Closing the Electronic Gap Between Government and Industry

1. Closing the Electronic Gap Between Government and Industry Lenn Vincent RADM, USN (Ret) Vice President CACI International, Inc

2. Acquisition Interdependence • Government is dependent upon contractors to achieve agency missions • Most of the interaction is controlled through the acquisition process • An open, seamless exchange of information is important to both but has been difficult to achieve • Recent advances in technology and functional applications are closing the gap

3. Purchase Requisition Sourcing Requirement Definition Structured process, referral process, complex Budget Check / Approval Budget officer approval, annual appropriations Workload – emphasis on automated Commitments PPRS RFQ / Offer Invoice receipt Structured Bid Opening Disbursements Amendments Fed Biz Ops Receipt vs. Acceptance Source Acceptance Socio-economic policies FAR Clauses Goods receipt Vendor eligibility Obligations Cost Accrual Purchase Order/ Award Contract Administration Modifications The Government Acquisition Process Highly regulated and rule-driven process motivated by public accountability

4. Private Sector Public Sector Public Trust and Accountability Achieving the Agency/Dept Mission Short Term Profit, Longer Term Loyalty • Service and performance-based focus • Complex and inefficient data flow • Lack of enterprise visibility • Lack of integration with program, financial and asset solutions • Delivery focus • Extensive data needs • Cost-benefit criteria • Interactive contract admin. • Packaged solutions • Multiple sources • Multiple customers Understanding the Gap

5. A Structured Approach to Bridging the Gap • Present a single face to industry for opportunities • Get your internal house in order • Expand standardization across individual agencies • Automate internal processes (contract management, bank card, e-procurement) • Align internal procurement, financial and program information • Enable strategic sourcing • Understand “spend” to prioritize investments • Facilitate the flow of contractual information • Contract administration • Collaborative environments for planning and sourcing

6. SOW RFQ Quote Government and Industry Procurement Maturity Model Level Four: Complex Integration • Incremental funding • Contract administration • Task order negotiation • Subcontractor flow down • Delivery management • Collaborative environment Level Three: Complex Transactions • Solicitation • Amendment • Offer evaluation • Concurrent mods • Major contracts • Novations Maturity Level Two: Federal Compliance • FAR • Excluded parties • BPN • FedBizOpps • eTransactions • Past performance Level One: Simple Transactions • Receipt • Invoice/Payment • Catalogue • Bid comparison • Order • Contract terms

7. No Standard formats forexchange of Governmentcontracting informationwith Industry Complex and Inefficient Data Flows Paper & Snail Mail Custom Interfaces,EDI & VAN’s Telephones & e-Mail Technology’s Role in Facilitating the Data Flow:Moving up in the Maturity Model Different schemas, syntax, and semantics Government Industry (The Gap)

8. Legal, regulatory (FAR/DFARs) and complex business needs drive a requirement for much more information to be carriedin Federal & DoD documentsand transactions Commercial standards define business document and transaction content needed to carry out business collaborations defined and transported by e.g. ebXML, BizTalk or RosettaNet Federal and DoD XML specification extensions Commercial XML DTD/schema- based documents Transported Over: ebXML BizTalk RosettaNet Building On Existing Commercial Standards:Moving Further up the Maturity Ladder Government Industry

9. Standard formats forexchange of Governmentcontracting informationwith Industry ebXML BizTalk RosettaNet This Moves Us Up the Maturity Model,But We Need To Do More … Standards and Transports Let Us Exchange Information More Efficiently Government Industry (The Gap) We’ve narrowed the gap, but we are still shipping things over the gap

10. Presentation Application Logic Service 1 Service 2 Service 3 Service n Business Logic Decomposed in Services Various Persistent Data Sources Web Technology Lets Us Build Service Oriented Architectures (SOA’s) Applications are Composed Rapidly from Business Services Services also may be exposed to other apps and partners to enable seamless collaboration and integration

11. Government Application Industry Application Service 1 Service 2 Service n Service 1 Service 2 Service m Government Business Logic Industry Business Logic Government Data Sources Industry Data Sources SOA’s Let Us Build Cooperative Applications: Right Time Collaboration With No Gap Partners Use Each Other’s Services in Their Respective Applications to Achieve the Top Level of the Maturity Model Access is Secured and Controlled to Achieve Joint Partner Goals

