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

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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

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Source: The Advocate

5 Source: GroundReport

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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.

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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

President’s

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

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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

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Acquisition and Program Management

Review Processes (ARP)

• ADEs (ADA & ARB)

• Acquisition documents

• Produces information used by the CPIC process

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Acquisition and Program Management

Review Processes (ARP)

• Challenges and Solutions:

• ARP and the Acquisition Review Board (ARB)

• Reviews

• Documentation

• Approval

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Acquisition and Program Management

Review Processes (ARP)

Source: MBAClubIndia.com

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Contracting Decision Support Process

Source: DAU

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Contracting Decision Support Process

• Challenges and Solutions:

• Business Need and Strategy

• Procurement

• Development / Operations & Maintenance

• Contract Closeout

Source: DAU

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Contracting Decision Support Process

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PPBE Contracting Decision Support Process

Source: DAU

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PPBE Contracting Decision Support Process

Source: U.S. Army

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PPBE Contracting Decision Support Process

Source: DAU

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PPBE Contracting Decision Support Process

Source: DAU

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PPBE Contracting Decision Support Process

Source: DAU

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PPBE Decision Support Process

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CPIC Decision Support Process

Source: DHS

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CPIC Decision Support Process

• Challenges and Solutions:

• Exhibits 300 / 53

• Documentation

–Review and Passback

–Going to Green

Source: HHS

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CPIC Decision Support Process

Source: DHS

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CPIC Decision Support Process

Source: Privacy Commissioner of Canada

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Interrelated Decision Support Systems

• Leverage existing artifacts, tools, practices across the DSS. Don’t reinvent wheel.

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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