The Decoder Ring training presentations...May 30 – June 1, 2017 Hyatt Regency Orlando FL 1 Presented by: Lisa Romney Procurement Analyst DPAP-PDI Beyond Contract Numbers and Line

Carmen Schwenk CAGE Program Manager DLA Information Operations

The Decoder Ring

PROCURE-TO-PAY DEFENSE PROCUREMENT AND ACQUISITION POLICY

TRAINING SYMPOSIUM

May 30 – June 1, 2017 ● Hyatt Regency Orlando FL 1

Presented by: Lisa Romney Procurement Analyst DPAP-PDI

Beyond Contract Numbers and Line Items

2017 Procure-to-Pay Training Symposium 2

• Standardizing the use of key data elements being used to identify organizations and what is being purchased in procure to pay processes

• We’re going to cover the latest on the use of: • CAGE codes • DoDAACs • PSCs


Commercial and Government

Entity Codes - CAGE

What is a CAGE Code? • FAR 4.1801 states that the CAGE code is:

– (1) An identifier assigned to entities located in the United States or its outlying areas by DLA’s Commercial and Government Entity (CAGE) Branch to identify a commercial or government entity; or

– (2) An identifier assigned by a member of NATO or by the NATO Support and Procurement Agency (NSPA) to entities located outside the United States and its outlying areas that the DLA CAGE Branch records and maintains in the CAGE master file. This type of code is known as an NATO CAGE (NCAGE) code.

• FAR 4.1802 requires that an offeror’s CAGE code be validated prior to award

• CAGE codes are used to identify contractors throughout DoD’s procure-to-pay processes


Recent Policy Changes


• CAGE code requirements for contractors moved from the DFARS to the FAR – required for all federal contractors

• FAR 4.18 also includes Ownership of Offeror requirements • Offerors must self-represent if they are ‘owned’ by a higher level entity or

had a ‘predecessor’ identify and identify the related CAGE code(s) • Collected when registering in SAM or otherwise obtaining a CAGE code • Results in the availability of a contractor-provided hierarchy

• DFARS PGI 204.18 provides instructions to contracting officers and explains how CAGE code records are maintained

• DPAP Policy Memo (Aug 10 2016) issued CAGE Standard Operating Procedures

• Available on DoD Procurement Toolbox at http://dodprocurementtoolbox.com/site-pages/ebusiness-cage-code-information

http://dodprocurementtoolbox.com/site-pages/ebusiness-cage-code-informationhttp://dodprocurementtoolbox.com/site-pages/ebusiness-cage-code-information

CAGE Program Office


• Located in DLA Information Operations – J62C • Assigns/Updates CAGE codes for business/entities in the

U.S. and it’s territories • Receives and Displays NATO CAGE (NCAGE) data for NON US

business/entities from NATO and partner nations • Close partnership with the GSA System for Award

Management program office • Maintains the CAGE-SAM validation interface

Did You Know?


• Over 2 Million Active CAGE Codes • CAGE PMO processes 900K registrations each year • Yearly increase of 10% of total registrations each year since

2015

What’s New?


CAGE Search & Inquiry – replaces BINCS Instructions CAGE/NCAGE registration

CAGE Search & Inquiry (CSI)


CAGE Expiration Date


CAGE Status Code


CAGE/NCAGE Instructions


https://cage.dla.mil/Content/forms/sop.pdf

Coming Attractions • FAR case 2015-002 “Requirements for DD Form 254” implements new DD254 processing

– Requires use of WAWF module to process requests – Requires CAGE codes for contractor and subcontractor locations obtaining facility clearance

• Availability of the immediate and highest level owner data in CAGE web service • CAGE codes on contract action reports submitted FPDS

– Deployed February 3rd in service pack 33 (applicable point forward for new awards); available in ad hoc reports and ATOM feed now

