SeaPort:SeaPort:Improving Services Acquisition Improving Services Acquisition

through Innovation and E-through Innovation and E-BusinessBusiness

Kathleen M. Monahan, Kathleen M. Monahan, NAVSEANAVSEA

Max R. Peterson, Commerce Max R. Peterson, Commerce OneOne

Sean Singleton, CSCSean Singleton, CSC

30 January 200230 January 2002

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AgendaAgenda Challenges of services contractingChallenges of services contracting Business strategy considerationsBusiness strategy considerations E-business frameworkE-business framework Case study – Case study – SeaPortSeaPort Panel discussionPanel discussion

Best practices for successful services Best practices for successful services acquisitions to save time and money, acquisitions to save time and money,

improve competition, achieve improve competition, achieve Congressional goals and magnify Congressional goals and magnify

corporate knowledge. corporate knowledge.

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Government ChallengeGovernment Challenge Organizational imperativesOrganizational imperatives

– Meet services need while reducing costMeet services need while reducing cost– Build corporate intelligenceBuild corporate intelligence

Acquisition objectivesAcquisition objectives– Increase performance based contractingIncrease performance based contracting– Encourage competition and fair opportunityEncourage competition and fair opportunity– Streamline end-to-end processStreamline end-to-end process

Resistance to changeResistance to change– Customer, Supplier adoptionCustomer, Supplier adoption– HQ management and professionals - culture HQ management and professionals - culture

changechange

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NAVSEA’s ChallengeNAVSEA’s Challenge Meet NAVSEA’s Strategic Sourcing budget Meet NAVSEA’s Strategic Sourcing budget

realignment - $250M (FY01 –05)realignment - $250M (FY01 –05) Leverage corporate buying habitsLeverage corporate buying habits

– Capture, analyze and report business metricsCapture, analyze and report business metrics Meet OSD goals for 50% of service Meet OSD goals for 50% of service

contracting to be performance based by contracting to be performance based by FY05.FY05.– 20% by FY0220% by FY02

Overcome GAO’s criticism of MACsOvercome GAO’s criticism of MACs Reduce cycle timeReduce cycle time Enhance small business participationEnhance small business participation

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Business StrategiesBusiness Strategies Identify Best PracticesIdentify Best Practices

– Internal review and assessment - CEWG dataInternal review and assessment - CEWG data– E-business market surveyE-business market survey

Engage “customers” and “suppliers” Engage “customers” and “suppliers” – Understand needsUnderstand needs– Involve in solution developmentInvolve in solution development

Create Multiple Award Contracts (MACs)Create Multiple Award Contracts (MACs)– Defined business need; e-business frameworkDefined business need; e-business framework– Flexibility in task order, selection processFlexibility in task order, selection process– Fair opportunityFair opportunity

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NAVSEA Acquisition StrategiesNAVSEA Acquisition Strategies Create business partners who understand Create business partners who understand

our business and who can help save us our business and who can help save us moneymoney– MAC contains all major functional categoriesMAC contains all major functional categories– Share in savingsShare in savings

Create automatic mechanismsCreate automatic mechanisms– Conversion to Performance Based Statement Conversion to Performance Based Statement

of Workof Work– Award Term Award Term – Issue Resolution DeskIssue Resolution Desk

Guaranteed savings Guaranteed savings OmbudsmanOmbudsman

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E-Business StrategyE-Business Strategy Conceive e-business framework Conceive e-business framework

simultaneously with business strategysimultaneously with business strategy– Supplier web and e-marketplace acceptanceSupplier web and e-marketplace acceptance– Ensure e-business infrastructure support begins Ensure e-business infrastructure support begins

Day 1 Day 1 Electronic signatureElectronic signature

– Binding electronic signature – Binding electronic signature – Gov’t & SupplierGov’t & Supplier Secure, web-based end-to-end processSecure, web-based end-to-end process

– Accessible anytime, anywhereAccessible anytime, anywhere– Tools, content library facilitate workTools, content library facilitate work– Web system interfaces with legacy and Web system interfaces with legacy and

emerging applications emerging applications

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NAVSEA E-Business StrategyNAVSEA E-Business Strategy

Market review of what is possibleMarket review of what is possible– ““Amazon.com”-like environmentAmazon.com”-like environment– ““Turbo-tax”-like form fillTurbo-tax”-like form fill

Established a three pronged approachEstablished a three pronged approach– www.www.SeaPortSeaPort.navy.mil.navy.mil information portal information portal– e-marketplace Portal for ordering servicese-marketplace Portal for ordering services– Multiple Award ContractsMultiple Award Contracts

