process • What are your contract closeout steps (financial de-obligation or award closeout)? • What forms or documents are involved in closing out the contract? • Additional Questions • Does the process for placing BPA calls differ at all from the standard acquisitions process? If so, in what way? • How do you process Purchase Card payments with Purchase Orders? • How do you handle emergency buys? Describe the approval chain and list the parties involved. • How do you handle the setup for cross-servicing and inter-agency agreements? • Any Unusual Circumstances Not Discussed

14. Known Change Management Issues

15. Known Change Management Issues

16. Next Steps • Action Item Review • Deliver complete list of gaps between current process and future process in IAS • Move into Configuration Preparation phase of implementation