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Mr. Charles Riechers Principal Deputy Assistant Secretary for Acquisition and Management

SAE/CAE Panel on Acquisition of Services. Mr. Charles Riechers Principal Deputy Assistant Secretary for Acquisition and Management 17 April 2007. Services Acquisition Background. CONGRESSIONAL TRANSCRIPTS Congressional Hearings July 18, 2006

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Mr. Charles Riechers Principal Deputy Assistant Secretary for Acquisition and Management

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  1. SAE/CAE Panel on Acquisition of Services Mr. Charles Riechers Principal Deputy Assistant Secretary for Acquisition and Management 17 April 2007

  2. Services Acquisition Background CONGRESSIONAL TRANSCRIPTSCongressional HearingsJuly 18, 2006 Senate Armed Services Committee Holds Hearing on Pending Nominations Page 51: SENATOR CARL LEVIN: (Ranking Member of SASC) Ms. Payton: The acquisition of contract services has been often neglected by senior Department of Defense acquisition officials who spend a majority of their time on the major weapons systems. As a result, we continue to spend billions of dollars for contract services without adequate assurance that we're getting our money's worth.     If confirmed, will you make it a top priority to improve the management of contract services by the Department of the Air Force?” Ms. PAYTON: Senator, if confirmed, this will be one of my top priority items.

  3. Air Force Services AcquisitionMAJCOM Market Share to Date* Sustainment in ALCs and A&AS *Dollars in Billions

  4. Air Force Services AcquisitionPortfolio A&AS – $10.6B / 9 Months Operational or Base Level Maintenance – $6.5B/8 months Sustainment & Mission Support Services – $61.0B/12 months Information Technology - $11.3B / 6 Months R&D –$1.4B/10 months Range Operations & Maintenance – $1.9B/13 months Training –$1.4B/12 months Contingency Operations & Support –$10.6B/10 months Base Operating Support $8.6B / 13 Months The Average Time from RFP to Award is 10 Months

  5. Lessons Learned • Requirements not well defined • Performance based approach • Alternative approaches - leverage contractor innovations (fresh perspective) • Initiate early involvement to shape new acquisitions • Review programs with follow-on requirements with sufficient lead time to award • Work with MAJCOMs to focus on risks, strategies and program management • Complexity of modern service acquisitions • Require more than the current COTR/ACO management structure • Stress objectivity during source selection • Post Award • Need meaningful metrics (cost, schedule & performance)

  6. Challenges and Risks • Significant dollars (O&M Funding- $34B) but shrinking • Growing complexity of requirements (integration & consolidation) • Provide right level of support & critical skills for personnel necessary for services acquisition (e.g., PM, ACO, COTR…) • AFSO 21 pushing efficiencies in processes • Legislation driving management and oversight like weapons process • “Weapon System” processes not designed for “services” acquisition Requires Services-Focused Solutions

  7. Air Force Services Acquisition AF Today No AF Influence Source Selection Pre-Source Selection Established Limited AF Influence AF Emphasis Needed on Strategies Pre-Source Selection Established AF Emphasis Needed on Performance Measurement Senior DoD Management and Oversight – Decentralized Execution

  8. ONLY PEO OFFICE DEDICATED TO SERVICE ACQUISITION ONLY PEO OFFICE DEDICATED TO SERVICE ACQUISITION PEO/CM Mission Manage and oversee the acquisition and delivery of Air Force operational and mission support services for today’s warfighter. • Services > $100M and A-76 actions >300 FTE • Acquisition Authority • Source Selection Authority • Fee Determining Official • Work with SAF/AQC on contracts below PEO/CM threshold

  9. What it all comes down to… • Our Vision: • War-winning capabilities • on time, • on cost

  10. Focus Areas • Credibility In Acq - Process • Preeminent Workforce - People • Game Changers - Product The Immediate Action Plan: • The Baker’s Dozen Desired End State: Lean Acq w/Integrity, Credibility

  11. The Baker’s Dozen(13 in 12) Workforce: (1) People Human Capital Strategic Planning - Program Managers - Systems Engineering - Contracts Personnel - Cost Estimators/Price Analysts Game Changers (4) Products Directed Energy – Non-lethal & Precision Advanced Composite Aircraft Energy Alternatives & Conservation Open Architectures / SW Dev. & Reuse • Credibility (8) Standard Processes • Cost Realism • Services Contract Initiatives • Risk Based Programming/Risk Based Oversight • Time Certain Acquisition • Award/Incentive Fee Realism • Streamlined Quality Source Selection • Strategic Sourcing • Proactive External Engagement Desired End State: Lean Acq w/Integrity, Credibility

  12. Service Acquisition ChallengesMulti-Pronged Approach • Early Involvement • Training • Outreach & Communications • People & Guidelines

  13. Services Acquisition • Congressional concern! • Services Acquisition Reform Act (SARA) in 2003 Charted an Advisory Panel to study “commercial practices” • On-going GAO Audits

  14. Air Force Services AcquisitionSuccesses • Predator MQ-1 • Competition resulted in significant cost savings - over $100M for life of contract • Tinker Advisory & Assistance (A&AS) • Consolidated 68 separate unmanageable contracts into five multiple award IDIQ contracts managed by one program office • Forward Operating Locations – Base Operating Support • Well defined requirements provided critical capability – mission dollars saved

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