SECURITY COOPERATION REINVENTION

1
DSCA
FMS Reinvention Initiatives and Business Process
Reengineering
By Mr. Glenn Lazarus, Chief, Business Process
Reengineering
Updated 26 July 2002
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FMS REINVENTION INITIATIVESBACKGROUND

• Process began in May 1998
• Reinvention-oriented Integrated Process Teams
  (IPTs) formed military departments, foreign
  customers and U.S. industry participants
• IPTs focused on
• -- Partnering
• -- Finance
• -- Business Processes
• -- Professional Workforce
• Ten reinvention initiatives presented at DSCAs
  worldwide conference in Sep 2001

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FMS REINVENTION INITIATIVES
1. Team International 2. Standby Letter of Credit
in lieu of Termination Liability
Prepayments 3. Improved Payment Schedule
Methodology 4. Greater Customer Participation in
FMS-related Contract Processes 5. Customer
Satisfaction Index 6. Electronic LOA
Coordination 7. Web-Based Security Assistance
Customer Handbook 8. Electronic How To Guide
for LOR Preparation 9. Improved Case Closure and
Reconciliation 10. Civilian Workforce Initiatives
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TEAM INTERNATIONAL

• WHAT A process to bring relevant parties in an
  export sale together at the earliest possible
  time to better define program requirements and
  influence program execution.
• ACCOMPLISHED Implementation guidelines
  developed and agreed by MILDEPs DSCA policy memo
  signed on 24 July 2001
• SINCE SEP 2001 CONFERENCE
• P3 Weapons Division designated as staff proponent
  at DSCA
• Execution strategy meeting with MILDEPs held on
  13 Dec 01
• TO DO
• Track progress

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STANDBY LETTER OF CREDIT (SBLC) IN LIEU OF
TERMINATION LIABILITY PREPAYMENTS

• WHAT Adaptation of commercial banking practice
  to FMS
• ACCOMPLISHED
• Developed package of SBLC documents
• Conducted orientation briefings with initial
  participants
• Secured DoD Comptroller approval
• SINCE SEP 2001 CONFERENCE
• SBLC Guidelines posted on DSCA Web Site
• TO DO
• Update SAMM and DoD FMR (Volume 15)

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IMPROVED PAYMENT SCHEDULE METHODOLOGY

• WHAT Improvement to the process by which USG
  establishes and updates FMS case payment
  schedules.
• ACCOMPLISHED
• Developed updated payment schedule policies
• Established payment schedule review revision
  criteria
• Enhanced level of detail and information to be
  used
• Developed process for and validated curves
• Required deposits changing conditions be
  incorporated
• Identified system reprogramming requirements
• SINCE SEP 2001 CONFERENCE
• Policy guidance and related documents placed on
  DSCA Web Site
• Provided training to the FMS community during
  closure reviews
• DISAM incorporating training into its courses
• TO DO
• Reprogram DSAMS DIFS implement as community is
  trained

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CUSTOMER PARTICIPATION IN CONTRACTING PROCESS

• WHAT DEPSECDEF policy memo and Amendment to
  Defense Federal Acquisition Regulation Supplement
  (DFARS) enlarging the role the international
  customer can play in the contracting process
• SINCE SEP 2001 CONFERENCE
• Policy Plans Division of P3 Directorate
  designated as staff proponent at DSCA
• DEPSECDEF signed policy memo on 9 Jan 02
• Rule change published in Federal Register on 26
  April 2002
• TO DO
• Review and make recommendations to Defense
  Acquisition Regulations (DAR) Council on public
  comments (period for comment ended on 26 June
  2002).

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CUSTOMER SATISFACTION INDEX

• WHAT
• A web-based management system which measures
  customer satisfaction and solicits feedback
• ACCOMPLISHED
• Army implemented Sep 01
• SINCE SEPT 2001 CONFERENCE
• SP designated staff proponent in DSCA
• Software package to Air Force on 26 Nov
• Software package to Navy on 19 Dec 01
• Pilot tests conducted in AF and Navy
• TO DO Determine implementation strategy and
  resource requirements

