installation acquisition transformation strategically sourcing the enterprise orientation &...

Installation Acquisition Transformation

Strategically Sourcing The Enterprise

Orientation & Status Brief

July 08

2Strategically Sourcing The Enterprise

Outline

AF Priorities & Case For Change IAT Background SecAF Direction Key Tenets Old & New Structure Future Organization Schedule


Air Force Priorities

4

Win Today’s Fight

Take Care of Our People

Prepare for Tomorrow’s Challenges


The Case for Change:Current Installation Contracting Structure

71 buying organizations focused on providing tactical support to installation customers

Additional contracting support provided to numerous Field Operating Agencies

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 Contracting community to effectively perform its mission


Business Case Analysis

Implementation Plan

Aug 2005–April 2006 Aug 2006–Feb 2007 Aug 2007

IAT Background

•May 05 – OMB Mandates Strategic Sourcing

•Aug 05-Apr 06 – SAF/AQC Initiates/Completes BCA – Strategic Sourcing

•Aug 07 – SecAF Approves IAT Initiative

•Sep 07 – IAT Program Management Office Established

•Jan 08 – CSAF Approves IAT Via C2 Enabling PAD, 07-13, Annex G

•Feb 08 – 1st Meeting of IAT Governance Board

•Apr 08 – AF Group approved FY 09 & 10 funding

•May 08 – AF Special Order GA-8 Designated and activates Provisional Units

– AFMC/CC signed memo establishing the Provisional Director of the

Installation Acquisition Center and a regional Provisional Director at each of

the five Installation Acquisition Groups

SECAF Approves

Transition Planning

continues to full transformation

Sep 2007-Sep 2009

Full Implementation

of IAT

Oct 2009-Sep 2012


SECAF Direction - 20 Aug 07

“…apply innovative best business practices to improve Air Force processes”; “…along with the strategic sourcing work”

“…we identified the need for a fundamental shift in how we accomplish Air Force contracting and acquisition in support of our installations”

“…introduction of five geographic-based Regional Centers” (Now known as Installation Acquisition Groups)

“The implementation of the transformed installation acquisition organization will follow an aggressive timeline.”


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


Old: CONUS Installation Contracting

Current as of October 2007

AF Inspection AgencyAF Safety CenterAF Nuclear Weapons and Counterproliferation Agency

AF Security Forces CtrAF News Agency

AF Manpower AgencyAF Personnel CenterAF Services Agency

AF Center for Environmental Excellence

AF Technical Applications Ctr

AF Agency for Modeling and Simulation

Orlando

AF CE Support Agency

AF Historical Research AgencyAF Logistics Management Agency

AFC2ISRCAF Global C4ISR Integration Ctr*

AF Communications Agency

BollingAF Legal Services AgencyAF Medical Support AgencyAF Medical Operations AgencyAF Pentagon Communications Agency

AF Weather Agency

AndrewsAF Flight Standards AgencyAF Review Boards AgencyANG Readiness CenterOffice of Special Investigations

PentagonAF Personnel Ops AgencyAF Ops Group71 Buying Activities

3,322 Personnel

71,000 Contract Actions

$13B Installation Spend

$2B GPC Spend


Future Organization

Current as of May 2008

IAGs

786th IAG

787th IAG

789th IAG

790th IAG 788th IAG

5 Geographic Based Groups

Contracting Presence at Each Installation

Enables Realization of Strategic Sourcing

IAC HQ


Lead-MAJCOM:• Management/oversight of entire AF

contracting organization, training, policy

Installation Acquisition Group:• Conducting strategic sourcing activities • Providing contracting support

Installation Contracting Squadron:• Emergency buying and selected buying as delegated by the IAG• Government Purchase Card and Quality Assurance Administration

Future Organization

Installation Acquisition Center: • Responsible for CONUS installation

acquisition/contracting execution

Enterprise Sourcing Squadron:• Lifecycle acquisition of defined

commodities/services• AF-wide focus

ESSsESSsESSsESSsESSs

St Louis, MO San Antonio, TX Peterson AFB, CORobins AFB, GAHampton Roads, VA


Future OrganizationInstallation Acquisition Center (IAC)

IAC/CCSA

790th IAGPeterson AFB, CO

SupportedMAJCOMs

Support Staff

SACClearance & Program

Support Division

SALLabor Advisor Division

SARResource Management

Division

SATSourcing Division

786th IAG Hampton Roads, VA

787th IAGRobins AFB, GA

789th AIGSan Antonio, TX

788th IAGSt. Louis, MO


• Lifecycle Acquisition of Defined Commodities

Enterprise SourcingSquadron (ESS)

Future OrganizationInstallation Acquisition Group (IAG)

Program Support Squadron (PSS)

Resource Mgt Support Flight

(SABR)

