HARM JSOW TOMAHAWK

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(No Transcript)
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ENVIRONMENTAL SCAN

• The Secretary of Defense shall establish and
  implement a management structure for the
  procurement of services for the Department of
  Defense.
• Ensuring that the services are procured by means
  of contracts or task orders that are in the best
  interest of the DoD and are entered into or
  issued and managed in compliance with applicable
  statutes, regulations, directives and other
  requirements

Source FY02 National Defense Authorization
Act Title VIII- Acquisition Policy, Acquisition
Management, and Related Matters Section 801
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ENVIRONMENTAL SCAN

• The DoD shall have goals to use improved
  management practices to achieve, over 10 fiscal
  years, reductions in the total amount that would
  otherwise be expended by the Department for the
  procurement of services
• 2002 3 Reduction
• 2003 4 Reduction
• 2004 5 Reduction
• 2011 10 Reduction

Source FY02 National Defense Authorization
Act Title VIII- Acquisition Policy, Acquisition
Management, and Related Matters Section 801
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ENVIRONMENTAL SCAN

• You requested that we examine how leading
  companies reengineered their approach to
  purchasing services and the extent to which DoD
  is pursuing a similar approach. This report
  describes a strategic framework that leading
  companies have adopted that could help guide
  DoDs efforts.

SourceGAO Report to the Chairman Ranking
Minority Member, Subcommittee on Readiness and
Management Support, Committee on Armed Services,
U.S. Senate Jan 2002
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ENVIRONMENTAL SCAN

• The leading companies we studied made a number of
  dramatic changes to the way they bought services
  and found that these changes, in turn, resulted
  in significant cost savings and service
  improvements.
• These changes generally began with a corporate
  decision to pursue a more strategic approach to
  acquiring services.
• Taking a strategic approach involves a range of
  activities, from developing a better picture of
  what the company is spending on services, to
  taking an enterprise-wide approach to procuring
  services, to developing new ways of doing
  business.

SourceGAO Report to the Chairman Ranking
Minority Member, Subcommittee on Readiness and
Management Support, Committee on Armed Services,
U.S. Senate Jan 2002
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STRATEGIC APPROACH

• Commitment Up-front commitment from Senior
  Leadership
• KnowledgeObtain improved knowledge of service
  spending
• ChangeCreate supporting structure, processes and
  roles
• SupportEnable success through sustained
  leadership, communication, and metrics

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Multiple AwardID/IQ Task Order Contracts

• The Federal Acquisition Streamlining Act
  authorized the use of Multiple Award, Indefinite
  Delivery- type contracts. The statute was
  subsequently implemented in Part 16.5 of the
  Federal Acquisition Regulation. The FAR
  implementation allows for the award of identical
  ID contracts to multiple offerors.

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Multiple AwardID/IQ Task Order Contracts

• Reduced Costs
• Pre-Qualified Offerors
• Reduced Proposal Preparation Evaluation
• Provides Efficiency and Flexibility for Customers
• Multiple contractors and broader SOW in basic
  contract provides greater access to new
  technologies and processes
• Increased Competition motivates improved
  performance

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BEST PRACTICES

• Electronic Payment
• Ombudsman/ADR
• Performance Based Provisions
• Use automated streamlined procedures to solicit
  task order proposals

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SOCIO-ECONOMIC CONSIDERATIONS

• Small Business Participation
• Ensuring Small Business Maintains its Market
  Share
• Finding Viable Small Businesses in the Areas of
• HUBZone Small Businesses
• Women-Owned Small Businesses
• Veteran-Owned Small Businesses
• Service Disabled Veteran Owned Small Business
• Protecting 8(a) Workload
• Leveraging on the Successes of our Past

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SUMMARY

• The Current Environment Recognizes the Need for
  Greater Insight Into the Acquisition of Services
• NAVAIR is Developing a Strategic Approach to
  Acquiring Services
• NAVAIRs Strategic Approach will Incorporate
  Best-Practices
• Balancing our Socio-Economic Responsibilities
  Will Be Paramount in our Strategic Approach