Breakout Session 702 Nancy Gunderson, Senior Analyst Office of the Under Secretary of Defense

2. Challenges of Transformation Breakout Session 702 Nancy Gunderson, Senior Analyst Office of the Under Secretary of Defense Supply Chain Systems Transformation Office 25 April 2005 1:30 p.m. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. Agenda • Challenges of Transformation in the Department of Defense (DoD) • Transforming the Way We Do Business • Acquisition, Technology & Logistics Leadership Role • A New Business Framework and Transformation • DOD Business Enterprise Priorities • Integrated Acquisition Environment (IAE) and DoD Enterprise Capabilities • Examples of Transformation: Existing and Future Capabilities • Your Role in Transformation NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. Challenges of Transformation in the Department of Defense (DoD) • DOD is one of the largest and most complex organizations in the world • In fiscal year 2003, DOD reported that its operations involved: • Over $1 trillion in assets; $1.6 trillion in liabilities • Approximately 3.3 million military and civilian personnel • Disbursements of over $416 billion • Execution of DOD operations spans a wide range of defense organizations, including: • Military Services and their respective major commands • Functional activities, numerous large defense agencies and field activities • Various combatant and joint operational commands responsible for military operations for geographic regions or theaters of operations • Legislation • Clinger-Cohen Act • National Defense Authorization Act (NDAA) for FY2005 • Chief Financial Officers (CFO) Act • Title 10 Authority to Services NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Transforming the Way We Do Business NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Acquisition, Technology & Logistics (AT&L) Leadership Role • Governance/Oversight of Services and Components • Oversee functional communities and key Domain activities through senior leadership • Manage budget • Enterprise Process and Data Architecture • Document and outline business processes, operational activities and technical infrastructure for the future state environment • Integrate Common Data Strategy for system integration and e-business realization • Transition Planning • Implement Enterprise capabilities and oversee Service transition to capabilities • Transforming • Enable strategic acquisition to embrace new business processes and technologies • Change the way we do business NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. Storage & Transportation Design & Development IT Infrastructure Disposition Legal Maintenance Personnel Procurement Human Resource Management 1 Business Transformation Effort Priority W A R F I G H T E R S 2 Weapon System Lifecycle Management Business Transformation Effort Priority 3 Real Property & Installation Lifecycle Management Business Transformation Effort Priority 4 Materiel Supply & Service Management Business Transformation Effort Priority 5 Financial Management Business Transformation Effort Priority Horizontal Business Transformation Framework Planning, Budgeting NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. Planning, Budgeting Storage & Transportation Design & Development Personnel IT Infrastructure Disposition Legal Maintenance Procurement W A R F I G H T E R S Weapon System Lifecycle Management Business Transformation Effort Priority Business Mission: Weapon System Lifecycle Management • Process Leadership Areas: • “Big A” Acquisition Process • Design Cycle Process – (Product Lifecycle Management Systems, Bill of Materials Management, etc.) • Performance Based Logistics & Supply Chain NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Storage & Transportation IT Infrastructure Planning, Budgeting Design & Development Personnel Disposition Legal Maintenance Procurement Materiel Supply Chain Management Business Transformation Effort Priority Business Mission: Materiel Supply Chain Management W A R F I G H T E R S • Process Leadership Areas: • Commodity Procurement Process • Storage & Transportation (Inventory Management, Distribution Process) • Spares Inventory Management • Commodity Materiel Disposal NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. Data Standards, Common Capabilities, Transformation “Catalysts” Enterprise Financial Visibility Acquisition Program Visibility Material Transaction Visibility Military Personnel Visibility Real Property Inventory Visibility Common Asset Valuation Common Supplier Engagement • DDRS • DCD/DCW • SFIS • IGTS • DCAS • PB Framework • Global Edit Table • Funds Control • Commitment Acctg • Cost