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Breakout Session # 602 Stephen C. Davis, Contracting Officer, Branch Chief

Organizational Transformation in an Air Force Research and Development (R&D) Contracting Directorate: A Practical Application. Breakout Session # 602 Stephen C. Davis, Contracting Officer, Branch Chief Det 1 Air Force Research Laboratory, United States Air Force Date 26 April 2004

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Breakout Session # 602 Stephen C. Davis, Contracting Officer, Branch Chief

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

  2. Organizational Transformation in an Air Force Research and Development (R&D) Contracting Directorate: A Practical Application Breakout Session # 602 Stephen C. Davis, Contracting Officer, Branch Chief Det 1 Air Force Research Laboratory, United States Air Force Date 26 April 2004 Time 1:30 - 2:30 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  3. Detachment 1 AFRL/PK Mission To provide innovative, high- quality contracting and business support for our customers to advance the technological superiority of our Air Force. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  4. Who we support . . . • AFRL, Wright-Patterson AFB, OH • Sensors • Materials and Manufacturing • Air Vehicles • Propulsion • Human Effectiveness • Information Directorate personnel at WPAFB (Rome, NY) • DARPA NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  5. Transformation is CHANGE! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  6. NO PROBLEM! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  7. DO WE HAVE TOOOOOOO! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  8. I’M NOT CHANGING! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  9. I LIVE FOR CHANGE!!!! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  10. CHANGE IS STRESSFUL! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  11. Why Change? • Faster, Better, Cheaper . . . . . . we’ve heard it all before. • . . . Zero Defects,TQM, FASA/FARA . . . • Isn’t “Transformation” just a new buzz word? • Give it awhile and it will all go away with the leaders who brought it. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  12. Why Change? FAR 1.102 (d) “The role of each member of the Acquisition Team is to exercise personalinitiative and sound business judgment in providing the best value product or service to meet the customer’s needs. FAR 1.102-4 (e) “Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority.” NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  13. Why Change? • The longer we take to make an award, the more opportunities for: • Rate Changes - Requirement Changes • Funding changes - Changes in rules/regs • All these issues cause schedules to stretch • We can not afford delays Move technology to the warfighter faster! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  14. This time it’s personal . . . • Operational landscape has changed from Cold War to Expeditionary Air Force. • Our enemies are agile/random • Our Acquisition processes must reflect this new threat • We must embrace risk, encourage innovation, increase accountability NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  15. The acquisition environment has changed . . . . . . REALLY! Develop the kinds of forces and capabilities that can adapt quickly to new challenges and unexpected circumstances. Donald Rumsfeld Secretary of Defense NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  16. The acquisition environment has changed . . . . . . REALLY! • The Cold War is over and radical change is needed. • Change the way you think • Change the way you do business • Get with it or leave • Fix the process or we will lose a war someday James Roche Secretary of the AF NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  17. The acquisition environment has changed . . . . . . REALLY! • We've made rules to protect the acquisition process that, in many ways, tie the hands of our people. . . • . . .it's the time for Senior Leaders to examine these processes that we make our people work in. . . GeneralJohnJumper Air Force Chief of Staff NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  18. Michael Wynne (P)DUSD (AT&L) The acquisition environment has changed . . . . . . REALLY! DOD’s acquisition community is challenged to take advantage of an opportunity to initiate dramatic improvements to the process . . . . . . and foster the next generation of creative and innovative ideas NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  19. Dr. Marvin Sambur (A)SAF Acquisition The acquisition environment has changed . . . . . . REALLY! • The overarching objective of this policy is to shorten acquisition cycle times . . . . . . every key decision must have an operational sense of urgency. • Reduce acquisition cycle time by 4:1. Every player in this transformation is key to and accountable for its success. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  20. So what does it all mean? NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  21. Our Focus • DYNAMIC LEADERSHIP • UNDERSTANDING THE CUSTOMER • COMMITMENT TO CHANGE • DEVELOPING PEOPLE EVERY DAY MATTERS! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  22. DYNAMIC LEADERSHIP: A Change in the Way We Think! Lead the Transformation! Manage the Change! THINK! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  23. Traditional Contracting Specialist Contract focused Success = play it safe, by the book Transformational Business Agent Acquisition focused Success = take calculated risks, by the book DYNAMIC LEADERSHIP: A Change in the Way We Think! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  24. Traditional Build contract files Understand regs, interpret in a conservative way and CYA Transformational Build customer relationships Understand regs, interpret broadly and look for innovative solutions DYNAMIC LEADERSHIP: A Change in the Way We Think! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  25. The Right Leadership for the Job 8/10 branch level and 4/8 division level positions changed through promotions, new positions and reassignments NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  26. UNDERSTANDING THE CUSTOMER • Determine what the Customer really needs • We have more flexibility and less restrictions than ever - CAPITALIZE ON THESE TO THE FULLEST! • Communicate requirements and capabilities - OFTEN! THE CUSTOMER MATTERS! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  27. UNDERSTANDING THE CUSTOMER • Advise, interject, ask questions, be proactive, work as a team • Lead, follow - find your place on the team • Manage expectations and honor your commitments • Collaborate more and coordinate less DO WHAT IT TAKES TO SUPPORT THE CUSTOMER! