REE PRCH and Legacy Systems Shutdown Plan

IASProgram

ManagementInterfaces

Business &OperationsProcesses

ChangeManagement

Infrastructureand

Security

AcquisitionPolicy

ProcurementSystems

IAS

March 31, 2006 Washington, DC

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OverviewOverview

IAS is a mandatory USDA-wide procurement system and replaces the USDA Purchase Order (PRCH) system and all agency Legacy Procurement systems.

PC-PRCH CATS Others (AD-700 Form Systems)

The Purchase Order System (PRCH) will be shutdown for new obligations when REE begins the use of the Integrated Acquisition System (IAS) on June 5, 2006.

Documents will NOT be automatically converted from PRCH to IAS. Defining the PRCH Transition Period.

REE will no longer be able to enter new transactions in PRCH after May 26, 2006. PRCH will remain open to REE for six months after IAS Go-Live to close out existing PRCH

transactions. Transactions from FY ‘05 and earlier cannot be reconstructed into IAS. Only existing obligations can be reconstructed into IAS during FY’06.

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PRCH Shutdown StrategyPRCH Shutdown Strategy

Identifying Transactions to be Closed in PRCH REE will review open transaction reports from PRCH to identify documents that can be

closed out or are in need of some other interim management. PRCH 33 reports will be distributed to budget managers, funds managers, and

contracting staff. Responses will be due back by April 28, 2006 or earlier for closeout of obligations in

accordance with recommendations. For all purchase order types, users will de-obligate all FY ‘06 and older transactions in

PRCH. Contract renewals that will extend beyond the final REE shutdown date of 12/01/2006

are the only candidates for reconstruction in IAS. This will be manually performed by the user of record.

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PRCH Shutdown Strategy (continued)PRCH Shutdown Strategy (continued)

Implementation to IAS Once REE implements IAS, the user profiles of all PRCH users from REE will be

changed to prevent the creation of any new PRCH transactions that obligate funds. All new transactions will be created in IAS beginning June 5, 2006. For the following six months, agency staff are encouraged to close out as many PRCH

transactions as possible, managing against the PRCH open obligation report. Users may modify to de-obligate funds or cancel orders.

Once the PRCH clean-up period has elapsed, all remaining open procurements in PRCH and the associated obligations will be managed manually via paper record for the procurement documentation, and via direct entry into FFIS for financial transactions. This procedure includes cancellations and modifications.

Managing Legacy Transactions Beyond the PRCH Transition Period It is possible an agency will not be able to close all open obligations (e.g., 40, 41, 42,and

43 types) in PRCH prior to the end of the PRCH transition period. Once access to PRCH has been removed, procurements may be processed in

accordance with the PRCH Shutdown Transition Matrix.

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Department-Wide GuidanceDepartment-Wide Guidance

Documents that cannot be closed-out of PRCH in 6 months will either be: Managed manually in FFIS or Transitioned to IAS

Type of Document System Comment Additional Impact to AQMAdditional Impact to ACFO-

FO, COD

New IASAgencies will be required to enter new transaction into IAS.

None None

Existing, and can be closed-out within 6 months

PRCHAgencies can manage existing obligations to closure in PRCH for up to six months.

Minimal (Agency operates two systems for six months: new

documents in IAS, existing documents in PRCH)

None

FFIS

If the obligation extends past six months, the Agency may elect to manage the obligation directly in FFIS

Moderate (Agency operates two systems for an indefinite time

period: new documents in IAS, existing documents in FFIS)

Moderate (agencies can elect to process invoices in two systems for an indefinite time period [IAS,

FFIS])

IAS

If the obligation extends past six months, the Agency may elect to reconstruct the document to IAS and manage it to completion in IAS, open balances only.

Minimal (new and existing documents are managed in IAS)

None

Existing, and can not be closed-out within 6 months

PRCH Shutdown Transition Matrix

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REE Agencies GuidanceREE Agencies Guidance

Type of Action System Comments

Party Responsible for Documenting Receipt

FPDS-NG Reporting

Level 1: New FY06 Awards starting 6/5/2006

IAS None Requisitioners in IAS In IAS

Level 2: New FY06 delivery/task orders on existing contracts

IAS

Contracting staff will establish a non-obligating, reconstructed contract/BPA shell, then place new delivery/task orders against the shell award – open amounts only

Requisitioners in IAS In IAS

Level 3: Existing FY06 PRCH awards

PRCH

• Managed via PRCH until 12/1/2006

• Managed via direct entry into FFIS after 12/1/2006.

Manual – Using current procedures

Outside IAS -Direct entry in

FPDS-NG

IAS

Items projected to close beyond 12/1/2006 can be converted to IAS until 08/05/06. COs, requisitioners, budget staff, finance staff, etc. must identify those FY06 PRCH transactions to be reconstructed no later than 6/5/06.

Requisitioners in IASIn IAS (must be deleted in FPDS-NG if previously

entered)

Level 4: Prior year (FY05 and before) awards (contracts, task / delivery orders) – options & modifications

PRCH/manual (until 12/01/2006),

FFIS

Obligations will be managed by FM directly into FFIS

Manual – Using current procedures

Outside IAS -Direct entry in

FPDS-NG

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FFIS Direct Entry TransactionsFFIS Direct Entry Transactions

REE resource managers must review their internal records to identify transactions directly entered into FFIS.

The following are non-IAS transactions that must be directly entered into FFIS: Lease Payments Grants Foreign Currency Payments Interagency Agreements / IPAC’s Post-Payment Adjustments Type 60 Non-Contractuals

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Schedule of ActionsSchedule of Actions

Timeline Task

03/31/206 Distribute Legacy Shutdown Plan

Monthly Beginning 04/2006

Track monthly closeout activity based on Legacy System Reports

Monthly Beginning 04/2006 – 11/2006

Track Legacy Systems closeout status at monthly meetings

06/05/2006 Complete identification of Legacy Systems awards to be converted to IAS Begin reconstructing awards in IAS that go beyond the Legacy Systems shutdown date

06/05/2006 Go Live (Legacy Systems will be shut down for all new activity, only modifications to existing

awards will be processed in Legacy Systems)

08/04/2006 Complete reconstructing awards in IAS that go beyond the Legacy Systems shutdown date

Until 12/01/2006 Continue managing existing Legacy Systems awards via direct entry/payment in FFIS

12/01/2006 Legacy Systems Shutdown

Until none exist Manually manage awards that extend beyond the Legacy Systems shutdown date but were not reconstructed in IAS via paper record and directly data entry in FFIS