8/4/2019 DoD Response

1/9

COMPTROLLER

UNDER SECRETARY OF DEFENSE1 100 DEFENSE PENTAGON

WASHINGTON, DC 20301-1100

The Honorable Darrell E. IssaChainnanCommittee on Oversight and Government RefonnU.S. House ofRepresentativesWashington, DC 20515-6143Dear Representative Issa:

MAR 2 8 20ll

Thank you for your interest in Department ofDefense (DoD) financial managementmodernization efforts. This country is fortunate to be served by dedicated service men andwomen, and DoD owes it to them and to the American taxpayers to be sure that the Departmentis fiscally responsible.

Within efforts to modernize electronic systems, the Department ofDefense has developedan Enterprise Transition Plan and a Federal Spending Data Quality Plan that focus on businesssystem modernization and the quality of data provided to the public. Responses to your requestsare provided in the enclosure to this letter.

Similar letters with the enclosed responses have been sent to your colleagues who joinedyou in writing this request. Again, thank you for your interest in this matter and for the supportyou provide to the men and women of the Department ofDefense.

Enclosure:As statedcc:The Honorable Elijah CumlningsRanking Member

Sincerely,

Robert F. Hale

8/4/2019 DoD Response

2/9

COMPTROLLER

UNDER SECRETARY OF DEFENSE1 100 DEFENSE PENTAGON

WASHINGTON, DC 20301-1 100

The Honorable Darrell E. IssaChainnanCOllli11ittee on Oversight and Govermnent RefonnU.S. House of RepresentativesWashington, DC 20515-6143Dear Representative Issa:

MAH 2 8 201'1

Thank you for your interest in Departlnent ofDefense (DoD) financiallnanagementlnoden1ization efforts. This country is fortunate to be served by dedicated service lnen andwomen, and DoD owes it to theln and to the Alnerican taxpayers to be sure that the Departlnentis fiscally responsible.

Within efforts to lnoden1ize electronic systelns, the Departlnent ofDefense has developedan Enterprise Transition Plan and a Federal Spending Data Quality Plan that focus on businesssysteln lnoden1ization and the quality of data provided to the public. Responses to your requestsare provided in the enclosure to this letter.

Similar letters with the enclosed responses have been sent to your colleagues who joinedyou in writing this request. Again, thank you for your interest in this lnatter and for the supportyou provide to the lnen and WOlnen of the Departlnent ofDefense.

Enclosure:As statedcc:The Honorable Elij ah CUlnlningsRanking Melnber

Sincerely,

Robert F. Hale

8/4/2019 DoD Response

3/9

Committee on Oversight and Government ReformMarch 8, 2011

Requests and Responses1. Identify and briefly describe each of your agency's business and accounting systelns. Ifseparate divisions, bureaus, or offices of your agency use separate systems, identify whichdivisions, bureaus, or offices use each systenl.

Response: The Department ofDefense (DoD) Fiscal Year (FY) 2011 EnterpriseTransition Plan (ETP) Master List of Systems includes all DoD business and accountingsystems for each of the DoD Components. The DoD ETP also includes SystemDashboards, which contain a brief description, as well as cost, schedule, and performanceinformation for each of the Departlnent's recent, current, and currently planned systemmodernizations. Both the Master List of Systems and Systeln Dashboards can beaccessed from the DoD ETP website, hosted by the DoD Office of the Deputy ChiefManagement Officer (ODCMO) (http://dcmo.defense.gov/etp/FY20111home.htnll).2. Explain how the business and accounting systelns identified in response to Request No.1

interact with one another.Response: The DoD business and accounting systems interact with one another to submitinformation to government-wide accounting systems. Each of the DoD Componentsystems identified in the response to Request No.1 work together within businessprocesses to execute business functions and produce various budget exhibits and financialreports to include The President's Budget request for the DoD, the Agency's FinancialReport, and various other financial reports. These reports include data from varioussystems that perform budget formulation, distribute and manage the budget, executerequisitions, source goods and services, manage contracts, execute purchases, performreceipt and acceptance, process invoices, execute disbursements, and accumulate andreport business information.

3. For each system identified in response to Request No.1, state whether the information found,in that system is regularly or periodically submitted to any of the government-wideaccounting systems maintained by the Department of the Treasury, e.g., GovernmentFinancial Reporting System (GFRS), Federal Agencies' Centralized Trial-Balance System(FACTS) I, FACTS II, Intragovernmental Fiduciary Confirmation System (IFCS), etc., andexplain how and at what intervals those submissions occur, including descriptions of bothmanual and automated processes.