– Users will see the CAGE codes on screen with FPDS v1.5 implementation • Federal Integrated Award Environment (IAE) change control board and Intergovernmental

Suspensions and Debarment Committee (ISDC) approved change request(s) to: – Include CAGE code from SAM registration (when one exists) automatically on an exclusion record – Assign a CAGE code to new exclusion records for ‘firms’ when a suspension/debarment is reported to

SAM for a U.S. vendor • Use of pre-population and validation between CAGE and DoDAAD for contractor entries • Vendor validation error reports between what is reported to EDA and FPDS (i.e., new

anomaly reports)



Department of Defense Activity

Address Codes – DoDAAC

What is a DoDAAC?


• The Activity Address Code is a six-character code that refers to an office location. • The AAC number is associated with an office name, and up to four addresses:

• TAC 1: Physical Address (TAC 1 is always required. May not be a PO Box.) • TAC 2: Ship to/Freight Address • TAC 3: Bill to Address • TAC 4: Commercial Shipping Address

• In DoD there is some logic to the codes (e.g., first character is always a letter which represents which DoD component/agency it is)

• In Federal (non-DoD) usage, the first two characters are numbers that correspond to the “series”. Series lines up with Treasury Index code about 99% of the time, but there are some differences.

• AACs were created for use in logistics/supply chain. They have been used in DoD for years to ensure uniqueness of contract numbers and for FPDS reporting. The FAR has recently changed to require this of non-DoD Agencies as well.

DoDAAC Recent News


• DATA Act and new FAR updates require that all federal agencies – Identify their contracting and funding offices using DoDAACs – Use a standard contract action numbering schema, including the DoDAAC of the

contracting office issuing an award as the first six (6) characters

• These changes have resulted in increased focus on the DoDAAC and an opportunity to enhance the data elements within the records

• Several new data elements have been or will be introduced to improve: – Identification of what type of organization the DoDAAC represents – Identification of the DoDAAC’s “owning” organization/place in the hierarchy – Identification of the role(s) the DoDAAC activity has in the business process

New DoDAAC Fields/Elements


• Organization Type Code: A 1-character A/N code used to discretely identify an activity’s (represented by a DoDAAC) organizational type. Codes will identify DoD, Non-DoD/Civilian Federal, State/Local, NGO, Foreign.

• Common Government-Wide Accounting Classification (CGAC): 3-character A/N Code assigned by the Department of Treasury to represent a federal agency captured in Appendix C of the Office of Management and Budget (OMB) Circular number A-11.

• Sub Tier Agency Code: 4-character A/N code used to identify agencies and their sub tier organizations (e.g., the Bureau of Indian Affairs within the Department of Interior) in the federal award environment. Authoritative list of codes values provided by GSA. (Similar to FPDS Agency Code.)

• Contractor Flag: Binary Yes/No flag that represents whether the activity is a contractor or not. Note: This does not affect existing DoDAAC number logic (e.g., wherein the “C” series represetnts contractor DoDAAC), but will help identify contractors in the H series and in non-DoD AACs.

Purpose Codes


• Purpose Codes: Procurement Office, Funding Office flags will be rolled into “Purpose Codes” that help identify the roles the office plays.

• Procurement Office Flag: Binary Yes/No flag that represents that this office has the authority to award federal contract actions. In production now at the DoDAAD and used to identify procurement offices in FPDS.

• Funding Office Flag: Binary Yes/No flag that represents that this office has the ability to initiate requirements (e.g., the office has a budget and can initiate requirements packages that will result in contracts, grants, and other types of awards).