12. Secure, Right-time CollaborationTools and Processes Enabled by: Federal and DoD XML specification extensions Government Commercial XML DTD/schema- based documents Orchestrated by: ebXML BizTalk RosettaNet Transported Over: Web Technology: Web Services The Ultimate Goal: Right-time Collaboration Seamless, Secure, Integrated, Interoperable, Right-time Business Processes Industry **Business Object Documents

13. The Gap is Closing • There is steady progress to speed the flow of information between Government and Industry • As software applications mature, they enable • More timely and consistent processes • Standardization of touch points • An evolution from transactions processing to strategic decision making • As commercial technology evolves, it enables • Streamlined connectivity • Access to common information across organizational boundaries • The ability to build real-time collaborative applications to enable that strategic decision making

14. The Gap is Closing • Case Studies

15. Presenting a Single Face to IndustryCase Study: Beginnings of an Integrated Acquisition Environment • The government has evolved from the manual, paper, Commerce Business Daily • First stage reflected individual Agency portals and web postings • Currently, the Integrated Acquisition Environment (IAE) is simplifying and standardizing government-wide interfaces

16. Business Problem • Serve a decentralized government enterprise (170 state agencies and all VA gov’ts) • Connect large supplier community to state buyers via single portal • Make sure there are the “right goods on the shelves” eVA Portal Purchasing Transactions Warehouse Vendor Data Warehouse E-Mall Orders, Solicitations Bids Submitted EDI Invoices Vendor Data Vendor Registration Push/Public Posting Bids, Vendor Data Order Received Real-time Catalogs Requisitioning & Ordering Bidding/ Contracting Auctions Receiving & Invoicing Agency Procurement System Vendors Authentication Integrity Efficiency Completeness Foundation Automating Internal Processes Case Study: eVA Results • e-Mall live in 120 days • Fully benefits funded, 1% fee to suppliers • Largest number of suppliers on a single state system in the country (17,550) • Largest single online marketplace for any state (5 million line items, $2.3B throughput) • Largest number of voluntary local governments agencies on single statewide system (374)

17. Goals • Enables enhanced strategic and operational decision-making by giving visibility into enterprise-wide spend analysis • Provides negotiation support for strategic sourcing decisions and knowledge transfer to California • Plan to rationalize supply base across multiple California agencies • Projected $200M+ savings to the State • Benefit funding through shared savings Enabling Strategic SourcingCase Study: California DGS Business Problem • California has a significant budget shortfall • Procurement operations are decentralized • Spend data is not centrally stored • No available funding to undertake the project

18. Standardizing Across Agencies Case Study: DoD Standard Procurement System BEFORE AFTER Business Problem • 43,000 users-1,100 sites (4 Services, 13 Agencies) • 75+ legacy systems • Unreconciled disbursements / unliquidated obligations • Sporadic data integration LEGACY PROCUREMENT SYSTEMS DFAS - Finance Standard Systems PROCUREMENT SYSTEM (42,000 Users at 1000+ Sites) BCAS DAS DPACS APADE DSDS S P S ACPS ITIMP LOG Systems MOCAS Finance Systems LOG Systems SACONS SAACONS Finance Systems BOSS USMC BCAS AM IS PADDS Acquisition Systems Acquisition Systems Results • Single, standard, joint procurement system • Single touch-point with finance and logistics systems. • Central repository of all procurement data • First ever end-to-end DoD Enterprise Business Solution for Procurement • 23,000 operational users at 777 sites • Projected $395M annual savings

19. Facilitating the Flow of Information Case Study: Boeing Automated Contract Management • Business Problem • Minimal collaborative capability or common electronic environment to seamlessly interact with Government and Industry counterparts • Lack of data integrity causes rework and delays the payment process • Too many manual/paper intensive processes • Results • Implementing a bid response and contract • management system for government • contracts • Increased bid competitiveness • Reduced time to payment • Shorter cycle times • Reduced contract management costs • Single contract management face • Automated workflow • Streamlined file management • Enhanced workforce flexibility