1. HHS ACQUISITION INITIATIVES
ANGELA BILLUPS, Ph.D.
Associate Deputy Assistant Secretary for Acquisition
Senior Procurement Executive
February 19, 2015
HHS Acquisition: Ready. Resourceful. Responsive.

2. Acquisition Focus Areas for 2015
Acquisition Lifecycle Management and Reform
Buying Smarter
Data Quality
Advancing Mission Performance
Key Success Factors

3. Acquisition Lifecycle Management and Reform
Standardize Acquisition Practices
HHS Acquisition Regulation (HHSAR) Update
Supplements and is Aligned with the Federal Acquisition Regulation (FAR)
Removed Duplicative Language Already in the FAR
Removed Internal HHS Policy/Guidance and Other Outdated Content
Reinstituted the FAR as HHS Regulatory Guidance Along with Supplements in the HHSAR
Electronic Portal House Internal HHS Policy/Guidance
Organized, Universal, Clear and Concise EE
HHSAR
E-PORTAL
YOU

4. Acquisition Lifecycle Management and Reform
HHSAR Development - Significant Effort
Collaboration - All Operating and Staff Divisions
Multiple Meetings and Numerous Topics
Multiple Sub-group Meetings
Details of Team Accomplishments
Pages Before 350 – After 178
Proposed Final Rule Includes Comments Resulting from HHSAR Team Review and Specific Operating/Staff Division Input
628 Comments - Initial Review of Updated HHSAR
67 Comments - Executive Secretary Review Process
Local Clauses Reviewed and Adjudicated
182 Reviewed
42 Became HHS Standard Clauses

5. Acquisition Lifecycle Management and Reform
Improving HHS Acquisition Lifecycle Management
What is Acquisition Management?
Acquisition Management is a Federal Government best practice that provides a structured framework and processes for the acquisition of products and services to support a program/mission needs, and:
Is a cradle-to-grave approach that begins with identification of the business need and supports the entire lifecycle of the program
Integrates distinct silo functional processes, such as requirements management, budgeting, contracting, IT and project management
Entails an integrated cross-functional team approach to managing the program
Provides a holistic approach to monitoring and providing Government oversight to contractor led efforts
Acquisition Management is not contract management.
It is owned by the Program’s Business Owner; supported by contracting.

6. Why Does HHS Need Acquisition Management?
Most large programs fail because of poor strategy and planning, inadequate definition of the business need, and inability to continually manage risks in the program
Complex functional processes for budgeting, contracting and IT are silo’ed – there is not an integrated product team approach to managing the program
IT and non-IT needs are not integrated from a program perspective to ensure optimization of resources
Contracting is often looked at as a “silver bullet” or blamed for failure when the responsibility for the program strategy and execution rests with the business owner
There needs to be a clearly identified owner for the program who is accountable and responsible for program success and is empowered to make decisions
Clear roles and responsibilities are needed for the Acquisition team supporting the program under the leadership of a qualified Project/ Program Manager (P/PM)
An appropriate degree of program oversight is needed to ensure that there are checks and balances in place and a governance structure to support prompt escalation and management of issues

7. Acquisition Team Roles & Responsibilities
Milestone Decision Authority (MDA)
Responsible for making acquisition investment decisions and providing approval at each Milestone Decision Gate for programs with a total acquisition cost of less than $20M (Division Head)
Program/ Project Manager (P/PM)
Leads Integrated Product Team
Makes program decisions based on strategy established by leadership
Establishes Acquisition Strategy and Acquisition Plan
Manages risks continually through program life cycle
Manages costs, schedule and performance (scope and contractor performance management)
Business Owner(s) and stakeholders
Sets program strategy, objectives and performance metrics
Owns the processes and business needs
Establishes business requirements and priorities
Program operations including customer support
Head of Contracting Activity (HCA) and Contracting Officer (CO)
HCA provides leadership for contract execution. CO is the exclusive agent of the Government empowered as the signatory authority for execution pre and post award contractual documents. Provides direction to contractor based on PM’s decision
Contracting Officers Representative (COR)
Supports day-to-day administration of contract assuring compliance with contractual requirements
Monitor contractor progress and performance in collaboration with the PM
Liaison between PM and CO for any contract issues and modifications
Tracks contractor deliverables, approves invoices
COR cannot be a PM for the same contract
CFO/Budget Representative
Supports establishment of business case and IGCE
Ensures budget requirements are validated and ensures availability of funding
CIO/IT Representative
IT Capital Planning and Investment Process
Manages development, testing and deployment of IT systems to meet business needs
Information security and privacy

