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Organizational Transformation in an Air Force Research and Development (R&D) Contracting Directorate: A Practical Application. Breakout Session # 602 Stephen C. Davis, Contracting Officer, Branch Chief Det 1 Air Force Research Laboratory, United States Air Force Date 26 April 2004

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Presentation Transcript
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NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide2

Organizational Transformation in an Air Force Research and Development (R&D) Contracting Directorate: A Practical Application

Breakout Session # 602

Stephen C. Davis, Contracting Officer, Branch Chief

Det 1 Air Force Research Laboratory, United States Air Force

Date 26 April 2004

Time 1:30 - 2:30

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

detachment 1 afrl pk mission
Detachment 1 AFRL/PK Mission

To provide innovative, high-

quality contracting and business

support for our customers to

advance the technological

superiority of our Air Force.

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

who we support
Who we support . . .
  • AFRL, Wright-Patterson AFB, OH
    • Sensors
    • Materials and Manufacturing
    • Air Vehicles
    • Propulsion
    • Human Effectiveness
    • Information Directorate personnel at WPAFB (Rome, NY)
  • DARPA

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide5

Transformation

is

CHANGE!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide6

NO PROBLEM!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide7

DO WE HAVE TOOOOOOO!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide8

I’M NOT CHANGING!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide9

I LIVE FOR CHANGE!!!!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide10

CHANGE IS STRESSFUL!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

why change
Why Change?
  • Faster, Better, Cheaper . . .

. . . we’ve heard it all before.

  • . . . Zero Defects,TQM, FASA/FARA . . .
  • Isn’t “Transformation” just a new buzz word?
  • Give it awhile and it will all go away with the leaders who brought it.

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

why change1
Why Change?

FAR 1.102 (d) “The role of each member of the Acquisition Team is to exercise personalinitiative and sound business judgment in providing the best value product or service to meet the customer’s needs.

FAR 1.102-4 (e) “Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority.”

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

why change2
Why Change?
  • The longer we take to make an award, the more opportunities for:
    • Rate Changes - Requirement Changes
    • Funding changes - Changes in rules/regs
  • All these issues cause schedules to stretch
  • We can not afford delays

Move technology to the warfighter faster!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

this time it s personal
This time it’s personal . . .
  • Operational landscape has

changed from Cold War to

Expeditionary Air Force.

  • Our enemies are agile/random
  • Our Acquisition processes

must reflect this new threat

  • We must embrace risk, encourage innovation, increase accountability

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the acquisition environment has changed really
The acquisition environment has changed . . . . . . REALLY!

Develop the kinds of

forces and capabilities

that can adapt quickly to

new challenges and

unexpected circumstances.

Donald Rumsfeld

Secretary of Defense

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the acquisition environment has changed really1
The acquisition environment has changed . . . . . . REALLY!
  • The Cold War is over and

radical change is needed.

  • Change the way you think
  • Change the way you

do business

  • Get with it or leave
  • Fix the process or we will lose a war someday

James Roche

Secretary of the AF

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the acquisition environment has changed really2
The acquisition environment has changed . . . . . . REALLY!
  • We've made rules to protect

the acquisition process that,

in many ways, tie the hands

of our people. . .

  • . . .it's the time for Senior

Leaders to examine these processes

that we make our people work in. . .

GeneralJohnJumper

Air Force Chief of Staff

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the acquisition environment has changed really3

Michael Wynne

(P)DUSD (AT&L)

The acquisition environment has changed . . . . . . REALLY!

DOD’s acquisition community is

challenged to take advantage of

an opportunity to initiate

dramatic improvements to the

process . . .

. . . and foster the next generation of

creative and innovative ideas

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the acquisition environment has changed really4

Dr. Marvin Sambur

(A)SAF Acquisition

The acquisition environment has changed . . . . . . REALLY!
  • The overarching objective of this

policy is to shorten acquisition

cycle times . . .

. . . every key decision must have

an operational sense of urgency.

  • Reduce acquisition cycle time by 4:1. Every

player in this transformation is key to and

accountable for its success.

