Presentation Name Date • 1 Closing the Electronic Gap Between

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  • EDI might be said to be a standard, but it is cumbersome and expensive, and requires considerable work between two parties to make it work. It has only made small inroads on the digital gap. EAI has begun to solve the integration problem within the enterprise. What’s needed now is IEAI: Inter-Enterprise Application Integration.
  • For the government to participate in these XML-based bridges across the digital gap, these metadata standards need to be extended to include the special needs of the government in contracting. There are regulatory and legal requirements for the government that go beyond the regular commercial needs. The clear win here is to build on the commercial standards, allowing the government to take advantage of all the effort and successes in the commercial efforts. AMS intends that the work it has done in creating XML that addresses the government’s special requirements be offered into the ongoing standards work, as an extension to a maturing commercial standard. This is an effort that is just getting underway.
  • EDI might be said to be a standard, but it is cumbersome and expensive, and requires considerable work between two parties to make it work. It has only made small inroads on the digital gap. EAI has begun to solve the integration problem within the enterprise. What’s needed now is IEAI: Inter-Enterprise Application Integration.
  • Of course, the ultimate goal is not just to be able to easily and efficiently exchange information—messages, documents and transactions—across the digital gap, but to reduce the latency in such exchanges to near zero. Government and industry need to build on this emergent capacity for exchange to create collaborative environments in which unnecessary delay and misunderstanding are dropped out of the process. This will allow the creation of real-time enterprises, whose information exchanges can work within the real-time constraints of the business processes of their partners.
  • Presentation Name Date • 1 Closing the Electronic Gap Between

    1. 1. Closing the Electronic Gap Between Government and Industry Lenn Vincent RADM, USN (Ret) Vice President CACI International, Inc
    2. 2. Acquisition Interdependence <ul><li>Government is dependent upon contractors to achieve agency missions </li></ul><ul><li>Most of the interaction is controlled through the acquisition process </li></ul><ul><li>An open, seamless exchange of information is important to both but has been difficult to achieve </li></ul><ul><li>Recent advances in technology and functional applications are closing the gap </li></ul>
    3. 3. 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. Acceptance Source Acceptance Vendor eligibility Cost Accrual Obligations Commitments Contract Administration Socio-economic policies Fed Biz Ops FAR Clauses Amendments Structured Bid Opening Budget Check / Approval Budget officer approval, annual appropriations Workload – emphasis on automated Requirement Definition Structured process, referral process, complex Sourcing
    4. 4. Understanding the Gap <ul><li>Complex and inefficient data flow </li></ul><ul><li>Lack of enterprise visibility </li></ul><ul><li>Lack of integration with program, financial and asset solutions </li></ul>Achieving the Agency/Dept Mission Public Sector Public Trust and Accountability <ul><li>Extensive data needs </li></ul><ul><li>Service and performance-based focus </li></ul><ul><li>Interactive contract admin. </li></ul><ul><li>Multiple sources </li></ul>Private Sector Short Term Profit, Longer Term Loyalty <ul><li>Multiple customers </li></ul><ul><li>Packaged solutions </li></ul><ul><li>Cost-benefit criteria </li></ul><ul><li>Delivery focus </li></ul>
    5. 5. A Structured Approach to Bridging the Gap <ul><li>Present a single face to industry for opportunities </li></ul><ul><li>Get your internal house in order </li></ul><ul><ul><li>Expand standardization across individual agencies </li></ul></ul><ul><ul><li>Automate internal processes (contract management, bank card, e-procurement) </li></ul></ul><ul><ul><li>Align internal procurement, financial and program information </li></ul></ul><ul><ul><li>Enable strategic sourcing </li></ul></ul><ul><ul><li>Understand “spend” to prioritize investments </li></ul></ul><ul><li>Facilitate the flow of contractual information </li></ul><ul><ul><li>Contract administration </li></ul></ul><ul><ul><li>Collaborative environments for planning and sourcing </li></ul></ul>
