Breakout Session # 411 Bryon J. Young, Acting Director ITEC4, Army Contracting Agency Date April 28, 2004 Time

1. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

2. Enterprise Challenges - Lessons Learned Breakout Session # 411 Bryon J. Young, Acting Director ITEC4, Army Contracting Agency Date April 28, 2004 Time 1:50pm– 2:50pm NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

3. Enterprise Challenges/Lessons Learned • Enterprise Approach • Definition • Micro vs Macro • Like type product or service (commodity) • System vs System of Systems • Etc. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

4. Enterprise Challenges/Lessons Learned • Enterprise Examples • Service Small Computer • Service Commodity Council • Installation Guard Services • Service Office Product Procurements NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

5. Enterprise Challenges/Lessons Learned • Goals/Objective • Cost • Schedule • Performance NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

6. Cost • Cost • Leverage buying power • Reduce O/H - Infrastructure • Minimize transaction costs • Reduce supplier costs NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

7. Schedule • Schedule - Timeliness • Supply chain management • Existing vehicle for DO vs stand alone action • Increase predictability of demand NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

8. Performance • Performance • Centers of excellence/core competencies • Standardize service descriptions • Standardize design for enterprise • Uniform approach to requirement/solution set NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

9. Enterprise Challenges/Lessons Learned • Managing the Requirement • Not simply the procurement • Managing at System level • Not component parts in isolation • Taking the time to do both NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

10. Challenges – Change Management • Managing at the Enterprise Level • Identifying and “capturing” universe • Accurately assessing measure of success • More than metrics (cost, schedule, performance) • Meaningful Changes – Better not just different NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

11. Present * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

12. Present • No Central Vision • No Clear Insight Into Requirements • Repetitive – Not Repeatable • Disjointed • Non-Standard * NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

13. Future – Move Toward Enterprise * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

14. Future – Move Toward Enterprise * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

15. Future – Move Toward Enterprise * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

16. Enterprise Characteristics • Central Vision • Clear Insight Into Requirements • Repetitive – And Repeatable • Integrated - Usually • Standardized Requirement • Allow for tailoring • Same suit – Different sizes NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

17. Change Management Considerations • Consider All Stakeholders • Gov’t Requirement Managers • Functional/PM • Other Gov’t Support Process Managers • Finance • Contracting • Logisitics NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

18. Additional Considerations • Retail vs Wholesale Behavior • Sometimes Less is More • Start small • Reqts Management Remains Key • Real savings likely to be greater by better reqts management than by better procurement management NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

19. Change Management Considerations • Consider All Stakeholders (cont) • Users • Warfighters • Soldiers • Soldier’s Families • Gov’t Employees NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

20. Change Management Considerations • Consider All Stakeholders (cont) • Service Providers • Large Businesses • Small Businesses • Local Businesses • Elected Officials • Local • National NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

21. Enterprise Approach • Case Example • Office Products • Wireless BPA’s NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

22. Enterprise Cycle • Bound Universe • Initial Assessment of Improvement • Implement • Allow escapes • Learn from initial success – refine improvement areas • Process improvement 2nd iteration • Reduce escapes NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

23. Considerations for Success • Top Driven • All Gov’t Stakeholders Accept • Where is the value • Is someone a billpayer-How is that good? • Stakeholders must be able to modify business practices • Migration Plan • Gradual or Instant conversion • Centralized or Decentralized Execution • Marketing Plan • Change Management • Allowance for Exceptions – Tailoring and exemptions NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

24. Considerations for Success • Socioeconomic Considerations • Goals Incorporated into Solution • Bundling Considerations • Not strictly prohibited • Use of Industry Associations • Know/Define/Refine the Business Objective • Upfront • Experience NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

25. Considerations for Success • Be Prepared for a long-term process • Don’t oversell initial potential • Integrated Management • Adjust approach as required • Perfect Data • Not available at start NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”

26. Enterprise • Daring Project • New, often risky venture that involves confidence and initiative NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management within the Business Cycle”