21 NOVEMBER 2002 PRESENTATION FOR: THE 2002 PEO/SYSCOM COMMANDERS’ CONFERENCE BIC 101: AN INTRODUCTION TO THE DOD BUSINESS INITIATIVE COUNCIL (BIC) PRESENTED BY DR. NANCY SPRUILL, OUSD(AT&L)ARA PRESENTATION FOR: THE 2002 PEO/SYSCOM COMMANDERS’ CONFERENCE BIC 101: AN INTRODUCTION TO THE DOD BUSINESS INITIATIVE COUNCIL (BIC) PRESENTED BY DR. NANCY SPRUILL, OUSD(AT&L)ARA

2 SENIOR EXECUTIVE COUNCIL (SEC) MANY FUNCTIONS, INCLUDING LEADING TRANSFORMATION OF THE BUSINESS & SUPPORT CAPABILITIES OF DOD CONSISTS OF: –SECDEF –DEPSECDEF –SERVICE SECRETARIES –USD(AT&L)

3 BIC CHARTER PURPOSE: –“IMPROVE EFFICIENCY OF DOD OPERATIONS BY IDENTIFYING & IMPLEMENTING BUSINESS REFORM ACTIONS WHICH ALLOW SAVINGS TO BE REALLOCATED TO HIGHER PRIORITIES…” TASK/APPROACH: –“RESEARCH & IDENTIFY NEAR-TERM QUICK HITS & MAKE RECOMMENDATIONS FOR IMMEDIATE IMPLEMENTATION (INCLUDING DEVELOPMENT OF OR CHANGES TO REQUISITE POLICIES / DIRECTIVES / BUDGET DECISIONS)” –“RECOMMEND LONGER TERM BUSINESS INITIATIVES FOR FURTHER ANALYSIS / ACTION” DELIVERABLES: –“IDENTIFICATION OF REFORM OPPORTUNITIES, BOTH QUICK HIT & LONG-TERM” –“IN-PROGRESS REVIEW TO THE BIC…” REF: BIC CHARTER, AUG 9, 01

4 UNDER SECRETARIES OF DEFENSE: –ACQUISITION, TECHNOLOGY & LOGISTICS –COMPTROLLER –PERSONNEL & READINESS VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SERVICE SECRETARIES –AIR FORCE –ARMY –NAVY THE BIC PRINCIPALS

5 SHORT-HAND SELECTION CRITERIA DOES IT TOUCH THE WARFIGHTER? DOES IT PROVIDE A COMMON GOOD ACROSS ALL SERVICES? DOES IT HAVE SAVINGS / BENEFITS?

6 CURRENT PORTFOLIO OF APPROVED BIC INITIATIVES

7 ONE-TIME CLEARANCE OF PRI PLACEMENT FOR SCIENTIFIC & ENG’ING POSITIONS MODIFY 180-DAY WAITING PERIOD TO HIRE RETIRED MILITARY MANPOWER MIX MANAGEMENT FLEXIBILITY RECOVERY AUDITING RAISING BTR THRESHOLDS WEB-BASED INVOICE / RECEIPT PROCESSING RANGE SCHEDULING TOOL CELL PHONE POOLING ENTERPRISE SOFTWARE INITIATIVE COMMON FLIGHT CLEARANCE PROCESS PEOPLE PROCESSES CORPORATE OPERATIONS PROCESSES “QUICK HIT” INITIATIVES: THOSE THAT CAN POSITIVELY INFLUENCE / BENEFIT THE FY03 BUDGET –RESULTS IN NET SAVINGS / BENEFITS –MUST POSSESS AUTHORITY / ABILITY TO IMPLEMENT ACQUISITION MANAGEMENT PROCESSES APPROVED PHASE I INITIATIVES (14 SEP 01) – 10 TOTAL

