DHS Acquisition Briefing for the National Contract Management Association Thomas W. Essig – 2008 Apr 30

DHS Acquisition

Briefing for the National Contract Management Association

Thomas W. Essig – 2008 Apr 30

Overview

• DHS History, Mission and Goals• DHS Contracting Organizations• DHS Procurement – 2007 Spend Data• Chief Procurement Officer’s (CPO) Top

Priorities - 2008 • Acquisition Workforce• Congressional Oversight

Department of Homeland Security History

United 22 previously disparate domestic agencies into one coordinated department to protect the nation against threats to the homeland.

Effective March 1, 2003Effective March 1, 2003

The Homeland Security Act of 2002:

Department of Homeland Security Mission

• Prevent terrorist attacks within the United States

• Reduce America’s vulnerability to terrorism

• Minimize damage from potential attacks and natural disasters

September 11, 2001 A date that will be forever etched in our memory.

Protecting America

Emergency Management

The Secretary’s 5 Goals

1. Protect our Nation from Dangerous People

2. Protect our Nation from Dangerous Goods

3. Protect Critical Infrastructure4. Strengthen our Nation’s Preparedness

and Emergency Response Capabilities5. Strengthen and Unify DHS Operations

and Management

Office Procurement Operations

U.S. Coast Guard

Headquarters TransportationSecurity Agency

Customs & BorderProtection *

Immigrations & Customs Enforcement

Federal Law EnforcementTraining Center

Federal Emergency ManagementAgency

U.S. Secret Service

Science & Technology

Info Analysis & Infrastructure Protection

Chief Information Officer

Border Transportation Security

Emergency Preparedness Response

Under Secretary Management

United States Coast Guard

United States Secret Service

DHS Customer Acquisition Office

DHS Contracting Organizations

Legend:

*Denotes two (2) HCA positions:

•Departmental Operations

• Secure Border Initiatives

DHS Procurement – 2007 Spend DataDHS Procurement – 2007 Spend Data

• The largest spend component is DHS HQ with $3.7B in spend in support of agency mission areas• Professional Services is the largest Commodity Family with 25% of FY07 spend • 16.4% of “Unclassified” data is attributed to a of lack of FSC and line item information within the underlying

procurement data systems

KEY FINDINGSKEY FINDINGS

FY07 DHS SPENDFY07 DHS SPENDSPEND BY COMPONENTSPEND BY COMPONENTTOTAL SPEND = $17,423.3MTOTAL SPEND = $17,423.3M

FY07 DHS SPENDFY07 DHS SPENDSPEND BY COMMODITY FAMILYSPEND BY COMMODITY FAMILY

TOTAL SPEND = $17,423.3MTOTAL SPEND = $17,423.3M

Source: FY07 Procurement systems, P-card data, SSP analysis Source: FY07 Procurement systems, P-card data, SSP analysis

USCG $3,187.3

CBP $2,816.8

ICE $2,586.5

FEMA $2,456.9

CIS $739.7

FLETC $236.4

HQ $3,739.0

TSA $1,532.7

USSS $128.0

IT & Telecom $3,863.6

Travel & Lodging $118.7

Unclassified $2,861.9

Professional & Office Area

Support Svcs $4,325.9

Facilities & Construction

$2,190.7

Industrial Products & Services $1,373.7

Logistics Operations &

Package Delivery Svcs

$147.8

Office Management & Misc Products

$568.2

Security $1,972.8

Commodity FamiliesCommodity Families

The Commodity Families provide the scope for the Councils – the three primary families will be the Standing Councils with others stood up as opportunities are identified

The Commodity Families provide the scope for the Councils – the three primary families will be the Standing Councils with others stood up as opportunities are identified

Standing Commodity Family Councils

($3,863.6 million)

($1,972.8 million) ($2,190.7 million)

($147.8 million)($118.7 million)($568.2 million)($1,373.7 million)

($4,325.9 million)

Note: Unclassified spend, defined as spend coded with insufficient information to accurately categorized, totaled $2,861.9 million

IT & Telecom Family Spend

• IT & Telecom, the second largest area with 22.2% of total DHS spend, is comprised of 2 categories

• The largest spend category is IT Hardware, Software & Support Services with 67.1% of IT & Telecom spend

• Purchase card accounts for nearly 2.2% of IT & Telecom spend

• IT & Telecom, the second largest area with 22.2% of total DHS spend, is comprised of 2 categories

• The largest spend category is IT Hardware, Software & Support Services with 67.1% of IT & Telecom spend

• Purchase card accounts for nearly 2.2% of IT & Telecom spend

KEY FINDINGS

Slice 11

Security $1,972.8

Office Mgmt & Misc Products

$568.2

Logistics Oper & Package

Delivery Svcs $147.8

Industrial Products &

Services $1,373.7


$2,190.7






Source: FY07 Procurement systems, P-card data, SSP analysis

IT Hardware, Software &


Telecom & Communication

$1,271.0

FY07 DHS IT & TELECOM SPENDFY07 DHS IT & TELECOM SPENDSPEND BY COMMODITY CATEGORYSPEND BY COMMODITY CATEGORY


Professional Services Family SpendProfessional Services Family Spend

• Professional Services, the largest area with 24.8% of total DHS spend, is comprised of 4 categories

• The largest spend category is Management Support Services with 50.3% of Professional Services

• Purchase card accounts for 1.7% of Professional Services spend

• ~60% of this spend is via IAA’s and the level of “line item” detail is lost, or severely limited

• Professional Services, the largest area with 24.8% of total DHS spend, is comprised of 4 categories