Acctg Methodology • DAMIR • ARM Pilot • ASA • DAAS-C • DEBX • IUID • DIMHRS • DTS • DCPDS • RPIR • RPUID • SiteUID • CAMS-MEV • DPAS • CIP • SPS • WAWF • ASA • IAE DoD Business Enterprise Priorities NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. Enterprise Procurement Solutions Federal - Integrated Acquisition Environment (IAE) Federal Technical Data Solution (FedTeDS) Online Representations and Certifications Application (ORCA) Past Performance Information Retrieval System (PPIRS) Federal Procurement Data System – Next Generation (FPDS-NG) Central Contractor Registration (CCR) Federal Business Opportunities (FedBizOpps) FEDERAL SOLUTIONS Electronic Subcontractor Reporting System (eSRS) Federal Agency Registration (FedReg) Intragovernmental Transaction Exchange (IGTE) Wage Determinations Online (WDOL) Excluded Parties Listing System (EPLS) Department of Defense (DoD) Acquisition Spend Analysis(ASA) Standard Procurement System (SPS) Electronic Document Access (EDA) DOD SOLUTIONS Wide Area Workflow (WAWF) DoD EMALL Logistics Systems Financial Systems NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. Federal Capabilities: Integrated Acquisition Environment • Federal Procurement Data System – Next Generation (FPDS-NG) • Centralized reporting database for non-classified, federal government contracting with outside vendors • Make sure your data is entered correctly from the beginning; there will be no data clean-up at the component level • On-line Representations & Certifications Application (ORCA) • Single location for vendor representations and certifications information to the federal government. Enter once, use many times. • Use of ORCA became mandatory 1 January 2005 • Contracting officers should include ORCA clause on all requests for proposals, etc. • Contractors should update their registration at least once per year at http://orca.bpn.gov NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Federal Capabilities: Integrated Acquisition Environment • Central Contractor Registration (CCR) • Single-source of vendor information supporting the contract award and electronic payment processes • Small Business (SDB, 8(a), HubZone) size validated automatically by SBA • Collects, validates, stores, and disseminates business information to other e-Government systems • Visit the CCR site and update your record at http://www.ccr.gov/ • Wage Determinations On-Line (WDOL) • Central on-line location for government contracting community to obtain Service Contract Act & Davis-Bacon Act wage rate determinations • Enables federal agencies to be more consistent in the application of these laws • Ensure you are checking WDOL as part of your proposal review process NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. Department of Defense Capabilities • Standard Procurement System (SPS) • Automated, enterprise contracting system standardizing procurement processes across the DoD • Reduces manual workload and paper contracts • You should be using Increment 2 and planning for Increment 3 • Wide Area Work Flow (WAWF) • Single enterprise system for electronic invoicing • Eliminates paper from the invoicing, receipt and acceptance process • Include the electronic invoicing clause in all your contracts to ensure your vendors use this process • DFARS Clause 252.232.7003 NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. Department of Defense Solutions • Acquisition Spend Analysis (ASA) • Examined spend data at the Enterprise Level • Provides a tool to analyze procurement data down to a meaningful level • Demonstrates that data from the individual Services and Components can be integrated into a common view • 43% of total spend transactions from Army, Navy, MDA, Air Force • This means you must take ownership to ensure contract data quality, accuracy, and completeness • This will ultimately allow various stakeholders the ability to: • Make more informed business decisions • Ensure operational and supplier compliance • Improve DoD’s ability to meet its socioeconomic goals • Increase efficiency of acquisition process • Better meet the Warfighter purchasing needs NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. Your Role in Transformation • People • Think strategically • Use the Enterprise Solutions • Both the IAE and DoD Solutions • Participate through your Service or Agency • Develop your strategic sourcing skills • DAU Learning Modules • Process • Adapt to a changing business environment • Technology • Move from Service-unique systems to Enterprise systems • E-Business Conference • May 23-26, 2005 in Orlando, FL • www.dodebconference.com NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”