1. CON 218 Summer 2012 Acquisition Plan for the acquisition of an agency-wide Financial Management System (FMS) Prepared by: Paul Gyamfi Peter Schulleri

2. Requesting Activity The Department of Homeland Security (DHS), Office of the Chief Financial Officer (O-CFO) oversees all financial management activities The Department of Homeland Security (DHS), Office of the Chief Financial Officer (O-CFO) oversees all financial management activities O-CFO’s Financial Systems Div. (FSD) maintains all Financial Management Systems (FMSs) O-CFO’s Financial Systems Div. (FSD) maintains all Financial Management Systems (FMSs)

3. Statement of Need Consolidate all DHS FMSs to one enterprise / agency-wide system Consolidate all DHS FMSs to one enterprise / agency-wide system Consolidate 22 federal officesConsolidate 22 federal offices Design life-span of 8 - 12 yearsDesign life-span of 8 - 12 years FMS to integrate with DHS’s network architecture FMS to integrate with DHS’s network architecture Commercial-off-the-shelf (COTS) system Commercial-off-the-shelf (COTS) system GUI & icon-centric interfaceGUI & icon-centric interface Specific modules for defined end-usersSpecific modules for defined end-users Specialists’ input data fields Specialists’ input data fields Reports for decision-makers / managers Reports for decision-makers / managers

4. Conditions Key consideration: consolidating 22 unique FMSs Key consideration: consolidating 22 unique FMSs The 22 systems The 22 systems Vary as to which external invoicing network they interface with Vary as to which external invoicing network they interface with DHS will use Dept of the Treasury’s Financial Management Service (UST-FMS) DHS will use Dept of the Treasury’s Financial Management Service (UST-FMS) Include End-of-Life hardware, and other systems nearing refresh Include End-of-Life hardware, and other systems nearing refresh Reside on SAP and Oracle platforms Reside on SAP and Oracle platforms

5. Trade-offs Risk of not consolidating to one FMS Risk of not consolidating to one FMS Non-compliance (Congress) Non-compliance (Congress) The cost of reconciling non-uniform data The cost of reconciling non-uniform data Internal controls: mitigate unintentional / intentional financial mismanagement Internal controls: mitigate unintentional / intentional financial mismanagement Future lower cost to maintain and upgrade Future lower cost to maintain and upgrade Benefit of consolidation Benefit of consolidation Oversight and transparency Oversight and transparency Uniformity – data collection & reporting Uniformity – data collection & reporting Decreased resource-demand Decreased resource-demand Decreased labor Decreased labor Decreased errors Decreased errors Decreased energy consumption Decreased energy consumption

6. Delivery Requirements (WBS) Planning, Designing and Integration Phases Planning, Designing and Integration Phases At least two years – “stand up” phases At least two years – “stand up” phases Project Maintenance Project Maintenance IDIQ task Orders – on-going services IDIQ task Orders – on-going services Products: Software / Hardware Products: Software / Hardware Firm-Fixed Fee Firm-Fixed Fee

7. Cost Year 01 & 02 Planning, Designing and Integration Phases Planning, Designing and Integration Phases Assumptions built using Assumptions built using historically similar project historically similar project Work Breakdown Structure Work Breakdown Structure subject to change after subject to change after Pre-Proposal Conference or Pre-Proposal Conference or negotiations negotiations Hours will be negotiated Hours will be negotiated This IGCE is best estimate This IGCE is best estimate

8. Cost Years 03 through 12 On-going maintenance & support On-going maintenance & support All issues addressed on All issues addressed on previous slide apply here previous slide apply here Eval the FMS at year 8: Eval the FMS at year 8: is it still worth on-going M&S? is it still worth on-going M&S? Total estimated cost Total estimated cost

9. Sources & Contract Type Selection Planning, Designing and Integration Planning, Designing and Integration Cost reimbursement Cost reimbursement Task Orders – competed amongst exiting DHS / IT Services IDIQ holders Task Orders – competed amongst exiting DHS / IT Services IDIQ holders MUST subcontract with qualified HUBZone firm MUST subcontract with qualified HUBZone firm Two year POP (“stand up” phases) Two year POP (“stand up” phases) Products: Software / Hardware Products: Software / Hardware Firm-Fixed Fee, full and open (FedBizOpps) Firm-Fixed Fee, full and open (FedBizOpps) Small business set-aside Small business set-aside Project Maintenance Project Maintenance Incorporate to existing maintenance TO Incorporate to existing maintenance TO

10. Selections & Negotiations Task Orders Task Orders Best value Best value Technical capability and past performance more important than cost Technical capability and past performance more important than cost Incentivize contractor Incentivize contractor Milestones-driven: progress reports, analysis of burn-rate tied to mutually approved Work Breakdown Structure Milestones-driven: progress reports, analysis of burn-rate tied to mutually approved Work Breakdown Structure Performance-based work statement Performance-based work statement Cost-Plus-Incentive Fee (CPIF) Cost-Plus-Incentive Fee (CPIF) Industry input in WBS & Milestones Industry input in WBS & Milestones

11. Work Breakdown Structure

12. Thank you & Questions?