Breakout Session # 1310 Ruby Harvey, Chief Procurement Systems Division, USDA

2. Successful Enterprise Systems DeploymentIs Dependent on a Robust Technology and Software Architecture Breakout Session # 1310 Ruby Harvey, Chief Procurement Systems Division, USDA Lisa Wilusz, IAS Customer Care Lead, USDA Frank Palmer, Senior Associate, Booz Allen Hamilton April 25, 2007 2:40 pm

3. Table of Contents Agenda • Table of Contents • Presenters Biographies • Introduction • Background • Vision • Stakeholder Management • Program Requirements • Market Research • Down Select and Screening • Acquisition Strategy and Business Case • Technical and Software Architecture • Performance Testing • Implementation Process • Technology Refresh Plan • Annual Evaluation and Planning • Benefits Achieved • Conclusion

4. Presenters Biographies Presenters Biographies • Ruby Harvey • Ms. Harvey is the Chief, Procurement Systems Division (PSD) at USDA who manages the agencies Procurement, Purchase Card and related feeder systems. Ms. Harvey manages a government and contractor staff of 65 FTE’s in support of PSD’s mission. Ms. Harvey has worked on or managed USDA’s Integrated Acquisition System project since its inception in 2000.

5. Presenters Biographies Presenters Biographies (continued) • Lisa Wilusz • Lisa Wilusz is a Procurement Analyst with over eleven years Federal government experience and specialized expertise with the management of enterprise procurement systems projects. Ms. Wilusz has led several agencies to transition to enterprise acquisition systems that employ commercial-off-the-shelf technologies and real-time interfaces to legacy systems. Additionally, Ms. Wilusz oversees a customer care activity that encompasses a help desk operation that supports 10,000 users nationwide. Ms. Wilusz is a certified Project Management Professional (PMP).

6. Presenters Biographies Presenters Biographies (continued) • Frank Palmer • Mr. Palmer is a Program Executive at Booz Allen Hamilton delivering domain subject matter expertise to USDA programs and to program executives. Mr. Palmer has been working at USDA since 2000 delivering Enterprise Systems Program Management, Change Management and Implementation services working closely with Department of Administration, OCIO and OCFO executives to transform the Agency’s procurement operations and securing USDA’s critical infrastructure. Mr. Palmer has worked with the Office of Procurement and Property Management (OPPM), OCFO and the OCIO to establish the baseline set of security requirements for web-based applications at USDA and implement the first enterprise web-based COTS solution with a real-time interface at the Agency. Mr. Palmer has a Bachelors degree in Computer Science, a Masters Degree in Business and is PMI Certified Project Management Professional (PMP).

7. Introduction Integrated Acquisition System (IAS) • Integrated Acquisition System (IAS) is a commercial off-the-shelf (COTS) software solution that facilitates procurement activities from requisitioning to contract management to invoice payment • The IAS is a USDA department-wide, internet-based procurement system that provides a common procurement process across all USDA agencies from requisition to payment • The IAS replaces 10 legacy, non-integrated procurement systems used by the USDA’s agencies that have procurement authority • IAS included real-time interfaces to systematically enforce commitment accounting and status of procurement reporting • Foundation Financial Information System (FFIS) – IAS checks for funds availability, commits and obligates funds real-time and allows users to authorize vendor payment • FPDS-NG – IAS feeds award information directly to system to satisfy the government’s reporting requirements • IAS has been successfully implemented to over 10,000 users

8. Background Recognizing the Opportunity Methodology • Since 1996 USDA had recognized the need to re-consider the technology supporting its procurement business process • 10 Existing systems • No end to end capability • No financial system interface • Variance in compliance with regulations • Multiple Business Processes/Data Stores • The Procurement Modernization Team (PMT) chartered a Program Assessment Report which identified alternatives and opportunities Results / Recommendations • Prepare a comprehensive Program Management Plan • Prepare a Change Management Plan for the IAS • Prepare a detailed Communications Plan • Re-Charter the existing Procurement Management Team • Move forward with a web-based Pilot • Update the Cost Benefit Analysis • Develop a detailed Technical Architecture

9. Background Size of the Opportunity

10. Vision Establishing the Vision The Legacy Environment • IAS goal was to improve USDA’s procurement operations by • Standardizing processes and technologies • Improving internal controls • Making data more accurate and accessible • Modernizing the technical platform • IAS would be a true Enterprise Solution • Integrate/migrate 10 distinct USDA agencies and executive offices on a single solution • Support up to 24,000 users (currently supports 10,000 users) • Used in 50 U.S. states and almost every county • Over $2B in goods and services annually • Seamless technical solution • Common User Support Infrastructure While PRCH was in each agency, it’s functionality only addressed a portion of the procurement business process

11. Vision Extending the Vision • In addition to providing a common tool to USDA procurement professionals, IAS also intends to increase overall capability • Support the core end-to-end procurement process • Bring together the Program (requisitioner) and Contracting Officer communities • Improve information access and accuracy (Data Warehouse) • Extend the business process toward the Vendor community • An Internet Based solution was essential to scale and extend the core capability