Response: The DoD uses only one systeln, the Defense Departmental Reporting Systenl(DDRS), to periodically submit information to govenunent-wide accounting systenlsInaintained by the Department of the Treasury. The infonnation is reported from DDRSto GFRS and FACTS I annually, and FACTS II, IFCS, and IntragovernmentalReconciliation and Analysis Systeln (IRAS) qumierly. An automated process is used to

Enclosure

8/4/2019 DoD Response

4/9

report data to FACTS I, FACTS II, and lRAS. Data is entered manually from DDRSbalances directly into GFRS and IFCS.4. For each systeln identified in responses to Request No.1, state whether infonnation found inthat system is regularly or periodically submitted to the Office of Management and Budgee s(OMB) MAX Information System, and explain how and at what intervals those submissionsoccur, including descriptions of both automated and manual processes.

Response: The DoD uses DDRS and the Comptroller Information Systeln (CIS) tosubmit information to the OMB MAX Information System. Specifically, OMB MAX isprovided information from FACTS II which includes a quarterly automated process fromDDRS. The CIS also populates OMB MAX twice per year - mid-season and year-end -with the prior year, current year, and budget year data.

5. For each system identified in response to Request No.1, describe recent, current and plannedmigration or modernization projects.Response: The DoD ETP Master List of Systems and System Dashboards available onthe DoD ODCMO website (http://dcmo.defense.gov/etp/FY20111holne.html) providethe recent, current, and planned migration and modernizations projects for theDepartment.

6. In addition to your agency's submissions to government-wide accounting systems maintainedby the Department of the Treasury and OMB, as described in response to Requests Nos. 3and 4, does your agency publish any of the same information online for public viewing?If so, describe how and in what format that information is published.

Response: The DoD publishes various budget and financial reports for public viewing onthe Office of the Under Secretary ofDefense (Comptroller) (OUSD(C)) website(http://comptroller.defense.gov/).7. Identify and briefly describe each system that your agency uses to manage grants, directloans, and/or loan guarantees. If separate divisions, bureaus, or offices of your agency useseparate systems, identify which divisions, bureaus, or offices use each system.

Response: The DoD FY 2011 ETP includes all DoD systems to award grants,cooperative agreements, and other types of assistance actions. The DoD ETP, availableon the DoD ODCMO website (http://dcmo.defense.gov/etp/FY2011/home.html),identifies all business and accounting systems in the Master List of Systelns for each ofthe DoD Conlponents and briefly describes modernization projects within the SystemDashboards.

8. For each system identified in response to Request No.7, explain how it interacts with anybusiness or accounting systeln identified in response to Request No.1.

2

8/4/2019 DoD Response

5/9

Response: DoD Components rely on a few different systems but use the same coreprocess in the award of grants, cooperative agreements, and similar assistancetransactions. Prior to making an award, a comlnitment for the funds is recorded in theaccounting system. After the award is made, the resulting obligation of the funds iscommunicated to both the appropriate accounting system, for recording of the obligation,and entitlement system, to authorize subsequent disbursements. In lnost cases, theinformation is shared between systelns using electronic interfaces, although there areComponent organizations that do some manual entry. Many of the improvements andmodernizations discussed in the answer to Request No.5 are to implement morestreamlined and standardized processes related to these processes.9. For each system identified in response to Request No.7, state whether information found inthat system is regularly or periodically submitted to the Catalogue of Federal DomesticAssistance (CFDA), and describe how and at what intervals those submissions occur,including descriptions of both automated and manual processes.

Response: DoD Components submit new or updated information lnanually for the CFDAthrough General Services Administration's website for agency submissions. After theinformation has been entered and is ready for submission, the Defense Manpower DataCenter (DMDC), as the DoD central liaison with the CFDA, releases it to GSA for theirreview to obtain clearance to publish.10. For each system identified in response to Request No.7, state whether information found inthat system is regularly or periodically submitted to any of the government-wide grantsmanagement and reporting systems, e.g., FAADS, FAADS Plus, etc., and describe how andat what intervals those submissions occur, including descriptions of both automated andmanual processes.

Response: DoD Components submit data on their obligations by grant, cooperativeagreement, or similar assistance transaction to the Defense Assistance Awards DataSystem (DAADS), which the Defense Manpower Data Center (DMDC) operates andmaintains. Some Components provide data in batch files generated using awardmanagement systems identified in the ETP (e. g., CONWRITE in the Air Force andNAVRIS at the Office ofNaval Research). Others submit the data manually through aweb based DAADS input portal.The DMDC manually submits data from DAADS in the FAADS Plus format to theUSASpending.gov website. The DMDC submits data twice per month. Each DMDCsubmission includes all data received up to the day before the data are submitted. Prior tothe recent guidance from OMB stating that separate repoliing to FAADS no longer isrequired, DMDC also submitted award data to FAADS.

