1. Air Force Program Executive Officer
for Combat and Mission Support Review and Outlook
Randall D. Culpepper
Single Manager for Services
&
Program Executive Officer
for Combat & Mission Support
Mar 2015

2. Overview Mission Today in Services Acquisition Spend Data
Portfolio Management
On the Horizon
BBP 3.0 Preview
Bending the Cost Curve
Improving our Services Acquisition Tradecraft

3. Single Manager for Services & PEO/CM Mission
SMS - Advisor and focal point for all AF Services
Acquisition Governance/Policy; Strategic Messaging; Reporting & Analysis; Service Requirements Validation Coordination
PEO/CM - Provide executive management and oversight for the acquisition and delivery of SAE specified Air Force operational and mission support services for today’s warfighter.
Acquisition Plan, Select, Execute Service efforts >$250M (increased from $100M)
197 Acquisitions Valued at $222.4 Billion
Pre & Post Award Programs As of 2QFY 2014

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
Today in Services Acquisition
AF “Contract Court”
Support Services Rqmts Reviews (SSRRs)
Services Governance Health Assessment
Conducted AF-Wide review of 3 unique Structures
MAJCOMs – Most mature structure, 5 years of reviews
Weapon Systems PEOs – First formal review with SAF/AQ, but started governance process in FY12
HAF 2-Ltrs – Initial review of services contracts
Identified gaps in policies and process
AFI being updated
Developing Services Master List Tool
Utilizing IT to help capture pre and post award data in a single location using one time entry requirement
Leverages existing authoritative business systems reducing burden of the field for “data calls”
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

5. AF FY Obligations (Goods, R&D and Services)
(FPDS-NG FY12 – FY AF Funding Agency w/o FMS)
FPDS-NG As of 09 Jan 2015

6. AF Services FY Obligations By Portfolio Group (FPDS-NG FY09 - FY14 AF Funding Agency w/o FMS)
FPDS-NG As of 09 Jan 2015

7. Portfolio Management
Services Portfolio previously managed via MAJCOM structure
BBP 1.0 mandated uniform taxonomy for services (Memo, dated 14 Sep 10) ties to OSD Functional Domain Expert structure via Component Level Leads
Portfolio Management Improves Spend Analysis
Knowledge within context of a common thread
Helps strategic sourcing
Leverage economies of scale
Implement procurement best practices
Portfolio Management
Builds deeper functional skills; specialization
Reduces redundant business arrangements
Improves transparency across Defense Enterprise
Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending, 14 Sept 2010
Taxonomy for the Acquisition of Services and Supplies & Equipment, 27 Aug 2012
Portfolio Group Spend Analysis
Portfolio group spend analysis is part of the first critical step in making an informed business decision in the Strategic Sourcing process. It is a powerful tool that provides knowledge within the context of a portfolio about how much is being spent; the specific nature of the purchases (Services or S&E); buying practices (i.e., contract characteristics); and what contracting parties (i.e., requiring offices, contracting offices and suppliers) are involved. A portfolio group spend analysis also identifies opportunities to create significant cost savings, leverage economies of scale, employ demand management principles and draws attention to procurement best practices. DPAP/PASS provides annual portfolio group spend analyses to Military Departments and Defense Agencies to enable and sustain their strategic sourcing efforts.
Portfolio Management
DPAP/PASS conducts the annual spend analysis employing a portfolio management approach. Portfolio management provides a collaboration framework for centralized oversight within OUSD (AT&L) coupled with decentralized execution at the Military Departments and Defense Agencies. By driving collaboration, portfolio management:
Improves the transparency of requirements across the Defense Enterprise;
Reduces the proliferation of redundant business arrangements developed for similar products or services; and
Increases awareness of alternative business arrangements that may be better suited to particular needs.
Portfolio management also helps acquisition personnel build deeper functional skills by allowing them to specialize in specific commodities or marketplaces. This additional expertise results in enhanced support to the warfighter through maximized procurement dollars, streamlined organizations, and increased efficiency and effectiveness.

8. Portfolio Groups OSD AF CLLs FDEs DoD-wide
Knowledge Based Services
Transportation Services
Facility Related Services
Equipment Related Services
Electronic & Comm Services
Medical Services
Logistics Management Services
Construction Services
- Engineering and Technical
- Program Management
- Management Support
- Administrative
- Professional
- Education and Training
Architect/Engineering
- Operation of Govt Facilities
- Machinery & Equip Maintenance
- Building & Plant Maintenance
- Natural Resource Management
- Utilities
- House Keeping & Social Services
- Maintenance, Repair & Overhaul
- Equipment Modification
Installation of Equipment
Quality Control
Technical Representative
Purchases & Leases
Salvage
- Transportation of Things
- Transportation of People
- Other Travel & Relocation
General Medical
- Dentistry
Specialty Medical
ADP Equipment
Equipment Maintenance
Equipment Leases
Structures & Facilities
Conservation & Dev
Restoration Activities
- Log Civil Augmentation
Log Support
Research and Development
- Systems Development
- Operational Sys Dev
- Technology Base
DoD-wide
Acquisition of Services Taxonomy
OSD
FDEs AF
CLLs

