1 AT&L Update Tracking AT&L Initiatives AT&L reorganization 5000 streamliningUniquely identifying tangible items and the Financial Management Enterprise ArchitectureDCMA changesVirtual DAES processSmall business opportunitiesLooking for innovative ideas
2 Tracking AT&L Initiatives Summary Of 98 Recommendationsreviewed for additions to the AT&LInitiatives Management Tracking list:71% have been Completed, are being addressed outside the tracking list or were already an initiative on the tracking list17% became New Initiatives12% not recommended for pursuitIntegrate requirements and acquisition processesInstitutionalize evolutionary acquisition and spiral developmentImplement “Hold Harmless” policy and guidanceDevelop Acquisition & Logistics Integration approach from the acquisition perspectiveApply 6 Sigma implementation to AT&L processesMy staff in AT&L looked at a total of 98 recommendations made at different forums as potential AT&L Initiatives. The PM Conference last April had 9 breakout groups that made the majority of the recommendations – 76 total. Other recommendations came from PMT 401 Students, the Atlanta XXVIII Executive Seminar and the AIAA Conference We found that 71% of the recommendations have since been completed, were already part of an existing initiative, or are being addressed outside the AT&L initiatives, e.g. through the DPG.17% of the recommendations you made did turn into five new initiatives, listed on the slide.There does need to be a greater emphasis on the alignment of requirements generation and acquisition processes in the joint environment so that requirements, acquisition and resource decision makers can work collaboratively and have continuous interaction in the overall context of mission area capabilities.Although evolutionary acquisition and spiral development are terms that have been in use within the Department for over a year, we realized from the many recommendations that we needed more work in this area to clearly define the terms and processes. In order to clarify the language, changes were made and you can see the result of these changes in the interim DoD 5000 policy.Implementing “hold- harmless” which is the FY02 statute that can hold the government accountable for work provided by the working capital funded activities, is almost complete, with the final policy awaiting Mr. Aldridge’s signature.The initiative to develop acquisition and logistics integration from an acquisition perspective reflects the need to develop guidance in a weapon systems acquisition process context, where integrated planning practices among engineering, logistics and contracting functions were applied that resulted in successfully achieving total life cycle systems management at a significantly lower cost. A final guidebook outlining the practices and tools is planned for next year.The initiative to apply 6 sigma to our processes is still being investigated as to how and if, it should be implemented to our AT&L processes.We decided not to pursue 12% of the recommendations because they were outside AT&L’s control, for example, such as the recommendation from the PM Workshop Breakout Group 6 that recommended having a task force level funding wedge not tied to a specific program. We actually did approach the comptroller on this idea, but they pointed out that Congress would not support an unidentified funding wedge.Detailed tracking information will be available onConference website
3 AT&L Reorganization in a Nutshell AS ISApproximately $2B20 O&M Programs40 RDT&E Programs2 Procurement Programs~1,090 People480 Govt80 MilitaryMany “Others”1 Major Defense Acq. ProgramAll OSD Science & Tech (~$1B)¼ of DoD 6.1 RDT&E $“Bigger” than most Defense AgenciesTO BELess $Less Direct Management of ResourcesFewer “Business” Areas~ 15% Fewer PeopleOversee Vice “Own” S&T FundingRefocused Mission SupportOSD Focus: Oversight & PolicyAction PlanDivest/Devolve Programs that Could be Performed Elsewhere - sizable staff reductionKill/Descope Non-Relevant Programs - frees funding for other usesRealign/Restructure Staff to Streamline Organization - create synergy targetsAT&L Policy – no dedicated deputiesMinimized Reports Produced Wherever Possible - asked for legislative relief as neededSignificant RealignmentsOffice of Director, Interoperability Merged into Office of Defense Systems (formerly Strategic & Tactical Systems)- Systems & Mission Integration (formerly Interoperability): System-of-Systems solution to operational needs- Systems Engineering: Policy, disciplines, best practices- Acquisition Programs: Oversight, acquisition management practiceOffice of Director, Acquisition Initiatives Merged into Office of Defense Procurement- Program Analysis: Contracting and business management strategies on major systems- Acquisition Regulations: Communicate implementing procurement regulations and guidance- E-Business: Information technology solutions within framework of End-to-End Procurement Model and DoD Financial Management Modernization Program- Workforce: Acquisition training and career development- Policy: Analysis & Develop innovative policy and business solutions
4 Revised Acquisition and Requirements Generation Policy Current policies cancelled and interim policy issued by DEPSECDEF on October 30thLess prescriptive policy environment that fosters efficiency, flexibility, creativity and innovationNeed to encourage additional streamlining during coordination of final version of DoD & .2Final Directive and Instruction planned for January 15, 2003Requirements GenerationPortions of CJCSI B dealing with MNS and CRD eliminated on October 7, 2002New document capability-based and mission area focusedObjective to provide better support to the joint warfighterRevised Joint Staff Instruction early 2003DepSecDef letter cancelled current DoD Directive , DoD Instruction and DoD RegulationA separate DepSecDef letter issued Interim Guidance that will serve as the “baseline” for the finalized and re-issued Directive and Instruction. The Regulation will not be re-issued and is now discretionary. The discretionary practice is now and will remain available via the DAU web-site.We want to encourage additional streamlining during the finalization process. The Defense Acquisition Policy Working Group is working on an accelerated schedule now per DepSecDef direction.Significant portions of the Requirements Generation System as described in Chairman, Joint Chiefs of Staff Instruction B also being revised. The Mission Needs Statement (MNS) will be replaced by a mission area focused and capabilities-based document. Concepts depicted in the Capstone Requirements Document (CRD) will be captured within mission area architectures as they are defined.Intent is to avoid producing stovepiped solutions that are not based on the capabilities required by the joint warfighterBoth efforts are being closely coordinated.Future Joint Warfighting Capabilities require a more Innovative Business Culture
5 Uniquely Identifying Tangible Items and the Financial Management Enterprise Architecture The OUSD(AT&L), working with the DoD Components and Industry, is developing policy for uniquely “marking” various commodities (property, parts and consumables).Presently, DoD does not have a standard policy for uniquely identifying or marking tangible items.The new policy is expected to prescribe the use of international standards and industry best practices.Uniquely identifying tangible items is critical to the successful development of the DoD Financial Management Enterprise Architecture, which will result in future integrated business and financial systems that must accurately and timely record the cost, location, etc. of such items.Uniquely identifying and marking DoD tangible items or assets is essential to effective asset management. The Department must know where its assets are located, when they move or transfer, what they cost and their condition, as well as a host of other important management information, and such information must be timely and accurately recorded in DoD business and financial information systems.The only way this will be accomplished is by uniquely identifying and marking such assets; however, today DoD has not issued acquisition policy and guidance that ensures that its assets are properly identified and marked. Accordingly, I have directed that AT&L working with the Components and industry develop such policy.The concepts and requirements of the policy to be developed will be incorporated in the FMEA being developed by the Comptroller and Team IBM, and will be a critical element of future business practices and systems.Heads up—the policy will prescribe the use of existing international standards.
