Acquisition Workforce Reform – From a Resource Perspective

1. Acquisition Workforce Reform – From a Resource Perspective Marilyn Thomas Deputy Commander Marine Corps Systems Command

2. As we enter into a tumultuous period in our history, it is important to try to focus on the positive and always look for the silver lining…

4. A Brief Overview of MCSC Equipping Warfighters to Win

5. The Marine Corps’ Acquisition Command Fields systems and equipment Provides Life cycle management One of four major acquisition commands within the Naval Acquisition Community * We do not acquire aircraft. Role of Marine Corps Systems Command We outfit our Marines with literally everything they drive, wear, communicate and shoot. *

6. Service Chain Acquisition Chain Our Chain of Command Assistant Secretary of the Navy Research, Development, and Acquisition Chief of NavalOperations Commandantof the Marine Corps Many PEOs PEO Land Systems NAVSEASYCOM MARCORSYSCOM NAVAIRSYCOM Space and Naval WarfareSystems Command

7. MARCORSYSCOM Programs Organized by Categories ACAT I ACAT II ACAT III ACAT IV OTHER USMC PGMS 32 PROGRAMS JOINT PGMS USA Led x 33 USAF Led x 3 USN Led x 5 DISA Led x 1 JPEO x 7 81 PROGRAMS USMC PGMS 120 PROGRAMS JOINT PGMS 43 PROGRAMS 163 PROGRAMS R&D>$265M PMC>$1.29B R&D>$140M PMC>$660M Annual Pgm PMC>$15M MCSC PGMS GCSS-MC PEO LS EFV MTVR JOINT PGMS DTS (DFAS) GCCS (DISA) PKI (DISA) TBMCS (USAF) GBS (USAF) PLGR (USAF) TC-AIMS II (USA) SMART-T (USA) SINCGARS (USA) AFATDS (USA) JTRS (USA) JAVELIN (USA) TMIP-M (USN) DIMHRS (USN) MRAPs 18 PROGRAMS PEO LS CAC2S G/ATOR LVSR JOINT PGMS LW-155 (USMC) M-88A2(USA) JPBDS (USA) 6 PROGRAMS • PRE-MILESTONE B EFFORTS • FIELDED SYSTEMS • ABBREVIATED ACQUISITION PROGRAMS • AMMUNITION • ITEMS • MISC PROJECTS • 457 Systems/Programs Note: MARCORSYSCOM participates in/leads numerous joint programs.

8. MCSC Budget Profile OCF $3,114 OCF $11,812 OCF $821 FY09 GWOT Remaining includes $910m for MRAP.

9. MCSC Workforce Authorization (TO)

10. The Problem • The Perfect Storm • Acquisition Reform activities during the 90’s led to significant reduction in the acquisition workforce and and increased outsourcing of acquisition activities • Substantial increases in TOA related to GWOT and Grow the Force have strained current acquisition workforce • Manpower and personnel have become “disconnected” from baseline funding levels, both exacerbating and being exacerbated by the contractor support “dilemma” • High profile problems in acquisition programs such as EFV and LCS have called into question whether DoD Acquisition has sufficient numbers of people with the right skills to manage technically complex acquisition programs • FERS

11. Congressional Concern • The following language from the FY09 House Appropriations Report highlights a level of concern with how the Department is using contractor support as a crutch to deal with our manpower challenges: “The Committee has consistently voiced its concerns about the extent to which the Department has contracted out functions in recent years. While the practice may be regarded as necessary to offset reductions in military and civilian personnel, the Committee believes that the Department has failed to adequately manage the expansion of this practice. As a result, it is unclear if the Department realizes any economic benefits from the continued expansion of outsourcing, and it is likely that the Department may have contracted out “core” activities because of an undisciplined approach to outsourcing.” • Unless we can adequately budget for an effective workforce and curb our appetite for contractor support, it is likely that Congress will curb it for us.

12. So What is Being Done?? • HQMC • Added 295 FTE’s during PR09/POM10 • USD AT&L • Competency Management • Congress • Section 852 of the FY08 NDAA– Defense Acquisition Workforce Fund • ASN RDA • Acquisition Workforce Reform Initiative

13. Competency Alignment (CA)

14. Competency Management Benefits • Competency Management Benefits: • Objective and flexible assignment of competency resources to meet organization and program requirements • Competency workforce accountability for supporting both the competency and program success • Input by both program manager and Competency Director to workforce performance evaluation • Defined competency standards and development standards • Higher visibility of individual training coupled with expanded opportunities for training and development • Broader career growth opportunity within and between SYSCOM’s

15. The CA Design Example: MCSC ASSISTANT SECRETARY OF THE NAVY (RESEARCH, DEVELOPMENT, AND ACQUISITION) COMMANDANT UNITED STATES MARINE CORPS MARINE CORPS SYSTEMS ACQUISITION ENTERPRISE MODEL Marine Corps Systems Command Commander (00) Product Group Directors Program Executive Office Land Systems Executive Director (00A) Program Manager Program Manager Program Manager COST SCHEDULE PERFORMANCE COST SCHEDULE PERFORMANCE COST SCHEDULE PERFORMANCE COST SCHEDULE PERFORMANCE Deputy Commander Resource Management (01) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES Deputy Commander Systems Engineering, Interoperability, Architectures and Technology (06) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES Assistant Commander Contracts (02) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES HEADQUARTERS MARINE CORPS TACTICAL SYSTEMS SUPPORT ACTIVITY Assistant Commander Life Cycle Logistics (04) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES Assistant Commander Programs (03) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES Workforce Communities (Counsel/CIO/Security/ International Programs) PEOPLE PROCESSES PEOPLE PROCESSES PEOPLE PROCESSES Business Units Competencies

16. Section 852: DAWF • Section 852 directed SECDEF to establish a fund for the recruitment, training and retention of acquisition personnel • Purpose of the Fund is to ensure that DoD acquisition workforce has the capacity, in numbers and skills, to perform its mission • Fund will comprise credits equal to the applicable percentage of amounts expended for contract services • Amounts will be available for transfer out of the account ranging from $300M in FY08 and growing to $600M in FY11

17. Section 852: DAWF • Details of how the account will be managed are still being finalized by USD ATL and Components • Meanwhile, there is language in the FY09 Appropriations Act that directs the Department to include Acquisition Workforce requirements in the baseline budget request “The Department is directed to include the funding required for the Acquisition Development Workforce Fund in its fiscal year 2010 budget request.”

18. ASN RDA Acquisition Workforce Reform • Last November, ASN RDA initiated an Acquisition Reform effort aimed at correcting systemic problems identified during the LCS Nunn-McCurdy review • One of the key reform areas was to strengthen human capital strategies to ensure we have the right numbers of people with requisite skills to maximize acquisition outcomes

19. ASN RDA Acquisition Workforce Reform • Assess current military and civilian acquisition workforce qualifications, skills and staffing levels – done • Identify shortfalls in workforce staffing levels, qualifications and training – in progress • Develop an Acquisition Workforce Human Capital Strategic Plan to address experience and pipeline gaps – future action • Establish linkage between strategic plan and PPBE process – 24 Sep 2008 memo from ASN RDA for upcoming PR-11/POM-12

20. Summary Lots of activity ongoing to fix acquisition workforce issues As financial managers, we need to remain informed and engaged in the activity because: - we are a critical functional element in the acquisition domain - we need to assist and guide the linkage between acquisition workforce strategic planning and the PPBE process

21. QUESTIONS?