    6. 6. <ul><li>SOW </li></ul><ul><li>RFQ </li></ul><ul><li>Quote </li></ul>Government and Industry Procurement Maturity Model <ul><li>Receipt </li></ul><ul><li>Invoice/Payment </li></ul><ul><li>Catalogue </li></ul><ul><li>Bid comparison </li></ul><ul><li>Order </li></ul><ul><li>Contract terms </li></ul>Level One: Simple Transactions Level Three: Complex Transactions <ul><li>Solicitation </li></ul><ul><li>Amendment </li></ul><ul><li>Offer evaluation </li></ul><ul><li>Concurrent mods </li></ul>Level Four: Complex Integration <ul><li>Incremental funding </li></ul><ul><li>Contract administration </li></ul><ul><li>Major contracts </li></ul><ul><li>Novations </li></ul><ul><li>Task order negotiation </li></ul><ul><li>Subcontractor flow down </li></ul>Level Two: Federal Compliance <ul><li>FAR </li></ul><ul><li>Excluded parties </li></ul><ul><li>BPN </li></ul><ul><li>FedBizOpps </li></ul><ul><li>eTransactions </li></ul><ul><li>Past performance </li></ul><ul><li>Delivery management </li></ul><ul><li>Collaborative environment </li></ul>Maturity
    7. 7. Technology’s Role in Facilitating the Data Flow: Moving up in the Maturity Model Government Industry (The Gap) Different schemas, syntax, and semantics No Standard formats for exchange of Government contracting information with Industry Paper & Snail Mail Custom Interfaces, EDI & VAN’s Telephones & e-Mail Complex and Inefficient Data Flows
    8. 8. Building On Existing Commercial Standards: Moving Further up the Maturity Ladder Government Industry Legal, regulatory (FAR/DFARs) and complex business needs drive a requirement for much more information to be carried in Federal & DoD documents and transactions Commercial standards define business document and transaction content needed to carry out business collaborations defined and transported by e.g. ebXML, BizTalk or RosettaNet Commercial XML DTD/schema- based documents Federal and DoD XML specification extensions ebXML BizTalk RosettaNet Transported Over:
    9. 9. This Moves Us Up the Maturity Model, But We Need To Do More … Government 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) Standard formats for exchange of Government contracting information with Industry ebXML BizTalk RosettaNet
    10. 10. 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
    11. 11. SOA’s Let Us Build Cooperative Applications: Right Time Collaboration With No Gap 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 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
    12. 12. The Ultimate Goal: Right-time Collaboration **Business Object Documents Seamless, Secure, Integrated, Interoperable, Right-time Business Processes Industry Commercial XML DTD/schema- based documents Federal and DoD XML specification extensions ebXML BizTalk RosettaNet Orchestrated by: Secure, Right-time Collaboration Tools and Processes Enabled by: Transported Over: Web Technology: Web Services Government
    13. 13. The Gap is Closing <ul><li>There is steady progress to speed the flow of information between Government and Industry </li></ul><ul><li>As software applications mature, they enable </li></ul><ul><ul><li>More timely and consistent processes </li></ul></ul><ul><ul><li>Standardization of touch points </li></ul></ul><ul><ul><li>An evolution from transactions processing to strategic decision making </li></ul></ul><ul><li>As commercial technology evolves, it enables </li></ul><ul><ul><li>Streamlined connectivity </li></ul></ul><ul><ul><li>Access to common information across organizational boundaries </li></ul></ul><ul><ul><li>The ability to build real-time collaborative applications to enable that strategic decision making </li></ul></ul>
    14. 14. The Gap is Closing <ul><li>Case Studies </li></ul>
    15. 15. Presenting a Single Face to Industry Case Study: Beginnings of an Integrated Acquisition Environment <ul><li>The government has evolved from the manual, paper, Commerce Business Daily </li></ul><ul><li>First stage reflected individual Agency portals and web postings </li></ul><ul><li>Currently, the Integrated Acquisition Environment (IAE) is simplifying and standardizing government-wide interfaces </li></ul>