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ELECTRONIC LOA COORDINATION

• WHAT Electronic Countersignature the first in
  a series of IT developmental steps
• Major innovation in use of information technology
  capabilities
• Eliminates need to mail paper documents to DSCA
• Speeds countersignature parallel processing
  rather than sequential
• Could decrease LOA approval time by 7-10 days,
  thus increasing efficiency and FMS customer
  satisfaction
• ACCOMPLISHED Implemented August 13, 2001
• SINCE SEP 2001 CONFERENCE
• LOAs averaging 7-8 days to countersign (down
  from 16)
• Performance being tracked in preparation for
  future policy decisions
• PUG developing means to provide tracking info to
  Customers
• TO DO Meld into Defense Security Assistance
  Management System and the Case Execution
  Management Information System

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WEB-BASED SECURITY ASSISTANCE CUSTOMER HANDBOOK

• WHAT
• Instructional handbook, using web-based
  technology, designed to assist customer navigate
  the FMS process
• Augments, rather than replaces, the Security
  Assistance Management Manual (SAMM) and The
  Management of Security Assistance (the Green
  Book)
• Links to critical FMS reference documents,
  procedural information
• SINCE SEPT 2001 CONFERENCE
• DISAM designated as staff proponent at DSCA
• Director DSCA approved on 20 Dec 01.
• Installed on DSCA web page 21 Dec 01.
• TO DO
• Revise and update as required develop
  work-around for loss of Acq. Deskbook

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CUSTOMER LOR GUIDE

• WHAT
• Web-based and CD reference for construction of
  effective Letters of Request (LOR) by our
  customers
• Geared to majority of FMS customers
• ACCOMPLISHED
• Existing version is a chapter in the Electronic
  Customer Assistance Handbook
• DISAM designated as staff proponent at DSCA
• TO DO
• Publicize and update as required

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IMPROVED CASE CLOSURE AND RECONCILIATION

• WHAT Leveraging and improvement of
  opportunities using the Accelerated Case Closure
  Procedures (ACCP)
• ACCOMPLISHED
• Briefed several non-ACCP participating countries
• Enlisted all Implementing Agencies into closure
  process
• Standardized criteria for case reviews
  reconciliations
• Promoted tools policies available to expedite
  closure
• SINCE SEP 2001 CONFERENCE
• Fall 2001 Closure Review Schedule and Process on
  DSCA Web Site
• Concluded briefings to non-ACCP participants
• Conducted Closure/Reconciliation Conference (7-9
  Nov)
• Conducted concentrated closure reviews (Oct 01-
  Jan 02)
• TO DO
• Close reviewed cases (goal by end June 02)
• Conduct follow-on meetings with non-ACCP
  participants

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GRADUATE STUDIES

• WHAT Dedicated graduate studies program for the
  International Affairs community
• ACCOMPLISHED Research and analysis required to
  down-select appropriate graduate studies program
• SINCE SEPT 2001 CONFERENCE
• DSCA Director selected Tufts University GMAP
• DISAM designated as staff proponent at DSCA
• Briefed AF and Navy Personnel Chiefs in March
  2002 State Dept. in April 2002.
• TO DO
• Announce program selection to Security
  Cooperation community
• Develop implementation MOU, budget, and
  recruitment plans

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INTERNSHIP PROGRAM

• WHAT Formal guidelines to establish an
  International Affairs Internship Program for the
  Security Cooperation community
• ACCOMPLISHED
• Draft guidelines developed initial staffing
  under way
• DISAM designated staff proponent at DSCA
• Project Core Team identified met on 25 Jan 02 to
  clarify define guidelines and on 15 Mar 02 to
  review service programs.
• Identified service intern programs with which to
  associate
• TO DO
• Coordinate IA intern requirements with existing
  Service programs
• Develop implementation guidelines and plans

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CAREER DEVELOPMENT AND CERTIFICATION

• WHAT Formal guidelines for International
  Affairs Career Development and Certification
• ACCOMPLISHED
• Guidelines approved by Director DSCA on 7
  December 01
• DISAM designated as staff proponent at DSCA
• TO DO
• Assist Defense Organizations in preparing
  implementation plans (Navy plan being currently
  being staffed at DSCA)
• Tie in to DSCAs centralized process to plan,
  program, and budget resources required to
  implement the guidelines

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FMS REINVENTION INITIATIVES

• Eight of ten initiatives are either fully
  implemented or will be by the end of 2002.
• DSCA currently assessing the need for additional
  staffing and resources in support of the
  workforce and customer satisfaction initiatives.

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BUSINESS PROCESS REENGINEERING

• DSCA transitioning from the high level
  Reinvention process to an approach focused on
  continuous improvement.
• We will inculcate security cooperation business
  practices to be more like modern business
  practices, with a high reliance on technology.

