Office of the Director of National Intelligence

1. Office of the Director of National Intelligence “Procuring the Future” 21st Century IC Acquisition Terri Everett DNI Senior Procurement Executive UNCLASSIFIED

2. Overview • Intelligence Role • DNI Priorities • Trends That Impact Acquisition • Strategic Focus and Priorities • Crucial Acquisition Alliances • The Way Ahead UNCLASSIFIED

3. UNCLASSIFIED The Role of Intelligence THE PURPOSE “The highest purpose of Intelligence is to avert conflict and preserve peace. The greatest Intelligence achievements are the wars that do not happen, the headlines that are not made, and the lives that are not lost.” UNCLASSIFIED UNCLASSIFIED

4. Multiple Areas of Concern Military Foreign Policy Proliferation Economics Regional Conflict Terrorism/Narcotics/International Organized Crime Technology UNCLASSIFIED UNCLASSIFIED

5. DNI Priorities • Integrate the Intelligence Community • Responsibility to Provide • Security Overhaul • Acquisition Excellence • Strengthen NCS and IMINT Discipline Managers • Integrate Foreign and Domestic Intelligence • Analyst Transformation • DNI Authorities and Relationships to the White House, Capitol Hill, and Under Secretary of Defense for Intelligence (USDI) UNCLASSIFIED

6. “Megatrends” 21ST CENTURY COLD WAR ERA Technology Change Gradual Rapid Geopolitical Environment KnownUnpredictable/Dynamic Budget/People AmpleLimited/Constrained Organizational Structure HierarchicalFlattened, Fluid, Flexible Non-Core Functions In-House Outsourced Work Environment Dedicated Virtual, Telecommuting Employee Mobility 30 years 3-5 Years Risk Taking Avoidance Management Environmental Concerns Low Priority Rising Priority Personnel Security Restricted Broadened Collaboration Incidental Essential UNCLASSIFIED

7. GLOBAL NETWORK Technology Trends • INCREASED PROCESSING POWER • E- MAIL • QUADRUPLE GROWTH IN COMMERCIAL SATELLITES • LAPTOP COMPUTERS • FACSIMILE • SOFTWARE DISTRIBUTION VIA NETWORK INTERNET • TELECONFERENCING • ELECTRONIC FUNDS TRANSFER • CELLULAR PHONES • FIBER UNCLASSIFIED UNCLASSIFIED 14

8. Office of the Director of National Intelligence Acquisition is Vital to IC Mission Success We Can’t Spy… If We Can’t Buy! UNCLASSIFIED

9. Increase in federal procurement spending by 50% to over $350B. IC trending data is comparable Increased requirements and scope changes Increased customer expectations and demand for faster, better, cheaper Increased reliance on technology to conduct IC mission operations Increased rules, regulations, policies Increased media and Congressional scrutiny Increased security issues associated with foreign acquisition of U.S. companies Transition of acquisition from a tactical, transactional function to a strategic function Increased focus on strategic sourcing Acquisition Trends The IC Acquisition Workforce has not kept pace with increased requirement demands and workload UNCLASSIFIED

10. Percentage of IC Budget Spent on Contracts 30% 70% UNCLASSIFIED

11. IC Award Actions Trend Data Award Actions 9/11 Award Dollars 9/11 FY06 data as of 31 August UNCLASSIFIED

12. IC Procurement Strategic Focus Vision Goals Achieve National Intelligence Strategy Alignment Gain Increased IC Integration and Collaboration Improve the Acquisition Workforce Lead with Integrity and Ethical Values Integrate Best Contracting & Procurement Practices Transform the IC through E-Procurement Yearly Progress Measured through Meaningful Metrics Agile, Flexible, and Responsive IC Contracting and Procurement that is Ethically Based Mission Centric Legally Sound • Challenges • Increased Contracting Actions • Increased Customer Expectations (Better, Quicker, NSC) • Increased attention and scrutiny • Requirements Discipline/Scope Issues • Contract Type, Incentive Structure • Insufficient, Inexperienced Work Force • Technology & Security Issues • Life-Cycle Contract Management • Initiatives • Established IC Procurement Executive Council (IPEC) • Established Procurement Database Working Group (PDWG) • Drafted IC Procurement Policy • Developed Strategic Alliance with Chief Human Capital Officer and ADDNI/E&T • Outreach to DOD/Industry/Academia • Benchmarking Best Practices • IC Industry Day UNCLASSIFIED

13. DNI PE Top Priorities • Acquisition Workforce Advocacy • World class, experienced COs/COTRs are crucial; career management is important; Profession needs core competency status • Retention Bonus • Certification Pay • Special Pay Scale • Elevated Grade Structure • Effective Mentoring Programs • Automate and streamline the acquisition process • Reduce cycle time from receipt of requirement to contract award • Electronic Data Exchange with industry • Collect contracting and procurement statistics; develop metrics • Identify opportunities for strategic sourcing • Build trusted IC-Industry Contractual and Business Relationships • Build trusted partnership with DOD UNCLASSIFIED

14. Crucial Acquisition Alliances REQ’TS LEGAL USERS POLICY Industry BUDGET TRAINING CO COR PM INTELL COMMUNITY LOGISTICS S&T TECHNICAL COMMUNITY UNCLASSIFIED

15. Complementary Public-Private Roles • Communication/Feedback (Contractual Relationship) • Overly constrained, restricted requirements • Unrealistic delivery or performance • Contract type, Contract scope changes • Public-Private Sector Partnership (Business Relationship) • Share best practices; partner on issues of common concern • Understand IC needs • Develop mentor-protégé relationships; partner with small business and academia • Collaborate on government to industry, industry to government contracting exchange programs UNCLASSIFIED

16. The Way Ahead • Partner with Chief Human Capital Officer to develop and implement innovative recruitment, training, and retention strategies that will motivate and retain acquisition professionals • Strengthen internal ODNI partnerships • Continue strategic sourcing effort in order to achieve efficiencies and economies of scale by leveraging aggregate IC buying power • Contribute to the DNI priority to integrate the IC by continuing Senior Procurement Executive Collaboration through the IC Procurement Executive Council (IPEC). • Use the recommendations of the Procurement Database Working Group (PDWG) to further streamline the procurement and contracting process through automation. • Continue outreach efforts and develop partnerships with DOD, Industry, and Academia. UNCLASSIFIED

17. UNCLASSIFIED The Role of Intelligence THE PURPOSE “The highest purpose of Intelligence is to avert conflict and preserve peace. The greatest Intelligence achievements are the wars that do not happen, the headlines that are not made, and the lives that are not lost.” UNCLASSIFIED UNCLASSIFIED

18. Questions? UNCLASSIFIED