I n t e g r i t y - S e r v i c e - E x c e l l e n c e

AF Life Cycle Management Center

AF PEO Business & Enterprise Systems

Col Mike Jiru Deputy PEO

Business & Enterprise Systems 15 Mar 17

I n t e g r i t y - S e r v i c e - E x c e l l e n c e WE run the SYSTEMS that run the AIR FORCE…moving MONEY, MANPOWER, and MATERIEL

AFPEO BES Overview

MISSION Rapidly acquire, operate, sustain, and

enable flexible war-winning business system

capabilities

BUSINESS AREAS Civil Engineering Logistics

Communications Transportation  

Contracting Infrastructure  

Finance Personnel  

Medical Operations  

IT Services Munitions

Acquisition Maintenance  

78 STAKEHOLDERS

http://www.gunter.af.mil/events/businessandenterprisesystems/index.asp

§  Reference Guide Description of All Portfolio Programs

           

facebook.com/AirForceBES  

twitter.com/BESVendorComm  

linkedin.com/in/bes-vendorcomm-3b71a089

Business and Enterprise Systems Directorate

Explore the BES Public Website

WE run the Systems that run the AIR FORCE…moving MONEY, MANPOWER, and MATERIEL

§  Smart Guide Upcoming Acquisitions (18-24 months)

§  Enterprise Industry Day Save the Date – 24-25 May 2017

B r e a k i n g B a r r i e r s … S i n c e 1 9 4 7

BES  

Rapidly acquire, operate, sustain, and enable flexible war-winning business systems capabilities

MISSION

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

AF Life Cycle Management Center

Why are Defense Business Systems

so Hard?

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

How Mankind Built Civilization

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Each resident built their home based on their specific, unique

needs – renovating or rebuilding as “new things” were available.

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How Mankind Built Civilization

n  As the need to interact and trade grew, homes grew closer together

n  Greater need for city planning n  Greater need for public (common) services n  Greater need for city ordinances/laws

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Sometimes we ended up with this

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And sometimes with this

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Public (Common) Services

n  Transport: paved roads, trains, airports n  Horses can’t be on highways today

n  Safety: no more open fire kitchens n  Risk by one is risk to all

n  Health: can’t have your outhouse above neighbor’s well n  Security:

n  Passport to get in country (Federal income tax) n  Local Police Dept (City sales tax) n  Guard at subdivision entrance (HOA fees) n  Locks on doors; home security system (homeowner)

n  Governance: rules you must obey to live in the city n  Traffic signs; noise curfews; leash laws; car emissions

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Technology & Safety Increased Rules/Laws

n  Based on location, national/local concerns add’l mandates are issued n  Hurricane/Earthquake-proof homes n  Mandatory flood insurance n  Outhouse –> Septic –> City Sewage n  Electric stoves, not gas n  Fences around pools

n  Some are statutory, some regulatory, some good ideas n  Typically older homes “grandfathered”

n  New construction has to meet the current codes/laws n  Only have to be compliant when renovating or an addition n  Some must retrofit now (smoke/carbon monoxide sensors)

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Our Digital Civilization

n  Good Airman doing good things n  Automating paper forms, clipboards, whiteboards n  Leveraged existing tech (spreadsheets, simple databases) n  ‘Basement coders’ n  Creating solutions to meet specific, unique needs

n  When smart person moved on, sustainment expertise left with them n  Technical debt grew (doesn’t work with new OS) n  Speed of IT became greater than ability to keep up n  Demand for industry to sustain homegrown solution

n  Mandates (CACs, SDC, IA, FDCCI) came with no funds n  Enterprise became complex/expensive to implement

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I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Moving towards a Digital Community

n  Users moved their “out of code” homes into subdivisions to meet codes…or hid them n  In “server closets” n  On local base comm squadron hardware n  Built “private” data centers

n  Two main approaches to fix obsolescence n  1. New construction (development)…choice of many

n  Customers not satisfied with standard floor plan, wanted: –  Granite countertops –  Walk-in closets in every bathroom

n  Built w/o full understanding of future mnx costs n  Got exactly what they wanted with minimal business changes

n  2. Pre-fab homes (COTS)…didn’t fit their needs

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I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Inefficient Modernization

n  ‘IT will fix all our problems’ – other DOT_LPF solutions minimally considered n  If 5 inboxes used in the past, 5 people in the automated workflow n  Inefficiencies “baked into” the s/w system

n  Modernization requirements simply “same functionality” n  Very few CDDs/SRDs and required documents existed n  SI contracted to decompose existing rqmts from existing system

n  Our cyber infrastructure built much the same way as our roads, bridges and terminals (independently) but the need for interoperability more crucial n  Our homes are dependent on our infrastructure

