REE BPPI WorkshopAcquisitions

February 21-24, 2006 Washington, DC

2 February 2006

AgendaAgenda

1. IAS Goals and Objectives

2. Functional Scope of IAS

3. Overview of IAS Processes

4. IAS Implementation Lifecycle

5. Purpose and Goals for Today

6. Standard USDA Procurement Process

7. Detailed Process Stepsa. Contracting Buyer Assignmentsb. Awards (Simplified and Formal)c. Contract Close-out and Additional Questions

3 February 2006

IAS Goals and ObjectivesIAS Goals and Objectives

Ensure reliable and accurate USDA-wide, procurement-related financial information

Make the most efficient use of IT investments and comply with electronic commerce directives and digital Department initiatives

Support an integrated policy, planning, and budgeting process

Improve customer service and reduce program office and administrative burden in the acquisition management process

Lower purchasing costs

Provide a robust security environment that meets or exceeds USDA’s Common Criteria standards

Automate tracking system for requisition approvals and contract writing and review

Provide a platform for advanced future acquisition management business processes

4 February 2006

Functional Scope of IASFunctional Scope of IAS

The functional scope of IAS is to support procurement at USDA, and to support interfaces with appropriate controls and pertinent data for other processes at USDA

IAS currently covers the procurement lifecycle from requisition through contract closeout, with an interface to FFIS

PSD is examining future capabilities that will extend system capabilities, consistent with the vision

FY05 IAS Functional Vision

e-Catalog

e-Invoicing

Data Warehouse

Auctions

e-RFx

Asset Management

Interface (CPAIS)

Requisition Processing

Contract Management

Financial Interface

Review and Approval

ReceivingReconciliation

System Administration and Reporting

Solicitation Preparation

RFP Advertisement & Distribution / Fed Biz Opps

Proposal Acceptance Award

Contract Modification

Audit Support

Contract Closeout

Purchase Orders

5 February 2006

Overview of IAS ProcessesOverview of IAS Processes

RequisitionOrder /

ContractReceipt Invoice

Payment Backfeed

• Requisition user creates or modifies a request

• Request is approved by manager in program office

• Request is approved by others (e.g.: property or IT. Optional setup per agency.)

• Request is approved by Finance for Commitment

• Contracting Officer completes all pre-award research, processes, and documentation

• Synopsis abstracts can be sent to FBO from IAS; Otherwise, CO must post IAS- created documents to FBO

• Contracting Officer completes obligating document including all terms and conditions

• Contracting Officer releases obligating document and completes FPDS-NG reports

• Requisitioner or other designee enters receipt and acceptance into IAS

• Contracting Officer or other designee may review off-line for official acceptance prior to entry in IAS

• ACFO-FO COD APB enters the invoice into IAS

• ACFO-FO COD APB resolves issues related to discrepancies

• ACFO-FO COD APB transmits invoice to schedule payment

• Agency designee reviews payment backfeed for accuracy

6 February 2006

IAS Implementation LifecycleIAS Implementation Lifecycle

Identify Agency Team

Data Gathering / Validation

Data Entry Transition to Customer Care

Business Process Policy

Integration Go LiveGo Live SignoffSignoff

Outreach / Education

Training Management & Delivery

Configuration Prep

7 February 2006

Purpose and Goals for TodayPurpose and Goals for Today

Obtain a detailed understanding of current REE “As-Is” Buyer Assignments, Simplified and Formal buying processes, and Contract Close-out processes

Identify potential changes or gaps for REE based on new “To Be” IAS processes (systems, forms, staff, etc.)

Identify any non-standard or unusual transactions

8 February 2006

Standard USDA Procurement ProcessStandard USDA Procurement Process

Requestor

CO

COTR

Does this map to your current process? Are there deviations from the example above? If so, what?

Create Requisition

Program

Approve Requisition

Program/Budget

Generate Award

AcquisitionsBudget

Receives Invoice

Budget

Review•Receipt & Acceptance (Requestor)•Verify distribution (AFM)

Budget

Fax Receipt to NFC

NFC

Invoice Entry

9 February 2006

Contracting Buyer AssignmentsContracting Buyer Assignments

RequisitionOrder /

Contract Receipt Invoice

Routing and Assignment of Requisition Do you have a central Procurement shop? If not, where are your major Procurement

Shops located? How are Requisitions assigned amongst Contracting Officers (e.g., is there a Supervisory

Contracting Officer who determines to which Contracting Officer to assign the requisition?) What criteria (e.g., requisition amount, program type, etc.) is currently being used to

determine which Contracting Officer should process which Requisition? Do you have Purchasing Specialists and Contracting Officers? What are there

responsibilities? How does this process differ at the Area Office or Location Area level?