8. Acquisition Lifecycle Framework
Mission Requirement
1. Form the Team
Plan
2. Define Mission Business Needs
Leadership Support
Build the Team
Assess Program Life Cycle/Risks
Consider Strategic Plans & Budget SB
Mission Owner
Tech
Legal
CIO CO
Buyers
QA Reps
CORs
CFO
Stakeholders
Acquisition
Team
3. Identify and Align Resources
Program/
Project
Manger
Analyze Resources and Gaps
Internal/External Resources
Mission Results
4. Requirements Definition
Draft Requirements Roadmap
Consider Acquisition Forecasting
7. Performance Management
5. Acquisition Strategy
Monitor Program Performance
Build & Manage Relationship
Manage Contract Performance
6. Acquisition Planning
Business Strategy (Program/Project)
Acquisition Strategy/Risks
Execute Strategy
Implement Acquisition Plans
Award Contract
Execute
Develop 8

9. Acquisition Lifecycle Structure
Conceptual Phase
Program Definition Phase
Program Development Phase
Program Execution & Delivery Phase
Operations & Maintenance Phase
Business Need
Identified
Milestone A
Milestone
Review
Milestone B
Milestone C
Milestone
Review
Adopt an Agile approach to delivery where feasible
Establish PM and IPT
Define what is needed – not how
Define business objectives
Conduct Risk Assessment Establish ROM
Establish Business Case
Conduct Analysis of Alternatives
Establish IGCE
Define Acquisition Strategy
Define Concept of Operations
Develop Capability Requirements Doc
Finalize & Prioritize Requirements
Acquisition Planning – contracting strategy
Validate cost estimates and availability of funding
Establish program management baseline (scope, cost, schedule)
Award contract(s)
Contract management
Configuration management for changes to baseline
Requirements traceability
Test and accept contractor deliverables
Deploy capability
Support customers
Monitor performance metrics and SLAs
Configuration Management
Change Control
Continuous improvement
Continually monitor and manage risks throughout the life cycle

10. Buying Smarter
Drive Innovations - Prioritize Efforts for Buying Smarter
Maximize Contracting with Small Businesses
Strategic Sourcing/Category Management/Acquisition Gateways
Strategic Sourcing – Leveraging Volume Buying
Category Management
Managing commonly purchased areas of spend
Collectively developing heightened levels of expertise and sharing best practices
Providing acquisition, supply and demand management solutions. 
What are Acquisition Gateways
Evaluation/Report/Utilize Past Performance Information
Improve Service Acquisition Initiative/Analysis
Improve Vendor Relationships

11. Other Acquisition Initiatives
Data Quality
Continue Transparency Initiatives
Data Act
Standard Definitions Across Functional Areas (Acquisition, Grants, Finance, Budget, etc.)
Advancing Mission Performance
Improving Acquisition Business Systems
Open Communication with Operating/Staff Division Leaders
Key Success Factors
Excellence in Acquisition (Policy, Standardized Practices, Systems and Programs)
Professional Development and Certification
Stakeholders Integration
Customer Relations - Collaboration and Management

12. Next Steps
HHSAR Proposed Final Rule Federal Register Notice Signed Feb 2015 – Awaiting Publication for Public Comment
Implement Acquisition Lifecycle Framework to Improve HHS Acquisition Management
Support Federal and HHS Acquisition Initiatives
Improve the Method Used to Train the Acquisition Workforce

13. QUESTIONS U.S. Department of Health and Human Services
200 Independence Avenue, SW.
Washington, DC 20201