8 ALLOW FOR CONTRACTING OF CIVILIAN SECURITY GUARDS OPTIMIZE PROFESSIONAL CONTINUING EDUCATION * MODIFY JPME II REQUIREMENTS * APPROVED PHASE II INITIATIVES (3 DEC 01) – 14 TOTAL PEOPLE PROCESSES 3 DEC 01 CONTINUED 3 DEC 01 CONTINUED ESTABLISH FUNDING FLEXIBILITY WITHIN A PROGRAM INCREASE FLEXIBILITY OF EXPIRED YEAR FUNDS INCREASE EXPENSE/INVESTMENT THRESHOLD ESTABLISH O&M CLOSEOUT FLEXIBILITY STREAMLINE ADMINISTRATIVE COORDINATION PROCESS CORPORATE OPERATIONS PROCESSES

9 STREAMLINE CONTRACT CLOSE-OUT PROCESS STREAMLINE CLINGER-COHEN IMPLEMENTATION ELIMINATE EXCISE TAX ON DOD TACTICAL VEHICLES APPROVED PHASE II INITIATIVES (3 DEC 01) – 14 TOTAL (CONTINUED) ACQUISITION MANAGEMENT PROCESSES REVISE DAVIS-BACON ACT THRESHOLDS IMPROVE INTERSERVICE PQDR BUSINESS PROCESS ESTABLISH PROCESS FOR PROPERTY CONVEYANCE FOR CONSERVATION PURPOSES LOGISTICS / READINESS PROCESSES

10 APPROVED PHASE II INITIATIVES (6 FEB 02) – 4 Total PEOPLE PROCESSES ACQUISITION MANAGEMENT PROCESSES LOGISTICS / READINESS PROCESSES – COMMERCIALIZING ACQUISITION: RAISE TINA THRESHOLDS – IMPLEMENT VIRTUAL IT MARKETPLACE – COMMERCIALIZE MILITARY- DEVELOPED SYSTEMS – STREAMLINE THE GENERAL OFFICER/FLAG OFFICER NOMINATION PROCESS * CORPORATE OPERATIONS PROCESSES

11 APPROVED PHASE II INITIATIVES (18 MAR 02) – 4 TOTAL PEOPLE PROCESSES CORPORATE OPERATIONS PROCESSES ACQUISITION MANAGEMENT PROCESSES LOGISTICS/READINESS PROCESSES –STREAMLINE TECHNOLOGY READINESS ASSESSMENTS –ELIMINATION OF VALUE ENGINEERING REPORTING –STREAMLINE IT EQUIPMENT DISPOSAL PROCESS – CELL PHONE SUBSIDY

12 APPROVED PHASE III INITIATIVES (4 JUN 02) – 5 TOTAL PEOPLE PROCESSES CORPORATE OPERATIONS PROCESSES ACQUISITION MANAGEMENT PROCESSES LOGISTICS/READINESS PROCESSES –ELIMINATE UNNECESSARY REPORTS –EMBEDDED INSTRUMENTATION –BUY-TO-BUDGET –SIMPLIFY PHYSICAL ACCESS CONTROL AT DOD FACILITIES BY USING THE COMMON ACCESS CARD – PIONEER PROJECTS

13 APPROVED PHASE III INITIATIVES (4 SEP 02) – 11 TOTAL PEOPLE PROCESSES CORPORATE OPERATIONS PROCESSES ACQUISITION MANAGEMENT PROCESSES LOGISTICS/READINESS PROCESSES –E-CONTENT ENTERPRISE LISCENSING –INTERNATIONAL ELECTRONIC INFORMATION RELEASE –COST-EFFECTIVE CONTRACTING ARRANGEMENTS OF MSC SHIPS –CONSOLIDATE DEF AGENCY OVERHEAD FUNCTIONS –MANAGING FOR RESULTS –REENGINNER LEGISLATIVE PROPOSAL PROCESS –WORKING CAPITAL FUND – BUSINESS PRACTICES – IMPROVE VISABILITY OF CONTRACT SERVICES –REENGINEER PERSONNEL SECURITY INVESTIGATION – GUARANTEED FIXED- PRICE REMEDIATION –PROVIDE ADEQUATE FITNESS FACILITIES

14 WHERE TO NEXT? CONSTANTLY LOOKING FOR NEW IDEAS CHALLENGES AHEAD: –KEEP MOMENTUM GOING –SEE EACH INITIATIVE THROUGH TO SUCCESSFUL COMPLETION –TRACK & MEASURE INVESTMENTS / SAVINGS / BENEFITS –COMPLEMENT BIC EFFORTS WITH OTHER ONGOING DOD COUNCILS, BOARDS, ETC.

