$


buying power for the Army and has led to significant savings.


The portfolio governance structure


is organized in accordance with the taxonomy directed by the Under Secretary of


tion, Technology, and Logistics. Six broad based,


portfolio Defense for Acquisi- groups—knowledge- facility-related, transportation,


medical, electronics and communica- tion, and equipment-related—align with this taxonomy.


Portfolio governance is essential to achieving the Army’s goal of a disciplined and rigorous services acquisition process. The structure integrates


relationships


between Army commands and desig- nated portfolio managers as responsible agents


to manage horizontally across commands within their portfolio group.


Portfolio governance requires command- ers or staff principals to be responsible for managing resources, delivering services, and achieving savings. Commanders are responsible for efficiencies in all phases of the services life cycle and are encouraged to treat service acquisitions as programs, not merely contracts.


Commanders are required to appoint a CSE, at the general officer or Senior Executive Service level, as a single focal point to manage all service acquisitions for the command. Commands must have an internal process for managing ser- vice acquisitions that meets minimum standards, including the use of multi- functional integrated process teams.


Commands are supported by full-time portfolio managers, each a senior civil- ian in five designated commands—U.S. Army Materiel Command, Installation Management Command, Cyber Com- mand, Medical Command, and Training


An important aspect of the efficient governance of services acquisition is the new process for approving services procurement acquisition strategies. (SOURCE: SSM.)


and Doctrine Command—and in the Office of the SSM (see Figure 1). The five commands are mission-organized and have expertise in specific portfolio groups. Because no single command is mission-oriented to oversee the knowledge-based


services portfolio


group, the Office of the SSM retains this portfolio for management.


Portfolio managers recommend strate-


gic sourcing solutions and best practices, provide lessons learned, assist in market research, maintain tools and templates, and support the conduct of periodic spending analyses


to gain insight and


enable fact-based strategic decisions. They also help commands improve the man- agement and effectiveness of


services


acquisition. They promote better buying power initiatives and compliance with DoD Instruction 5000.02, Enclosure 9, Acquisition of Services; Army Regulation


70-13, Management and Oversight of Ser- vice Acquisitions; and ASAALT guidance.


Portfolio coordinators are assigned to the Office of the SSM to provide HQDA staff oversight and coordination of service acquisitions within assigned portfolios. They help the SSM, CSEs, and portfo- lio managers implement governance and policy; resolve governance issues within and across commands; and plan for each ARER of services acquisition portfolios.


ACQUISITION STRATEGY APPROVALS Lastly, an important aspect of the effi- cient governance of services acquisition is the new process for approving services procurement acquisition strategies.


Services acquisition strategies valued


at more than the simplified acquisition threshold, but less than $250 million, will


ASC.ARMY.MIL 107


Services Acquisition Approval Process Figure 2


EFFICIENCIES


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