U.S. Department of CommerceThe Big “A” Acquisition

ConferenceAlexandria, Virginia

May 5, 2011

U.S. Department of Veterans AffairsOffice of Acquisition & Logistics

Jan R. FryeDeputy Assistant

Secretaryfor Acquisition &

Logistics

Agenda

• VA organizational overview and history• VA’s 16 greatest challenges• VA supply chain transformation• VA Supplier Relationship Transformation

Initiative• VA Secretary’s Acquisition Transformation

Strategy• VA Acquisition customer service

roadblocks and action taken2

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History

1930 – Congress established the Veterans Administration

1989 – Department of Veterans Affairs established as a Cabinet-level position Eric K. Shinseki, Secretary, Veterans Affairs W. Scott Gould, Deputy Secretary, Veterans Affairs

We serve an estimated 23 million Veterans

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The Department of Veterans AffairsFY 2010 Procurement Spend: $16 billionFY 2011 Projected Budget Outlays: $143 billionFY 2012 Budget Estimate: $132 billionFY 2011 Discretionary Budget Authority: $60 billionWarranted Contracting Officers in VA – 1,059 (May

2011)Targeted 2,000 staff for PM training in FY 2011

VA Employees: 313,502 Veterans Integrated Service Networks: 21 VA Hospitals: 152 VA Community Based Outpatient Clinics: 956 VA Community Living Centers: 134 VA Domiciliary: 90 VA Veterans Centers: 232 VBA Regional Benefits Offices: 57 VA National Cemeteries: 131

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VA's 16 Greatest Challenges1. Eliminate Veteran Homelessness2. Human Capital Improvement Plan3. Automate GI Bill Benefits4. Virtual Lifetime Electronic Records (VLER)5. Improve Veterans’ Mental Health6. Veterans Relationship Management (VRM)7. Veterans’ Benefit Management System (VBMS)8. New Health Care Model9. Expand Health Care Access 10. Systems to Drive Performance (Enterprise-wide Cost Accounting)11. Health Care Value12. Integrated Operating Model13. Research and Development14. Ensure Preparedness15. Health Informatics16. Strategic Capital Investment Planning Process

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VA Supply Chain Transformation

3600 Customer Satisfaction KPI

Internal Acquisition Customers

VA Supplier Outreach

VA/VHA Logistics Transformation Strategic Sourcing/Acquisition Acquisition Realignment VA SCOR Model

POF: Providing the right item/service At the right place At the right (or needed) time To meet the Veteran need Functioning properly At the “right” cost

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VA Supplier Relationship Transformation

Aug 2009 Supplier Relationship Transformation Forum

December 2009 Supplier Relationship Web-Cast Michigan State University “Supplier Perception

Survey” 2010 & 2011 VA Outreach Events

Advanced Program Briefings to Industry (APBI) Regional Supplier Forums Conducted (NJ, CA, IL, FL) Additional Supplier Forums Planned (CA and IL) Increased number of pre-proposal conferences Increased use of draft RFPs Webinar (February 2011) and 4th Quarter FY 2011

VA Secretary’s Acquisition Transformation Strategy

• Gain control over acquisition management information

• Effectively manage the acquisition life cycle• Improve the acquisition management workforce• Leverage technology to ensure an enterprise

management approach• Pursue standardization and strategic sourcing• Achieve $2 billion in procurement savings• Achieve clear ownership and accountability of

VA contracting mission

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VA AcquisitionCustomer Satisfaction Roadblocks

Roadblock•Customer service never measured—deemed unimportant•Unclear lines of authority—over 30 HCAs•Fragmented acquisition structure, e.g., decentralized contracting system

•Immature contract writing system

•Very limited contract oversight

Action Taken•360° customer satisfaction now measured•HCAs reduced to six

•“Integrated” structure – execution underway•Stood up enterprise office to develop & manage enterprise procurement systems•SPE authorized to conduct A-123 acquisition reviews—”Dirty Dozen”

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VA AcquisitionCustomer Satisfaction Roadblocks

Roadblock•Immature or nonexistent training programs•No senior procurement governance council•Inability to award and administer information technology contracts•No program management doctrine policy•Lack of Professional Acquisition Workforce

Action Taken•VA Acquisition Academy stood up•Award winning•Senior Procurement Council formed in 2009 & operational•Stood up Technology Acquisition Center•ADAS for Acquisition Policy Office authorized with SES•VA Acquisition Corps being implemented

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VA AcquisitionCustomer Satisfaction Roadblocks

Roadblock

•Miniscule PM training and culture

•Vastly undersized procurement policy office•No acquisition forecasting process

•Failed contracting intern program

Action Taken•PM School stood up at VA Acquisition Academy•1,386 PMs trained in FY 2010; 2,000 scheduled for FY 2011•Benchmarked against HHS & DHS•Standing up strategic policy office•Requiring activities must meet with contracting officers 1st Qtr in FY•Stood up 3-year resident intern program (90 interns)•Standing up non-resident intern program 12

VA AcquisitionCustomer Satisfaction Roadblocks

Roadblock•Inability to hire and retain quality 1102 personnel

•Lack of Strategic Sourcing

•CAO responsibility extra duty for Assistant Secretary

•FAC-C Certified 1102 Workforce lacks necessary competencies

Action Taken•Using direct-hire authority•Moved procurement functions outside of Washington, DC

•Spend Analysis Office stood up and providing business cases•Secretary requested Congress to authorize 8th Assistant Secretary•Office of Acquisition, Logistics, and Construction stood up•Applied Learning Center developed to measure 1102 competencies

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