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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?