DHS Acquisition Briefing for the National Contract Management Association Thomas W. Essig – 2008 Apr 30

Overview DHS History, Mission and Goals DHS Contracting Organizations DHS Procurement – 2007 Spend Data Chief Procurement Officer’s (CPO) Top Priorities Acquisition Workforce Congressional Oversight

Department of Homeland Security History United 22 previously disparate domestic agencies into one coordinated department to protect the nation against threats to the homeland. Effective March 1, 2003 The Homeland Security Act of 2002:

Department of Homeland Security Mission Prevent terrorist attacks within the United States Reduce America’s vulnerability to terrorism Minimize damage from potential attacks and natural disasters September 11, 2001 A date that will be forever etched in our memory. Protecting America Emergency Management

The Secretary’s 5 Goals 1.Protect our Nation from Dangerous People 2.Protect our Nation from Dangerous Goods 3.Protect Critical Infrastructure 4.Strengthen our Nation’s Preparedness and Emergency Response Capabilities 5.Strengthen and Unify DHS Operations and Management

Office Procurement Operations U.S. Coast Guard Headquarters Transportation Security Agency Customs & Border Protection * Immigrations & Customs Enforcement Federal Law Enforcement Training Center Federal Emergency Management Agency U.S. Secret Service Science & Technology Info Analysis & Infrastructure Protection Chief Information Officer Border Transportation Security Emergency Preparedness Response Under Secretary Management United States Coast Guard United States Secret Service DHS Customer Acquisition Office DHS Contracting Organizations Legend: *Denotes two (2) HCA positions: Departmental Operations Secure Border Initiatives

DHS Procurement – 2007 Spend Data The largest spend component is DHS HQ with $3.7B in spend in support of agency mission areas Professional Services is the largest Commodity Family with 25% of FY07 spend 16.4% of “Unclassified” data is attributed to a of lack of FSC and line item information within the underlying procurement data systems KEY FINDINGS FY07 DHS SPEND SPEND BY COMPONENT TOTAL SPEND = $17,423.3M FY07 DHS SPEND SPEND BY COMMODITY FAMILY TOTAL SPEND = $17,423.3M Source: FY07 Procurement systems, P-card data, SSP analysis

Commodity Families The Commodity Families provide the scope for the Councils – the three primary families will be the Standing Councils with others stood up as opportunities are identified Standing Commodity Family Councils ($3,863.6 million) ($1,972.8 million)($2,190.7 million) ($147.8 million) ($118.7 million)($568.2 million) ($1,373.7 million) ($4,325.9 million) Note: Unclassified spend, defined as spend coded with insufficient information to accurately categorized, totaled $2,861.9 million

IT & Telecom Family Spend IT & Telecom, the second largest area with 22.2% of total DHS spend, is comprised of 2 categories The largest spend category is IT Hardware, Software & Support Services with 67.1% of IT & Telecom spend Purchase card accounts for nearly 2.2% of IT & Telecom spend IT & Telecom, the second largest area with 22.2% of total DHS spend, is comprised of 2 categories The largest spend category is IT Hardware, Software & Support Services with 67.1% of IT & Telecom spend Purchase card accounts for nearly 2.2% of IT & Telecom spend KEY FINDINGS Source: FY07 Procurement systems, P-card data, SSP analysis FY07 DHS IT & TELECOM SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $3,863.6M

Professional Services Family Spend Professional Services, the largest area with 24.8% of total DHS spend, is comprised of 4 categories The largest spend category is Management Support Services with 50.3% of Professional Services Purchase card accounts for 1.7% of Professional Services spend ~60% of this spend is via IAA’s and the level of “line item” detail is lost, or severely limited Professional Services, the largest area with 24.8% of total DHS spend, is comprised of 4 categories The largest spend category is Management Support Services with 50.3% of Professional Services Purchase card accounts for 1.7% of Professional Services spend ~60% of this spend is via IAA’s and the level of “line item” detail is lost, or severely limited KEY FINDINGS FY07 DHS PROFESSIONAL SERVICES SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $4,325.9M Source: FY07 Procurement systems, P-card data, SSP analysis