Conducted e-business portal acquisitionConducted e-business portal acquisition– Functional specificationFunctional specification– Demonstrated experience criticalDemonstrated experience critical– Performance-based IOC, FOC delivery Performance-based IOC, FOC delivery

timelinestimelines

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Case Study: SeaPortCase Study: SeaPort

A new philosophy on how NAVSEA A new philosophy on how NAVSEA buys professional support servicesbuys professional support services

21 IDIQ contracts awarded to 21 IDIQ contracts awarded to industry teams consolidating 350 industry teams consolidating 350 contracts and 80 plus contractorscontracts and 80 plus contractors

Portal created the first government Portal created the first government e-marketplace for services e-marketplace for services

Web site is front door for orders Web site is front door for orders

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Dec 5 Dec 12 Dec 18-19 Dec 22 Dec 29 Jan 03 Apr 01

Meet withIndustry on

Requirements

Past PerformanceAssessment

Select Commercia lApplica tion

Oral Presentation Acquire

FundingAward

Commercia lSolution

for eProcurement

Release RFP

Nov 20 Jan 26 Apr 01

Proposal Receipt

DeployOperationa lCapability

for eProcurement

Automate Links

Required Tra ining & Beta Testing(Feb-Mar)

Select eBusiness Solution Portal Development(Jan-Mar)

Award

Educated PM on Performance Based Contracting

Proposal Eva luationIndustryBrief

Nov13

MA

Cs

eBU

ISN

ESS

Change Culture

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Field

“e Procurement Flow”5 Electronic Steps

Program Office

1

Engineer BFM

MAC and Web Sites• Past Performance• Team Partner• Experience• Expertise BULLETIN BOARD

SEA - 01Comptroller

SEA - 02 SSAPO

2

CONTRACTAWARD

Requirement Initiation

Contract Admin•NAFI (DCMA, DCAA)

PAYMENT• DD250• DFAS

DD350

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CONTRACTOR(S)

EvaluateProposals• Reverse Auction• Bids

4

3 Update Catalogs &Submit Proposals

Certify $

Avail

CPARS

GSA

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Execute QuicklyExecute Quickly

MACs awarded within four months MACs awarded within four months of RFP releaseof RFP release

Portal awarded within five weeksPortal awarded within five weeks– Commerce One, CSC, ExostarCommerce One, CSC, Exostar

Portal operational within nine weeksPortal operational within nine weeks Web site - fully operational within Web site - fully operational within

two weeks, refined within one two weeks, refined within one monthmonth

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Deliver On-Time ResultsDeliver On-Time Results Awarded MACs to 21 high performance Awarded MACs to 21 high performance

teams including 7 to small businessteams including 7 to small business Reduced cycle time from 270 to 30 Reduced cycle time from 270 to 30

daysdays e-marketplace portal activitye-marketplace portal activity

– 44 tasks awarded - $866M44 tasks awarded - $866M– 56 tasks in pipeline - $329M56 tasks in pipeline - $329M– 5 tasks in development - $390M5 tasks in development - $390M

Magnifying corporate knowledge Magnifying corporate knowledge Savings to date - $26.4MSavings to date - $26.4M

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Awards/Recognition Awards/Recognition SECNAV Small/Disadvantaged Business SECNAV Small/Disadvantaged Business

Utilization Office Utilization Office ““Trailblazer” E-Government 2001 Pioneer Trailblazer” E-Government 2001 Pioneer

AwardAward JECPO Best Electronic Commerce - Large JECPO Best Electronic Commerce - Large

Business 1st runner upBusiness 1st runner up DON E-Government Award, Innovative E-DON E-Government Award, Innovative E-

Business StrategyBusiness Strategy Defense Acquisition Executive Certificate of Defense Acquisition Executive Certificate of

Achievement award 2001Achievement award 2001 Selected as one of Secretary Rumsfeld’s Selected as one of Secretary Rumsfeld’s

Business InitiativesBusiness Initiatives

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Keys to SuccessKeys to Success

Clearly understand your objectivesClearly understand your objectives Use e-business to achieve results Use e-business to achieve results

(not bolt on)(not bolt on) Facilitate the cultural Facilitate the cultural

transformationtransformation Results must equal or exceed Results must equal or exceed

expectationsexpectations

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DiscussionDiscussion

DiscussionDiscussion QuestionsQuestions CommentsComments

Thank you for your time!Thank you for your time!