13 Speed of IT ‘civilization’ occurring in years vice decades

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Enterprise Difficulties

n  Speed increased to the point homebuilding and infrastructure more and more bifurcated n  Not enough time and resources to keep track what the other is

doing n  Lack of “city planning” at the AF level is huge problem

n  Making sound, tactical decisions n  Suboptimizing the enterprise n  Rather than deploying capabilities (asset tracking, reporting) we

have hundreds of systems that all duplicate capability n  Change Management suboptimized

n  Datacenter; Network: Business Systems n  Time and energy spent triaging operational issues vice

modernization 14

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Acquisition Realities

n  Program challenges n  Functional sponsors don’t want to pay for “IT stuff” n  System documentation didn’t exist to satisfy Acq processes n  New mandates came at expense of more functionality

n  AF developed process for improving DBS delivery n  SDDP built to provide the roadmap for better upfront planning n  Drove functional customer to better document rqmts n  Many no longer knew their processes due to automation n  Customer determined when requirements “good enough” n  In some aspects, SDDP put solution in the hands of the

customer, not acquirer n  New ‘center of gravity’ at SAF/HAF, not within PEO

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This meets 80% of the requirement to have a bathroom

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Vendors sell functional

customers on this (easy,

quick, cheap)

But often can only afford this (hard, slow, expensive)

Everyone’s unhappy

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Current DBS Realities

n  Still deploying systems, not capabilities n  Need to think of our data as asset n  Start asking what we want to do with our data n  We are starting to recognize we aren’t the only ones paying

people, moving things, tracking supplies, managing personnel, etc) but often justify custom solutions

n  ERPs difficult to deploy and sustain n  Sustainment systems incurred huge technical debt n  Apps rationalization hard to do (people, process, policy,

culture) n  Fear of protest leads to robust RFPs and extended

source selections

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2017 PMO Realities

n  Technology obsolete by time of deployment n  Growing frustration from AQ workforce with reduced

resources: more policy, and more oversight n  Pressure by Functional Sponsors to deliver faster,

cheaper n  Disparagement by senior leaders/Congress to execute n  “One size fits all” testing approach by test orgs n  Multiple stakeholder orgs (MG, A6, AQ, AFOTEC, etc) n  Constantly changing processes

n  Information Assurance: DITSCAP -> DIACAP -> RMF

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Aircraft vs. DBS

n  Flying systems n  Problem with runway, CE Sq n  Problem with computers, Comm/Sq n  Problems with onboard s/w, S/W Mnx Grp n  Problem with flightsuit, call Supply n  Problem with seat, call Mnx Sq n  Problem with wing, call SPO/Depot n  Problem with fleet, call NAF/ACC/HAF n  Funding resolved through Central Asset Management

n  In DBS world, everything handled by PMO working through all levels of multiple stakeholder hierarchies

20 So why is this so difficult?

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2016 Realities

n  No prioritization of programs within functional portfolios or across all AF functional portfolios

n  AFNet continues to get more complex, less standard, more dynamic

n  Non-functional mandates continue to grow n  More reviewers think they’re approvers n  Lack of ruthless enterprise governance n  Unclear guidance what constitutes modernization, sustainment,

modification (new start, ACAT) n  Many ecosystems built upon Industrial Age, weapon system

approach (AFCAA, AFOTEC, AFLCMC, OSD) n  Near fully defined requirements to cost, test… n  Developing new technologies with limited companies

21 For DBS, buying existing tech from many vendors

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Case Study for Change

n  Government has a need for a replacement to an outdated personnel system

n  Contract is FFP with some Cost Plus CLINs n  PMO estimate is $40M; IGCE is $60M n  All 6 proposers come in between $15-$25M n  All proposers are technically sufficient with proven

track records of previous similar efforts n  Several evaluation notices fail to change the bids n  Gov’t knows full effort will cost more than highest bid n  Award at winner’s bid, ‘excess’ funds realigned

22 We have to do business differently

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Going Forward

n  Difficult to know all requirements for 3-5 year effort at the beginning n  How do we build in “trade space” w/o mods n  Does Agile-like processes help?

n  Gov’t has to figure out remote development n  Policies that don’t restrict development n  Reach best talent worldwide anywhere/anytime

n  Need to foster innovation...150-pg RFPs don’t help n  Contractors bid low to win; how to bid realistically?

n  More collaboration; draft RFPs, Industry Days n  Stronger relationships between requirer, acquirer

and developer

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http://www.gunter.af.mil/events/businessandenterprisesystems/index.asp

§  Reference Guide Description of All Portfolio Programs

           

facebook.com/AirForceBES  

twitter.com/BESVendorComm  

linkedin.com/in/bes-vendorcomm-3b71a089

Business and Enterprise Systems Directorate

Explore the BES Public Website

WE run the Systems that run the AIR FORCE…moving MONEY, MANPOWER, and MATERIEL

§  Smart Guide Upcoming Acquisitions (18-24 months)

§  Enterprise Industry Day Save the Date – 24-25 May 2017

B r e a k i n g B a r r i e r s … S i n c e 1 9 4 7

BES  

Rapidly acquire, operate, sustain, and enable flexible war-winning business systems capabilities

MISSION

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Questions?

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