1. Lean Process Solutions Report to Committee Ms. Kimberly Zeich March 10, 2011

2. Page 2 PL Process Top Lean Solutions Objective: Improve PL end-to-end cycle time Original Solutions: Accept and encourage PL Addition Requests earlier in the cycle (before the last option year) Improve “Impact” determination process Improve flow of info from NPA  CNA  Committee Reduction in NPA costing/pricing cycle time Additional Solution: Solicitation “Strategic Sourcing” with AbilityOne – related to, but separate from, early addition solution and improving impact process

3. Page 3 Early Add Lean Solution Description: To accept and encourage PL Addition Requests earlier in the contract cycle (before the last option year) –Developed process, ground rules to address suitability (including impact) and price 2 years before contract start date –Proposed pilot test (approved with modifications) –Identifying up to 5 projects for pilot test

4. Page 4 Early Add Projected Benefits How Will This Improve PL Add Process? May decrease lost opportunities, thus increasing jobs Helps smooth Procurement List workload Increases customer satisfaction –Able to work together immediately –Fewer delays of contract start –Alignment with customers’ PALT More preparation & transition time (obtain security clearances, execute quality start-up, etc.) Helps Contracting Office and NPA w/ advance budgeting

5. Page 5 Description: To eliminate unnecessary IT transactions when business rules do not require advance impact determination –Proposed “pre-determined impact codes” to enable addition requests without advance transaction –Proposed pilot test (approved) To share cumulative impact “watch list” with CNAs for improved management of preliminary impact analysis at the CNA level. Impact Lean Solutions

6. Page 6 How Will This Improve PL Add Process? Reduction in administrative processing time for both Committee and CNAs –Research shows 15 business circumstances where advance impact transaction is submitted as a formality, accounting for 47% of total processed. –25% reduction in transactions will indicate success Removes discussion point with customer Impact Projected Benefits

7. Page 7 Info Flow Lean Solutions Description: To decrease returned or rejected Procurement List submissions due to data errors or omissions –Identified causes, initiated standardization and training To reduce or eliminate forms required in PL additions –Identified forms to consolidate; others are no longer needed because data is now provided in the IT transaction Implement these changes/improvements in early 2011 (approved)

8. Page 8 How Will This Improve PL Add Process? Reduce cycle time for this part of the process* Provide consistency program-wide Reduce review time by Committee Staff Reduce time spent by CNA employees entering packages into their information systems Increase customer satisfaction (Gov’t, NPAs) * Mean cycle time for this part of the PL Add process was approx. 10 days Info Flow Projected Benefits

9. Page 9 CNA / NPA Pricing Solutions Description: To establish a timeline template for costing/pricing applicable to Procurement List additions and renewals –Establish expectations and standardize across program. Proposed series of pilot to reduce delays (approved) Identified other opportunities to reduce standard negotiating time with customers

10. Page 10 CNA / NPA Pricing Projected Benefits How Will This Improve PL Add Process? Improve communication, understanding across locations and projects Manage expectations by identifying process steps and lean / likely completion times Support obtaining early commitment (at NPA selection) to work toward maintaining timelines Identify impact of any deviations on overall cycle time Identify opportunities for “Leaning” in the whole process and increase credibility that AbilityOne has streamlined

11. Page 11 Solicitation “Strategic Sourcing” Idea Description: Solve short notice and/or severe impact scenarios: Contracting Activity states in solicitation that AbilityOne will be procurement strategy following the immediate contract cycle –Early warning interpreted as neutralizing impact –Developed guidance for implementing approach –Recommended early add after commercial award –Drafted pilot process approach –Requires Stewardship Subcommittee coordination

12. Page 12 “Strategic Sourcing” Projected Benefits How Will This Improve PL Add Process? Allows CAs to follow government directives earlier without concern of protests or other repercussions Commercial contractor has fair and early warning, and can plan accordingly Decreases lost opportunities – increases jobs Adds to pipeline – adds certainty More time for transition / preparation (security clearances, etc.) Helps CA and NPA with advance budgeting

13. Page 13 Lean PL Add Cycle Time 48% Reduction (vs FY09 Est.) 610 462 316