$ T


lhe Army spends more than $50 billion annually to buy essen- tial


services for Soldiers and their families, an amount more


than half of the Army’s yearly acquisition spending. Federal acquisition regula- tions define services as procurements that directly engage the time and effort of a contractor whose primary purpose is to perform an identifiable task, rather than to furnish an end item of supply


To improve efficiencies in the execution of


Secretary of Logistics,


established the Senior


service procurements, the Assistant the Army for Acquisition, and Technology (ASAALT) Services Man-


ager (SSM) position as the single Armywide focal point for effective services acquisition.


In May 2011, six months after establish- ing the SSM position, Secretary of the Army John McHugh directed ASAALT to develop a plan that would optimize services acquisition and reduce costs by 5 percent. In September, McHugh approved the Optimization


of Army


Services Acquisition Implementation Plan, the blueprint for a new approach to effi- ciently and effectively execute services acquisition. The plan included devel- opment of a supportable governance structure with


well-defined approval


and delegation processes, corresponding management controls, and visibility of cost savings.


The implementation plan does not for- mally apply to services obtained for construction, research, and development, or in support of programs managed by program executive offices


(PEOs) and


subject to a milestone decision review; it does require that efficiencies be applied to processes and requirements for Army-funded service acquisitions equal to or greater than $10 million—a


MAINTAINING EQUIPMENT


Equipment-related services encompass aviation maintenance. Here, SGT Jonathan Lane, a crew chief assigned to Task Force Lobos, 1st Air Cavalry Brigade, 1st Cavalry Division, installs lockwire on a transformer rectifier in preparation for installation in a CH-47F Chinook helicopter’s electrical system, Feb. 9 at Camp Marmal, Afghanistan. (Photo by SGT Felix Acevedo.)


lower value threshold than ever for acquisition oversight.


The plan’s underlying tradecraft efficien- cies apply to the acquisition of services at all dollar values, however. The plan sets minimum criteria for internal processes and leverages them to ensure the desired visibility. The criteria include the desig- nation of a Command Service Executive (CSE), the use of multifunctional inte- grated process teams, standard processes for the requiring activity to employ for services requirements, and application of the portfolio management concept.


Moreover, the plan institutes a governance structure that provides a portfolio-based, life-cycle management and oversight architecture for services acquisition.


DATA CALL In spring 2011, to establish increased management controls and visibility, the Office of the SSM conducted a


services acquisition inventory data call, a significant accomplishment. The collec- tive response to the data call provided the first-ever Army baseline of require- ments for services by command and by portfolio, as well as a requirements fore- cast and savings projections. Together, all 32 Army Commands, Direct Report- ing Units, Army Service Component Commands, and the acquisition PEOs identified service requirements


valued


at $10 million or more for FY12 through FY16.


The commands also reported 1,047 dif- ferent service requirements with a total value of $109 billion. In these require- ments, they identified how they would use DoD better buying power techniques and other efficiency measures to reduce the cost of services by 5 percent. Col- lectively, they identified $11.4 billion in savings for the reporting period, a targeted cost reduction of approximately 10 percent.


ASC.ARMY.MIL 105


EFFICIENCIES


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