15 ACCOUNTABILITY IDENTIFY A CHAMPION FOR EACH INITIATIVE CAPTURE VIA MANAGEMENT INITIATIVE DECISIONS DOCUMENT ESTIMATES OF SAVINGS

16 SEND NEW IDEAS TO: MR. SAM LAPRADE –DIRECTOR, DOD BIC SUPPORT TEAM –(703) MR. PAT LYNCH –DOD BIC SUPPORT TEAM –(703)

17 BACK-UP SLIDES

18 TEST & EVALUATION PROCESS / FUNCTIONAL BOARDS RESEARCH & ENGINEERING MANPOWER & PERSONNEL INFORMATION TECHNOLOGY RESOURCE MANAGEMENT INSTALLATIONS & LOGISTICS ACQUISITION MANAGEMENT DOD BUSINESS INITIATIVE COUNCIL STRUCTURE / PARTICIPANTS SENIOR EXECUTIVE COUNCIL (SEC) BUSINESS INITIATIVE COUNCIL (BIC) EXECUTIVE STEERING COMMITTEE (ESC) EXECUTIVE DIRECTORS JOINT INTEGRATION & SUPPORT TEAM

19 APPROACH A PHASED EFFORT WITH ROTATING LEAD SERVICE RESPONSIBILITY –PHASE I (APR – SEP 01) NAVY LEAD: DEFINE SCOPE OF EFFORT (QUICK HIT AND LONG-TERM), ESTABLISH TEAMS AND OPERATING NORMS FOCUS ON NEAR-TERM INITIATIVES THAT CAN POSITIVELY IMPACT FY03 BUDGET / EXECUTION IDENTIFY LONGER TERM INITIATIVES –PHASE II (OCT 01 – MAR 02) AIR FORCE LEAD: EXPLORE LONG-TERM INITIATIVES –PHASE III (APR – SEP 02) ARMY LEAD: IMPLEMENTATION PHASE, CONTINUED EXPLORATION –PHASE IV (OCT 02 – MAR 03) NAVY LEAD: (WITH MARINES)

20 BIC STAND-UP AND INITIAL REVIEW OF INITIATIVES (FY03) APPROVED PHASE I QUICK-HIT INITIATIVES (10) BIC MTG; IMPLEMENTATION UNDERWAY) PHASE IPHASE II PHASE III EXPANDING INVENTORY OF INITIATIVES CONTINUED REVIEW OF LONGER-TERM INITIATIVES APPROVED PHASE II INITIATIVES (14) (May BIC MTG) EMERGING PHASE II INITIATIVES (12) UNDER REVIEW BY BIC BOARDS (7) PRESENTED TO BIC May O2 APR 01OCT 01APR 02 OCT 02 PHASE IV APR 03 APPROVED PHASE II INITIATIVES (4) ( BIC MTG) BIC-DIRECTED FOCUS AREAS (6) BEING WORKED IN COLLABORATION WITH OTHER EXTERNAL ACTIVITIES

21 Early Look At Investments, Potential Savings/Benefits From Approved Initiatives (14 Sep 01) Too Early to Estimate Benefits include Reduced Cycle Time, Accelerated Decision-Making, etc.

22 Early Look At Investments, Potential Savings/Benefits From Approved Initiatives (3 Dec 01) Benefits include Reduced Cycle Time, Accelerated Decision-Making, etc. Too Early to Estimate

23 Early Look At Investments, Potential Savings/Benefits From Approved Initiatives (6 Feb 02) Benefits include Reduced Cycle Time, Accelerated Decision-Making, etc. Too Early to Estimate

24 Early Look At Investments, Potential Savings/Benefits From Approved Initiatives (18 Mar 02) Benefits include Reduced Cycle Time, Accelerated Decision-Making, etc. Too Early to Estimate