11. For each system identified in response to Request No.7, describe recent, current and plannedmigration or modernization projects.

3

8/4/2019 DoD Response

6/9

Response: The DoD ETP Master List of Systems and System Dashboards available onthe DoD ETP website (http://dcmo.defense.gov/etp/FY20111home.html) provide therecent, current, and planned migration and modernizations proj ects for the Department.12. In addition to your agency's submissions to government-wide grants management andreporting systems, described in response to Requests Nos. 9 and 10, does your agencypublish any of the same information online for public viewing? If so, describe how and in

what format that infonnation is published.Response: The information submitted to the Catalogue of Federal Domestic Assistance(CFDA) by DoD is also available at the GSA maintained CFDA website(https:llwww.cfda.gov) for the public to view. There is currently no central DoD locationat which grants information is posted for public viewing.

13. Identify and briefly describe each system that your agency uses to manage contracts. Ifseparate divisions, bureaus, or offices of your agency use separate systems, identify whichdivisions, bureaus, or offices use each system.Response: The DoD FY 2011 ETP includes all DoD systems to award contract actions.The DoD ETP, available on the DoD ODCMO website (http://dcmo.defense.gov/etp/FY2011/home.html), identifies all business and accounting systelns'in the Master List ofSystems for each of the DoD Components and briefly describes modernization projectswithin the System Dashb9ards.

. 14. For each system identified in'response to Request No. 13, explain how it interacts with anybusiness or accounting system identified in response to Request No.1.Response: DoD Components rely on a few different systems but use the same coreprocess to award contract actions. Prior to making an award, a commitment for the fundsis recorded in the accounting system. After the award is made, the resulting obligation ofthe funds is communicated to both the appropriate accounting system, for recording ofthe obligation, and entitlement system, to authorize subsequent disbursements. In mostcases, the information is shared between systems using electronic interfaces, althoughthere are Component organizations that do some Inanual entry. Many of theimprovements and modernizations discussed in the response toRequest No.5 are to implement more streamlined and standardized processes related tothese processes.

15. For each systeln identified in response to Request No. 13, state whether information found inthat system is regularly or periodically submitted to any of the government-wide grantsmanagement and reporting systems, e.g., FPDS, FPDS-NG, F APIIS, etc., and describe howand at what intervals those subnlissions occur, including descriptions of both automated andmanual processes.

4

8/4/2019 DoD Response

7/9

Response: On a daily basis, contracting officers report their contract actions from theircontract writing systems to the Federal Procurement Data System (FPDS) in accordancewith the requirements of the Federal Acquisition Regulation (FAR) subpart 4.6. Inahnost all cases in the Depmiment, this includes a direct interface between the user'scontract writing system and FPDS to assist in completing the report. FPDS then makesthe contract information reported to it available daily for the USASpending.gov websiteto retrieve and display. This constitutes the process by which the Department complieswith its requirement to provide data regarding prime contract awards toUSASpending.gov in suppOli of the Federal Funding Accountability and TransparencyAct (FFATA).Additionally, regarding the Federal Awardee Performance and Integrity InformationSystem (FAPIIS), contracting officers also repoli required terminations for default,terminations for cause, determinations of defective cost and pricing data, and nonresponsibility determinations to F APIIS in accordance with the requirements of FARsubparts 9.105-2 and 42.1503(f). This information, along with other data collected inFAPIIS, is then used to inform future contracting officer responsibility determinationsmade prior to contract awards.

16. For each system identified in response to Request No. 13, describe recent, current andplanned migration or modernization projects.Response: The DoD ETP Master List of Systems and System Dashboards available onthe DoD ETP website (http://dcmo.defense.gov/etp/FY20111home.html) provide therecent, current, and planned migration and modernizations projects for the Department.

17. In addition to your agency's submissions to government-wide grants management andreporting systems, described in response to Requests Nos. 9 and 10, does your agencypublish any of the same information online for public viewing? If so, describe how and inwhat format that information is published.

Response: The contract action reports submitted to FPDS by DoD are available also atthe FPDS website (https://www.fpds.gov) for the public to view individually or as a partof other pre-defined reports. Additionally, the Department's contracting officers postrequired notices of award of contracts on the Federal Business Opportunities(FedBizOpps) website (http://www.fuo.gov) in accordance with FAR subpart 5.3. Thereis no other central location in the Department where all DoD contract actions are postedon a public website. Individual contracting offices may have their own local websiteswhere they publish information about their own local contract awards.

