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I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force Government Furnished Equipment Accountability Mr. Colquitt Quitty Lawrence.

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Presentation on theme: "I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force Government Furnished Equipment Accountability Mr. Colquitt Quitty Lawrence."— Presentation transcript:

1 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force Government Furnished Equipment Accountability Mr. Colquitt Quitty Lawrence AF/A4LM 2 February 2011

2 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Overview AFAA Audit Report Rapid Improvement Event Game Plan Data Call/Challenges Contracts vs Contract Property Management System (CPMS) Summary 2

3 I n t e g r i t y - S e r v i c e - E x c e l l e n c e AFAA Audit Report AFAA report highlighted the AF did not properly account for and report GFE in AFEMS AF imposed financial reporting of GFE onto contractors and transferred fiduciary responsibility away from the AF Air Force lost accountability of GFE in excess of $22 billion (acquisition value), was unable to determine how much was financially reportable, and is at great risk for fraudulent activity GFE recognized as Material Weakness at June ESC meeting 3

4 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force Rapid Improvement Event 4

5 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Bottom Line IF: 1.Policy is clear and aligned 2.Roles and responsibilities are clear and understood 3.Procedures are clear and documented so that people know how to execute their roles and responsibilities 4.Policy and procedures are strictly followed 5.Oversight ensures compliance THEN: 100% of GFE will be recorded in AFEMS 5

6 I n t e g r i t y - S e r v i c e - E x c e l l e n c e 6 RIE Objectives 1.Respond to ESC: Plan to ensure GFE situation does not happen again 2.OUTPUT : Clarify Current Condition: o Problem/Scope o Definitions o Organizational roles and responsibilities o Process and IT Root Cause: o What caused the problem to begin with? Action Plan(s): o What needs to be done – and how it addresses the problem o Who will do it (OPR/OCR) o When it will be done

7 I n t e g r i t y - S e r v i c e - E x c e l l e n c e 7 Participating Team Members Almost 40 Participants

8 I n t e g r i t y - S e r v i c e - E x c e l l e n c e RIE Approach and Outcome Inputs: Team Member Briefings Audit Findings ESC Guidance OSD GFE Process Flow Inputs: Team Member Briefings Audit Findings ESC Guidance OSD GFE Process Flow Processes: Clarified the Problem Scoped the Effort Established Desired Future State Reviewed Current State Identified Key Problem Areas Performed Root Cause Analysis Created Action Items Planned Way Ahead Processes: Clarified the Problem Scoped the Effort Established Desired Future State Reviewed Current State Identified Key Problem Areas Performed Root Cause Analysis Created Action Items Planned Way Ahead Outputs: Key Findings Recommendations Way Ahead Plan (Documented in A3) Outputs: Key Findings Recommendations Way Ahead Plan (Documented in A3) 8

9 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Scope Government-Furnishing Equipment (GFE) only: Equipment going to/from contractors Equipment coming out of Contractor Acquired Property (CAP) that is titled to and accepted by the government Scope does NOT include: Government-Furnished Material (GFM) Contractor Acquired Property (CAP) 9

10 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Applied A3 Model (Work-In-Progress) 8-Step Problem Solving Process Step 1:Problem Statement Step 2:Break Down the Problem/Identify Performance Gaps Step 3: Set Improvement Targets Step 4: Determine Root Cause Step 5: Develop Countermeasures Step 6: See Countermeasures Through Step 7: Confirm Results and Process Step 8: Standardize Successful Processes 10

11 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 1: Clarify & Validate the Problem Problem Statement: The Air Force is not properly accounting for GFE in the Air Force Equipment Management System (AFEMS) Additional References: o AFAA report published 11 Jan 2010 noted that the Air Force lost fiscal accountability of GFE in excess of $22 billion and did not take effective actions to improve GFE financial reporting. o Executive Steering Committee (ESC) provided guidance to address issue at June 2010 meeting 11

12 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 2: Breakdown the Problem and Identify Performance Gaps Examples: Policy does not provide clear directions of expectations Multiple organizations and players are involved in ensuring GFE properly accounted for in AFEMS – who is responsible for what is not clear There is no consistent set of procedures for responsible parties to follow, and there are multiple data systems are involved in GFE tracking using different data elements No established consistent means for ensuring actions are being taken and there is a lack of understanding among the players 12

13 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 3: Set Improvement Targets Desired Future State: All GFE recorded in AFEMS 13