12. Stakeholder Management IAS is governed at multiple levels • Executive Level provides oversight and guidance • IAS Steering Board (ISB): • Co-chaired by senior Procurement Executive and Deputy Chief Financial Officer • Membership includes Heads of Contracting from the 10 agencies with procurement authority • Procurement Policy, Office of Inspector General, Office of the Chief Information Officer, Office of the Chief Financial Officer also represented • Working Level provides recommendations to the ISB through collaboration • End User Forum: • Agency project and end users representatives meet to prioritize and collaboratively resolve IAS system or support-related issues • Representation at Federal User Group level • Business Process Subcommittee: • Agency procurement and financial representatives determine Department-wide procurement-related system and business processes • Change Control Board: • Joint Procurement Systems Division, Procurement Policy Division, and CFO working group to prioritize release items

13. Stakeholder Management Stakeholder Management and Agency Engagement • Key Executives at the Enterprise and Agency levels had a forum to endorse and resource the Program • Sub-Committees supported essential planning activities • Establish requirements • Evaluate sources • Oversee Business Process & Policy Integration

14. Stakeholder Management Agency and Stakeholder Support Model • Agency and stakeholder support was required across 7 different focus areas during the implementation of IAS • A delicate balance exists between each of these focus areas to provide the right level of interaction and support for the agencies as the user community started to mature • At the tactical level, PSD adjusted its support as the program migrated from implementation to operations and maintenance

15. Program Requirements Core & Extended Program Requirements

16. Program Requirements Supporting eGov Objectives Integrated Acquisition Environment (IAE) • eGov & IAE objectives were not in the Federal vernacular when IAS was conceived • The IAS Architecture ensured that the system was well positioned to participate fully in the initiative FPDS-NG FedBizOpps Central Contractor Registry

17. Market Research Market Research: Finding Candidates Filter 1 Filter 2 Result Result Identified Assessment Participants Selected Conducted Industry-Level Product Reviews Identified Required Capabilities eLearning Tool After completing more detailed analysis of • Customer Outreach • Workflow • Fraud Detection • Process Management • Performance Measurement • Portfolio View • System Integration • Case Visibility • Ariba • AMS • Commerce One • CACI • Oracle • Compuserach • SAP • Large Scale COTS products • Successfully implemented in high-volume production environments Vendor Short List

18. Market Research Market Research: Evaluating Candidates

19. Acquisition Strategy and Business Case Acquisition Strategy and Business Case • Considered Alternatives • Custom build. With COTS products existing for the defined functionality of an enterprise-wide procurement solution, a custom build is not considered a feasible solution • Cross-Servicing. No suitable cross-servicing opportunities exist • Integration of existing solution. This solution would back feed procurement data to a Data Mart. However, the solution would not enable defined functionality and may have security faults • Replication of other agency solution. Department of State utilizes an Ariba/Prism solution. This alternative would really consist of a vendor change to the IAS defined solution • IDEAS Procurement Desktop solution. IDEAS does not meet the security and web-enabled requirements set forth by USDA • Selected Alternatives • Commercial Off-the-Shelf Software (COTS). A best of breed COTS solution that provides an integrated enterprise-wide solution for USDA • Scale up of existing agency solution. Rural Development’s Comprizon solution has the greatest functionality between agencies where it is feasible to scale to the department level to provide an enterprise-wide solution for USDA

20. Acquisition Strategy and Business Case IAS Business Case • 10 Year Lifecycle cost were derived from market research of available COTS products, licensing costs and hardware requirements as defined by the vendor community Illustrative

21. Technical Architecture Technical Architecture Extending IAS’s Core Functionality

22. Software Architecture Software Architecture

23. Performance Testing Network and System Performance Testing • Network and system performance testing is needed to understand throughput constraints on the procurement system and the networks which data travels Simplified IDIQ Complex Network Impact System Bandwidth

24. Implementation Process A Successful Enterprise System Deployment was Dependent on a Robust and Technology and Software Architecture • Procurement Systems Division employed a 10 step process to configure, train and deploy IAS to USDA’s user community IAS Implementation Process Outreach/Education ID Agency Team Business Process/ Policy Integration Config Preparation Data Gathering/ Validation Data Entry Transition to Customer Care Go Live Sign Off Training Management & Delivery

25. Technology Refresh Technology Refresh Plan • Minimum every three years • Dependent upon other variables including new business requirements, software upgrades (systems and applications) and long term performance monitoring

26. Annual Evaluation and Planning Annual Program and System Evaluation • Does the current system meet my immediate business needs? • What changes in the near future (2–3 years) will impact the system as currently designed? • What changes will have to be made to the current architecture to accommodate the changing business needs? • How much will these changes cost? • Should we revisit our Alternatives Analysis for the current program?

27. Annual Evaluation and Planning Program Milestone Accomplishments

28. Benefits Achieved IAS Business Benefits

29. Benefits Achieved Additional “Unplanned” Benefits

30. Next Steps The Future of IAS Extending IAS’s Core Functionality

31. Conclusion Conclusion • A successful system implementation does not happen by accident • A well planned program will establish the foundation for which enterprise systems can be defined and deployed • By dedicating time upfront in the visioning and discovery phases of a program you will generate a wealth of information to be analyzed for planning, executing and implementing your procurement solution