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

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So what does it all mean?

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

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Our Focus

  • DYNAMIC LEADERSHIP
  • UNDERSTANDING THE CUSTOMER
  • COMMITMENT TO CHANGE
  • DEVELOPING PEOPLE

EVERY DAY MATTERS!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

dynamic leadership a change in the way we think
DYNAMIC LEADERSHIP: A Change in the Way We Think!

Lead the Transformation!

Manage the Change!

THINK!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

dynamic leadership a change in the way we think1
Traditional

Contracting Specialist

Contract focused

Success = play it safe, by the book

Transformational

Business Agent

Acquisition focused

Success = take calculated risks, by the book

DYNAMIC LEADERSHIP: A Change in the Way We Think!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

dynamic leadership a change in the way we think2
Traditional

Build contract files

Understand regs, interpret in a conservative way and CYA

Transformational

Build customer relationships

Understand regs, interpret broadly and look for innovative solutions

DYNAMIC LEADERSHIP: A Change in the Way We Think!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

the right leadership for the job
The Right Leadership for the Job

8/10 branch level and 4/8 division level positions changed through promotions, new positions and reassignments

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

understanding the customer
UNDERSTANDING THE CUSTOMER
  • Determine what the Customer really needs
  • We have more flexibility and less restrictions than ever - CAPITALIZE ON THESE TO THE FULLEST!
  • Communicate requirements and capabilities - OFTEN!

THE CUSTOMER MATTERS!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

understanding the customer1
UNDERSTANDING THE CUSTOMER
  • Advise, interject, ask questions, be proactive, work as a team
  • Lead, follow - find your place on the team
  • Manage expectations and honor your commitments
  • Collaborate more and coordinate less

DO WHAT IT TAKES TO SUPPORT THE CUSTOMER!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

commitment to change change in organizational culture
COMMITMENT TO CHANGE: Change in Organizational Culture
  • It takes active, determined leadership to change the culture, create excitement, motivate individuals and provide a common focus
  • Establish ownership and place responsibility where it belongs - at the lowest level

Cultivate Teamwork!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

commitment to change change in organizational culture1
COMMITMENT TO CHANGE: Change in Organizational Culture
  • Foster cooperation and communications - spread the word
  • Focus on efficiency, creativity, innovation
  • Change is harder for some - manage it
  • Stand by your guns!

Lead by Example!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

developing people cultivate the climate
DEVELOPING PEOPLE: Cultivate the Climate
  • Provide a solid framework to develop individuals
  • Establish teams/forums
    • Discussion of issues/ideas, common focus and best practices

PEOPLE are our Organization’s most Valuable Resource!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

developing people cultivate the climate1
DEVELOPING PEOPLE: Cultivate the Climate
  • Provide the means and resources
    • Time, support, personnel, equipment, education, space . . .
  • Listen, recognize, appreciate
  • Adapt as needed

PEOPLE must be ENABLED before they can be EMPOWERED!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

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Transformation Targets . . .

Transformation achieved through focus areas:

Processes

Tools

Philosophy

People

Immediate Target:

4:1 cycle time reduction

Ultimate Target:

AWARD 5 DAYS after Tech Decision

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

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. . .Yielded Cycle-time Reductions

Focus on reducing cycle times

Requirement

Identification

Tech Eval

Funding

Award

0……………………………………70……………………………………140

Days in cycle

Pre-positioning

Transformed:

Clearance Process

Legal Review

Pricing

Integrated Checklist

Transformed:

Solicitations

Tech Evals

ASP/AcqPlan

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformation initiatives

Transformed pricing

Transformed contract changes

Transformed ASP/AcqPlan

Transformed proposals

Open-ended BAAs

$2M Legal threshold

Transformed leadership

$10M review threshold

In-house Small Bus. Rep.

Commitment!

5 day awards

Accelerated training

Tech Eval form

DARPA Div. established

Pre-position data

Integrated kick-off checklist

Funding POP on PRs

Recognition of transformation leaders

In-house legal support

Limited warrants

Transformation team

Transformation Initiatives . . .