18. Briefly describe your agency's efforts to comply with OMB's Inemorandum on the OpenGoverrunent Directive - Federal Spending Transparency, dated April 6, 2010. In particular,describe whether and how your agency has begun to collect and report sub-award data, asrequired by the memorandum, and describe how your agency's report sub-award data, asrequired by the melnoranduln, are generated.

5

8/4/2019 DoD Response

8/9

Response: The sub awards reporting requirelnent provides the Department and the rest ofthe Federal Government with an additional opportunity to make available information toUSASpending.gov. As with the above contracts solutions, DoD is joining with otherFederal agencies in leveraging existing reporting systems to meet the requirements of theUSASpending.gov website. For subawards, including both subcontracts and subawardsunder grants, a new module (FF A TA Subaward Reporting System (FSRS)) of theElectronic Subcontract Reporting Systeln (ESRS) was developed to allow primecontractors and assistance award recipients to report their subawards they award inaccordance with FF A TA. It leverages data on prime awards that DoD submits toUSASpending.gov through FPDS and F AADS Plus files. This effort also leverages theCentral Contractor Registration (CCR) database to use the data that prime contractors andassistance awardees already provide regarding the compensation of their top executives.Both FAR and Title 2 of the Code ofFederal Regulations have been updated to requireprime contractors and assistance awardees to report their subawards to FSRS, which inturn are then displayed in USASpending.gov. This reporting began for prime contractorsin July 2010 for new prime contracts valued over $20 million. On October 1,2010, thereporting requirements expanded to prime contractors with new contracts valued over$550,000 and prime assistance awardees with awards valued at $25,000 or more. OnMarch 1, 2011, the dollar thresholds for prime contractors to report was lowered to$25,000. As a result, the reporting requirement applies to all prime contract andassistance awards valued at $25,000 or more. As of March 18, 2011, DoD primeawardees have reported over $500 million in subaward obligations in FY 2011.

19. If your agency interacts directly with USASpending.gov, in addition to submittinginformation to the systems that feed USASpending.gov, describe the nature, frequency, andpurposes of that interaction.Response: The Department has a relatively small amount of funds awarded throughloans. To report this data to USASpending.gov, the Department's OUSD(C) provides therequired information periodically through a new report.

20. Describe the data quality controls and procedures that your agency has implemented forinformation that is submitted to USASpending.gov, including information submitted directlyand information submitted to one of the systems that feed USASpending.gov.Response: The Department's data quality controls and procedures over informationsubmitted to USASpending.gov is contained in the Department of Defense FederalSpending Data Quality Plan that was signed out on May 14, 2010, and is currentlyavailable through the Open Government website athttp://open.docllive.lnil/ files/2010/06/DOD-Open-Governlnent-Data-Qualit:y-Plan.pdf.

21. State whether all of your agency's current grants, contracts, and loans are accurately reflectedon USASpending.gov, and, if not, estinlate the percentage of current grants, contracts, and

6

8/4/2019 DoD Response

9/9

loans that are not accurately reflected, using both the number of transactions and dollarfigures.Response: On January 11, 2011, the Director ofDefense Procurelnent and AcquisitionPolicy certified to the Office of Federal Procurement policy that twenty-two of thetwenty-three DoD components with procurement authority which report actions to FPDS(excludes Intelligence Agencies and other classified contracts) had provided certificationsthat they had completed all required contract reporting actions to FPDS for FYIwards,as well as completed required verification and validation reviews. These certificationscover over 990/0 of reported DoD actions and over 97% of reported DoD obligations. TheDepartment is confident that the data reported to FPDS is displayed accurately on theFPDS website, as well as provided to USASpending accurately. Although there is not asimilar certification requirement to OMB for grants and loans, DoD is actively workingwith OMB and civilian agencies on data quality for grants and loans that are submitted toUSASpending.gov. The Department can not certify to the accuracy of how the reporteddata is presented on USASpending.gov, as USASpending.gov changes the data reportedfor display and public search purposes based on initial website requirements identified byOMB. >

22. State whether your agency incurs any reporting burdens or costs as a result of its obligationsunder the Federal Financial Assistance Transparency Act ("FF ATA") that it does not incur asthe result of other reporting obligations, and estiInate those burdens and costs in workerhours and dollars.Response: The Department has incurred a burden of over 78,000 man-hours to complywith the requirements for FF ATA prime award reporting.

23. Identify the individual(s) who serve(s) as Senior Accountable Official(s) ("SAO") overfederal spending data quality for your agency, as defined by OMB.

Response: The SAO over federal spending data quality for the DoD isMr. Mike McCord, Principal Deputy Under Secretary ofDefense (Comptroller).

7