DOCUMENT & STUDY OBJECTIVES This document presents findings of key practices identified during the services acquisition leading practices study FOCUS OF SERVICES ACQUISITION LEADING PRACTICES STUDY Identify leading practice organizational models, processes, and tools related to the development of requirements and contract management for services acquisitions DOCUMENT OBJECTIVE The objective of this document is to provide a “quick turn” identification of key practices associated with requirements development and contract management of services acquisitions

STUDY APPROACH & METHODOLOGY The overall approach was designed to efficiently identify leading practices in targeted programs across the MILDEPs • Step 1: Identify Targeted Programs/ Categories – Collect and analyze services spend data and determine programs and service categories to prioritize for the study • Step 2: Collect Key Practices Data & Information – Identify and interview key individuals responsible for and working on the identified programs of interest • Step 3: Develop Key Practices Report – Synthesize key findings and identify specific key practices across the MILDEPs SERVICES ACQUISITION KEY PRACTICES STUDY – HIGH LEVEL METHODOLOGY Step 1 Identify Targeted Programs/Categories Step 2 Collect Key Practices Data & Information Step 3 Develop Key Practices Report 10 Weeks Given the short timeline, the findings are presented at a sufficient level of detail to be incorporated into other more detailed studies and to direct other more detailed analyses

STUDY APPROACH & METHODOLOGY The study addresses a mix of various DoD-procured services, with each service area covered in varying degrees of detail TOTAL DOD FY06 SERVICES SPEND BY CATEGORY TOTAL SPEND = $152.8 BILLION KEY POINTS • Programs were targeted based in part to provide coverage across the services purchased by DoD • Discussions with program participants provided insights into most of the services spend categories • Not every spend area was covered in detail through program interviews • Areas that were covered in more depth than others include Advisory and Assistance, IT Services, Facilities, Medical, and Transportation and Logistics Source: http://siadapp.dmdc.osd.mil/procurement/historical_reports/services/services.html; Censeo Consulting Group Analysis

STUDY APPROACH & METHODOLOGY Discussions with key individuals were held across the MILDEPs targeting key programs and services TARGETED PROGRAMS AND SERVICES BY MILDEP SUMMARY OF INTERVIEW STATS (as of July 17, 2007) • 5 MILDEPs/Agencies interviewed • Army • Navy • AF • USMC • DLA • 68 individuals interviewed • 45 total interviews • Notes: • High Level interviews focused on the general services acquisition processes within the organization and the discussion of potential programs/offices with key practices. • “In Depth” interviews focused on the details of the business arrangement and acquisition process. In some cases, details on the business arrangements was not obtained due to time limitations.

KEY CHALLENGES IN SERVICES ACQUISITION The study participants identified several common themes and key challenges associated with the requirements development process KEY CHALLENGES IN SERVICES ACQUISITION – REQUIREMENTS DEVELOPMENT These themes are not surprising and in many cases plans are in progress to address the challenges

KEY CHALLENGES IN SERVICES ACQUISITION The study participants identified several common themes and key challenges associated with the contract management process KEY CHALLENGES IN SERVICES ACQUISITION – CONTRACT MANAGEMENT

Contents • Document & Study Objectives • Executive Summary • Study Approach & Methodology • Key Challenges in Services Acquisition • Summary of Key Practices • Key Practices by Program

SUMMARY OF KEY PRACTICES Key practices have been identified along defined practice areas KEY PRACTICES IDENTIFICATION – DEFINITION OF PRACTICE AREAS NOTE: Contract Management practices were not covered in detail due to the scope and timeline – further discussion would be required to better understand CM practices and robustness of metrics

Contents • Document & Study Objectives • Executive Summary • Study Approach & Methodology • Key Challenges in Services Acquisition • Summary of Key Practices • Organization • Process/Collaboration • Systems/Tools • Key Practices by Program

SUMMARY OF KEY PRACTICES Organization Organizational Model Three primary organizational models, referred from here on as “Acquisition Support Centers” (or ASCs), are being used to provide services acquisition support ORGANIZATIONAL MODELS FOR ACQUISITION SUPPORT CENTERS (ASC) Source: Based on Censeo interpretation and analysis.

SUMMARY OF KEY PRACTICES Organization Organizational Model The Fully Integrated – Full Service (FIFS) Model provides full acquisition lifecycle support, from initial setup to task order and contract management, all as part of one organization Source: Based on Censeo interpretation and analysis.

SUMMARY OF KEY PRACTICES Organization Organizational Model Ongoing program management and requirements development support is a key characteristic of the Requirements and Program Support (RPS) model Source: Based on Censeo interpretation and analysis.

SUMMARY OF KEY PRACTICES Organization Organizational Model The Fully Integrated – Decentralized Execution (FIDE) Model provides capabilities similar to FIFS but does not provide full task order management capabilities Source: Based on Censeo interpretation and analysis.

