SAVING ON SERVICES
FIGURE 1 Services, $66.8B Goods, $41.7B 62% 38%
Total Spend with Construction and R&D
$108.5B GOODS & SERVICES FY12 ARMY SERVICES (FPDS-NG* DATA AS OF 01/24/2013) 25 $23.1B 20
$46.3B Services
15 $12.5B 10 5 $5.6B $3.3B 0
Knowledge Based Services
Facility Related Services
Equipment Related Services
Electronics & Communication
Medical Services
Transportation Services
DOD Mandated Taxonomy 42.7% of Army Total Goods & Services
The Army’s spending on services breaks down into eight portfolios, two of which—RDT&E and construction—are exempt from the BBP 1.0 initiative. Counting the other areas of services, the Army had achieved about $469 million in savings as of the end-of-the-year data call in 2012. (SOURCE: DASA(P))
* Federal Procurement Data System – Next Generation
A. Fifty percent of our spending is on service contracts; this funding is mostly in the OMA account [Operation and Maintenance, Army]. Tis runs all of our installations, among other critical func- tions such as repairing weapon systems. (See Figure 1.)
Q. What are some of the ways that you saw successes from the initial Better Buy- ing Power effort?
A. Te initial Better Buying Power effort tied back to the NDAA [National Defense Authorization Act]
$1.2B $0.6B 0 Construction Research & Development 5 15 $13.2B 10
$20.5B Services
$7.3B
on Better Buying Power with 23 original initiatives. One of these initiatives was to improve services tradecraft, because acquisition of services represented nearly half of all DOD procurements.
In November 2010, the ASA(ALT) estab- lished the DASA for services (DASA(S)) to plan and oversee Army efforts to implement the “Improve Services Tradecraft” initiative. Mr. Jim Sutton, a former PEO Ammunition, was assigned as the DASA(S) and also designated as
the Army’s senior services manager
(SSM). In May 2011, the secretary of the Army tasked the ASA(ALT) to develop a plan to optimize services acquisition and
“leverage the Office of the DASA(S)” to coordinate the plan’s development across the Army.
Te secretary of the Army approved the Services
Optimization Implementa-
tion Plan in September 2011. Tat plan documented the current
services acqui-
sition governance structure and review process that uses a DOD-defined port- folio approach for services acquisition. In January 2012, the DASA(S) was dises- tablished as an organizational efficiency, and the SSM functions were realigned under the DASA(P). Since the beginning of 2012, the offices of the SSM have been focused on executing and refining the management concepts initially defined in the 2011 Services Optimization Imple- mentation Plan.
of 2002,
which required DOD to put in place oversight for our services procurement. When you hear what Mr. Kendall talks about in terms of putting a senior ser- vices manager in place, the requirement comes straight from congressional man- dates first. In 2010, the USD(ATL), Dr. Ashton Carter, established a DOD focus
Q. Are there ways to find the con- tract mechanism that best particular arrangement?
suits a
A. Overall, you’ll hear some people talk about using specific contract types to get more BBP for services. However, that is only one way to improve services tradecraft. At the top level, improving ser- vices tradecraft is all about establishing
84
Army AL&T Magazine
April–June 2013
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