HHS ACQUISITION INITIATIVES

ANGELA BILLUPS, Ph.D.Associate Deputy Assistant Secretary for Acquisition

Senior Procurement Executive

February 19, 2015

HHS Acquisition: Ready. Resourceful. Responsive.

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Acquisition Focus Areas for 2015

• Acquisition Lifecycle Management and Reform

• Buying Smarter

• Data Quality

• Advancing Mission Performance

• Key Success Factors

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Acquisition Lifecycle Management and Reform

• Standardize Acquisition Practices HHS Acquisition Regulation (HHSAR) Update

Supplements and is Aligned with the Federal Acquisition Regulation (FAR) Removed Duplicative Language Already in the FAR Removed Internal HHS Policy/Guidance and Other Outdated Content Reinstituted the FAR as HHS Regulatory Guidance Along with Supplements

in the HHSAR Electronic Portal House Internal HHS Policy/Guidance Organized, Universal, Clear and Concise

EE

E-PORTALHHSAR YOU

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Acquisition Lifecycle Management and Reform

HHSAR Development - Significant Effort Collaboration - All Operating and Staff Divisions

Multiple Meetings and Numerous Topics

Multiple Sub-group Meetings

Details of Team Accomplishments• Pages Before 350 – After 178• Proposed Final Rule Includes Comments Resulting from HHSAR

Team Review and Specific Operating/Staff Division Input – 628 Comments - Initial Review of Updated HHSAR – 67 Comments - Executive Secretary Review Process– Local Clauses Reviewed and Adjudicated

» 182 Reviewed » 42 Became HHS Standard Clauses

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Acquisition Lifecycle Management and Reform

• Improving HHS Acquisition Lifecycle Management• What is Acquisition Management?

– Acquisition Management is a Federal Government best practice that provides a structured framework and processes for the acquisition of products and services to support a program/mission needs, and:

– Is a cradle-to-grave approach that begins with identification of the business need and supports the entire lifecycle of the program

– Integrates distinct silo functional processes, such as requirements management, budgeting, contracting, IT and project management

– Entails an integrated cross-functional team approach to managing the program

– Provides a holistic approach to monitoring and providing Government oversight to contractor led efforts

Acquisition Management is not contract management. It is owned by the Program’s Business Owner; supported by contracting.

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Why Does HHS Need Acquisition Management?

• Most large programs fail because of poor strategy and planning, inadequate definition of the business need, and inability to continually manage risks in the program

• Complex functional processes for budgeting, contracting and IT are silo’ed – there is not an integrated product team approach to managing the program

• IT and non-IT needs are not integrated from a program perspective to ensure optimization of resources

• Contracting is often looked at as a “silver bullet” or blamed for failure when the responsibility for the program strategy and execution rests with the business owner

• There needs to be a clearly identified owner for the program who is accountable and responsible for program success and is empowered to make decisions

• Clear roles and responsibilities are needed for the Acquisition team supporting the program under the leadership of a qualified Project/ Program Manager (P/PM)

• An appropriate degree of program oversight is needed to ensure that there are checks and balances in place and a governance structure to support prompt escalation and management of issues

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Acquisition TeamRoles & Responsibilities

Roles Responsibilities

Milestone Decision Authority (MDA)

Responsible for making acquisition investment decisions and providing approval at each Milestone Decision Gate for programs with a total acquisition cost of less than $20M (Division Head)

Program/ Project Manager (P/PM)

Leads Integrated Product TeamMakes program decisions based on strategy established by leadershipEstablishes Acquisition Strategy and Acquisition PlanManages risks continually through program life cycleManages costs, schedule and performance (scope and contractor performance management)

Business Owner(s) and stakeholders

Sets program strategy, objectives and performance metricsOwns the processes and business needsEstablishes business requirements and prioritiesProgram operations including customer support

Head of Contracting Activity (HCA) and Contracting Officer (CO)

HCA provides leadership for contract execution. CO is the exclusive agent of the Government empowered as the signatory authority for execution pre and post award contractual documents. Provides direction to contractor based on PM’s decision

Contracting Officers Representative (COR)