Receive Requisition

Review Requisition

Assign to Staff

10 February 2006

Order/Contract (Simplified)Order/Contract (Simplified)

RequisitionOrder /

Contract Receipt Invoice

Simplified Acquisitions Process Who creates the Purchase Orders (COs, Purchasing Specialists or both)? What other

individuals are involved in developing and/or releasing the Purchase Order? What form(s) are being used in the creation of the PO (other than the AD838)? What systems, if any, are used for creating the Purchase Order/Contract? Do you process any Purchase Orders outside of PRCH? Who enters the obligation into FFIS? How do you handle cost modifications? Are you allowed to award to vendors outside of CCR? Describe any unusual transactions you process (from a funding, FFIS, systems perspective).

Conduct Research (optional)

Determine Payment Method/ Vehicle

Develop PO

Release PO

Post Award to FBO

(optional)

11 February 2006

Order/Contract (Formal)Order/Contract (Formal)

RequisitionOrder /

Contract Receipt Invoice

Conduct Research

Develop RFI (optional)

Post RFI to FBO (optional)

Receive and Review RFI Response

(optional)

Develop Milestones or Acquisition Plan

(optional)

Post Synopsis (optional)

Develop SOW

Develop Solicitation

Develop Bidders List

Release Solicitation

Review Responses

Choose Vendor

Create Award

Obligate Funds

12 February 2006

Order/Contract (Formal) cont’dOrder/Contract (Formal) cont’d

Formal Acquisitions Process Who creates the formal contracts? What form(s) are being used in the creation of the contract or award? What systems or databases are used for contract generation? Who enters the obligation in FFIS? Who does FPDS-NG reporting and when (upon release or in bulk)? How does your standard formal acquisition process differ from 8a or Sole Source

Selection? How do you handle cost modifications? Describe any unusual transactions you process (from a funding, FFIS or other

systems perspective).

RequisitionOrder /

Contract Receipt Invoice

13 February 2006

Contract Close-Out and Additional QuestionsContract Close-Out and Additional Questions

Contract Close-Out Process What are your contract closeout steps (financial de-obligation or award closeout)? What forms or documents are involved in closing out the contract?

Additional Questions Does the process for placing BPA calls differ at all from the standard acquisitions

process? If so, in what way? How do you process Purchase Card payments with Purchase Orders? How do you handle emergency buys? Describe the approval chain and list the

parties involved. How do you handle the setup for cross-servicing and inter-agency agreements?

Any Unusual Circumstances Not Discussed

Requisition Receipt Invoice Close OutOrder/Contract

14 February 2006

Known Change Management IssuesKnown Change Management Issues

Identified Issue Effect on REE IAS Users

Commitment Accounting Any change (other than admin) must be initiated by requisition creator

Tolerances As of May 24, 2005, tolerances will be available and enforced in FFIS

Line items must still be entered, though (eg: for shipping and handling)

Purchase Order System (PRCH) Shutdown

Identify orders which will extend past 6 month shut-down window (based on your ‘Go Live’ date, this means any order or line items to exercised in FY06)

Standard Forms No more use of AD forms

Sub-CLINs Restructure line items

Invoice Entry All invoices entered by OCFO, COD, APB (NFC)

15 February 2006

Known Change Management IssuesKnown Change Management Issues

Identified Issue Effect on REE IAS Users

Document Numbering IAS will auto-number documents based on FPDS-NG and policy standards; reports will be driven off fields other than document number

Real-time interface to FFIS Requisitions and obligations are inserted into FFIS real-time (< 2 minutes) rather than overnight; No additional entry needed

Document Suspense File (SUSF)

Users will use IAS error tables

COMT Acquisition staff will request new vendors be added to FFIS via the PVND screen in IAS

Three-way matching Requisitioners will now have to enter receipts (certification and acceptance) in IAS in order for invoices to be processed

16 February 2006

Next StepsNext Steps

Action Item Review Deliver complete list of gaps between current process and

future process in IAS Move into Configuration Preparation phase of implementation