SFIS Governance Meeting

1

SFIS Governance Meeting August, 6 2009
2
IVAN Background - Issues

• Proper accounting and documentation of
  reimbursable Intragovernmental Transactions (IGT)
  / Military Interdepartmental Purchase Requests
  (MIPRs) has been a long-standing issue
  throughout the Federal Government
• GAO and OMB have repeatedly identified IGT as
  high risk area.
• Congress has levied additional requirements on
  inter-agency contracts to insure competitiveness
  and visibility.
• GAO identified IGT financial eliminations as a
  material weakness for DOD
• IG investigations have highlighted potential
  Antideficency Act violations related to
  Inter-agency contracting.

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IVAN Background - Solution

• The DOD has addressed these issues by
• Incorporating IGT/MIPR requirements and business
  rules into its business enterprise architecture
  (BEA) - March 2006
• Validating the BEA through a proof of concept
  utilizing IVAN 2007-2008.
• Deploying IVAN as an operational system to
  provide enterprise visibility and help address
  the underlying material weaknesses (ongoing)
• The two IVAN functional sponsors are

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Benefits / Objectives of IVAN

• Serves as a central repository that provides
  Enterprise level visibility to the IGT order
  information
• Reduces the potential for ADA violations by
  implementing internal control features
• Generates information to support eliminations
  reconciliation and strategic sourcing (spend
  analysis)
• Trading Partner Report (TPR) compares buyer /
  seller accounting data and identifies
  discrepancies
• Reduces manpower required to support IGT
  processing
• Enables full reimbursable Order financial status
  visibility throughout an Orders lifecycle
• Improves the timeliness and accuracy of financial
  postings

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Feature Highlights

• COTS-based IGT system based on PRISM software
• Web-based application
• Workflow for approval
• CAC Card
• Electronic signature
• Order Management
• Intragovernmental Order Creation/Acceptance
• Ability To Receive Orders from External Systems
• Controls to ensure compliance with Inter- agency
  contracting business rules
• Generation of OFPP Inter-agency Agreement
• Standard Order Output
• Approver Checklist
• Automated funds expiration notification
• Link contract info to orders

• Reports and Management info
• Trading Partner report for financial eliminations
  research
• Ad-hoc Query
• Executive Dashboards (Under Development)
• Interface with accounting systems to post
  commitment/obligation and capture financial
  details
• Direct Cite IGT processing
• Seller side deobligation
• Buyer Side Only input

Not all these functions are applicable to
Agencies/Services using ERP
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IVAN Scope Clarification

• IVAN is designed to support all levels of IGT
  orders
• Level 1 - DoD with a non-DoD trading partner
• Level 2 DoD with other DoD reporting entities
• Levels 3-6 both trading partners are within the
  same DoD reporting entity

Primary focus of IVAN for elimination /
reconciliation
Can be supported by IVAN, but are expected to be
covered by ERP systems

• The following functionality is NOT included in
  the current release of IVAN
• Interfund, Transportation, Purchase Card, and
  Fuels processes
• Fiduciary exchange, Fiduciary non-exchange, and
  Asset transfer transactions
• IVAN is not a subsidiary of the General Ledger

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High Level IVAN Process Flow
Buying Agency
Selling Agency
Order is Generated in ERP
Can be done either in ERP or in IVAN
Accept
Order
e
e
l
l
i
i
F
F


Order
L
L
Obligation
M
M
Management
X
X


r
r
IVAN
o
o


y
y
r
r
Bill Performance Data
t
t
Order
n
n
(Future functionality)
E
E
Management


b
b
e
e
W
W
Order
Order
Financial
Financial
Details
Details
Reconciliation
Reports
Trading Partner

Ad Hoc
Report
Query
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IVAN Deployment Status

• Deployed in a limited production (250 users) mode
  with elements of
• Marine Corps (Camp Lejeune)
• Army (Fort AP Hill)
• TRICARE
• DISA
• Dept of Interior (AQD-Herndon)
• Dept of Health and Human Services
• NDU (August 2009)
• SPAWAR Atlantic (August 2009)
• Next steps
• Working with DoD components to develop DoD-wide
  implementation plans
• Standing up full production environment capable
  of supporting up to 5,000 users (August 2009)

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• ERP / IVAN Data Flow Scenarios
• and
• Process Design Options

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Current DoD System Landscape for IGT

• These scenarios will be in place for at least the
  next 10 years

Buying Agencies
Selling Agencies
ERP Environment
ERP Environment
Legacy Environment
Legacy Environment
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Proposed DoD System Landscape for IGT
Buying Agencies
Selling Agencies
ERP Environment
ERP Environment
Legacy Environment
Legacy Environment
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ERP to ERP Direct Interface IVAN Receives Copies
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Legacy to ERP Acceptance in ERP(electronic
interface with Seller ERP)
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Next Steps for ERP/IVAN

• Kickoff Meeting 11 Aug 09
• Set the stage
• Discuss Scenarios
• Provide data element worksheets
• Aug- Oct 09 ERP staffs complete worksheets and
  evaluate scenario options.
• PMO holds one on one meetings with ERP staffs if
  required.
• Nov 2009 March 2010 Conduct meetings to
  finalize interface specifications
• April 2010 Publish specification
• 2010-2011 ERPs blueprint and schedule
  implementation

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• Back Up Slides

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Trading Partner Report Example - Summary
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Trading Partner Report Example - Detail