Supports day-to-day administration of contract assuring compliance with contractual requirementsMonitor contractor progress and performance in collaboration with the PMLiaison between PM and CO for any contract issues and modificationsTracks contractor deliverables, approves invoicesCOR cannot be a PM for the same contract

CFO/Budget Representative Supports establishment of business case and IGCEEnsures budget requirements are validated and ensures availability of funding

CIO/IT Representative IT Capital Planning and Investment ProcessManages development, testing and deployment of IT systems to meet business needsInformation security and privacy

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Acquisition Lifecycle Framework

• Assess Program Life Cycle/Risks • Consider Strategic Plans & Budget

2. Define Mission Business Needs

3. Identify and Align Resources

• Analyze Resources and Gaps• Internal/External Resources

4. Requirements Definition

• Business Strategy (Program/Project)• Acquisition Strategy/Risks

5. Acquisition Strategy

• Execute Strategy• Implement Acquisition Plans• Award Contract

6. Acquisition Planning• Monitor Program Performance• Build & Manage Relationship• Manage Contract Performance

7. Performance Management

Mission Requirement • Leadership Support

• Build the Team

1. Form the Team

Mission Results

SB

Mission Owner

Tech

LegalCIO

CO

Buyers

QA Reps

CORs

CFO

Stakeholders

AcquisitionTeam

• Draft Requirements Roadmap• Consider Acquisition Forecasting

Plan

DevelopExecute8

Program/Project Manger

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Acquisition Lifecycle Structure

Conceptual Phase

Program Definition

Phase

Program Development Phase

Program Execution & Delivery

Phase

Operations &

Maintenance

Phase

Business NeedIdentified

Continually monitor and manage risks throughout the life cycle

Adopt an Agile approach to delivery where feasible

MilestoneA

MilestoneReview

MilestoneB

MilestoneC

MilestoneReview

Establish PM and IPT

Define what is needed – not howDefine business

objectivesConduct Risk Assessment

Establish ROM

Establish Business Case

Conduct Analysis of Alternatives

Establish IGCEDefine Acquisition

StrategyDefine Concept of

OperationsDevelop Capability Requirements Doc

Finalize & Prioritize Requirements

Acquisition Planning –

contracting strategyValidate cost

estimates and availability of

fundingEstablish program

management baseline (scope, cost, schedule)

Award contract(s)Contract

managementConfiguration

management for changes to baseline

Requirements traceability

Test and accept contractor

deliverables

Deploy capabilitySupport customers

Monitor performance

metrics and SLAsConfiguration Management

Change ControlContinuous

improvement

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Buying Smarter

• Drive Innovations - Prioritize Efforts for Buying Smarter • Maximize Contracting with Small Businesses• Strategic Sourcing/Category Management/Acquisition Gateways

– Strategic Sourcing – Leveraging Volume Buying – Category Management

• Managing commonly purchased areas of spend• Collectively developing heightened levels of expertise and

sharing best practices• Providing acquisition, supply and demand management

solutions.  – What are Acquisition Gateways https

://hallways.cap.gsa.gov/homepage/welcome.html• Evaluation/Report/Utilize Past Performance Information• Improve Service Acquisition Initiative/Analysis• Improve Vendor Relationships

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Other Acquisition Initiatives

• Data Quality Continue Transparency Initiatives Data Act Standard Definitions Across Functional Areas (Acquisition, Grants,

Finance, Budget, etc.)

• Advancing Mission Performance Improving Acquisition Business Systems Open Communication with Operating/Staff Division Leaders

• Key Success Factors Excellence in Acquisition (Policy, Standardized Practices, Systems and

Programs) Professional Development and Certification Stakeholders Integration Customer Relations - Collaboration and Management

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Next Steps

• HHSAR Proposed Final Rule Federal Register Notice Signed Feb 2015 – Awaiting Publication for Public Comment

• Implement Acquisition Lifecycle Framework to Improve HHS Acquisition Management

• Support Federal and HHS Acquisition Initiatives

• Improve the Method Used to Train the Acquisition Workforce

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U.S. Department of Health and Human Services200 Independence Avenue, SW.Washington, DC 20201

QUESTIONS