follow the money better acquisition - integrity .follow the money – better acquisition decisions
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Breakout Session # G12
Sean Williams, PMP, ITIL-F, CSM
Mike Ipsaro, CPCM, PMP, CCE/A
Integrity Management Consulting
30 July 2014
9:45am-11:00am
Follow the money better acquisition
decisions through financial analysis
3
Agenda Introductions
Main ideas
ROI from financial analysis
Ubiquity of financial analysis
Decision Support Systems (e.g., PPBE, ARP, CPIC)
Overview
Financial analysis by DSS
Challenges
Solutions (via best practices, tools, vignettes)
Takeaways
Conclusion / Q&A
4
Source: The Advocate
5 Source: GroundReport
6
Ubiquity of financial analysis
From concept to capability
Most Federal investments are taxpayer-
funded.
Spans nearly all Federal decision support
systems
Missions, Portfolios, Programs, Projects, and
contracts all require financial resources.
Due diligence is needed at each step along
the way.
7
Ubiquity: From need to concept to
requirements to capability
Life Cycle
Cost
Cost
Estimating
ICE
POE
CCA
AoA
Operational
Concept and
Requirements
ICD, CDD
ORD
Full Funding
Funding
Policies
Incremental
Advance
Procurement DPG,
POM,
BES,
PDM,
PBD
Planning,
Programming &
Budgeting System
Presidents
Budget
Congressional
Enactment
HAC, SAC, HASC,
SASC, SBC, HBC
Budget
Resolution
Authorization
&
Appropriation
Budget Authority, Commitment,
Obligation, Expenditure, Outlay,
Reprogramming
Budget Execution
End Strength
Modernization
Operational Capability
Readiness
Sustainability
8
Decision Support Systems (DSS)
Financial analysis spans many DSS including
ARP, SELC, PPBE, and CPIC.
ARP Acquisition Review Process
SELC System Engineering Life Cycle
PPBE- Planning, Programming, Budgeting and Execution
CPIC Capital Planning Investment Control
Source: DHS
9
Acquisition and Program Management
Review Processes (ARP)
ADEs (ADA & ARB)
Acquisition documents
Produces information used by the CPIC process
10
Acquisition and Program Management
Review Processes (ARP)
Challenges and Solutions:
ARP and the Acquisition Review Board (ARB)
Reviews
Documentation
Approval
11
Acquisition and Program Management
Review Processes (ARP)
Source: MBAClubIndia.com
12
Contracting Decision Support Process
Source: DAU
13
Contracting Decision Support Process
Challenges and Solutions:
Business Need and Strategy
Procurement
Development / Operations & Maintenance
Contract Closeout
Source: DAU
14
Contracting Decision Support Process
15
PPBE Contracting Decision Support Process
Source: DAU
16
PPBE Contracting Decision Support Process
Source: U.S. Army
17
PPBE Contracting Decision Support Process
Source: DAU
18
PPBE Contracting Decision Support Process
Source: DAU
19
PPBE Contracting Decision Support Process
Source: DAU
20
PPBE Decision Support Process
21
CPIC Decision Support Process
Source: DHS
22
CPIC Decision Support Process
Challenges and Solutions:
Exhibits 300 / 53
Documentation
Review and Passback
Going to Green
Source: HHS
23
CPIC Decision Support Process
Source: DHS
24
CPIC Decision Support Process
Source: Privacy Commissioner of Canada
25
Interrelated Decision Support Systems
Leverage existing artifacts, tools, practices across the DSS. Dont reinvent wheel.
26
Takeaways
Financial analysis is as important as ever, if not more for
agencies today.
Financial analysis is something we all do to some extent.
Sound financial analysis can help agencies deploy
resources more efficiently and effectively.
Financial analysis early in the acquisition process can
pay dividends later.
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Sean M. Williams, PMP, ITIL-F, CSM Program Analyst INTEGRITY MANAGEMENT CONSULTING 2000 Corporate Ridge, Suite 170
McLean, VA 22102 Phone: 703-349-3394 Cell: 703-647-0443 SWilliams@integritymc.com