presentation name date • 1 closing the electronic gap between

Presentation Name Date • 1

Closing the Electronic Gap Between

Government and IndustryLenn Vincent

RADM, USN (Ret)Vice President

CACI International, Inc

2Presentation Name Date •

Acquisition Interdependence

Government is dependent upon contractors to achieve agency missions

Most of the interaction is controlled through the acquisition process

An open, seamless exchange of information is important to both but has been difficult to achieve

Recent advances in technology and functional applications are closing the gap


The Government Acquisition Process

Highly regulated and

rule-driven process

motivated by public

accountability

Purchase Requisition

RFQ / Offer

Purchase Order/ Award

Goods receipt

Invoice receipt

Disbursements

PPRS

Modifications

Receipt vs. AcceptanceSource Acceptance

Vendor eligibilityCost Accrual

Obligations

Commitments

Contract Administration

Socio-economic policies

Fed Biz Ops

FAR Clauses

AmendmentsStructured Bid Opening

Budget Check / ApprovalBudget officer approval, annual appropriations

Workload – emphasis on automated

Requirement DefinitionStructured process, referral process, complex

Sourcing


Understanding the Gap

• Complex and inefficient data flow

• Lack of enterprise visibility

• Lack of integration with program, financial and asset solutions

Achieving the Agency/Dept

Mission

Public Sector

Public Trust and

Accountability

• Extensive data needs

• Service and performance-based focus

• Interactive contract admin.

• Multiple sources

Private Sector

Short Term Profit, Longer Term Loyalty

• Multiple customers

• Packaged solutions

• Cost-benefit criteria

• Delivery focus


A Structured Approach to Bridging the Gap

Present a single face to industry for opportunities

Get your internal house in order

Expand standardization across individual agencies

Automate internal processes (contract management, bank card, e-procurement)

Align internal procurement, financial and program information

Enable strategic sourcing

Understand “spend” to prioritize investments

Facilitate the flow of contractual information Contract administration

Collaborative environments for planning and sourcing


SOW

RFQ

Quote

Receipt

Invoice/Payment

Catalogue

Bid comparison

Order

Contract terms

Level One: Simple Transactions

Level Three: Complex Transactions

Solicitation

Amendment

Offer evaluation

Concurrent mods

Level Four: Complex Integration

Incremental funding

Contract administration

Major contracts

Novations

Task order negotiation

Subcontractor flow down

Level Two: Federal Compliance

FAR

Excluded parties

BPN

FedBizOpps

eTransactions

Past performance

Delivery management

Collaborative environment

Matu

rity

Government and Industry Procurement Maturity Model


Technology’s Role in Facilitating the Data Flow:Moving up in the Maturity Model

Government Industry

No Standard formats forexchange of Governmentcontracting information

with Industry

Paper & Snail Mail

Custom Interfaces,EDI & VAN’s

Telephones & e-Mail

Complex and Inefficient Data Flows

(The Gap)

Different schemas,syntax, and semantics


Building On Existing Commercial Standards:Moving Further up the Maturity Ladder

Legal, regulatory (FAR/DFARs) and complex business needs drive a requirement for much more information to be carriedin Federal & DoD documentsand transactions

Government Industry

Commercial standards define business document and transaction content needed to carry out business collaborations defined and transported by e.g. ebXML, BizTalk or RosettaNet

CommercialXML DTD/schema-based documents

Federal and DoD XMLspecification extensions

ebXML

BizTalk

RosettaNet

Transported Over:


This Moves Us Up the Maturity Model,But We Need To Do More …

Government

Standard formats forexchange of Governmentcontracting information

with Industry

ebXML

BizTalk

RosettaNet

Industry

Standards and Transports Let Us Exchange Information More Efficiently

We’ve narrowed the gap, but we are still shipping things over the gap

(The Gap)


Web Technology Lets Us Build Service Oriented Architectures (SOA’s)

Applications are Composed Rapidly from Business Services

Services also may be exposed to other apps and partners to enable seamless collaboration and integration

Business Logic Decomposed in Services

Service 1 Service 2 Service 3 Service n

Various Persistent Data Sources

Presentation

Application Logic


SOA’s Let Us Build Cooperative Applications: Right Time Collaboration With No Gap

Government Business Logic

Service 1 Service 2

Government Data Sources

Government Application

Service n

Industry Business Logic

Industry Data Sources

Service 1 Service 2 Service m

Industry Application

Partners Use Each Other’s Services in Their Respective Applications to Achieve the Top Level of the Maturity Model