    16. 16. <ul><li>Results </li></ul><ul><li>e-Mall live in 120 days </li></ul><ul><li>Fully benefits funded, 1% fee to suppliers </li></ul><ul><li>Largest number of suppliers on a single state system in the country (17,550) </li></ul><ul><li>Largest single online marketplace for any state (5 million line items, $2.3B throughput) </li></ul><ul><li>Largest number of voluntary local governments agencies on single statewide system (374) </li></ul>Automating Internal Processes Case Study: eVA <ul><li>Business Problem </li></ul><ul><li>Serve a decentralized government enterprise (170 state agencies and all VA gov’ts) </li></ul><ul><li>Connect large supplier community to state buyers via single portal </li></ul><ul><li>Make sure there are the “right goods on the shelves” </li></ul>Foundation Agency Procurement System Vendors Real-time Catalogs E-Mall Purchasing Transactions Warehouse Vendor Data Warehouse Vendor Registration Bids, Vendor Data Bids Submitted Order Received Orders, Solicitations eVA Portal Authentication Integrity Efficiency Completeness EDI Invoices Push/Public Posting Receiving & Invoicing Vendor Data Bidding/ Contracting Requisitioning & Ordering Auctions
    17. 17. Enabling Strategic Sourcing Case Study: California DGS <ul><li>Business Problem </li></ul><ul><li>California has a significant budget shortfall </li></ul><ul><li>Procurement operations are decentralized </li></ul><ul><li>Spend data is not centrally stored </li></ul><ul><li>No available funding to undertake the project </li></ul><ul><li>Goals </li></ul><ul><li>Enables enhanced strategic and operational decision-making by giving visibility into enterprise-wide spend analysis </li></ul><ul><li>Provides negotiation support for strategic sourcing decisions and knowledge transfer to California </li></ul><ul><li>Plan to rationalize supply base across multiple California agencies </li></ul><ul><li>Projected $200M+ savings to the State </li></ul><ul><li>Benefit funding through shared savings </li></ul>
    18. 18. Standardizing Across Agencies Case Study: DoD Standard Procurement System BEFORE <ul><li>Business Problem </li></ul><ul><li>43,000 users-1,100 sites (4 Services, 13 Agencies) </li></ul><ul><li>75+ legacy systems </li></ul><ul><li>Unreconciled disbursements / unliquidated obligations </li></ul><ul><li>Sporadic data integration </li></ul>(42,000 Users at 1000+ Sites) MOCAS DPACS APADE ITIMP SAACONS BCAS ACPS SACONS BOSS PADDS USMC BCAS AM IS LOG Systems Finance Systems Acquisition Systems LEGACY PROCUREMENT SYSTEMS PROCUREMENT SYSTEM AFTER DFAS - Finance Standard Systems S P S LOG Systems Acquisition Systems Finance Systems DAS DSDS <ul><li>Results </li></ul><ul><li>Single, standard, joint procurement system </li></ul><ul><li>Single touch-point with finance and logistics systems. </li></ul><ul><li>Central repository of all procurement data </li></ul><ul><li>First ever end-to-end DoD Enterprise Business Solution for Procurement </li></ul><ul><li>23,000 operational users at 777 sites </li></ul><ul><li>Projected $395M annual savings </li></ul>
    19. 19. Facilitating the Flow of Information Case Study: Boeing Automated Contract Management <ul><li>Results </li></ul><ul><li>Implementing a bid response and contract </li></ul><ul><li>management system for government </li></ul><ul><li>contracts </li></ul><ul><li>Increased bid competitiveness </li></ul><ul><li>Reduced time to payment </li></ul><ul><li>Shorter cycle times </li></ul><ul><li>Reduced contract management costs </li></ul><ul><li>Single contract management face </li></ul><ul><li>Automated workflow </li></ul><ul><li>Streamlined file management </li></ul><ul><li>Enhanced workforce flexibility </li></ul><ul><li>Business Problem </li></ul><ul><li>Minimal collaborative capability or common electronic environment to seamlessly interact with Government and Industry counterparts </li></ul><ul><li>Lack of data integrity causes rework and delays the payment process </li></ul><ul><li>Too many manual/paper intensive processes </li></ul>

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