9. OSD Functional Domain Expert Structure
USD(AT&L) or Designee
Executive Secretariat DPAP
Transportation Services FDE
Mr. Paul D. Peters
Logistics Management Services FDE
Mr. Paul D. Peters
Equipment Related Services FDE
Mr. Paul D. Peters
Electronics & Comm. Services FDE
Mr. Robert J. Carey
Medical Services FDE
Dr. Karen S. Guice
Facilities Related Services FDE
Mr. John Conger
Knowledge Based Services FDEs
Engineering & Technical Services Mr. Stephen Welby
Component Level Leads
Component Level Leads
Component Level Leads
Component Level Leads
Component Level Leads
Component Level Leads
Component Level Leads
Program Management Services
Ms. Darlene Costello
Statistics
Actions: 10.8M
Dollars: $9.8B
Statistics
Actions: 4.6K
Dollars: $9B
Statistics
Actions: 31.1K
Dollars: $19.4B
Statistics
Actions: 81.6K
Dollars: $17.7B
Statistics
Actions: 7.9K
Dollars: $13.6B
Statistics
Actions:125.7K
Dollars: $25.7B
Statistics
Actions: 65.7K
Dollars: $38B
Management Support Services Mr. Kevin Scheid
Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending, 14 Sept 2010
Taxonomy for the Acquisition of Services and Supplies & Equipment, 27 Aug 2012
Portfolio Group Spend Analysis
Portfolio group spend analysis is part of the first critical step in making an informed business decision in the Strategic Sourcing process. It is a powerful tool that provides knowledge within the context of a portfolio about how much is being spent; the specific nature of the purchases (Services or S&E); buying practices (i.e., contract characteristics); and what contracting parties (i.e., requiring offices, contracting offices and suppliers) are involved. A portfolio group spend analysis also identifies opportunities to create significant cost savings, leverage economies of scale, employ demand management principles and draws attention to procurement best practices. DPAP/PASS provides annual portfolio group spend analyses to Military Departments and Defense Agencies to enable and sustain their strategic sourcing efforts.
Portfolio Management
DPAP/PASS conducts the annual spend analysis employing a portfolio management approach. Portfolio management provides a collaboration framework for centralized oversight within OUSD (AT&L) coupled with decentralized execution at the Military Departments and Defense Agencies. By driving collaboration, portfolio management:
Improves the transparency of requirements across the Defense Enterprise;
Reduces the proliferation of redundant business arrangements developed for similar products or services; and
Increases awareness of alternative business arrangements that may be better suited to particular needs.
Portfolio management also helps acquisition personnel build deeper functional skills by allowing them to specialize in specific commodities or marketplaces. This additional expertise results in enhanced support to the warfighter through maximized procurement dollars, streamlined organizations, and increased efficiency and effectiveness.
DPAP & SSM Cross Cutting Staff Support
Army
Air Force
Navy
Defense Logistics Agency
Missile Defense Agency
Component-Level Leads
Portfolio FDEs
Administrative & Other Services Mr. Ken Brennan
Professional Services
Mr. Ken Brennan
Education & Training
Mr. Frank DiGiovanni
Source: FPDS-NG, FY12

10. Converting to Portfolio Alignment
SMS & PEO/Combat and Mission Support
SMS & PEO: Mr Randall Culpepper
Deputy SMS: Mr Tony Peasant Deputy PEO: Mr Rob Clarke
Executive Officer: Vacant Admin: Vacant
Legal (SAF/GCQ)
Ms Marcia Bachman
Ms Heather Gurgiolo
Mr Kevin Doherty
HAF
Portfolio
Champs
PEO/CM
Pre/Post
(rebalancing)
Portfolio Acquisition Teams
SMS
FY12
Spend
Policy, Process, Oversight and Strategic Communication Team
Chief, Ms Tonya Desaussure*
Mr Brian Jordan
Mr Jerry Pickham
Knowledge Based Services
Mr Pat Marr
28 pgms
$16.5B A1
$9.0B
Facilities / Med / Trans Services
Ms Farris Welsh, Mr Will Caffaro IE SG A4
70 pgms
$45.5B
$9.4B
Data Analysis
Ms Cindy Santens (ktr)
Electronic & Comm Services
Mr Bill Braden, Maj Tracey Howell
23 pgms
$34.3B
CIO
$3.2B
Principal Economist for Market Intelligence
Vacant
Equipment / Logistics Mgt Services
Capt Chris Balmaceda, Capt Dustin Wade
62 pgms
$82.3B A4
$7.1B
Equipment Services (other PEOs)
Ms Julia Preisinger, Vacant

