1. Department of Defense Briefing for the Deputy Secretary of Defense DRID #47 End-to-End Procurement Process Strategic Implementation Plan February 22, 2000

2. n Review DRID #47 accomplishments n Brief Strategic Implementation Plan n Provide recommendations for next steps n Set the stage for Implementation Phase Why we’re here... First, some background... Next phase... Implementation! Model Developed! Implementation Plan Complete! End-to-End Procurement Process

3. Genesis of DRID #47... “Single Point of Data Entry” Eliminate Unmatched Disbursements and Negative Unliquidated Obligations DRID #47, End-to-End Procurement Process, December 9, 1998 DCMC and DFAS co-chair an “end-to-end” procurement process review for the future shared data environment MRM #2, Moving to a Paper-free Contracting Process by January 1, 2000 Move ahead with systems and technologies already on-hand DRIDs #32 and #33 Reengineer Contract Closeout and DD 250 Material Inspection and Receiving Report policies and procedures Build a roadmap for a DOD-wide electronic procurement environment; provide seamless data exchange end-to-end among the process partners! End-to-End Procurement Process

4. Requirements Offices Funding Offices Accounting Offices Contracting Offices DCMC Offices Contractors Receiving Activities Contractors’ Banks DFAS Payment Office Acquisition as it has been... Most acquisition computers don’t “talk” to each other--they print paper! 1 Lots of paper means lots of manual data entry--and errors! 2 Data entry errors means: Unmatched Disbursements, and Negative Unliquidated Obligations! 3 End-to-End Procurement Process Paper-driven! Paper-bound!

5. Requirements Offices Funding Offices Accounting Offices Contracting Offices DCMC Offices Contractors Receiving Activities Contractors’ Banks DFAS Payment Office DCDSDW The Paperless Acquisition Vision Helps fight Unmatched Disbursements! Helps fight Negative Unliquidated Obligations! “Fat-fingering data” End-to-End Procurement Process Single points of data entry! Single sources of data!

6. Defining requirements Funding the action Selecting the source Awarding the contract Administering the contract Performing the work Accepting the work Paying for the work Invoicing for the work Closing out the contract Major integration challenges... Especially here! And, here!... to reengineer and improve business processes and subprocesses to overcome those challenges! DRID #47, End-to-End Procurement Process End-to-End Procurement Process

7. Requirements System Funding System Accounting System DCMC SPS DPPS WAWF EDA Buying Office SPS SDW DCWDCD Requirements System Funding System Accounting System DCMC SPS DPPS WAWF EDA Buying Office SPS SDW DCWDCD SDW DCD DCMC SPS Buying Office SPS Accounting System Old “To-Be”: Lots of data base replication for:  Accounting  Payments  Deliveries DCD DCMC SPS Buying Office SPS Accounting System New “To-Be”: Data “lives” in DCD.  Other systems “pull” as needed.  “Pre-Val” problem solved, too. “End-to-End” simplifies systems and processes! Products:  “To Be” Process Map  “To Be” Process Description  “To Be” Input/Output Descriptions  Information Transfer Mechanisms  “To Be” System Maps  “Cross Walk” with SPS, DPPS, DCD  Final Report Done! Must have Portfolio Management! These systems will need to “talk” with each other well... “End-to-End” makes sure they will! Partners: DCMC and DFAS co-chairs... Services/Agencies... Program Mgmt.Financial Mgmt. ContractingAccounting PaymentLogistics DRID 47: End-to-End Procurement Process Done!

8. Key Participants DCMC and DFAS Co-Chairs Services/Agencies (including JECPO )-- Program Management Financial Management ContractingAccounting Payment Logistics Program Management Offices-- Standard Procurement System/Shared Data Warehouse Defense Procurement Payment System DFAS Corporate Database/DFAS Corporate Warehouse Wide Area Workflow And, the contractors for the Systems-- American Management Systems Oracle Electronic Data Services Plus, the SPS Requirements Board! Over 150 DoD and Industry participants! End-to-End Procurement Process

9. See the Web site at http://www.dcmc.hq.dla.mil/centers/paperless/e2e/index.htm

10. Phase 1 - Procurement Process Model and System Maps o “To-Be” Process Map and Description o Input/Output Descriptions o “To-Be” System Maps and Transfer Mechanisms o Issues and Recommendations o Business Rules  Implementation Considerations (next steps ) n Phase 2 - Strategic Implementation Plan: o Updated Model and Systems Maps o Management Structure (Portfolio Management) v Paperless Procurement Executive Control Board v Paperless Procurement Implementation IPT (draft charter) o Strategic Integrated Schedule o Metrics (Outcome and Output) o Recommendations End Products End-to-End Procurement Process Model Developed! Implementation Plan Complete! Available on Paperless Center homepage! COMPLETED!

11. Moving to the “To-Be” Environment n End-to-End process model is a vision of future shared data environment n Systems and interfaces must evolve to meet vision n End-to-End Process Model is the road map to an integrated data architecture for paperless procurement n Requires Department-wide cooperation and coordination, and clear direction! End-to-End Procurement Process

12. March 03 0% 1% 22% 76% August 02 59% 6% 3% 26% October 01 6% 10% 3% 50% 31% October 00 24% 31% 4% 22% 19% October 99 13% 3% 24% 39% 21% Under Development Partially Deployed; Partially Functional Completely Deployed; Partially Functional Partially Deployed to some Communities;Fully Functional Completely Deployed;Fully Functional 100% “Blue” by March 2004 Strategic Implementation Plan Overview Total number of interfaces: 220! Critical Path Items: DPPS and DCD/DCW SPS Wide Area Workflow

13. End-to-End Procurement Process Paperless Procurement Executive Control Board (ECB) Paperless Contracting OIPT plus Financial Management and Logistics Provide executive oversight and leadership as Portfolio Manager Implementation IPT PC WIPT plus Financial Management and Logistics Reports to ECB Provides day-to-day management and oversight Serves as catalyst for integrated decision making & issue resolution Ensures configuration management control of critical interfaces Ensures seamless exchange of information Military Departments and Defense Agencies Provide active participation on ECB and Implementation IPT Support Implementation IPT to secure resources to accomplish its mission Applications and Systems Program Managers Ensure development of systems/databases consistent with “To-Be” Model Coordinate system schedules with Implementation IPT Joint Electronic Commerce Program Office (JECPO) Provide budgeting and business management support for Implementation IPT Coordinate with Implementation IPT and ensure consistency with DOD EC Architecture Management Structure

14. Outputs : Measure progress Percentage of: Electronic commitments by service, by system, by site SPS contract awards and modifications Electronic receipts and acceptance including both vendors and DFAS Electronically approved payment requests coming into DCD/DCW and Electronic Funds Electronic Funds Transfer (EFT) authorizations going out Contracts closed electronically Outcomes: Measure performance Total decrease in: Negative Unliquidated Obligations (NULOs) Unmatched Disbursements (UMDs) Interest paid on late payments Discounts lost due to delayed payments End-to-End Procurement Process Sample Metrics Draft Metrics in Implementation Plan! Uses existing PC WIPT metrics!

15. End-to-End Procurement Process Recommendations Sign Implementation Memo to: Establish a Paperless Procurement ECB at Flag/SES level o PC OIPT Chairperson as Portfolio Manager o PC OIPT augmented with Services, Financial Management, and Logistics representation Establish Implementation IPT at 0-6/GS-15 level o PC WIPT augmented with Financial Management, Logistics, and Application & Systems Program Managers Memo being drafted and coordinated! Incorporate the road map and direction into the Defense Planning Guidance!