SeaPort:SeaPort:Improving Services Acquisition Improving Services Acquisition
through Innovation and E-through Innovation and E-BusinessBusiness
Kathleen M. Monahan, Kathleen M. Monahan, NAVSEANAVSEA
Max R. Peterson, Commerce Max R. Peterson, Commerce OneOne
Sean Singleton, CSCSean Singleton, CSC
30 January 200230 January 2002
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AgendaAgenda Challenges of services contractingChallenges of services contracting Business strategy considerationsBusiness strategy considerations E-business frameworkE-business framework Case study – Case study – SeaPortSeaPort Panel discussionPanel discussion
Best practices for successful services Best practices for successful services acquisitions to save time and money, acquisitions to save time and money,
improve competition, achieve improve competition, achieve Congressional goals and magnify Congressional goals and magnify
corporate knowledge. corporate knowledge.
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Government ChallengeGovernment Challenge Organizational imperativesOrganizational imperatives
– Meet services need while reducing costMeet services need while reducing cost– Build corporate intelligenceBuild corporate intelligence
Acquisition objectivesAcquisition objectives– Increase performance based contractingIncrease performance based contracting– Encourage competition and fair opportunityEncourage competition and fair opportunity– Streamline end-to-end processStreamline end-to-end process
Resistance to changeResistance to change– Customer, Supplier adoptionCustomer, Supplier adoption– HQ management and professionals - culture HQ management and professionals - culture
changechange
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NAVSEA’s ChallengeNAVSEA’s Challenge Meet NAVSEA’s Strategic Sourcing budget Meet NAVSEA’s Strategic Sourcing budget
realignment - $250M (FY01 –05)realignment - $250M (FY01 –05) Leverage corporate buying habitsLeverage corporate buying habits
– Capture, analyze and report business metricsCapture, analyze and report business metrics Meet OSD goals for 50% of service Meet OSD goals for 50% of service
contracting to be performance based by contracting to be performance based by FY05.FY05.– 20% by FY0220% by FY02
Overcome GAO’s criticism of MACsOvercome GAO’s criticism of MACs Reduce cycle timeReduce cycle time Enhance small business participationEnhance small business participation
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Business StrategiesBusiness Strategies Identify Best PracticesIdentify Best Practices
– Internal review and assessment - CEWG dataInternal review and assessment - CEWG data– E-business market surveyE-business market survey
Engage “customers” and “suppliers” Engage “customers” and “suppliers” – Understand needsUnderstand needs– Involve in solution developmentInvolve in solution development
Create Multiple Award Contracts (MACs)Create Multiple Award Contracts (MACs)– Defined business need; e-business frameworkDefined business need; e-business framework– Flexibility in task order, selection processFlexibility in task order, selection process– Fair opportunityFair opportunity
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NAVSEA Acquisition StrategiesNAVSEA Acquisition Strategies Create business partners who understand Create business partners who understand
our business and who can help save us our business and who can help save us moneymoney– MAC contains all major functional categoriesMAC contains all major functional categories– Share in savingsShare in savings
Create automatic mechanismsCreate automatic mechanisms– Conversion to Performance Based Statement Conversion to Performance Based Statement
of Workof Work– Award Term Award Term – Issue Resolution DeskIssue Resolution Desk
Guaranteed savings Guaranteed savings OmbudsmanOmbudsman
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E-Business StrategyE-Business Strategy Conceive e-business framework Conceive e-business framework
simultaneously with business strategysimultaneously with business strategy– Supplier web and e-marketplace acceptanceSupplier web and e-marketplace acceptance– Ensure e-business infrastructure support begins Ensure e-business infrastructure support begins
Day 1 Day 1 Electronic signatureElectronic signature
– Binding electronic signature – Binding electronic signature – Gov’t & SupplierGov’t & Supplier Secure, web-based end-to-end processSecure, web-based end-to-end process
– Accessible anytime, anywhereAccessible anytime, anywhere– Tools, content library facilitate workTools, content library facilitate work– Web system interfaces with legacy and Web system interfaces with legacy and
emerging applications emerging applications
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NAVSEA E-Business StrategyNAVSEA E-Business Strategy
Market review of what is possibleMarket review of what is possible– ““Amazon.com”-like environmentAmazon.com”-like environment– ““Turbo-tax”-like form fillTurbo-tax”-like form fill