• Future Flags may include flags for Grants, Payment, Intergovernmental Transactions, Finance, Receiving locations

• A DoDAAC may have more than one flag, depending on the roles that office serves

New Field Status


• Including a CGAC data element in the DoDAAD – Completed – Existing DoDAAC records will be pre-populated with the appropriate CGAC for the 24 CFO Act

agencies by end of January – GSA-IAE will be incorporating the use of the CGAC to organize agencies in FPDS in the March 31

release • Procurement Flag data element already existed in the DoDAAD – Completed

– DoD records were recently refreshed in the DoDAAD based on Components’ review of FPDS data. – GSA-IAE will be incorporating the use of the Procurement Flag to identify contracting offices in FPDS

in the March 31 release – PDS validation rules have already been updated to require the Procurement Flag when validating the

“Issuing Office” DoDAACs • Funding Office Flag, Organization Type Code, Contractor Flag, and Sub Tier Code

have all been added as fields – Guidance forthcoming on how best to populate these fields.


DoDAAC and CAGE

CAGE vs DoDAAC


• Contractors get one CAGE code to use for life (per location); contractors who need DoDAACs get them specific to the contract under which they are performing (for example, if they are required to requisition items under a contract). DoDAAC should expire/be closed at contract closeout.

• DoDAAC address is limited to MILSTD 129 for shipping labels, CAGE address is not • CAGE is issued at the vendor’s request. CAGE PMO performs multiple validations on

the company prior to issuing a CAGE to check for fraudulent vendors. DoDAACs are issued at the contracting officer’s request.

• CAGE data is synced with data from external sources such as SAM and Excluded Parties List. DoDAAC data is standalone.

• DoDAAC data identifies the purposes for which a contractor has the code. CAGE just identifies the contractor.

Sharing CAGE Data


• Can use CAGE checks to reduce risk on contractors who are provided DoDAACs – CAGE conducts investigation when new request has an address match an existing record; or

on a renewal when significant data elements (e.g., legal business name) change – CAGE has implemented MELISSA DATA as a check on provided addresses – CAGE database is updated to show debarred/suspended status based on SAM (and

submitted by own DoD SDOs); working to more closely integrate with SAM

• Can improve currency of and aligning of data on contractors – CAGE program has developed web services to better enable validating against database and

returning CAGE data – Planning an interface to more easily share/update contractor data, including address,

between the two systems.


DoDAAC Database Updates

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DoDAAD Enterprise Resources Website • New DoDAAD front end planned. • Provides a public web presence for the

DoDAAD - particularly critical for users who are not part of the DoD Supply Community (Google search takes you to “DoDAAD” vice “DAASINQ.”)

• Can initiate a request for a new record, update an existing record, or delete an existing record;

• Replaces use of DAASINQ/eDAASINQ for DoDAAD.

• Perform simple and advanced searches.

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DoDAAD Request Tool • Can request a New, Update, or Delete to a

DoDAAC or RIC. • User provides contact information/reason for

request. • Form Templates allow user to identify fields

and enter data therein. • Once information is saved, user selects

Agency/Component POC from a routing list. • Upon submitting, the form is attached to a

system-generated e-mail as an XML file. • CSP receives email and saves attachment. • CSP uploads XML file into Update

Application. • If there are any issues with the request, the

CSP will have the contact information provided by the Requestor to discuss offline.

• CSP saves record in Update Application.

DoDAAD Realignment


• DoDAAD traditionally reflected the three main functions of the 1970’s supply chain. Addresses follow purpose: Get it, ship it, pay for it = TAC1, TAC2, TAC3

• Uses today: Acquisition, Supply, Transportation, Financial Management, Maintenance, Readiness, Facilities, Human Resources, etc.

Who is ordering?

Where do I send it?

Who do I bill?

DoDAAD Realignment


• To-be: Front end will be realigned around Purpose Codes.

• Tabbed data is specific to the type of information.

• Record information includes the core data for the record.

• TAC1 is now the Record Address (you can’t create a DoDAAC w/o a TAC1).

• Authority and Purpose Codes will warrant further required data when selected.