6 DCMA Business Initiatives CONTRACT CLOSEOUTContract performance Not Complete Until CloseoutFocus on Contracts Physically Complete for More Than 7 YearsBaseline of 3,869 Open Contracts Reduced by 48%CURTAILMENT OF INSPECTIONSSept AT&L Proposal to SAEs to Curtail DCMA Inspections and Surveillance Activities for Specified Low Value/Low Risk RequirementsApplies Resources to Higher Risk/Higher Pay Off EffortsContract Closeout:Strategy is to Close All Physically Complete Contracts As Quickly As PossibleMinimize Expiring Funds and Contractor Payment IssuesSome Statistics: Total number of overage contracts has been reduced from 20,000 to 16,900. 48% of all contracts completed for 7 years, or longer, have been closed. 88% (395/448) of all cost-type contracts, over 8 years old, under $1M in value, and 56% (104/187) of all cost type contracts, greater than 8 years old, over $1M in value, are now closed. Contract closure is a vital first step to implementing the Department’s end-to-end business processes initiatives including financial management modernization, electronic contracting and corporate databases.Curtailment of InspectionsAT&L proposed to SAEs to Limit Inspections in the following 3 Instances:Change 1: Revise DFARS Part 46 to limit Government source/origin inspection on contracts under $250,000 to those situations where the head of the contracting activity has approved and verified that all three of the following conditions are satisfied: (1) there are significant contract technical requirements (e.g., drawings or test procedures), and (2) critical product features/characteristics or specific acquisition concerns have been identified, and (3) the contract is awarded to a manufacturer/producer, or contract is awarded to a dealer/distributor and specific government verifications have been identified as necessary and feasible to perform. On contracts failing one or more of these conditions, product quality assurance will be limited to destination inspection and/or user determinations of item fitness for use.Change 2: Discontinue DCMA production surveillance on contracts assigned Criticality Designator “C” (not major systems or urgent needs-see FAR ), unless contracting/program offices identify specific concerns to DCMA and request specific production surveillance.Change 3: Discontinue all DCMA production and quality assurance surveillance/reporting on any follow-on spares contracts placed with original equipment manufacturers (OEMs) with continuing production capability, unless contracting/program offices identify specific concerns to DCMA and request specific production and/or quality assurance surveillance.
7 Virtual DAESLong-term Objective: Data Mining Capability to access data at Services’ Program Management Offices (PMOs)Access limited to authorized usersNear-term focus: Enhance Consolidated Acquisition Reporting System (CARS)Provide Electronic Access to Earned Value Management (EVM) Info To Senior ManagementImprove Access and Assessment of DAES InformationProvide Quad Chart CapabilityCommence Virtual DAES Reviews in 2nd Qtr 2003The CARS Working Group (WG) has been reactivated. CARS WG membership includes representatives from the Services and the OSD offices that submit DAES assessments.The CARS WG distributed a “Data Mining/Virtual DAES Process Survey” to the Acquisition Community on October 18, 2002.The survey is intended to identify what acquisition data is available and whether data resides in an electronic media, and if so, where the data resides.CARS data base has been converted from Data Base (Dbase) Files to Oracle.CARS Field Version software will allow the Program Management Offices to input data into the CARS Oracle data base.EVM data accessible through the web for those with a browser and a password.OSD analysts will be able to input DAES assessments into the database, and DAES “Stop Light” charts can be automatically produced.Flexible “Quad Chart” system for displaying Program Data information from the CARS Oracle data base is in development.
8 Small Business Opportunities PEO/SYSCOM AccountabilityProjected DeteriorationFIXESTacticalPMs review impending actions for small business opportunitiesStrategicProactive Planning
9 I need BOLD ideas from you on: Innovative IdeasI need BOLD ideas from you on:How to make the process more efficient and effectiveAre legislative changes neededAre changes in executive branch processes neededAre internal DoD changes needed─things that we are doing that we don’t need to do or shouldn’t be doingSECDEF wants to:Raise initiatives along the lines of freedom to manage and pushing decision making down. Give people responsibility and accountability. Too much duplication in how we do our work today.Move toward a truly joint military.Brainstorm on what we need to manage better and decide quicker.Put more on the table, not being constrained by previous “nos”.