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Breakout Session # 701 Professor Steven L. Schooner Date: Monday, April 14, 2008

Leadership in Acquisition: Challenges and Opportunities. Breakout Session # 701 Professor Steven L. Schooner Date: Monday, April 14, 2008 Time: 11:00 a.m. Globalization Multinational markets Multinational firms Harmonization of international procurement norms WTO GPA EU OECD

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Breakout Session # 701 Professor Steven L. Schooner Date: Monday, April 14, 2008

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  1. Leadership in Acquisition:Challenges and Opportunities Breakout Session #701 Professor Steven L. Schooner Date: Monday, April 14, 2008 Time: 11:00 a.m.

  2. Globalization • Multinational markets • Multinational firms • Harmonization of international procurement norms • WTO GPA • EU • OECD • UN-UNCITRAL Model Law • World Bank, Regional Development Banks

  3. Concessions BOTs BOOTs PFIs US:Service Contracting, Employee Augmentation OutsourcingTrends

  4. Public Procurement:The Only Constant is CHANGE • Of Cycles, Waves, or Pendulum • On-going evolution, ever-changing • Priorities • Needs • Capacity • Markets

  5. Profiteers Mercenaries Cowboys The Military Commander’s Worst Nightmare A Political/Foreign Relations Accident Waiting to Happen An Essential Element in the U.S. Military and Diplomatic Presence in Iraq Patriots Public Servants Best Private Security Money Can Buy The Future? Blackwater Personnel are:

  6. Best (and Worst) of Times • Massive post-2000 Federal Procurement Spending Binge • No expected reversal (in short-term) • Should prove recession proof • Recession may help acquisition workforce retention and recruitment • Workforce • The lost generation • Wrong skill set • Scandals • Protectionism • No Relief in Sight

  7. Human capital is the key • Proper staffing • Qualification, Recruiting, Training, Retention, Incentives • Leadership • How to: • Incentivize (good) and disincentivize (bad) behavior • discuss (and instill ethics) in public serve?

  8. Big Picture: Acquisition Workforce • Statutory cuts: 1989-2000 • Limited new blood since • Critical mass is retirement eligible • Skills? Many: pre-DAWIA hires (waivers) • Energy level? Innovation and creativity? • 1990’s: Aggressive acquisition reform • increased flexibility/discretion • demand for greater business acumen • Post-9/11 – huge spending increase • Recruiting Hurdles (perception!!!!)

  9. 1984 [FAR]Common Contract Characteristics • Supply • Formal Advertised/Sealed Bid • Firm Fixed Price • Government-specific specification • Awarded by PCO • Managed by DCAS (DCMC, DCMA….)

  10. Common ContemporaryContract Vehicle Attributes • Services • Employee augmentation • Personal Services • Indefinite delivery/indefinite quantity (ID/IQ) • Cost-Reimbursement, Time and materials • Inter-agency contractual vehicle (fee based) • Awarded sole source (non-competitively) • Unclear (nonexistent) responsibility for post-award contract management/administration

  11. Public ServiceEthics (and Leadership)an accounting analogy v.

  12. Leadership Sets theOrganizational Tone Employees (and public) “Look up and around” Workforce notices and follows when leadership disrepects procurement process

  13. Michael Wynne on the Boeing tanker-lease deal “They [Airbus] came in a coupleof weeks ago and offered to build the majority [of the tankers] here in America. . . . I am not sure where this will lead, but the benefits of competition may be revealing….”

  14. “Mike, you must be out of your mind!!!” (Former) AF Secretary JAMES ROCHE

  15. How Do We Define Success? • Transparency • Integrity (Corruption Control) • Competition • Uniformity • Risk Avoidance • Wealth Distribution • Best value • Efficiency (administrative) • Customer Satisfaction Perpetually Competing Policies and Aspirations

  16. Good Luck! • Questions? • Comments? • Suggestions? • Ideas?

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