April 19, 2023 UNCLASSIFIED 1

Office of the Director of National Intelligence

Terri EverettDNI Senior Procurement Executive

“Procuring the Future”21st Century IC Acquisition

April 19, 2023 UNCLASSIFIED 2

Overview

Intelligence Role

DNI Priorities

Trends That Impact Acquisition

Strategic Focus and Priorities

Crucial Acquisition Alliances

The Way Ahead

April 19, 2023 UNCLASSIFIED 3

The Role of Intelligence

THE THE

PURPOSEPURPOSE

“The highest purpose of Intelligence is to avert conflict and preserve peace. The greatest Intelligence

achievements are the wars that do not happen, the headlines that are not made, and the lives that are not

lost.”

UNCLASSIFIED

UNCLASSIFIED

April 19, 2023 UNCLASSIFIED 4

Foreign Policy

RegionalConflict

Technology

Terrorism/Narcotics/International Organized Crime

Proliferation

Military

Economics

UNCLASSIFIED

Multiple Areas of Concern

April 19, 2023 UNCLASSIFIED 5

DNI Priorities

Integrate the Intelligence CommunityResponsibility to ProvideSecurity OverhaulAcquisition ExcellenceStrengthen NCS and IMINT Discipline ManagersIntegrate Foreign and Domestic IntelligenceAnalyst TransformationDNI Authorities and Relationships to the White House, Capitol Hill, and Under Secretary of Defense for Intelligence (USDI)

April 19, 2023 UNCLASSIFIED 6

“Megatrends”

Technology Change Gradual RapidGeopolitical Environment Known Unpredictable/DynamicBudget/People Ample Limited/ConstrainedOrganizational Structure Hierarchical Flattened, Fluid, FlexibleNon-Core Functions In-House OutsourcedWork Environment Dedicated Virtual, TelecommutingEmployee Mobility 30 years 3-5 YearsRisk Taking Avoidance ManagementEnvironmental Concerns Low Priority Rising PriorityPersonnel Security Restricted BroadenedCollaboration Incidental Essential

COLD WAR ERA 21ST CENTURY

April 19, 2023 UNCLASSIFIED 7

Technology Trends

INCREASED PROCESSING POWER

E- MAIL

QUADRUPLE GROWTH IN COMMERCIAL SATELLITES

TELECONFERENCING

SOFTWARE DISTRIBUTION VIA NETWORK

LAPTOP

COMPUTERS

ELECTRONIC FUNDS TRANSFER

FIBER

FACSIMILE

CELLULAR PHONES

14UNCLASSIFIED

INTERNET

GLOBAL NETWORKGLOBAL NETWORKGLOBAL NETWORKGLOBAL NETWORK

April 19, 2023 UNCLASSIFIED 8

Office of the Director of National Intelligence

Acquisition is Vital to IC Mission Success

We Can’t Spy… If We Can’t Buy!

April 19, 2023 UNCLASSIFIED 9

Increase in federal procurement spending by 50% to over $350B. IC trending data is comparable

Increased requirements and scope changes

Increased customer expectations and demand for faster, better, cheaper

Increased reliance on technology to conduct IC mission operations

Increased rules, regulations, policies

Increased media and Congressional scrutiny

Increased security issues associated with foreign acquisition of U.S. companies

Transition of acquisition from a tactical, transactional function to a strategic function

Increased focus on strategic sourcing

Acquisition Trends

The IC Acquisition Workforce has not kept pace with increased requirement demands and workload

April 19, 2023 UNCLASSIFIED 10

Contract $Non-Contract $

70%

30%

Percentage of IC Budget Spent on Contracts

April 19, 2023 UNCLASSIFIED 11

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

FY94 FY96 FY98 FY00 FY02 FY04 FY06

FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

9/11

9/11

IC Award Actions Trend DataAward Actions

Award Dollars

FY06 data as of 31 August

April 19, 2023 UNCLASSIFIED 12

GoalsA chieve National Intelligence Strategy AlignmentG ain Increased IC Integration and Collaboration

I mprove the Acquisition Workforce

L ead with Integrity and Ethical Values

I ntegrate Best Contracting & Procurement Practices

T ransform the IC through E-Procurement

Y early Progress Measured through Meaningful Metrics

Initiatives

• Established IC Procurement Executive Council (IPEC)

• Established Procurement Database Working Group (PDWG)

• Drafted IC Procurement Policy• Developed Strategic Alliance with Chief Human

Capital Officer and ADDNI/E&T• Outreach to DOD/Industry/Academia • Benchmarking Best Practices• IC Industry Day

Challenges

• Increased Contracting Actions • Increased Customer Expectations (Better,

Quicker, NSC)• Increased attention and scrutiny• Requirements Discipline/Scope Issues• Contract Type, Incentive Structure• Insufficient, Inexperienced Work Force • Technology & Security Issues• Life-Cycle Contract Management

IC Procurement Strategic Focus

VisionAgile, Flexible, and Responsive IC Contracting and Procurement that

is Ethically Based

Mission Centric

Legally Sound

April 19, 2023 UNCLASSIFIED 13

Acquisition Workforce Advocacy World class, experienced COs/COTRs are crucial; career management is

important; Profession needs core competency status• Retention Bonus• Certification Pay• Special Pay Scale• Elevated Grade Structure• Effective Mentoring Programs

Automate and streamline the acquisition process Reduce cycle time from receipt of requirement to contract award Electronic Data Exchange with industry Collect contracting and procurement statistics; develop metrics Identify opportunities for strategic sourcing

Build trusted IC-Industry Contractual and Business RelationshipsBuild trusted partnership with DOD

DNI PE Top Priorities

April 19, 2023 UNCLASSIFIED 14

S&TS&T

BUDGETBUDGET

POLICYPOLICY

LEGALLEGALREQ’TSREQ’TS

USERSUSERS

TRAININGTRAINING

LOGISTICS

LOGISTICS

Industry

CO COR

PM

TECHNICALCOMMUNITY

INTELLCOMMUNITY

Crucial Acquisition Alliances

April 19, 2023 UNCLASSIFIED 15

Complementary Public-Private Roles

Communication/Feedback (Contractual Relationship) Overly constrained, restricted requirements Unrealistic delivery or performance Contract type, Contract scope changes

Public-Private Sector Partnership (Business Relationship) Share best practices; partner on issues of common concern Understand IC needs Develop mentor-protégé relationships; partner with small

business and academia Collaborate on government to industry, industry to

government contracting exchange programs

April 19, 2023 UNCLASSIFIED 16

The Way Ahead

Partner with Chief Human Capital Officer to develop and implement innovative recruitment, training, and retention strategies that will motivate and retain acquisition professionals

Strengthen internal ODNI partnerships

Continue strategic sourcing effort in order to achieve efficiencies and economies of scale by leveraging aggregate IC buying power

Contribute to the DNI priority to integrate the IC by continuing Senior Procurement Executive Collaboration through the IC Procurement Executive Council (IPEC).

Use the recommendations of the Procurement Database Working Group (PDWG) to further streamline the procurement and contracting process through automation.

Continue outreach efforts and develop partnerships with DOD,

Industry, and Academia.

April 19, 2023 UNCLASSIFIED 17

The Role of Intelligence

THE THE

PURPOSEPURPOSE

“The highest purpose of Intelligence is to avert conflict and preserve peace. The greatest Intelligence

achievements are the wars that do not happen, the headlines that are not made, and the lives that are not

lost.”

UNCLASSIFIED

UNCLASSIFIED

April 19, 2023 UNCLASSIFIED 18

Questions?