14 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 4: Determine Root Cause 14 All GFE is not properly accounted for in AFEMS Policy (1) Roles & Responsibilities (2) Compliance (4)Awareness (5) Procedures (3)Information & Data (3) Gaps Inconsistent Unclear Lots of Handoffs Many Players Unclear Responsibilities Lack of Internal Controls Training Cumbersome Procedures Of Policy Of Impact Of Roles Cumbersome Unclear Non Standard Undocumented Non Standard IT Overlays Drops at Handoffs 5-Whys / Root Cause Analysis: Summarized Fishbone Diagram

15 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 5: Develop Countermeasures Needs to be an AQ/A4/7 joint solution Need to ensure policy is in alignment (DoD AF MAJCOM) Need to ensure roles and responsibilities are clearly defined Need to ensure procedures are consistent across organizations Need to ensure appropriate representation for Business Case Analysis (BCA) Identify team members (Acquisition, Contracting, Logistics, Legal,...) Create checklist for required actions Establish action plan for providing GFE Establish Accountability Property Office (APO) 15

16 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 5: Develop Countermeasures DEC10 ESC review and vector check – Seek directional approval DEC10Wrap-up bulk of Discovery related Action Items JAN11 Release Joint memo (AQ & A4L) tasking to identify GFE on Command and base contracts. FEB11 Schedule follow-up session with GFE working group to drive through new discovery and develop greater detail to corrective action plan APR11 Publish Guidance Memorandum(s) Countermeasures: Established bi-weekly GFE meeting to manage and drive progress Periodically update senior leadership through A&FM IPT and Executive Steering Committee 16

17 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Step 6: Seek Countermeasures Through GFE Accountability Effort: Senior Officials:Mr Durante (SAF/AQX) / Mr. Allen (AF/A4L) Co-Leads:Maj Hicks / Mr. Lawrence Working Group: Participating Team Members Advisors: OSD AT&L, DCMA, AFAA/FSF 17

18 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force Game Plan 18

19 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Game Plan Address the $22B (SAF/FMPR/A4LM/754 ELSG) – ECD: Mar 11 OPR: A4LM Review contracts that accounted for 95% of GFE balance Validate GFE on contracts Populate AFEMS for missing GFE Provide update to A&FM IPT – 17 Feb 11 Obtain and populate AFEMS with GFE information - ECD: Dec 11 (SAF/AQXA/A4LM/A4LE//754 ELSG All contracts with GFE Validate information 19

20 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Game Plan (contd) Establish future processes to account for GFE – ECD: Sep 11 (SAF/AQXA/AQCI/A4LM/A4LE) Develop Policy and Procedures – Nov 10 – Jun 11 Final coordination – Jul 11 Publish Policy and Procedures – Aug 11 Revise responses to AFAA audit – A4LM/A4LE Coordinate with AFAA ECD: Feb 11 Establish Air Force Property Office – Initiate Study – Mar 11 Single POC for Government Furnished Property Established in Navy (Central Property Office) Provide updates to A&FM IPT monthly and ESC quarterly 20

21 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Data Call Data Call sent 5 January to Program Offices Requested GFE on all contracts Suspense of 10 Jan; still receiving additional/revised responses Reviewed over 120 contracts and over 53K records Working through submissions Review Process Validating each GFE line on contract Comparing CPMS data Verifying GFE is in Air Force Equipment Management System (AFEMS) 21

22 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Challenges Program Offices and contractors understanding of tasker Contractors data consolidated under GFP Equipment Aircraft Spare parts Tagging/listing spare parts as equipment Data issues Reliance on contractors to provide data Incomplete data (e.g. DODAAC, SN/PN, Serial Number) Data structure (e.g. contract numbers) must modified for matching purposes 22

23 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Contracts vs CPMS to Address $22B (contd) 23 Weapon System CPMS (AFAA source) GFE Data Call – All Equipment GFE Data Call – Capital Equipment Recorded in AFEMS C-17$ 2,947.8M$ *3,448.3M$ 182.0M$ TBD B-22,835.7M*1,328.7M509.7M29.0M LGM-301,346.2M120.6M80.6M F-151,098.9M413.7M349.3M C-135987.6M2.6M.6M KC-135933.1M8.0M.8M E-3597.5M.7M.3M B-1587.6M124.6M91.1M C-130J562.0M.8M.1M F-16486.0M.0M * Response includes aircraft, heavily skewing numbers

24 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Summary Aggressively working the $22B disconnect Game Plan in place with POCs and milestones Validating data time consuming Keep leadership informed through A&FM IPT and ESC 24


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