February 21-24, 2006 Washington, DC

REE BPPI WorkshopRequisitions

2 February 2006

AgendaAgenda

1. IAS Goals and Objectives

2. Functional Scope of IAS

3. Overview of IAS Processes

4. IAS Implementation Lifecycle

5. Purpose and Goals for Today

6. Standard USDA Procurement Process

7. Detailed Process Stepsa. Requisitioningb. Receiving c. Invoicing

3 February 2006

IAS Goals and ObjectivesIAS Goals and Objectives

Ensure reliable and accurate USDA-wide, procurement-related financial information

Make the most efficient use of IT investments and comply with electronic commerce directives and digital Department initiatives

Support an integrated policy, planning, and budgeting process

Improve customer service and reduce program office and administrative burden in the acquisition management process

Lower purchasing costs

Provide a robust security environment that meets or exceeds USDA’s Common Criteria standards

Automate tracking system for requisition approvals and contract writing and review

Provide a platform for advanced future acquisition management business processes

4 February 2006

Functional Scope of IASFunctional Scope of IAS

The functional scope of IAS is to support procurement at USDA, and to support interfaces with appropriate controls and pertinent data for other processes at USDA

IAS currently covers the procurement lifecycle from requisition through closeout of contract, with an interface to FFIS

PSD is examining future capabilities that will extend system capabilities, consistent with the vision

FY05 IAS Functional Vision

e-Catalog

e-Invoicing

Data Warehouse

Auctions

e-RFx

Asset Management

Interface (CPAIS)

Requisition Processing

Contract Management

Financial Interface

Review and Approval

ReceivingReconciliation

System Administration and Reporting

Solicitation Preparation

RFP Advertisement & Distribution / Fed Biz Opps

Proposal Acceptance Award

Contract Modification

Audit Support

Contract Closeout

Purchase Orders

5 February 2006

Overview of IAS ProcessesOverview of IAS Processes

RequisitionOrder /

ContractReceipt Invoice

Payment Backfeed

• Requisition user creates or modifies a request

• Request is approved by manager in program office

• Request is approved by others (e.g.: property or IT. Optional setup per agency.)

• Request is approved by Finance for Commitment

• Contracting Officer completes all pre-award research, processes, and documentation

• Synopsis abstracts can be sent to FBO from IAS; Otherwise, CO must post IAS- created documents to FBO

• Contracting Officer completes obligating document including all terms and conditions

• Contracting Officer releases obligating document and completes FPDS-NG reports

• Requisitioner or other designee enters receipt and acceptance into IAS

• Contracting Officer or other designee may review off-line for official acceptance prior to entry in IAS

• ACFO-FO COD APB enters the invoice into IAS

• ACFO-FO COD APB resolves issues related to discrepancies

• ACFO-FO COD APB transmits invoice to schedule payment

• Agency designee reviews payment backfeed for accuracy

6 February 2006

IAS Implementation LifecycleIAS Implementation Lifecycle

Identify Agency Team

Data Gathering / Validation

Data Entry Transition to Customer Care

Business Process Policy

Integration Go LiveGo Live SignoffSignoff

Outreach / Education

Training Management & Delivery

Configuration Prep

7 February 2006

Purpose and Goals for TodayPurpose and Goals for Today

Obtain a detailed understanding of current REE “As-Is” Requisitioning, Receiving and Invoicing processes

Identify potential changes or gaps for REE based on new “To Be” IAS processes (systems, forms, staff, etc.)

Identify any non-standard or unusual transactions

8 February 2006

Standard USDA Procurement ProcessStandard USDA Procurement Process

Requestor

CO

COTR

Does this map to your current process? Are there deviations from the example above? If so, what?

Create Requisition

Program

Approve Requisition

Program/Budget

Generate Award

AcquisitionsBudget

Receives Invoice

Budget

Review•Receipt & Acceptance (Requestor)•Verify distribution (AFM)

Budget

Fax Receipt to NFC

NFC

Invoice Entry

9 February 2006

RequisitioningRequisitioningRequisition Order /

ContractReceipt Invoice

Create Requisition

Program Approval (optional)

Funds ApprovalEdit

sEdit

s

Commit

Creation of Requisition Who creates the Requisition? What office are they from? What form(s) are being used in the creation of the Requisition (other than AD700)? What systems, if any, are used for Requisition entry? How do you number your Requisitions? Do you maintain a log?

Approval of Requisition Who are the individuals involved in approving the Requisition? What is the order of approval? Who ultimately signs off on the Requisition? How is it routed for signature (e.g., fax or mail)? Who is actually responsible for approving availability of funds ? Who sends the Requisition to Contracting and how is it sent?

Unusual Transactions Describe any unusual transactions you process (e.g., transactions funded differently)?

10 February 2006

Receiving and InvoicingReceiving and InvoicingRequisition

Order / Contract

Receipt Invoice

Vendor Delivers Goods/ Services

Vendor Submits Invoice

Designee Receives (Acceptance) in IAS Deobligation

of Remaining FundsInvoice Entered in IAS

Initiate Closeout

Procedures

Receiving Who are the individuals involved in receiving goods and acknowledging services rendered? Who creates the receipt? Who do they send the receipt to? What form(s) are being used in the creation of the Receipt (e.g., AD838B)? Is there a difference between individual receiving the goods vs. individual receipting for the goods?

Invoicing Who initially receives the invoice from the vendor? Who reviews the invoice (for acceptance, budget, line item disbursal, etc.) and how is the invoice

transmitted to this person? What systems are involved in the invoicing process? How does the receipt/invoice get into FFIS? How do you interact with vendors (e.g., phone, email, fax, etc.)?

YesFinal Payment

No

11 February 2006

Known Change Management IssuesKnown Change Management Issues

Identified Issue Effect on REE IAS Users

Commitment Accounting Any change (other than Admin) must be initiated by requisition creator

Tolerances As of May 24, 2005, tolerances will be available and enforced in FFIS

Line items must still be entered, though (eg: for shipping and handling)

Purchase Order System (PRCH) Shutdown

Identify orders which will extend past 6 month shut-down window (based on your ‘Go Live’ date, this means any order or line item to exercised in FY06)

Standard Forms No more use of AD forms

Sub-CLINs Restructure line items

Invoice Entry All invoices entered by OCFO, COD, APB (NFC)

12 February 2006

Known Change Management IssuesKnown Change Management Issues

Identified Issue Effect on REE IAS Users

Document Numbering IAS will auto-number documents based on FPDS-NG and policy standards; reports will be driven off fields other than the document number

Real-time interface to FFIS Requisitions and obligations are inserted into FFIS real-time (< 2 minutes) rather than overnight; No additional entry needed

Document Suspense File (SUSF)

Users will use IAS error tables

COMT Acquisition staff will request new vendors be added to FFIS via the PVND screen in IAS

Three-way matching Requisitioners will now have to enter receipts (certification and acceptance) in IAS in order for invoices to be processed

13 February 2006

Next StepsNext Steps

Action Item Review

Deliver complete list of gaps between current process and future process in IAS

Move into Configuration Preparation phase of implementation