One DOT Integrated Procurement Solution: ESC PRISM Project Update

1. One DOT Integrated Procurement Solution:�ESC PRISM� Project Update Briefing for the DOT CIO Council by Denise P. Wright Acting Senior Procurement Executive Larry Neff Deputy Chief Financial Officer April 3, 2008

2. 2 Agenda ESC: a designated Shared Service Provider (SSP) DOT�s Business Transformation initiative PRISM today at DOT ESC PRISM � project scope and definition Service Oriented Architecture (SOA) GAO deployment strategy � Phases 1 and 2 ESC PRISM at DOT Meets DOT DP2 requirements Standard configuration and benefits

3. 3 Enterprise Services Center (ESC) Background 1 of 4 financial management Shared Service Providers (SSPs) designated by OMB in Feb. 2005 ESC provides: (1) the Delphi financial system, (2) expert accounting services, (3) a large professionally-run data center & Help Desk 850 employees at FAA�s Mike Monroney Aeronautical Center in Oklahoma City Mix of Federal employees & contractors Serves all DOT OAs plus external customers: Delphi & accounting services for GAO, CFTC, IMLS & NEA PCS moves for Dept. of Education

4. 4 Business Transformation Multi-year effort across DOT programs & organizations Streamline, standardize, consolidate & re-engineer business processes Better link costs to strategic goals & program performance metrics Plan for & implement new standardized business processes & data requirements from OMB & Treasury Plan for major Oracle system changes Have developed Workgroup structure & established governance/oversight

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6. 6 ESC PRISM - Project Scope Configure, develop, test & implement a standard PRISM system integrated with Delphi using Service Oriented Architecture (SOA) technology Based on documented DOT requirements (DP2) Implementing at GAO in 2 phases OAs & M-60 conduct gap analysis Modify/test as needed Offer to the OAs as a service from ESC Joint effort by M-60, S-80, B-30 & ESC

7. 7 What is SOA technology? Reduces business events to standard, reusable, decoupled processes Commitments, obligations, etc. Lower cost of developing & maintaining interfaces Best suited for event-driven, real-time integration between systems Web services already used for U.S. Bank (purchase credit card) and GovTrip (travel credit card) interfaces to Delphi Other candidates: grants, payroll, etc.

8. 8 Deployment Strategy at GAO Phase 1 of ESC PRISM � partial integration with Delphi implemented in September 2007 for GAO Phase 2 of ESC PRISM � full integration with Delphi Include ESC PRISM with scheduled Delphi releases

9. 9 Phase 1 in Production at GAO Automated Processes Accounting string Lookup/Validation Synchronization of the supplier/vendor table Manual Processes Validation of funds by Budget Offices GAO prints and mails Requisitions and Award documents to ESC for manual entry into Delphi Jeff Thomas of FHWA�s Acquisition Office helped GAO with business process mapping, changes & implementing best practices

10. 10 Phase 1 � System Flow

11. 11 Phase 2 � Testing Underway Automated Processes � ESC PRISM fully integrated with Delphi Accounting string Lookup/Validation Synchronization of the vendor/supplier table Real-time funds validation Requisitions in PRISM automatically flow to Delphi Award documents generated in PRISM automatically flow to Delphi Manual Processes � None ESC is currently completing system testingfor Phase 2

12. 12 Phase 2 � System Flow

13. 13 Standard Configuration PRISM modules: Base, APP and Receiving Standard PRISM functionality No customizations/changes to COTS software Standard functional setup at the global level Business flows as shown on Phase 2 chart MarkView (invoice imaging & workflow system) will be used for 2-way matching PRISM Acceptance module can be used for 3-way matched invoices to enter receipts

15. 15 ESC PRISM meets DP2 Requirements Departmental Procurement Platform (DP2) Draft RFP, dated June 2006: ESC PRISM meets 16 out of 16 requirements Delphi Integration Requirements, dated June 2006: ESC PRISM meets 14 out of 14 requirements

16. 16 Benefits of ESC PRISM for DOT Automatically enter commitments into Delphi Improve value of Status of Funds report for program managers Enable them to eliminate �Cuff Record� systems Eliminate manual funds checking Eliminate redundant manual entry of obligations into Delphi Significantly reduce cost of accounting services Eliminate need to reconcile PRISM & Delphi Synchronize/share PRISM vendor/Delphi supplier table

17. 17 Benefits of ESC PRISM for DOT Accommodate FAR and FAA�s AMS policies Replace multiple stand-alone PRISM systems with a standardized, integrated, consolidated procurement solution Reduce system hosting, operation & support costs Reduce annual software maintenance costs Relieve OAs of the burdens of Exhibits 300, Certification & Accreditation (C&A), Disaster Recovery, etc., for PRISM

18. 18 Challenges and next steps Document �To-be� business process flows and work with OAs to conduct gap analysis Coordinate the Integrated Procurement Solution Workgroup with the Financial Management Business Council (FMBC) Establish governance structure Include procurement & finance Set up Change Control Board (CCB) process Select pilots & further implementation sequence Develop Service Level Agreement (SLA) Select method for allocating O&M costs

19. 19 Questions? Denise P. Wright Acting Senior Procurement Executive (202) 366-4263 Denise_P._Wright@dot.gov Larry Neff Deputy Chief Financial Officer (202) 366-2335 Larry.Neff@dot.gov