$
became the SAP ELA 2, which addressed emerging ERP requirements, such as enterprise aviation, business intelligence/ business warehouse, Army prepositioned stock,
ammunition management and
shop floor automation, and included annual maintenance renewals, as well as the ability to purchase 181,000 addi- tional licenses.
At the start of the SAP ELA 2 acquisition process, an expanded SAP IPT was estab- lished with new representatives from each program and the contracting community, including Army Contracting Command – Rock Island (ACC-RI), Illinois. Tis new IPT faced three main challenges—ensur- ing continuity in software maintenance for existing licenses; obtaining the best price for software licenses to meet each ERP’s growth and demand, and to sup- port
each program’s fielding schedule
within budget; and accelerating the con- tract procurement to eight months from the average 12 to 18 months it normally takes for this
type of acquisition. Te
SAP IPT had to overcome these chal- lenges to mitigate the potential risks of cost overruns and schedule delays.
LEVERAGING BUYING POWER Traditionally in government procurement, programs manage
their own funding,
IT inventory and mission requirements. However, through the use of CHESS ELAs, the Army has achieved significant cost savings of nearly $110 million and business efficiencies across the board. In the instance of the SAP ELA 2, the Army ERPs have been able to leverage buying power to negotiate approximately 51 per- cent discounts, streamline the acquisition process, centralize software inventory management and promote the sharing of software licenses.
For the SAP ELA 2 to be successful, the SAP IPT and ERP program personnel
engaged in daily collaboration, commu- nication and cooperation. Te team took a judicious approach to achieve sourc- ing excellence by taking Better Buying Power 3.0 principles and lessons learned from the previous ELA to further stream- line requirements by grouping similar needs and synergizing related efforts, like supply
chain planning and financial
management, while continuing to share and reuse licenses.
Te SAP IPT, with representation from each of the six ERPs, CHESS and ACC- RI, accomplished several major successes that led to “best buying power.” First, the team collaboratively wrote presolicita- tion requirements that were focused on enterprise mission needs. Ten, the team provided documentation to industry partners early and often to further refine
the solicitation. Te team also came to the negotiation table as a collective entity, gaining major leverage for the govern- ment, given the size and scope of the combined requirements.
In all, this effort resulted in no gaps in maintenance support, obtained best value for the government and delivered a timely contract award that coincided with fiscal year end and maintenance renewal cycles to keep the programs on track. Additionally, the collaborative writing process avoided lengthy reviews and editing by multiple organizations.
Tere was no back and forth among the acquiring organizations, internal compli- ance review or bidders since the content was clear and concise, allowing responses to be turned around within hours rather
ASC.ARMY.MIL 115
A SOFTWARE TRANSFORMATION ERP software represents a dramatic change in the way the Army does business, consolidating systems for data sharing, reporting, asset tracking and financial auditing. (SOURCE: U.S. Army Acquisition Support Center)
BBP 3.0
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