CON 218CON 218Summer 2012Summer 2012

Acquisition PlanAcquisition Planfor the acquisition of an agency-wide for the acquisition of an agency-wide Financial Management System (FMS)Financial Management System (FMS)

Prepared by: Prepared by: Paul GyamfiPaul Gyamfi

Peter SchulleriPeter Schulleri

Requesting ActivityRequesting Activity

The Department of Homeland The Department of Homeland Security (DHS), Office of the Chief Security (DHS), Office of the Chief Financial Officer (O-CFO) oversees all Financial Officer (O-CFO) oversees all financial management activitiesfinancial management activities

O-CFO’s O-CFO’s Financial Systems Div. Financial Systems Div. (FSD)(FSD) maintains all Financial maintains all Financial Management Systems (FMSs)Management Systems (FMSs)

Statement of NeedStatement of Need

Consolidate all DHS FMSs to one Consolidate all DHS FMSs to one enterprise / agency-wide systementerprise / agency-wide system• Consolidate 22 federal officesConsolidate 22 federal offices• Design life-span of 8 - 12 yearsDesign life-span of 8 - 12 years

FMS to integrate with DHS’s network FMS to integrate with DHS’s network architecturearchitecture

Commercial-off-the-shelf (COTS) systemCommercial-off-the-shelf (COTS) system• GUI & icon-centric interfaceGUI & icon-centric interface• Specific modules for defined end-usersSpecific modules for defined end-users

Specialists’ input data fieldsSpecialists’ input data fields Reports for decision-makers / managersReports for decision-makers / managers

ConditionsConditions

Key consideration: Key consideration: consolidating 22 consolidating 22 unique FMSsunique FMSs

The 22 systemsThe 22 systems• Vary as to which external invoicing network Vary as to which external invoicing network they interface with they interface with

DHS will use Dept of the Treasury’s Financial DHS will use Dept of the Treasury’s Financial Management Service (UST-FMS)Management Service (UST-FMS)

• Include End-of-Life hardware, and other Include End-of-Life hardware, and other systems nearing refreshsystems nearing refresh• Reside on SAP Reside on SAP andand Oracle platforms Oracle platforms

Trade-offsTrade-offs RiskRisk of not consolidating to one FMS of not consolidating to one FMS

• Non-compliance (Congress)Non-compliance (Congress)• The cost of reconciling non-uniform dataThe cost of reconciling non-uniform data• Internal controls: mitigate unintentional / Internal controls: mitigate unintentional / intentional financial mismanagementintentional financial mismanagement• Future lower cost to maintain and upgradeFuture lower cost to maintain and upgrade

BenefitBenefit of consolidation of consolidation• Oversight and transparencyOversight and transparency• Uniformity – data collection & reportingUniformity – data collection & reporting• Decreased resource-demandDecreased resource-demand

Decreased laborDecreased labor Decreased errorsDecreased errors Decreased energy consumption Decreased energy consumption

Delivery Requirements (WBS)Delivery Requirements (WBS)

Planning, Designing and Integration Planning, Designing and Integration PhasesPhases• At least two years – “stand up” phasesAt least two years – “stand up” phases

Project MaintenanceProject Maintenance• IDIQ task Orders – on-going servicesIDIQ task Orders – on-going services

Products: Software / HardwareProducts: Software / Hardware• Firm-Fixed Fee Firm-Fixed Fee

CostCostYear 01 & 02Year 01 & 02

Planning, Designing and Integration PhasesPlanning, Designing and Integration Phases• Assumptions built usingAssumptions built using

historically similar projecthistorically similar project

• Work Breakdown StructureWork Breakdown Structure

subject to change aftersubject to change after

Pre-Proposal Conference orPre-Proposal Conference or

negotiations negotiations

• Hours will be negotiatedHours will be negotiated

• This IGCE is best estimateThis IGCE is best estimate

CostCostYears 03 through 12Years 03 through 12

On-going maintenance & supportOn-going maintenance & support• All issues addressed onAll issues addressed on

previous slide apply hereprevious slide apply here

• Eval the FMS at year 8:Eval the FMS at year 8:

is it still worth on-going M&S?is it still worth on-going M&S?

Total estimated costTotal estimated cost

Sources & Contract Type Selection Sources & Contract Type Selection

Planning, Designing and IntegrationPlanning, Designing and Integration• Cost reimbursementCost reimbursement• Task Orders – Task Orders – competed amongst exiting competed amongst exiting DHS / IT Services IDIQ holdersDHS / IT Services IDIQ holders

MUST subcontract with qualified HUBZone firmMUST subcontract with qualified HUBZone firm• Two year POP (“stand up” phases)Two year POP (“stand up” phases)

Products: Software / HardwareProducts: Software / Hardware• Firm-Fixed Fee, full and open (FedBizOpps)Firm-Fixed Fee, full and open (FedBizOpps)• Small business set-asideSmall business set-aside

Project MaintenanceProject Maintenance• Incorporate to existing maintenance TOIncorporate to existing maintenance TO

Selections & Negotiations Selections & Negotiations

Task OrdersTask Orders• Best valueBest value

Technical capability and past performance Technical capability and past performance more important than costmore important than cost

• Incentivize contractorIncentivize contractor Milestones-driven: progress reports, analysis Milestones-driven: progress reports, analysis

of burn-rate tied to mutually approved Work of burn-rate tied to mutually approved Work Breakdown Structure Breakdown Structure

Performance-based work statement Performance-based work statement Cost-Plus-Incentive Fee (CPIF)Cost-Plus-Incentive Fee (CPIF) Industry input in WBS & MilestonesIndustry input in WBS & Milestones

Work Breakdown Structure Work Breakdown Structure

Thank you &Thank you &Questions?Questions?