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  28. COMMITMENT TO CHANGE: Change in Organizational Culture • It takes active, determined leadership to change the culture, create excitement, motivate individuals and provide a common focus • Establish ownership and place responsibility where it belongs - at the lowest level Cultivate Teamwork! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  29. COMMITMENT TO CHANGE: Change in Organizational Culture • Foster cooperation and communications - spread the word • Focus on efficiency, creativity, innovation • Change is harder for some - manage it • Stand by your guns! Lead by Example! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  30. DEVELOPING PEOPLE: Cultivate the Climate • Provide a solid framework to develop individuals • Establish teams/forums • Discussion of issues/ideas, common focus and best practices PEOPLE are our Organization’s most Valuable Resource! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  31. DEVELOPING PEOPLE: Cultivate the Climate • Provide the means and resources • Time, support, personnel, equipment, education, space . . . • Listen, recognize, appreciate • Adapt as needed PEOPLE must be ENABLED before they can be EMPOWERED! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  32. Transformation Targets . . . Transformation achieved through focus areas: Processes Tools Philosophy People Immediate Target: 4:1 cycle time reduction Ultimate Target: AWARD 5 DAYS after Tech Decision NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  33. . . .Yielded Cycle-time Reductions Focus on reducing cycle times Requirement Identification Tech Eval Funding Award 0……………………………………70……………………………………140 Days in cycle Pre-positioning Transformed: Clearance Process Legal Review Pricing Integrated Checklist Transformed: Solicitations Tech Evals ASP/AcqPlan NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  34. Transformed pricing Transformed contract changes Transformed ASP/AcqPlan Transformed proposals Open-ended BAAs $2M Legal threshold Transformed leadership $10M review threshold In-house Small Bus. Rep. Commitment! 5 day awards Accelerated training Tech Eval form DARPA Div. established Pre-position data Integrated kick-off checklist Funding POP on PRs Recognition of transformation leaders In-house legal support Limited warrants Transformation team Transformation Initiatives . . . NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  35. DONE! Transformed pricing DONE! DONE! Transformed contract changes Transformed ASP/AcqPlan DONE! Transformed proposals DONE! Open-ended BAAs DONE! $2M Legal threshold DONE! Transformed leadership DONE! DONE! $10M review threshold In-house Small Bus. Rep. Commitment! 5 day awards DONE! DONE! Accelerated training DONE! Tech Eval form DONE! DARPA Div. established DONE! Pre-position data DONE! Integrated kick-off checklist DONE! Funding POP on PRs DONE! Recognition of transformation leaders In-house legal support DONE! DONE! Limited warrants DONE! Transformation team . . . Became Practices NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  36. Transformed Processes • Transformed Coordinations and Reviews • Eliminated static reviews by getting involvement early and throughout the process • In-house legal counsel and Small Business Representative • Transformed ASP/AcqPlan • ASP charts are Acquisition Plan so that two requirements are satisfied by one event NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  37. Transformed Processes • Transformed Daily Performance • No longer sequential, but concurrent • Preposition for the next step - Thinking ahead • Transformed Incremental Fundings • Estimated Period of Performance on PRs • Provided by Program Manager Efficient Processes yield Quicker Awards! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  38. Transformed Tools • Transformed Technical Evaluations • Standardized Checklists for Sole Source and Competitive Actions • Addresses required elements • Integrated kick-off checklist • Completed electronically and automatically links information to multiple documents NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  39. Transformed Tools • Pre-positioned Data • Electronic posting of data needed to make award (FPRA/audit data, contractor specific information. . .) • Collaborative sharing of information • Limits 3rd party involvement The better the Tools, the better the Product NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  40. Transformed Philosophies • Transformed Pricing • Satisfy regulations/policies and reduce effort • Match effort to contract type • Transformed solicitations - Open-ended BAAs • Amending BAA versus writing new one takes less time • Five year look ahead in technology thrust NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  41. Transformed Philosophies • Transformed Contract Changes • Full use of Changes Clause expedites change authorization • Incorporate change, amend “funding good through” date, complete equitable adjustment as necessary Creative ways to satisfy regulations and policy NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  42. Transformed People • Established Transformation Team • Many sub-level teams resulted • Issued 26+ limited Contracting Officer warrants • Incremental funding, contract closeout, admin changes, no-cost time extensions (Over 2000 such actions FY03) • Overhauled our CO Warrant Process NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  43. Transformed People • Established DARPA Division for unique customer needs • Overhauled and Accelerated our Training Plan • Currently 25+ Trainees in Det 1 AFRL/PK • Two year plan provides full service training Enabled, Empowered and Placed responsibility at the lowest level NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  44. We Accepted the Challenge • Developed initiatives which satisfy the tenets of transformation • Reduce cycle time, quickly move technology to the warfighter and increase flexibility • Initiatives institutionalized to drive change • Individuals adopted initiatives as practices and, in some cases, adapted practices to fit their specific needs NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  45. Accept the Challenge Yourself • Our current national defense environment dictates we must get goods and services to the warfighter faster! • Develop initiatives and implement practices to accomplish transformation focus • Cultivate mission oriented thinking, change organizational processes, and foster individual practices in ways that reduce contract cycle times • Transforming individual attitudes and practices will yield the greatest change! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

  46. Accept the Challenge Transformation is the right thing to do! NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

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

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