Established a three pronged approachEstablished a three pronged approach– www.www.SeaPortSeaPort.navy.mil.navy.mil information portal information portal– e-marketplace Portal for ordering servicese-marketplace Portal for ordering services– Multiple Award ContractsMultiple Award Contracts
Conducted e-business portal acquisitionConducted e-business portal acquisition– Functional specificationFunctional specification– Demonstrated experience criticalDemonstrated experience critical– Performance-based IOC, FOC delivery Performance-based IOC, FOC delivery
timelinestimelines
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Case Study: SeaPortCase Study: SeaPort
A new philosophy on how NAVSEA A new philosophy on how NAVSEA buys professional support servicesbuys professional support services
21 IDIQ contracts awarded to 21 IDIQ contracts awarded to industry teams consolidating 350 industry teams consolidating 350 contracts and 80 plus contractorscontracts and 80 plus contractors
Portal created the first government Portal created the first government e-marketplace for services e-marketplace for services
Web site is front door for orders Web site is front door for orders
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Dec 5 Dec 12 Dec 18-19 Dec 22 Dec 29 Jan 03 Apr 01
Meet withIndustry on
Requirements
Past PerformanceAssessment
Select Commercia lApplica tion
Oral Presentation Acquire
FundingAward
Commercia lSolution
for eProcurement
Release RFP
Nov 20 Jan 26 Apr 01
Proposal Receipt
DeployOperationa lCapability
for eProcurement
Automate Links
Required Tra ining & Beta Testing(Feb-Mar)
Select eBusiness Solution Portal Development(Jan-Mar)
Award
Educated PM on Performance Based Contracting
Proposal Eva luationIndustryBrief
Nov13
MA
Cs
eBU
ISN
ESS
Change Culture
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Field
“e Procurement Flow”5 Electronic Steps
Program Office
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Engineer BFM
MAC and Web Sites• Past Performance• Team Partner• Experience• Expertise BULLETIN BOARD
SEA - 01Comptroller
SEA - 02 SSAPO
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CONTRACTAWARD
Requirement Initiation
Contract Admin•NAFI (DCMA, DCAA)
PAYMENT• DD250• DFAS
DD350
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CONTRACTOR(S)
EvaluateProposals• Reverse Auction• Bids
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3 Update Catalogs &Submit Proposals
Certify $
Avail
CPARS
GSA
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Execute QuicklyExecute Quickly
MACs awarded within four months MACs awarded within four months of RFP releaseof RFP release
Portal awarded within five weeksPortal awarded within five weeks– Commerce One, CSC, ExostarCommerce One, CSC, Exostar
Portal operational within nine weeksPortal operational within nine weeks Web site - fully operational within Web site - fully operational within
two weeks, refined within one two weeks, refined within one monthmonth
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Deliver On-Time ResultsDeliver On-Time Results Awarded MACs to 21 high performance Awarded MACs to 21 high performance
teams including 7 to small businessteams including 7 to small business Reduced cycle time from 270 to 30 Reduced cycle time from 270 to 30
daysdays e-marketplace portal activitye-marketplace portal activity
– 44 tasks awarded - $866M44 tasks awarded - $866M– 56 tasks in pipeline - $329M56 tasks in pipeline - $329M– 5 tasks in development - $390M5 tasks in development - $390M
Magnifying corporate knowledge Magnifying corporate knowledge Savings to date - $26.4MSavings to date - $26.4M
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Awards/Recognition Awards/Recognition SECNAV Small/Disadvantaged Business SECNAV Small/Disadvantaged Business
Utilization Office Utilization Office ““Trailblazer” E-Government 2001 Pioneer Trailblazer” E-Government 2001 Pioneer
AwardAward JECPO Best Electronic Commerce - Large JECPO Best Electronic Commerce - Large
Business 1st runner upBusiness 1st runner up DON E-Government Award, Innovative E-DON E-Government Award, Innovative E-
Business StrategyBusiness Strategy Defense Acquisition Executive Certificate of Defense Acquisition Executive Certificate of
Achievement award 2001Achievement award 2001 Selected as one of Secretary Rumsfeld’s Selected as one of Secretary Rumsfeld’s
Business InitiativesBusiness Initiatives
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Keys to SuccessKeys to Success
Clearly understand your objectivesClearly understand your objectives Use e-business to achieve results Use e-business to achieve results
(not bolt on)(not bolt on) Facilitate the cultural Facilitate the cultural
transformationtransformation Results must equal or exceed Results must equal or exceed
expectationsexpectations
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DiscussionDiscussion
DiscussionDiscussion QuestionsQuestions CommentsComments
Thank you for your time!Thank you for your time!