• The largest spend category is Management Support Services with 50.3% of Professional Services

• Purchase card accounts for 1.7% of Professional Services spend

• ~60% of this spend is via IAA’s and the level of “line item” detail is lost, or severely limited

KEY FINDINGS





$2,190.7


Services $1,373.7



$147.8


$568.2

Security $1,972.8

Health Related Svcs $177.2

Clerical & Administrative

Svcs $269.3

Technical Svcs $1,702.8

Management Support Svcs

$2,176.6

FY07 DHS PROFESSIONAL SERVICES SPENDFY07 DHS PROFESSIONAL SERVICES SPENDSPEND BY COMMODITY CATEGORYSPEND BY COMMODITY CATEGORY



DHS Security Family SpendDHS Security Family Spend

• Security, makes up 11.3% of total DHS spend, is comprised of 5 categories

• The largest spend category is Security Systems & Services with 91.8% of Security

• Weapons and Ammunition & Explosives combined make up 3.5% of Security

• Purchase card procurements consist of only 1.4% of total Security spend

• Security, makes up 11.3% of total DHS spend, is comprised of 5 categories

• The largest spend category is Security Systems & Services with 91.8% of Security

• Weapons and Ammunition & Explosives combined make up 3.5% of Security

• Purchase card procurements consist of only 1.4% of total Security spend

KEY FINDINGS

Security $1,972.8


$568.2



$147.8


Services $1,373.7


$2,190.7






FY07 DHS SECURITY SPENDFY07 DHS SECURITY SPENDSPEND BY COMMODITY CATEGORYSPEND BY COMMODITY CATEGORY



Security Systems & Services $1,812.1

Protective Apparel & Equipment

$64.1

Weapons $45.5

Security Animals &

Related Svcs $26.7 Ammunition &

Explosives $24.4

Dual System of Accountability(Notional Structure)

DHS SecretaryDeputy Secretary

Under Secretaryfor Management

ComponentHead

Chief ProcurementOfficer

Head of theContracting Activity

= Flow of Contracting Authority

Office of the Chief Procurement Officer (CPO)

CPODeputy CPO

OPOContract

OperationsStrategic InitiativesComp. Advocate

Management And Budget

Acquisition Program

Management

DeskOfficers

ProcurementOversight

AcquisitionWorkforce

Acquisition Policy& Legislation

Ombudsman/Industry Liaison

AcquisitionSystems

StrategicSourcing

CompetitiveSourcing

Cost Analysis& Estimating

InvestmentReview

Program Mgmt.Support

Grants Policy & Oversight

DHS Chief Procurement Officer’sFY 2008 Priorities

1. Quality Contracting• Goal: To make good business deals• Goal: To perform effective contract

administration

2. Quality Acquisition Management• Goal: To improve the quality of program

management throughout DHS

3. Quality People• Goal: To build and sustain the DHS Acquisition

Workforce

Departmental Workforce Status

Fiscal Year

ProcurementSpending

Staffing (Contracting)

On-Board

2004 603

2005 $13B 669

2006 $22B 865

2007 $19.5B 1005

Projected FY – 2008 Workforce Breakdown

Contracting Program Managers COTR’s

Approximate 1150 400 4500

Workforce Planning

• Workforce Studies• Contract Study

• Develop Contract Staffing Models• Status – Study results out for comment; recommends

several hundred more contract specialists

• US Air Force • Dayton Aerospace model for PM offices• Status – Model Validated for DHS use

• Acquisition Workforce Strategic Human Capital Plan under development

Acquisition Professional Career Program (APCP)

• Overview

• Entry level program hiring candidates at GS-7 with promotion potential to GS-13

• Three, one year rotational assignments at different components

• Acquisition Certification Training• Attain Level II Certification • Provide Leadership and Developmental Training

• Initially hiring candidates for GS-1102 series and targeting expansion in FY-09 to one other career field

• Two “cohorts” per year – January and June

Workforce Planning Toolkit

• Re-Employed Annuitant• Status:

• Approved via OPM• Implementation Plan being Executed• Ads and Announcements publicized

• 2 Annuitants Hired• 39 Annuitants expressed interest in employment

• Direct Hire Authority • National Defense Authorization Act

• Acquisition Coding of Billets• Pilot to begin using NFC system

Certification

• Current• Directives for:

• Contract Specialist (Currently issuing FAC-C)• Program Managers (Utilizing DHS certification prgm)• COTR’s (Utilizing DHS certification prgm)

• Future• Overarching Directive out for signature

• Career Field Certifications to be annexes• Program Manager out for comment• Test and Evaluation next acq career field• Other Career Fields to follow such as Business Cost

and Financial Estimating, Engineering, and Logistics

Congressional Oversight

Section 539 - DHS Appropriations Act of 2008 (P.L. 110-161)

• SEC. 539. Except as provided in subsection (b), none of the funds appropriated in this Act to the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management and the Office of the Chief Financial Officer, may be obligated for a grant or contract awarded by a means other than full and open competition.(b) This section does not apply to obligation of funds for a contract awarded:

(1) by a means that is required by a Federal Statute….

(2) under the Small Business Act…(c) The Secretary of Homeland Security may waive the application of this section to the award of a contract in the period of national emergency as determined by the Secretary.

www.dhs.gov/openforbusiness

Open For Business centralizes information to let every business in America know how to work with the Department of Homeland Security. Designed to assist the business community, we include links to contracts, grants, small business opportunities, research and development and contacts.

For more information on DHS contracting and business opportunities:

Documents

DHS Acquisition Briefing for the National Contract Management Association Thomas W. Essig – 2008 Apr 30