Business SupportSquadron (BSS)

Acquisition Flight A (SAAA)

Acquisition Flight B (SAAB)

Requirement Evaluation &

Sourcing Flight (SAAR)

Technology Support Flight (SABT)

Acquisition Flight C (SAAC)

Sourcing Acquisition Squadron (SAS)

• General Contracting Support Functions

• Demand Planning • Spend Analysis• Opportunity Assessment• Receipt, Review of Installation Requirement• Assignment of Valid Requirements• Multifunctional• Customer-focused Procurement• Source Selections• Performance Management (Post Award)

• Contract Review• Policy Compliance

& Interpretation• Program

Management• Pricing Functions

IAG

Command Section

Co-Located Allied SupportLegal Labor

AdvisorsSmall

BusinessACE

Sourcing Support Flight (SAPS)

GPCFlight(SAPC)

Policy & Review Flight (SAPR)

Price Analysis

Flight (SAPP)

13Strategically Sourcing The Enterprise 13

Plans & Programs

GPC/QAMgmt Support/ITAdmin/Training

Contingency

Acq Spt Flt A*

Business AdvisoryLimited BuyingContract Admin

Acq Spt Flt B*

Business AdvisoryLimited BuyingContract Admin

Command Section

Future OrganizationInstallation Contracting Squadrons

Limited Buying remains at the ICS Emergency Buying w/limited warrants for short term natural disasters and local

emergency response Selected buying delegated by the IAG

Limited Delivery Orders/Task Orders

GPC Buying will continue

* Flight A&B segmentation depends on unit size

14Strategically Sourcing The Enterprise 14

Future OrganizationInstallation Contracting Squadrons

Business Advisory Services Provide support during requirement development process and throughout

contracting life cycle Interface with installation customers and leadership, small business/local

industry, and IAG Perform Contract Administration

Acceptance of Services Performance Measurement Corrective Action

Other Functions at the ICS Implement AF/AFMC policy GPC monitoring and surveillance Quality Assurance Systems Admin/Management Support Conduct Training (QA, GPC, Contingency, and Other) Contingency Support


Future OrganizationEnterprise Sourcing Squadrons (ESS)

Conduct Lifecycle Acquisition of Defined Commodities including Services

Provide Multi-functional Skills to Develop Acquisition Strategy Coordinate with FOAs and existing Air Force and DoD

Commodity Councils Execute Strategic Sourcing Activities Maintain Air Force-wide Focus on Defined Commodity Groups


Future OrganizationSmall Business Involvement

A Small Business expert will remain at each base to:

Understand local businesses’ capabilities and advise them of opportunities Communicate those capabilities to contracting officers at IAGs Help articulate performance-based installation requirements Help local small businesses with teaming approaches (joint ventures, etc.)

A full-time SB expert will be a member of every strategic sourcing analysis and strategic contracting strategy at the IAG

The AF Small Business office has established the “Air Force Small Business Solutions Center” to assist with strategic sourcing

To assist with Strategic Sourcing, people and processes will remain at the base level to ensure local small businesses continue to get timely market intelligence

of incoming requirements and make their capabilities known.


Future Organization Strategic Sourcing

Strategic Sourcing recognized as industry best practice:

Leading companies typically achieve more than 15% savings and cost

avoidance

Honda achieved 17%

American Airlines achieved 20%

IBM achieved 24%

Kettering Hospital: saved $1.3M on $8M spend

AF Examples:

Installation Domain Commodity Council generated $80M savings on

$484M spend


Strategic Sourcing IS NOT Just…Strategic Sourcing IS NOT Just… Strategic Sourcing IS…Strategic Sourcing IS… 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

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

The resulting contract

Leveraged buying

Contract consolidation/bundling

Contracting and procurement

About saving money

The resulting contract

Leveraged buying

Contract consolidation/bundling

Contracting and procurement

About saving money

Future OrganizationStrategic Sourcing


Strategic Sourcing Teams

Strategic Communication / Engagement / Change Management

Transition Planning / Implementation

AFPC Transfer of Work/Function Decision

PPlan Process

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

IAT Completion

Standup IAGs

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3

CONOPS EXECUTION:

OCR Approval

PAD Approval

Provisional Standup

POM Submission (FY10)

(Timeline (Phased Approach 3-5 Years)

Implementation:•Infrastructure

•IT•Personnel

Continuous / Consistent / On-going / Strategic / Stakeholder involvement

Gradual Strategic Sourcing Build-up

Transition Planning Implementation

Complete In Process Not Started

Transition:• Provisional CCs• Transition Team Lead• Focus Area Leads

Limited Strategic Sourcing

IAT Implementation Schedule

installation acquisition transformation strategically sourcing the enterprise orientation &...

Documents