DHS Security Family Spend Security, makes up 11.3% of total DHS spend, is comprised of 5 categories The largest spend category is Security Systems & Services with 91.8% of Security Weapons and Ammunition & Explosives combined make up 3.5% of Security Purchase card procurements consist of only 1.4% of total Security spend Security, makes up 11.3% of total DHS spend, is comprised of 5 categories The largest spend category is Security Systems & Services with 91.8% of Security Weapons and Ammunition & Explosives combined make up 3.5% of Security Purchase card procurements consist of only 1.4% of total Security spend KEY FINDINGS FY07 DHS SECURITY SPEND SPEND BY COMMODITY CATEGORY TOTAL SPEND = $1,972.8M Source: FY07 Procurement systems, P-card data, SSP analysis

Dual System of Accountability (Notional Structure) = Flow of Contracting Authority

Office of the Chief Procurement Officer (CPO) CPO Deputy CPO OPO Contract Operations Desk Officers Procurement Oversight Acquisition Workforce Strategic Initiatives Comp. Advocate Acquisition Policy & Legislation Ombudsman/ Industry Liaison Acquisition Systems Strategic Sourcing Competitive Sourcing Grants Policy & Oversight Acquisition Program Management Cost Analysis & Estimating Investment Review Program Mgmt. Support Management And Budget

DHS Chief Procurement Officer’s FY 2008 Priorities 1.Quality Contracting Goal: To make good business deals Goal: To perform effective contract administration 2.Quality Acquisition Management Goal: To improve the quality of program management throughout DHS 3.Quality People Goal: To build and sustain the DHS Acquisition Workforce

Departmental Workforce Status Fiscal Year Procurement Spending Staffing (Contracting) On-Board $13B $22B $19.5B1005 Projected FY – 2008 Workforce Breakdown ContractingProgram ManagersCOTR’s Approximate

Workforce Planning Workforce Studies Contract Study Develop Contract Staffing Models Status – Study results out for comment; recommends several hundred more contract specialists US Air Force Dayton Aerospace model for PM offices Status – Model Validated for DHS use Acquisition Workforce Strategic Human Capital Plan under development

Acquisition Professional Career Program (APCP) Overview Entry level program hiring candidates at GS-7 with promotion potential to GS-13 Three, one year rotational assignments at different components Acquisition Certification Training Attain Level II Certification Provide Leadership and Developmental Training Initially hiring candidates for GS-1102 series and targeting expansion in FY-09 to one other career field Two “cohorts” per year – January and June

Workforce Planning Toolkit Re-Employed Annuitant Status: Approved via OPM Implementation Plan being Executed Ads and Announcements publicized 2 Annuitants Hired 39 Annuitants expressed interest in employment Direct Hire Authority National Defense Authorization Act Acquisition Coding of Billets Pilot to begin using NFC system

Certification Current Directives for: Contract Specialist (Currently issuing FAC-C) Program Managers (Utilizing DHS certification prgm) COTR’s (Utilizing DHS certification prgm) Future Overarching Directive out for signature Career Field Certifications to be annexes Program Manager out for comment Test and Evaluation next acq career field Other Career Fields to follow such as Business Cost and Financial Estimating, Engineering, and Logistics

Congressional Oversight

Section DHS Appropriations Act of 2008 (P.L ) SEC Except as provided in subsection (b), none of the funds appropriated in this Act to the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management and the Office of the Chief Financial Officer, may be obligated for a grant or contract awarded by a means other than full and open competition. (b) This section does not apply to obligation of funds for a contract awarded: (1) by a means that is required by a Federal Statute…. (2) under the Small Business Act… (c) The Secretary of Homeland Security may waive the application of this section to the award of a contract in the period of national emergency as determined by the Secretary.

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