DHS Acquisition Briefing for the National Contract Management Association

1. DHS AcquisitionBriefing for the National Contract Management Association Thomas W. Essig – 2008 Apr 30

2. Overview • DHS History, Mission and Goals • DHS Contracting Organizations • DHS Procurement – 2007 Spend Data • Chief Procurement Officer’s (CPO) Top Priorities - 2008 • Acquisition Workforce • Congressional Oversight

3. Department of Homeland Security History The Homeland Security Act of 2002: United 22 previously disparate domestic agencies into one coordinated department to protect the nation against threats to the homeland. Effective March 1, 2003

4. Department of Homeland Security Mission September 11, 2001 A date that will be forever etched in our memory. • Prevent terrorist attacks within the United States • Reduce America’s vulnerability to terrorism • Minimize damage from potential attacks and natural disasters Protecting America Emergency Management

5. The Secretary’s 5 Goals • Protect our Nation from Dangerous People • Protect our Nation from Dangerous Goods • Protect Critical Infrastructure • Strengthen our Nation’s Preparedness and Emergency Response Capabilities • Strengthen and Unify DHS Operations and Management

6. Headquarters Transportation Security Agency Science & Technology Customs & Border Protection * Office Procurement Operations Border Transportation Security Info Analysis & Infrastructure Protection Immigrations & Customs Enforcement Federal Law Enforcement Training Center Chief Information Officer Under Secretary Management Federal Emergency Management Agency Emergency Preparedness Response United States Coast Guard U.S. Coast Guard U.S. Secret Service United States Secret Service DHS Contracting Organizations • Denotes two (2) HCA positions: • Departmental Operations • Secure Border Initiatives DHS Customer Acquisition Office Legend:

7. DHS Procurement – 2007 Spend Data FY07 DHS SPEND SPEND BY COMPONENT TOTAL SPEND = $17,423.3M FY07 DHS SPEND SPEND BY COMMODITY FAMILY TOTAL SPEND = $17,423.3M Source: FY07 Procurement systems, P-card data, SSP analysis Source: FY07 Procurement systems, P-card data, SSP analysis KEY FINDINGS • The largest spend component is DHS HQ with $3.7B in spend in support of agency mission areas • Professional Services is the largest Commodity Family with 25% of FY07 spend • 16.4% of “Unclassified” data is attributed to a of lack of FSC and line item information within the underlying procurement data systems

8. Commodity Families Standing Commodity Family Councils Note: Unclassified spend, defined as spend coded with insufficient information to accurately categorized, totaled $2,861.9 million ($3,863.6 million) ($4,325.9 million) ($1,972.8 million) ($2,190.7 million) ($568.2 million) ($118.7 million) ($1,373.7 million) ($147.8 million) The Commodity Families provide the scope for the Councils – the three primary families will be the Standing Councils with others stood up as opportunities are identified

9. IT & Telecom Family Spend FY07 DHS IT & TELECOM SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $3,863.6M • IT & Telecom, the second largest area with 22.2% of total DHS spend, is comprised of 2 categories • The largest spend category is IT Hardware, Software & Support Services with 67.1% of IT & Telecom spend • Purchase card accounts for nearly 2.2% of IT & Telecom spend KEY FINDINGS Source: FY07 Procurement systems, P-card data, SSP analysis

10. Professional Services Family Spend FY07 DHS PROFESSIONAL SERVICES SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $4,325.9M • Professional Services, the largest area with 24.8% of total DHS spend, is comprised of 4 categories • The largest spend category is Management Support Services with 50.3% of Professional Services • Purchase card accounts for 1.7% of Professional Services spend • ~60% of this spend is via IAA’s and the level of “line item” detail is lost, or severely limited KEY FINDINGS Source: FY07 Procurement systems, P-card data, SSP analysis

11. DHS Security Family Spend FY07 DHS SECURITY SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $1,972.8M • Security, makes up 11.3% of total DHS spend, is comprised of 5 categories • The largest spend category is Security Systems & Services with 91.8% of Security • Weapons and Ammunition & Explosives combined make up 3.5% of Security • Purchase card procurements consist of only 1.4% of total Security spend KEY FINDINGS Source: FY07 Procurement systems, P-card data, SSP analysis

12. Dual System of Accountability(Notional Structure) = Flow of Contracting Authority

13. Office of the Chief Procurement Officer (CPO)

14. DHS Chief Procurement Officer’sFY 2008 Priorities • Quality Contracting • Goal: To make good business deals • Goal: To perform effective contract administration • Quality Acquisition Management • Goal: To improve the quality of program management throughout DHS • Quality People • Goal: To build and sustain the DHS Acquisition Workforce

15. Departmental Workforce Status

16. Workforce Planning • Workforce Studies • Contract Study • Develop Contract Staffing Models • Status – Study results out for comment; recommends several hundred more contract specialists • US Air Force • Dayton Aerospace model for PM offices • Status – Model Validated for DHS use • Acquisition Workforce Strategic Human Capital Plan under development

17. Acquisition Professional Career Program (APCP) • Overview • Entry level program hiring candidates at GS-7 with promotion potential to GS-13 • Three, one year rotational assignments at different components • Acquisition Certification Training • Attain Level II Certification • Provide Leadership and Developmental Training • Initially hiring candidates for GS-1102 series and targeting expansion in FY-09 to one other career field • Two “cohorts” per year – January and June

18. Workforce Planning Toolkit • Re-Employed Annuitant • Status: • Approved via OPM • Implementation Plan being Executed • Ads and Announcements publicized • 2 Annuitants Hired • 39 Annuitants expressed interest in employment • Direct Hire Authority • National Defense Authorization Act • Acquisition Coding of Billets • Pilot to begin using NFC system

19. Certification • Current • Directives for: • Contract Specialist (Currently issuing FAC-C) • Program Managers (Utilizing DHS certification prgm) • COTR’s (Utilizing DHS certification prgm) • Future • Overarching Directive out for signature • Career Field Certifications to be annexes • Program Manager out for comment • Test and Evaluation next acq career field • Other Career Fields to follow such as Business Cost and Financial Estimating, Engineering, and Logistics

20. Congressional Oversight

21. Section 539 - DHS Appropriations Act of 2008 (P.L. 110-161) • SEC. 539. Except as provided in subsection (b), none of the funds appropriated in this Act to the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management and the Office of the Chief Financial Officer, may be obligated for a grant or contract awarded by a means other than full and open competition. (b) This section does not apply to obligation of funds for a contract awarded: (1) by a means that is required by a Federal Statute…. (2) under the Small Business Act… (c) The Secretary of Homeland Security may waive the application of this section to the award of a contract in the period of national emergency as determined by the Secretary.

22. For more information on DHS contracting and business opportunities: Open For Business centralizes information to let every business in America know how to work with the Department of Homeland Security. Designed to assist the business community, we include links to contracts, grants, small business opportunities, research and development and contacts. www.dhs.gov/openforbusiness