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
On the Horizon
Continue to evolve/Update Standardized Processes/Tools
Services AFI, Services Master List Tool, “Contract Court”…
Strengthen Enterprise Sourcing Capabilities/Opportunities
Continue to evolve Should Cost Initiatives
Establish Annual AF-wide AER/Health of Services Battle Rhythm
Implement and Share Best practices, Lessons Learned & Strategic Opportunities
Closely govern contract ceilings for meeting requirements
Use Requirements Approval Documents (RADs) as tool to govern ceiling
Develop Unique Identifier for Personnel w/Services Acq Exp
IDs Gap/Enables appropriate training for non Acq professionals
Gives PM Credit to those managing services acquisitions
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

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
BBP 3.0 Services Acquisition Concerns
Increase small business participation, including through more effective use of market research
Deploy a suite of market research tools by 31 Oct 15
Convene IPT to perform assessment of using regionalized/matrixed approach for market research by 31 Dec 15
Study feasibility of establishing a superior supplier program for small businesses by 30 Sept 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

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
BBP 3.0 Services Acquisition Concerns
Strengthen contract management outside the normal acquisition chain – installations, etc.
Finalize new DoDI 5000.ac “Defense Acquisition of Services” by 30 Apr 15
Develop/execute comm plan and training for DoDI 5000.ac with a 12 month completion schedule
Work with stakeholders outside of DAWIA workforce to identify the non-acquisition workforce audience within 6 months of issuance of BBP 3.0 Memo.
DAU and other training providers will immediately begin training of non-acquisition personnel leveraging current capabilities
Monitor implementation to assess and address any shortcomings with corrective action plans during first year of the DoDI 5000.ac issuance.
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

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
BBP 3.0 Services Acquisition Concerns
Improve requirements definition for services
Identify existing processes for defining requirements including organizational structure conditions that make processes more effective by 1 Jun 15
Examine/identify gaps in the associated services acquisition training by 1 Jun 15
Prepare and deliver a white paper describing existing processes & best practices by 1 Jul 15
Develop a Comm Plan for roll-out of best practices across the Department between Aug-Dec 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

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
BBP 3.0 Services Acquisition Concerns
Improve the effectiveness and productivity of contracted engineering and technical services
Characterize the ETS portfolio and identify recommended practices for acquiring/assessing effectiveness of ETS by 1 June 15 and deliver recommended practices by 1 Aug15.
Assess applicability/effectiveness of known service acquisition/source selection practices to include us of LPTA on the ETS portfolio by 1 Aug 15
Identify data input, management mechanisms and guidance for improving the Department's ability to monitor and track engineering and technical services by Aug 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

16. AFPEO/CM BTCC Continuing the Journey in BTCC Initiated in 2009
High Water Mark in Spend was 2008 until 2014
Reduced Services Spend by greater than 13% overall and 25% in KBS
Approach
Appetite Control via Requirements Approval Documents maturing to Requirements Review Boards Prioritizing Around MAJCOM Mission and Risk
Pushing toward increasing Competition & Encouraging Innovation
Drives Wrap Rate Rationalization across Industrial Base
Identifying Strategic Opportunities to leverage spend

17. Improving Tradecraft in Services (Virtual Closed Loop)
Right Requirements
People Involvement
Accountability
Processes
Early Strategy & Issues Session
Market Research/Intel
Requirements Approval
Document (RAD)
Acquisition Team Training
(SAW, JIT, ARRT)
ASP template
RFP & Source Selection
Best Practices
Require
Acquire
Mission
Owners
Execute
Partners:
OSD, MILDEPs, DISA, GSA, etc
Right Requirements
Properly defined up front with focus on needs vs. desires
Requirements informed by insightful market intelligence
Right People
MAJCOM Leadership (GO/SES) involvement
Functional community and requirements owners fully engaged
Developed, trained, and recognized expertise in service acquisition
Full Accountability
Annual Execution Reviews – SMS/MAJCOM SA/Wing RAs/CORs
MAJCOM and Wing Health Assessments
Contractor held accountable for promises
Disciplined Process -- (Seven Step Process)
First understand need, explore the market and define requirement
Next build Acquisition & Sourcing Strategy and Award Contract
Finally aggressively manage performance (PM, PCO, COR, Legal)
Annual Execution Reviews
Health Assessments
MAJCOM/HAF Service Advocates, Delegations
& Services Management Agreements

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
Questions
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