Uploaded on


  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Federal Financial Management Conference Shared Services: Progress through Partnerships Larry Neff Deputy Chief Financial Officer U.S. Department of Transportation March 11, 2008
  • 2. Background on DOT and our Enterprise Services Center (ESC)
    • DOT has 55,000 employees & a $66 billion annual budget
      • Highly decentralized organization (Operating Administrations)
    • ESC has 1,000 employees & is in a Franchise Fund
      • IT Services/Data Center, Applications Support, Accounting Services, Customer Services/Help Desk
      • Located at the Mike Monroney Aeronautical Center in beautiful Oklahoma City
        • 1,100 acre secure campus
        • 5,500 total employees
        • Professional, knowledgeable, dedicated career staff
  • 3. DOT & ESC Accomplishments
    • 2000-2003: DOT implemented all 14 bureaus on a COTS-based, FSIO-certified financial system with no customizations running on a cost-effective single production instance
      • Produce financial statements overnight from the core accounting system
    • DOT has consolidated all accounting operations to ESC
      • Saving $5+ million per year
      • Bureaus more willing to streamline & standardize processes
    • Clean financial audit opinions 6 of last 7 years
      • DOT raised to “yellow” on PMA goal for Financial Management
  • 4. Enterprise Services Center (ESC)
    • Feb. 2005: OMB designated DOT/ESC 1 of 4 Federal Shared Service Providers (FSSPs)
    • ESC currently cross-services
      • Government Accountability Office (GAO)
      • Commodity Futures Trading Commission (CFTC)
      • Institute of Museum and Library Services (IMLS)
      • National Endowment for the Arts (NEA)
    • ESC using Service Oriented Architecture (SOA) technology to integrate PRISM with Oracle Financials
      • Eliminates duplicate manual data entry & reconciliation
      • Supports commitment accounting
  • 5.  
  • 6. Partnerships for Shared Services
    • ESC recognized the need for an on-going private sector partner for help marketing to & implementing new external customers
      • Implementation workload goes up & down
      • Continuity to ensure expert & experienced staff
    • Competed a Task Order on NIH’s CIO-SP2 i contract
      • Won by SRA with IBM
    • Mutually beneficial relationship
      • Gained new customers
      • Marketing expertise
      • Implementation resources
  • 7. Partnerships for Shared Services
    • ESC also has a contract with L-3 for on-going operational support
      • Data Center support
      • Application support
      • Operational accounting support
    • Exploring a Blanket Purchase Agreement
      • Consolidate support
      • Compete Task Orders among vendors
  • 8. Partnerships for Shared Services
    • Initially, some agencies thought the FM LoB was focused on shared hosting of financial systems
      • This view-point was too narrow
      • No economy of scale realized just by moving from 1 large data center to another
      • Hosting costs are a small part of any IT system’s costs
    • The biggest potential economy of scale is in shared application support
      • Professional staff with expertise in running the system
      • Biggest cost of system operations
      • Only way to drive down cost of application support is by using standard systems
      • FSIO standards make this even easier
  • 9. Partnerships for Shared Services
    • Alternatives for ensuring high quality services through competition
      • 4 Federal SSPs & __# Private SSPs all competing against each other
      • vs.
      • Teams of Private & Federal staff working together as SSPs competing against other Private-Federal SSP Teams
  • 10. Benefits of Shared Services
    • Low Cost
    • Customers get all the advantages of DOT’s financial system & accounting services without contributing to DOT’s $125 million capital investment
      • ESC already provides 90% or more of most required solutions; most additional needs can be met through configuration & set-up and interfaces
      • Customers only pay 1-time implementation costs and their fair share of annual operating & maintenance costs, plus future upgrade costs
    • Low Risk
    • Much lower risk to migrate to a system that’s stable and has been in production for 8 years than to migrate to a new custom-developed system
      • Delphi has 4,000 users and been successfully upgraded 7 times
      • Delphi has passed multiple CFO and SAS-70 audits
  • 11. Benefits of Shared Services
    • Experienced Team
    • DOT has successfully implemented Oracle Financials for 20 customers
      • We know how to do this
    • SRA/IBM business partner also has extensive experience
      • Helped with GAO’s successful implementation
    • DOT follows Oracle’s Application Implementation Methodology (AIM)
    • Change Management & User Support
    • Effective support for Change Management
    • Provide 4 to 6 weeks of “desk-side” user support after go-live, including the 1 st month-end close
    • Experienced Accounting & Help Desk staff know the Oracle application & Federal accounting inside & out
    • All system & user documentation available on-line
  • 12. Benefits of Shared Services
    • We Handle the IT Requirements
    • Professionally run data center
    • Meet all IT planning, IT security, Disaster Recovery, SPII & Privacy Act requirements
    • DOT Strategy
    • Don’t customize the COTS software
    • Modify business processes to take advantages of best business practices inherent in the Oracle software
    • Don’t recreate the legacy accounting system
    • Consolidate & standardize accounting operations
  • 13. Lessons Learned
    • Executive support is essential
    • Clean up your data!
    • Streamline business processes
    • Clean up your data!
    • Consolidate accounting operations
    • Clean up your data!
    • Talk to your customer’s customers
    • Clean up your data!
    • Change management is critical
      • Communicate, communicate, communicate
      • Train, train, train
      • Support, support, support
    • Clean up your data at the detail level!
  • 14. Looking to the Future
    • Long-term Business Transformation effort
    • Business drivers
      • Plan for Oracle release 12 i .FSIO – complete system re-architecting
      • Plan for Common Government-wide Accounting Code (CGAC)
      • Better link costs to program mission performance metrics
      • Automate Dept.-wide roll-up of performance data
      • Support cost accounting & Earned Value Management (EVM)
    • Started summer 2007
      • Workgroups & governance structure established
    • Integrated procurement solution
      • Automate commitment accounting
      • Eliminate duplicate manual data entry & reconciliation
      • Provide more useful information to program managers
      • Eliminate the need for “cuff records” systems
  • 15. For more information: www.esc.gov
    • Larry Neff Marshal Gimpel
    • Deputy Chief Financial Officer Director
    • U.S. Department of Transportation Enterprise Services Center
    • (202) 366-2335 (405) 954-8980
    • [email_address] [email_address]
    • Mike Upton Bob Stevens
    • Deputy Director Manager, Customer Service
    • Enterprise Services Center Enterprise Services Center
    • (405) 954-8980 (405) 954-7143
    • [email_address] [email_address]