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

became practices

DONE!

Transformed pricing

DONE!

DONE!

Transformed contract changes

Transformed ASP/AcqPlan

DONE!

Transformed proposals

DONE!

Open-ended BAAs

DONE!

$2M Legal threshold

DONE!

Transformed leadership

DONE!

DONE!

$10M review threshold

In-house Small Bus. Rep.

Commitment!

5 day awards

DONE!

DONE!

Accelerated training

DONE!

Tech Eval form

DONE!

DARPA Div. established

DONE!

Pre-position data

DONE!

Integrated kick-off checklist

DONE!

Funding POP on PRs

DONE!

Recognition of transformation leaders

In-house legal support

DONE!

DONE!

Limited warrants

DONE!

Transformation team

. . . Became Practices

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed processes
Transformed Processes
  • Transformed Coordinations and Reviews
    • Eliminated static reviews by getting involvement early and throughout the process
    • In-house legal counsel and Small Business Representative
  • Transformed ASP/AcqPlan
    • ASP charts are Acquisition Plan so that two requirements are satisfied by one event

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed processes1
Transformed Processes
  • Transformed Daily Performance
    • No longer sequential, but concurrent
    • Preposition for the next step - Thinking ahead
  • Transformed Incremental Fundings
    • Estimated Period of Performance on PRs
    • Provided by Program Manager

Efficient Processes yield Quicker Awards!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed tools
Transformed Tools
  • Transformed Technical Evaluations
    • Standardized Checklists for Sole Source and Competitive Actions
    • Addresses required elements
  • Integrated kick-off checklist
    • Completed electronically and automatically links information to multiple documents

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed tools1
Transformed Tools
  • Pre-positioned Data
    • Electronic posting of data needed to make award (FPRA/audit data, contractor specific information. . .)
    • Collaborative sharing of information
    • Limits 3rd party involvement

The better the Tools, the better the Product

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed philosophies
Transformed Philosophies
  • Transformed Pricing
    • Satisfy regulations/policies and reduce effort
    • Match effort to contract type
  • Transformed solicitations - Open-ended BAAs
    • Amending BAA versus writing new one takes less time
    • Five year look ahead in technology thrust

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed philosophies1
Transformed Philosophies
  • Transformed Contract Changes
    • Full use of Changes Clause expedites change authorization
    • Incorporate change, amend “funding good through” date, complete equitable adjustment as necessary

Creative ways to satisfy regulations and policy

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed people
Transformed People
  • Established Transformation Team
    • Many sub-level teams resulted
  • Issued 26+ limited Contracting Officer warrants
    • Incremental funding, contract closeout, admin changes, no-cost time extensions (Over 2000 such actions FY03)
  • Overhauled our CO Warrant Process

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

transformed people1
Transformed People
  • Established DARPA Division for unique customer needs
  • Overhauled and Accelerated our Training Plan
    • Currently 25+ Trainees in Det 1 AFRL/PK
    • Two year plan provides full service training

Enabled, Empowered and Placed

responsibility at the lowest level

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

we accepted the challenge
We Accepted the Challenge
  • Developed initiatives which satisfy the tenets of transformation
    • Reduce cycle time, quickly move technology

to the warfighter and increase flexibility

  • Initiatives institutionalized to drive change
  • Individuals adopted initiatives as practices and, in some cases, adapted practices to fit their specific needs

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

accept the challenge yourself
Accept the Challenge Yourself
  • Our current national defense environment dictates we must get goods and services to the warfighter faster!
  • Develop initiatives and implement practices to accomplish transformation focus
  • Cultivate mission oriented thinking, change organizational processes, and foster individual practices in ways that reduce contract cycle times
  • Transforming individual attitudes and practices will yield the greatest change!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

accept the challenge
Accept the Challenge

Transformation

is the right thing to do!

NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”

slide47
NCMA World Congress 2004

“Maximizing Value to Stakeholders…Contract Management in the Business World”