FOCUS ON SERVICES


The initial 2011 data call projections are tracked through quarterly savings and semiannual forecast efficiency report- ing. The objective of this reporting mechanism is both to track the commands’ progress toward the projected savings and to capture savings data that were not antic- ipated when the forecasts were made. The data call links fiscal accountability of com- manders for the services they are buying with future periodic peer review processes. The Office of the SSM expects to brief McHugh this spring on the latest results from the data call and cost-saving effort.


An emerging effort is the Annual Require- ments and Execution Review (ARER), intended to assess the success of cost-saving


measures applied to requirements execu- tion. Service acquisitions from each portfolio group are selected to undergo this annual review, to examine the effi- ciency of improved tradecraft practices.


All service acquisitions valued at $10 mil- lion or greater are subject to an ARER, which can be characterized as an annual appraisal of service acquisition manage- ment and oversight processes. The review is a valuable tool


in determining what


works and what doesn’t in meeting the Army’s fiscal and mission objectives.


The first ARER is scheduled for May. The results are expected to serve as a benchmark for future such reviews.


Services Governance Structure Figure 1


IMPROVED TRADECRAFT The implementation plan also describes tools and training available to both acqui- sition and non-acquisition personnel that will enhance the conduct of services acquisition by improving the skills and understanding of those who will execute it. Improved job skills unleash the capa- bility for better buying power efforts.


Applying better tradecraft to services acquisition takes a comprehensive approach that


addresses


the need to


reduce costs while maintaining mission capability. It relies on oversight and gover- nance structure, establishing clear lines of accountability to those who procure ser- vices. This is an important component in the successful application of better buying power efficiencies to Army procurement.


Improving efficiencies also includes well-defined roles and responsibilities for HQDA and subordinate organization leaders;


enhanced tradecraft processes


for acquiring services; and formal gover- nance and review mechanisms to improve the visibility and accountability of requir- ing activities for what they spend. Most important is that better tradecraft intro- duces a new way of doing business in services acquisition.


Integral to this approach is a governance structure that includes portfolio manage- ment and processes to identify, track, and monitor projected savings.


PORTFOLIO GOVERNANCE The Optimization of Army Services Acqui- sition Implementation Plan established an Armywide services governance structure with day-to-day oversight by the SSM. As an integral part of the plan, the port- folio management


concept promotes


The Army’s recently established services governance structure shows the interrelation of the full-time portfolio managers in five designated commands and the Office of the Senior Services Manager (SSM). (SOURCE: SSM.)


efficiency and cross-command syner- gies in buying services. This “new way of doing business” has improved better


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Army AL&T Magazine


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