Access is Secured and Controlled to Achieve Joint Partner Goals


The Ultimate Goal: Right-time Collaboration

**Business Object Documents

Seamless, Secure, Integrated, Interoperable, Right-time Business Processes

CommercialXML DTD/schema-based documents

Federal and DoD XMLspecification extensions

ebXML

BizTalk

RosettaNet

Orchestrated by:

Secure, Right-time Collaboration

Tools and ProcessesEnabled by:

Transported Over:

Web Technology: Web Services

Government Industry


The Gap is Closing

There is steady progress to speed the flow of information between Government and Industry

As software applications mature, they enable

More timely and consistent processes

Standardization of touch points

An evolution from transactions processing to strategic decision making

As commercial technology evolves, it enables

Streamlined connectivity

Access to common information across organizational boundaries

The ability to build real-time collaborative applications to enable that strategic decision making


The Gap is Closing

Case Studies


Presenting a Single Face to Industry Case Study: Beginnings of an Integrated Acquisition Environment

The government has evolved from the manual, paper, Commerce Business Daily

First stage reflected individual Agency portals and web postings

Currently, the Integrated Acquisition Environment (IAE) is simplifying and standardizing government-wide interfaces


Results• e-Mall live in 120 days• Fully benefits funded, 1% fee to suppliers• Largest number of suppliers on a single state system in the country (17,550)• Largest single online marketplace for any state (5 million line items, $2.3B throughput)• Largest number of voluntary local governments agencies on single statewide system (374)

Business Problem• Serve a decentralized

government enterprise (170 state agencies and all VA gov’ts)

• Connect large supplier community to state buyers via single portal

• Make sure there are the “right goods on the shelves”

Foundation

Agency Procurement System Vendors

Real-time Catalogs

E-Mall

PurchasingTransactionsWarehouse

Vendor DataWarehouse

VendorRegistration

Bids, Vendor Data

Bids Submitted

Order Received

Orders, Solicitations

eVA Portal

Authentication Integrity Efficiency Completeness

EDI Invoices

Push/PublicPosting

Receiving& Invoicing

VendorData

Bidding/Contracting

Requisitioning& Ordering

Auctions

Automating Internal Processes Case Study: eVA


Business Problem• California has a significant budget

shortfall • Procurement operations are

decentralized• Spend data is not centrally stored• No available funding to undertake the

project

Enabling Strategic Sourcing Case Study: California DGS

Goals• Enables enhanced strategic and

operational decision-making by giving visibility into enterprise-wide spend analysis

• Provides negotiation support for strategic sourcing decisions and knowledge transfer to California

• Plan to rationalize supply base across multiple California agencies

• Projected $200M+ savings to the State• Benefit funding through shared savings


Standardizing Across Agencies Case Study: DoD Standard Procurement System

BEFOREBusiness Problem• 43,000 users-1,100 sites

(4 Services, 13 Agencies)• 75+ legacy systems• Unreconciled

disbursements / unliquidated obligations

• Sporadic data integration

(42,000 Users at 1000+ Sites)

MOCAS

DPACSAPADE

ITIMP

SAACONS

BCAS

ACPS

SACONS

BOSS

PADDS

USMCBCASAM IS

LOG

System

s

Finan

ce System

s

Acquisition Systems

LEGACY PROCUREMENT SYSTEMSPROCUREMENT

SYSTEM

AFTER

DFAS - Finance Standard Systems

S

P

S

LOG

System

s

Acquisition Systems

Finan

ce System

s

DAS

DSDS

Results• Single, standard, joint

procurement system• Single touch-point with finance

and logistics systems.

• Central repository of all procurement data• First ever end-to-end DoD Enterprise Business

Solution for Procurement• 23,000 operational users at 777 sites• Projected $395M annual savings


Facilitating the Flow of Information Case Study: Boeing Automated Contract Management

Results • Implementing a bid response and contract management system for government

contracts• Increased bid competitiveness• Reduced time to payment• Shorter cycle times • Reduced contract management costs

• Single contract management face• Automated workflow • Streamlined file management• Enhanced workforce flexibility

Business Problem • Minimal collaborative capability or common

electronic environment to seamlessly interact with Government and Industry counterparts

• Lack of data integrity causes rework and delays the payment process

• Too many manual/paper intensive processes