Product Service Codes

What is a Product / Service Code? • A product / service code (PSC) is an identifier to describe products and services purchased by the

federal government – Is not the same as a North American Industrial Classification System (NAICS) code – which is used to identify

an industry when determining applicable size standards for a procurement; the are complementary identifiers, but there is no direct map between the two

– The PSC is THE identifier used for many international trade reports and to determine compliance with place of manufacture requirements of the Buy American Act and numerous treaties with other countries

• The PSC Manual is maintained by the General Services Administration (GSA) on behalf of the federal government

– PSCs assigned for supplies in the Manual are often referred to as Federal Supply Codes (FSCs) and are currently all maintained by DLA through existing committees in the federal logistics process

– PSCs assigned for services have been maintained by GSA through the IAE CCB governance process – These maintenance processes are changing to be governed by the Federal Category Management

governance process


Tracing What is Purchased Across Functional Areas

• While procurement processes use PSCs to identify what has been purchased, budget processes use object class codes (OCC) (a higher level of classification)

– Object class means the category assigned for purposes of the annual budget of the President submitted under section 1105(a) of title 31, United States Code, to the type of property or services purchased by the Federal Government

– Specific object classes are defined in OMB Circular A-11 • In an effort to better establish the traceability between DoD budget and procurement, on

April 14, 2014 OUSD AT&L and OUSD(C) issued a memo announcing the first PSC to object class map (Version 1.0)

– Version 2.0 of the crosswalk issued March 4, 2016 – DoD Comptroller’s office working with Component financial management community to update

crosswalk for version 3.0 • DoD’s Deputy Chief Financial Officer issued February 24, 2015 memo requiring that OCCs and

PSCs be included on purchase request line items starting March 1, 2015 – Better visibility and linkage of budget, obligation, and expenditure data

• DPAP launched the PSC Selection Tool February 25, 2015 2017 Procure-to-Pay Training Symposium 30

PSC Selection Tool • The PSC Selection Tool is available at https://psctool.us/ • Presents PSCs in terms of:

– DoD’s Better Buying Power portfolio groups and portfolios – Object class map (version 2.0) – Recommended NAICS codes (where available)

• Enables keyword searches and drill downs through portfolios using portfolio group or object class as a starting point

• Provides APIs for system integration


https://psctool.us/

PSC Selection Tool


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Selecting PSCs with the PSC Selection Tool Step 1: Select portfolio group Step 2: Select portfolio

Step 3: Select “Details” to learn more about the PSC

What You Can Find


Summary • Standardization of processes across key data

elements continues in DoD Procure-to-Pay and at the federal level

• Enabling better interoperability and transparency • Expect increased use of validations and pre-

population as underlying systems are integrated and expanded



Questions?

PROCURE PAY TO TRAINING SYMPOSIUM May 30 – June 1, 2017 ● Hyatt Regency Orlando FL

DEFENSE PROCUREMENT AND ACQUISITION POLICY

37

The Decoder RingBeyond Contract Numbers and Line ItemsSlide Number 3What is a CAGE Code?Recent Policy ChangesCAGE Program OfficeDid You Know?What’s New?CAGE Search & Inquiry (CSI)CAGE Expiration DateCAGE Status CodeCAGE/NCAGE InstructionsComing AttractionsSlide Number 14What is a DoDAAC?DoDAAC Recent NewsNew DoDAAC Fields/ElementsPurpose CodesNew Field StatusSlide Number 20CAGE vs DoDAACSharing CAGE DataSlide Number 23Slide Number 24Slide Number 25DoDAAD RealignmentDoDAAD RealignmentSlide Number 28What is a Product / Service Code?Tracing What is Purchased Across Functional AreasPSC Selection ToolPSC Selection ToolSelecting PSCs with the PSC Selection ToolWhat You Can FindSummarySlide Number 36Slide Number 37

Documents

The Decoder Ring training presentations...May 30 – June 1, 2017 Hyatt Regency Orlando FL 1 Presented by: Lisa Romney Procurement Analyst DPAP-PDI Beyond Contract Numbers and Line