Acquisition Management

1
Acquisition Management

• Office of Program and Institutional Integration
  (OPII)
• Rita Svarcas
• July 18, 2007

2
Background

• The Inspector General (IG) and the GAO (via its
  High Risk List) assert that NASA is not providing
  proper acquisition oversight. This is a
  long-standing deficiency. OCE, OP, OGC, IEMP,
  and OPII are working together, and with the OIG
  and the GAO, to address the concerns and correct
  the deficiency.
• Major recent activities include
• 21 November 06 Team of HQ representatives
  presented status of related activities to GAO
  team, with OIG in attendance.
• 31 January 07 GAO issued High-Risk Update,
  re-stating concerns and necessary improvements.
• 6 June 07 Team of HQ representatives completed
  draft High-Risk Corrective Action Plan and
  introduced it to GAO team.

3
Issue Description of Deficiency

• Weak link between financial management and
  program management decisionmaking
• hinders Agencys ability to effectively
• Estimate costs
• Perform contract oversight
• Analyze contractor performance, including EVM
• Establish strong integrated business processes
  and associated tools

4
Issue Root Cause

• GAO High-Risk (May 19, 2004)
• Weak link between financial management and
  program management decision-making
• Financial management culture that has not fully
  acknowledged nature and extent of financial
  management difficulties
• GAO High-Risk (January, 2005)
• Lack of modern, fully implemented integrated
  financial management system
• Undisciplined cost estimating processes in
  project development
• Inability to obtain information needed to assess
  contract progress
• GAO High-Risk (Jan 31, 2007)
• Calls for re-engineering of cost reporting
  process
• Lack of cost and performance data
• To develop credible estimates
• To compare BCWP to ACWP
• Lack of analytical tools
• Lack of trained staff for cost analysis and EVM

5
Updates Since Last Quarter

• Planned Actions were
• Prepare Corrective Action Plan (CAP) to resolve
  High Risk area
• Completed. CAP approved by Shana Dale on June 15
  and is now under-going GAO and OFPP/OMB Review.
  Initial feed-back is positive.
• First NASA/OMB/GAO status meeting scheduled for
  July 27.
• Continue modifying policies to incorporate
  ASP/ASM/PSM
• Ongoing.
• Establish case study plan in conjunction with
  IEMP and the M/BSIG
• Plan to use results of the Gap Analysis
  (currently underway) to assess current
  acquisition management situation.

6
Deficiency Milestone Status
7
Planned Actions for Next Quarter

• Brief OMB and GAO on July 27 and prepare for
  subsequent quarterly High-Risk update meetings.
• Continue to make progress on the 7 initiatives
  encompassed in the High Risk CAP.
• Establish cross-functional team for Cost
  Reporting initiative.
• Review results of Gap Analysis and identify
  necessary actions from the perspective of this
  Weakness.
• Continue policy refinement.
• Based on the first broad ASP held on June 25,
  plan and prepare for next quarterly ASP session.
• Hold first ASM ESMD Cx integrated ground
  operations.

8
Recommendation

• This deficiency should continue to be carried as
  an Other Weakness.