SUMMARY OF KEY PRACTICES Organization Organizational Alignment The Acquisition Support Centers are aligned in one of three manners ORGANIZATIONAL ALIGNMENT OF ACQUISITION SUPPORT CENTERS (ASC) An organization may be aligned against Mission/Customer and Commodity/Service area. There is no “one size fits all approach”…organizational model and alignment may be based on numerous factors

SUMMARY OF KEY PRACTICES Organization Scope of Services The scope of services provided differs across the different ASC models SCOPE OF SERVICES PROVIDED BY ACQUISITION SUPPORT CENTERS

SUMMARY OF KEY PRACTICES Organization Scope of Services The scope of services provided differs across the different ASC models (continued…) SCOPE OF SERVICES PROVIDED BY ACQUISITION SUPPORT CENTERS

SUMMARY OF KEY PRACTICES Organization Staffing Cross-functional staff are common in each of the ASC models STAFF ROLES AND SKILLS

SUMMARY OF KEY PRACTICES Process/Collaboration Processes and Collaboration practices are primarily focused on requirements development and program management practices

SUMMARY OF KEY PRACTICES Process/Collaboration Requirements Development Process A requirement to set up a new program and/or contract may be initiated or “triggered” in many ways NEW PROGRAM/CONTRACT REQUIREMENT TRIGGERS

SUMMARY OF KEY PRACTICES Process/Collaboration Requirements Development Process Acquisition Support Centers interject cross functional knowledge and expertise in one of two ways

SUMMARY OF KEY PRACTICES Process/Collaboration Requirements Development Process Various sources of input are used by the cross functional teams to define requirements and develop the acquisition strategy SOURCES OF INPUT UTILIZED DURING REQUIREMENTS DEVELOPMENT

SUMMARY OF KEY PRACTICES Process/Collaboration Requirements Development Process While in-depth market analysis is limited, a few key practices are used to engage and involve industry during requirements development

SUMMARY OF KEY PRACTICES Process/Collaboration Requirements Development Process Various requirements development process controls are used to drive compliance and desired behavior BUSINESS PROCESS CONTROLS Details on templates and systems are provided in the Systems/Tools section.

SUMMARY OF KEY PRACTICES Process/Collaboration Contract Management A few key activities have been identified on contract management based on discussions to date CONTRACT MANAGEMENT PRACTICES • NOTES: • Interviews have indicated that key practices in Contract Management are limited throughout DoD • However, further discussion is still required to better understand the CM practices and robustness of metrics that are in place

SUMMARY OF KEY PRACTICES Systems/Tools Systems and tools are important in enabling an effective and efficient process and for transferring knowledge

SUMMARY OF KEY PRACTICES Systems/Tools Templates Several types of templates are used to standardize and streamline all parts of the acquisition process TYPES OF TEMPLATES

SUMMARY OF KEY PRACTICES Systems/Tools Templates Several steps are taken to administer and maintain templates

SUMMARY OF KEY PRACTICES Systems/Tools Training Custom training is typically provided to staff and customers through the ASCs – supplements standard acquisition and contracting training TRAINING PRACTICES

SUMMARY OF KEY PRACTICES Systems/Tools Training Training is often customized by the ASC itself or provided through organizations outside of DoD

SUMMARY OF KEY PRACTICES Systems/Tools Systems Automated Systems are used facilitate access to information and to streamline business processes NOTE: Details on automated systems were not captured. Systems information was noted within the context of the short data gathering interviews.

Contents • Document & Study Objectives • Executive Summary • Study Approach & Methodology • Key Challenges in Services Acquisition • Summary of Key Practices • Key Practices by Program

KEY PRACTICES BY PROGRAM Key Practices: Acquisition Management Integration Center (AMIC) MILDEP: PROGRAM NAME: PROGRAM SIZE/FY06 $: SERVICES PROVIDED: Air Force Acquisition Management Integration Center (AMIC) Approximately 200 staff members, $370 Million Aircraft maintenance, surveillance operations, IT development, etc. Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

KEY PRACTICES BY PROGRAM Key Practices: AF Acquisition Management Integration Center (AMIC) (cont) Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

KEY PRACTICES BY PROGRAM Key Practices: Navy Medical Logistics Command Healthcare Services Support (NMLC HSS) MILDEP: PROGRAM NAME: PROGRAM SIZE/FY06 $: SERVICES COVERED: Navy Navy Medical Logistics Command Healthcare Services Support(NMLC HSS) Approximately 15 staff members, $351.7 Million Health Care Services (e.g., physician and nursing services) Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

KEY PRACTICES BY PROGRAM Key Practices: Navy Medical Logistics Command Healthcare Services Support (NMLC HSS) (cont) Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

KEY PRACTICES BY PROGRAM Key Practices: Commercial Enterprise Omnibus Support Services (CEOSS) Marine Corps Commercial Enterprise Omnibus Support Services (CEOSS) Approximately 10 staff members, $280 Million Advisory and Assistance Services (program management, consulting, etc.) MILDEP: PROGRAM NAME: PROGRAM SIZE/FY06 $: SERVICES COVERED: Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

KEY PRACTICES BY PROGRAM Key Practices: Commercial Enterprise Omnibus Support Services (CEOSS) (cont) Source: Censeo interviews with Program; Program Documents NOTE: Information presented is based on 1-1.5 hour interviews with MILDEP/Agency representatives - this information needs to be confirmed with the interviewees

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