This Briefing is:UNCLASSIFIED

Headquarters Air Combat Command

David Glowacki, Col, USAF

Chief, Contracting Division

HQ Air Combat Command

Installation Acquisition Transformation (IAT)

“Strategically Sourcing the Enterprise”

Outline

• Background/Case for Change

• Strategic Sourcing• Tenets and Implementation Plan

• Organizational Structure• Current and Future

Case for Change: Current Structure

• 71 buying organizations focused on providing tactical support to installation customers

• Additional contracting support provided to numerous FOAs

• This current alignment results:• Inconsistent use of skilled contracting resources • Redundant procurement of similar commodities • Inability to leverage the scale of the Air Force to drive efficiencies • Failure to realize strategic sourcing objectives• Strain on buying activities with contingency contracting officers

• Challenges are compounded by:• Increase in contracting workload and complexity• On-going mission support commitments

The current structure strains the ability of the Installation The current structure strains the ability of the Installation Contracting community to effectively perform its missionContracting community to effectively perform its mission

CONUS Installation Contracting(Current Tactical Alignment)

71 Buying Activities

3,322 Personnel

71,000 Contract Actions

$13B Installation Spend

$2B GPC Spend

FY06 DataThe current structure strains the ability of the Installation The current structure strains the ability of the Installation Contracting community to effectively perform its missionContracting community to effectively perform its mission

Learning From Industry

Enterprise-wide procurement

Centralized installation support

Centrally managed strategic sourcing

Cross-functional commodity councils                        

Services and Industry are Centralizing Procurement

Strategic Sourcing IS NOT Just…

Strategic Sourcing IS…

• The resulting contract

• Leveraged buying

• Contract consolidation

• Contracting and procurement

• About saving money

• A PROCESS for systematically analyzing and developing optimal strategies for buying goods and services

• DATA DRIVEN – fact-based analysis to drive decision making rather than just “hunches”

• A HOLISTIC process that addresses customer needs, market conditions, organizational goals and objectives, and other environmental factors

• Based on MARKET INTELLIGENCE and takes into account small business capabilities

• A COLLABORATIVE, CROSS-FUNCTIONAL approach

• About SUPPORTING AN ORGANIZATION’S MISSION through procured goods and services

Strategic Sourcing Summary

AF Strategic Sourcing Successes

• Desktops/Laptops: • 4th Qtr FY03 – 1st Qtr FY05: 84,787 units purchased, $72M spent, $17M

costs avoided

• Reduced desktop/laptop configurations from >1000 to 4

• Configurations updated quarterly to reflect technology changes – OMB adopted as standard

• Implemented a repeatable enterprise-wide “bulk buy” approach using quantity price breaks and online “e-buying”

• Overall 8.4% awarded to Small Business (as of Apr05)

• Enterprise-wide Microsoft agreements (Nov 04)• Consolidated 38 previously decentralized software contracts and nine

support contracts into two mandatory agreements

• Expected to save more than $100 million during a six-year period

• Medical Services CC – Implemented two strategic sourcing spirals – established business arrangements

Business Case Analysis

Implementation Plan

IAT Materials and Detailed Implementation Planning

Aug 2005–April 2006 Aug 2006–Feb 2007 May – September 2007

Stand up PMO

Initiate Implementation

HCA/GCA

PAD

October 2007

• Thoroughly examined current state AF CONUS Installation Contracting structure

• April 2006 Business Case Analysis recommended transformation to:• Take advantage of strategic sourcing• Leverage resources across the AF organization

• February 2007 Implementation Plan provides• Detailed Concept of Operations• Phased Deployment Plan• Communications and Change Strategy

• Transformation is initially targeted at contracting organizations, but will require collaboration and support of other key acquisition functionals

IAT background

Key Tenets

Maintain Customer Relationships: Maintain and improve our ability to support our customers

Socio-Economic Focus: Maintain and strengthen focus on socio-economic program responsibilities

Retain Contracting Experts at Every Installation: Maintain a buying activity responsible for providing business advisory services and performing installation-specific contracting actions

Maintain Robust Contingency Contracting Capability: Ensure continued ability to meet contingency contracting commitments

Ensure Force Development: Preserve leadership and professional development opportunities for military and civilian contracting professionals

Transparency: Provide visibility to Congressional and key stakeholders

CONUS Installation ContractingFuture Strategic Alignment

Regionalized Organizational Structure

Hampton Roads Warner Robins St Louis San Antonio Colorado Springs

AFMC – Lead-MAJCOM

Contracting contingent remains at Installations to provide agile

customer support

(Overall Timeline (Phased Approach 3-5 Years)

Major Milestone FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

ID Lead MAJCOM

Release SecAF Letter

Establish PMO

PAD Coordination/Approval

IOC (Lead MAJCOM)

Standup San Antonio

Standup Remaining RCs

IAT FOC

• SecAF Letter – Aug 07• PAD Coordination Approval – Aug-Nov 07• IOC – 1 Oct 07

• HCA/GCA transition to Lead-MAJCOM

• Stand-up San Antonio Regional Center – Jan 08• Stand-up 4 additional Regional Centers – Oct 09

Phased Implementation

IAT Implementation Schedule

Complete

In Process

Pathfinder Implementation

Not Started

Phased ImplementationPhased ImplementationPhased Implementation

IAT Summary• Tactical to Strategic Alignment

• 71 local buying activities transforming into 5 Regional Centers• Centers not MAJCOM-aligned – AFMC lead MAJCOM

• Regional Centers (RC)• RCs will provide strategic contracting support to bases in region• RCs will have about 350-400 personnel assigned • Many local CONS positions will migrate to RCs over time• Southwest Region IOC 1 Jan 08 – no immediate personnel moves

• Installation Acquisition Squadron (IAS) • IASs will report within wing structure (15-18 personnel)

• Manage GPC / QAPC programs; provide business advisory support• Limited local purchase capability

• IAT Program Management Office (PMO) – established Sep 07• Working personnel, workload flow / process & e-business issues

Implementation period of 3-5 yearsImplementation period of 3-5 years

Questions?