HQ ACC Briefing Rules of Engagement

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Installation Acquisition Transformation
(IAT) Strategically Sourcing the Enterprise
David Glowacki, Col, USAF Chief, Contracting
Division HQ Air Combat
Command
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Outline

• Background/Case for Change
• Strategic Sourcing
• Tenets and Implementation Plan
• Organizational Structure
• Current and Future

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Case for Change Current Structure

• 71 buying organizations focused on providing
  tactical support to installation customers
• Additional contracting support provided to
  numerous FOAs
• This current alignment results
• Inconsistent use of skilled contracting resources
  
• Redundant procurement of similar commodities
• Inability to leverage the scale of the Air Force
  to drive efficiencies
• Failure to realize strategic sourcing objectives
• Strain on buying activities with contingency
  contracting officers
• Challenges are compounded by
• Increase in contracting workload and complexity
• On-going mission support commitments

The current structure strains the ability of the
Installation Contracting community to effectively
perform its mission
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CONUS Installation Contracting(Current Tactical
Alignment)
FY06 Data
The current structure strains the ability of the
Installation Contracting community to effectively
perform its mission
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Learning From Industry

• Enterprise-wide procurement
• Centralized installation support
• Centrally managed strategic sourcing
• Cross-functional commodity councils

Services and Industry are Centralizing Procurement
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Strategic Sourcing Summary
Strategic Sourcing IS NOT Just Strategic Sourcing IS
The resulting contract Leveraged buying Contract consolidation Contracting and procurement About saving money A PROCESS for systematically analyzing and developing optimal strategies for buying goods and services DATA DRIVEN fact-based analysis to drive decision making rather than just hunches A HOLISTIC process that addresses customer needs, market conditions, organizational goals and objectives, and other environmental factors Based on MARKET INTELLIGENCE and takes into account small business capabilities A COLLABORATIVE, CROSS-FUNCTIONAL approach About SUPPORTING AN ORGANIZATIONS MISSION through procured goods and services
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AF Strategic Sourcing Successes

• Desktops/Laptops
• 4th Qtr FY03 1st Qtr FY05 84,787 units
  purchased, 72M spent, 17M costs avoided
• Reduced desktop/laptop configurations from gt1000
  to 4
• Configurations updated quarterly to reflect
  technology changes OMB adopted as standard
• Implemented a repeatable enterprise-wide bulk
  buy approach using quantity price breaks and
  online e-buying
• Overall 8.4 awarded to Small Business (as of
  Apr05)
• Enterprise-wide Microsoft agreements (Nov 04)
• Consolidated 38 previously decentralized software
  contracts and nine support contracts into two
  mandatory agreements
• Expected to save more than 100 million during a
  six-year period
• Medical Services CC Implemented two strategic
  sourcing spirals established business
  arrangements

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IAT background
Aug 2006Feb 2007
Aug 2005April 2006
October 2007
May September 2007

• Stand up PMO
• Initiate Implementation
• HCA/GCA
• PAD

Implementation Plan
Business Case Analysis
IAT Materials and Detailed Implementation Planning

• Thoroughly examined current state AF CONUS
  Installation Contracting structure
• April 2006 Business Case Analysis recommended
  transformation to
• Take advantage of strategic sourcing
• Leverage resources across the AF organization
• February 2007 Implementation Plan provides
• Detailed Concept of Operations
• Phased Deployment Plan
• Communications and Change Strategy
• Transformation is initially targeted at
  contracting organizations, but will require
  collaboration and support of other key
  acquisition functionals

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Key Tenets

• Maintain Customer Relationships Maintain and
  improve our ability to support our customers
• Socio-Economic Focus Maintain and strengthen
  focus on socio-economic program responsibilities
• Retain Contracting Experts at Every Installation
  Maintain a buying activity responsible for
  providing business advisory services and
  performing installation-specific contracting
  actions
• Maintain Robust Contingency Contracting
  Capability Ensure continued ability to meet
  contingency contracting commitments
• Ensure Force Development Preserve leadership
  and professional development opportunities for
  military and civilian contracting professionals
• Transparency Provide visibility to Congressional
  and key stakeholders

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CONUS Installation ContractingFuture Strategic
Alignment
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Regionalized Organizational Structure
AFMC Lead-MAJCOM
San Antonio
Colorado Springs
Hampton Roads
Warner Robins
St Louis
Contracting contingent remains at Installations
to provide agile customer support
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IAT Implementation Schedule

• SecAF Letter Aug 07
• PAD Coordination Approval Aug-Nov 07
• IOC 1 Oct 07
• HCA/GCA transition to Lead-MAJCOM
• Stand-up San Antonio Regional Center Jan 08
• Stand-up 4 additional Regional Centers Oct 09

Complete
In Process
Not Started
(Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years) (Overall Timeline (Phased Approach 3-5 Years)
Major Milestone FY 2007 FY 2007 FY 2008 FY 2008 FY 2008 FY 2008 FY 2009 FY 2009 FY 2009 FY 2009 FY 2010 FY 2010 FY 2010 FY 2010 FY 2011 FY 2011 FY 2011 FY 2011 FY 2012 FY 2012 FY 2012 FY 2012
Major Milestone Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ID Lead MAJCOM
Release SecAF Letter
Establish PMO
PAD Coordination/Approval
IOC (Lead MAJCOM)
Standup San Antonio
Standup Remaining RCs
IAT FOC
Pathfinder Implementation
Phased Implementation
Phased Implementation
Phased Implementation
Phased Implementation
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IAT Summary

• Tactical to Strategic Alignment
• 71 local buying activities transforming into 5
  Regional Centers
• Centers not MAJCOM-aligned AFMC lead MAJCOM
• Regional Centers (RC)
• RCs will provide strategic contracting support to
  bases in region
• RCs will have about 350-400 personnel assigned
• Many local CONS positions will migrate to RCs
  over time
• Southwest Region IOC 1 Jan 08 no immediate
  personnel moves
• Installation Acquisition Squadron (IAS)
• IASs will report within wing structure (15-18
  personnel)
• Manage GPC / QAPC programs provide business
  advisory support
• Limited local purchase capability
• IAT Program Management Office (PMO) established
  Sep 07
• Working personnel, workload flow / process
  e-business issues

Implementation period of 3-5 years
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Questions?