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BUSINESS PROCESS REENGINEERING

• What is Business Process Reengineering (BPR)?
• Why have BPR?
• What is the Criteria for Selecting a BPR
  initiative?
• What is the near-term suggested plan of action
  for BPR?

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BUSINESS PROCESS REENGINEERING
DSCA Definition Change that will make business
processes better, faster, cheaper and/or more
responsive to the customer(s). BPR is the
facilitator for Innovation.
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WHY HAVE BPR AT DSCA?

• Clinger-Cohen Act of 1996 requires that
  reengineering be considered at appropriate points
  in a major IT acquisition (e.g. CEMIS). (SECDEF
  Memo, 2 Jun 97 implemented within DoD)
• Director, DSCA directed at Security Cooperation
  2001 that BPR office would pick-up where
  reinvention left off, with primary emphasis on
  business processes.

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WHAT DOES BPR BRING TO THE TABLE?

• Compliance with the law and SECDEF policy.
• Policy level attention and facilitation.
• Macro versus micro process approach.
• Focal point for innovative ideas.

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CRITERIA FOR SELECTING A BUSINESS PROCESS TO
REENGINEER

• Dysfunction
• Importance
• Feasibility

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ACTIONS ACCOMPLISHED

• 151 business processes examined
• -- 13 selected for Active List
• -- 33 selected for Archived List
• 13 evaluated as to high, medium or low importance
• Director DSCA Guidance
• -- work initiatives sequentially so as to not
  place undue strain upon the staff and the
  MILDEPs.
• -- match Active List to the Six Core Functions
• -- present BPR issues in the format established
  by the SECDEFs Business Initiatives Council (BIC)

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THE 15 ACTIVE LIST ISSUES

• Improve Case Closure and Reconciliation
• End-to-End Control Mechanism
• FMS Surcharges
• LOR by E-Mail
• Refine Cooperative Logistics Supply Support
  Arrangement (CLSSA)
• FMS Point-to-point Material Tracking
• Military Articles and Services List (MASL)
  Improvement
• Navy FMS Dual Track
• SDR Returning material process using US Bank
  Power Track System
• E-Mall Direct Delivery to FMS
• Customers and Use of Debit Cards
• _____
• First Issue Being Worked
• Second Issue Being Worked

• 11. Increase International Logistics Control
  Office (ILCO) flexibility for determining support
  methods for delivering goods services
  identified on LOA, and/or amendment/modification
  documents
• Increase SDR Write-Off Threshold
• Life Cycle Sustainment Support and Manage FMS
  Reserve Resale Out-of-Inventory Equipment.
• Qualitative Analysis of FMS Business Activity.
• 15. Tri-Service ILCO Symposium
• Key Green High Priority
• Blue Medium Priority
• Red Low Priority

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WHAT CONSTITUTES SUCCESS?
THE SIX CORE FUNCTIONS ACTIVE LIST
Pre-LOR 1
Case Development 2
Case Execution 3
Case Closure 4
Other SC 5
Organizational Support 6
2 5 6
4
1
11
12
14
3
7
9
8
13
10
15
Key Green High Priority Blue Medium
Priority Red Low Priority
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BUSINESS INITIATIVES COUNCIL

• Established Jul 01 by the Under Secretay of
  Defense, Acquisition, Technology and Logistics
• Common Characteristics
• -- benefit war fighters (stakeholders)
• -- provide common (coalition) good across DoD
• -- provide identifiable savings/benefits that
  will have a positive impact on FY 03
  budget/execution

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NEXT STEPS

• We are Working the Issues One at a Time.
• A message went to the field in Mar 02 announcing
  and explaining BPR, and soliciting innovative
  ideas.
• BPR Executive Committee will be convoked as
  required to review and revise as required (last
  meeting held 10 May 02)
• Innovative Ideas 7 received to date 2 have
  been moved to the BPR Active List.

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THE FUTURE

• DSCA is aggressively pursuing implementation of
  Performance Based Costing (PBC) and Performance
  Based Budgeting (PBB) processes.
• By 2003 we will implement PBC/PBB, and expect PBB
  to make a very positive impact on how we do the
  security cooperation business.
• We are replacing 13 antiquated management
  information systems with one or two consolidated
  and standardized systems.
• We are developing a web-based portal operation to
  enhance information flow to be incrementally
  implemented our customers should get first
  access this Sep.
• We are adapting the Planning, Programming and
  Budgeting System process to the Security
  Assistance (FMS and FMF) program.