1. Procurement’s Excellent Adventure Procurement’s Excellent Adventure September 14, 2010 Chris Rodgers Lisa Pierce Chris Rodgers Lisa Pierce Director Branch Chief Director Branch Chief Strategic Acquisition Initiatives

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3. INFORMATION TECHNOLOGY Director Deputy 210 employees, 3,147 transactions, $1.2B INFORMATION TECHNOLOGY Director Deputy 210 employees, 3,147 transactions, $1.2B WORKFORCE MGMT & SUPPORT SERVICES Chief 8 employees WORKFORCE MGMT & SUPPORT SERVICES Chief 8 employees ELECTRONIC PROCUREMENT Director Electronic Catalog Automated Systems 38 employees ELECTRONIC PROCUREMENT Director Electronic Catalog Automated Systems 38 employees STRATEGIC ACQUISITION INITIATIVES Director Sourcing, Measures, CRM, Quality 37 employees STRATEGIC ACQUISITION INITIATIVES Director Sourcing, Measures, CRM, Quality 37 employees PROCUREMENT POLICY Director TAI 36 employees PROCUREMENT POLICY Director TAI 36 employees DIRECTOR, PROCUREMENT DEPUTY DIRECTOR DIRECTOR, PROCUREMENT DEPUTY DIRECTOR BUSINESS OPERATIONS Director Deputy 147 employees, 12,644 transactions, $657M BUSINESS OPERATIONS Director Deputy 147 employees, 12,644 transactions, $657M NEW YORK, NY 21 employees 2,209 transactions $60M NEW YORK, NY 21 employees 2,209 transactions $60M DALLAS, TX 23 employees 3,552 transactions $60M DALLAS, TX 23 employees 3,552 transactions $60M ATLANTA, GA 20 employees 1,496 transactions $39M ATLANTA, GA 20 employees 1,496 transactions $39M OAKLAND, CA 20 employees 2,562 transactions $38M OAKLAND, CA 20 employees 2,562 transactions $38M Obligate $1.9 Billion per year Spend 17.3% of IRS Budget 491 people nationwide Executive agent for major Treasury IT acquisitions: - Treasury Commercial Vehicle (TCV) - HR Connect - Treasury Network (TNET) - Telecommunications Services Procurement Organizational Structure 3

4. Top 10 Vendors for FY 2009 COMPUTER SCIENCES CORPORATION NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC ACCENTURE LLP BOOZ ALLEN HAMILTON INC APPTIS INC THE PRESIDIO CORPORATION LOCKHEED MARTIN MANAGEMENT SYSTEMS DESIGNER INC THE MITRE CORPORATION INTERNATIONAL BUSINESS MACHINES CORPORATION FINANCIAL MANAGEMENT SERVICE 4 4

5. 275 Contracting Specialists 96 Management Admin/ Support 222 employees157 employees $1.278B obligations$669M obligations 3,147 transactions12,746 transactions 329 transactions > $1M130 transactions > $1M Workgroup for IT Buys Workgroup for Non-IT Buys Workload at a Glance 491 employees, 15,893 transactions* $1.947B obligations 275 Contracting Specialists 120 Specialists (Business, IT, HR) 5

6. 6 Quality Circles Baldrige established by Reagan 1987 1995 1997 1998 2000 Quality Timeline Pre-history – the long and winding road…. Joint Quality Improvement teams Total Quality Organization assessment President’s Quality Award

7. we jumped on the bandwagon & rolled out the President’s Quality Award Self-Assessment the initial goal was to win an award the side effect was the birth of an idea – continuous process improvement Head out on the Highway 7

8. Roadmap of Procurement’s Excellent Adventure Strategic Acquisition Initiatives (SAI) established Drafted application for Baldrige National Quality Award Independent review by Baldrige expert – not ready for prime time Hired organizational performance expert Review of performance measures program Initial development of Strategic & Business Plans Expanded Customer Satisfaction Survey Performance Measurement & Reporting Branch takes lead on MPEA Performance Excellence Team Contractor Survey Staff participation in MPEA workshops Conducted organizational assessment Documented findings in MPEA Assessment Submitted MPEA Application 1 st MPEA Feedback Report Established Customer Relationship Management (CRM) Program Customer reps assigned Executive commitments tied to measures PDCA applied to CRM outreach sessions & Customer Satisfaction Survey Adopted 7-step strategic planning process Executive commitments on strategic and action plans Discovery Map - mission, vision, values Redesign measures Balanced scorecard Posting monthly measures Customer service standards “Did You Know?...” 200520062007200820092010 8

9. What matters most? Tune up and refueling Hard thingsWhat we are doing Strategic planning hands-on involvement of entire senior staff roll out Discovery Map to share the plan with entire workforce Measures a reassessment is underway determining what will show our new Deputy Commissioner that Procurement is operating efficiently and effectively – getting the best deal Process improvement formalize selection process for PI projects that incorporates a decision matrix with cost/benefit to organization Integrating use of cross-functional teams for assessments more aggressively deploying and engaging all of staff in strategic and business plans in FY 2011 Sustaining maintain senior managers’ active support workforce buy-in and involvement 9

10. Into the great wide open…. 10

11. IRS Strategic Plan – 5 Year Plan  Mission, Vision, Values  Identifies the strategies, objectives and strategic foundations for the organization AWSS Business Plan – 4 Year Plan  Mission, Vision, Goals, Objectives, Strategies  Framework that enables AWSS to fulfill its Mission and Vision  Provides a unified strategic direction over a four-year period AWSS Program Plan – 1 Year Plan  Identifies programs, activities and measures to support the goals, objectives and strategies identified in the Business Plan  Strategic initiatives and their attendant measures are created to support the objectives and strategies Strategic Plan Business Plan Program Plan Action Plans Performance Commitments Strategic, Business and Program Plans Mapping a route for the future 11

12. Performance Commitments –Created based on strategic initiatives identified in the Program Plan –Included in the Performance Plan of the Director, Procurement –Cascaded throughout the organization via performance plans of subordinate managers Action Plans –Identifies and tracks the actions required to deliver on the strategic initiatives identified in the Program Plan Strategic Plan Business Plan Program Plan Action Plans Performance Commitments 12 Strategic, Business and Program Plans Mapping a route for the future

13. Challenges (pot holes) Maintaining required staffing levels Attracting the best talent Obtaining voice of the customer and improving customer satisfaction Increasing the value of our acquisition service 13

14. On the road again…..just can’t wait to be on the road again…. 14 Wherever you go, there you are……