EFiMS_Industry_Day_Presentation.pdf

DHS Office of Procurement Operations

Enterprise Financial Management Software (EFiMS)

Industry Day Presentation

July 31, 2019

Welcome

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David Ritter, Contracting Officer (Software)

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Agenda I. Welcome – David Ritter, OPO Contracting Officer II. Opening Remarks, Soraya Correa (CPO) & Stacy Marcott (ACFO) III. QSMO Overview – Laurie Park, U.S. Treasury Dept.

IV. Financial Systems Modernization (FSM) Overview – Christine Rodriguez, OCFO V. Component Overviews

A. Federal Emergency Management Agency (FEMA) – Christopher Kraft B. Immigration and Customs Enforcement (ICE) – James Gregory C. U.S. Citizenship and Immigration Services (CIS) – Tammie Page D. Cybersecurity & Infrastructure Security Agency (CISA) – James Murray E. Departmental Management and Operations (DMO) – Lauren Simpkins F. Science and Technology Directorate (S&T) – Carol Cribbs G. Federal Law Enforcement Training Centers (FLETC) – Thomas Eason

VI. Solicitation Overview –David Ritter OPO VII. Question & Answer Panel – OCFO, OCIO, Components, OCPO, OPO

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The purpose of this Industry Day event (and associated release of Draft Request for Proposals (RFP) is to:

•Provide our industry partners with a better understanding of FSM history, and requirements for the EFiMS effort.

•Provide a realistic timeline for the upcoming procurement and execution of the EFiMS contracts.

•Provide an opportunity for OCFO, the Components and OPO to strengthen the Draft RFP by incorporating industry feedback.

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Purpose

Speakers will go through each of their presentations, followed by a question and answer period at the end of all presentations.

DHS will attempt to address questions that are presented today.

The remarks, explanations, and information provided at this Industry Day are intended to assist Industry in gaining greater understanding of FSM objectives as they relate to the EFiMS effort and to exchange ideas with Industry in order to improve DHS’ ability to achieve desired outcomes.

The information presented during Industry Day discussions regarding stated requirements and procurement planning are subject to change prior to the issuance of the Final Request for Proposal.

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Ground Rules

Opening Remarks

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Soraya Correa, Chief Procurement Officer

U.S. Department of Homeland Security

Stacy Marcott, Acting Chief Financial Officer

U.S. Department of Homeland Security

Laurie Park, Fiscal Service Team Lead

Quality Service Management Office

QSMO Strategic Direction

Mission

QSMO

Shared Goals

We exist to… Provide agencies with access to innovative and proven financial management solutions and expert guidance that will advance government-wide goals.

• Standardize processes and data

• Reduce operation and maintenance costs

• Modernize and automate processes

• Improve customer satisfaction

Vision We will…Be a valued partner for agency leaders as they work to strengthen federal financial management.

A New Approach to Financial Management

FM QSMO

In the Future State, the QSMO acts as the broker between agencies and commercial and federal solutions. Solutions are centrally administered, standards are embedded in solutions, and there is a unified effort to achieve goals.

Core Financials e.g. SaaS / cloud solutions

Professional Services e.g. integration

FM Solutions e.g. transaction processing

Central Solutions e.g. G-Invoicing, Centralized Receivables

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Christine Rodriguez, FSM Program Manager

DHS Office of the Chief Financial Officer

FSM Overview

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• Strategic Goals

• Objectives

• Governance

• Background

Strategic Goals

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• Implement an integrated financial, procurement, and asset management systems.

• Reduce labor intensive manual process while increasing financial transparency.

• Promote timely, accurate, reliable, and comprehensive reporting.

• Strengthen internal controls supporting a clean audit opinion.

Objectives

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• Obtain mature and proven integrated financial, procurement, and asset management software that provides functionality for federal financial management, procurement, and asset management, and has the capability to interface with Component specific systems, commercial systems, and federal system initiatives.

• Obtain subsequent program management, change management, and engineering services to support the continuation of the Financial System Modernization (FSM) Program in support DHS Components.

Governance

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FSM ESC

• Chaired by DHS CFO

• Members include DHS CIO, CRSO, CPO, the Modernization Manager & Component CFOs/CIOs

• Non-voting members include OGC & PARM

Solution ESCs Component CXOs

OCFO JPMO

•Accountable for FSM efforts across DHS •Leads IPTs

Current Working Groups

FMSWG & FMWG

USM

Other Line of Business ESCs

Asset, procurement, etc.

Integrated Project Teams

(IPTs)

Component Project Teams

Financial Management Quality Service Management Office (QSMO) •Department of the Treasury •Liaison between the Department and OMB

Background

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• DHS has had a need to modernize its financial management (FM) systems since the inception of the Department.

• In 2014 DHS entered into a partnership with the Interior Business Center (IBC) to modernize the FM systems for the Domestic Nuclear Detection Office (DNDO), the Transportation Security Administration (TSA), and the U.S.

Coast Guard (USCG) (collectively referred to as “The Trio”).

• DNDO went live in FY 2016.

• Due to the complexity of the upcoming implementation at TSA and USCG, DHS and IBC jointly decided to transition the operation of the FM system to a DHS Data Center.

• The transition to the Data Center was completed in August 2018.

• In December 2017, DHS awarded a task order to provide system development and support to the “Trio” Components.

• Currently, DNDO (now known as Countering Weapons of Mass Destruction) is live and TSA and USCG are in implementation with a Go live date scheduled for the first quarter of FY 2021.

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Christopher Kraft

Federal Emergency Management Agency

• Mission: Reduce the loss of life and property, and protect institutions from all hazards by leading and supporting the nation in a comprehensive, risk-based emergency management program of mitigation, preparedness, response, and recovery

FEMA Overview

• Scale: 20,000 Federal employees (Core and Reservists), 10 Regional and multiple field offices

• Operations: In 2018, responded to concurrent incidents across several regions, states, and territories

• Funding: $21.643B FY19 annual budget, 88 funds / Treasury symbols

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* Includes grant payments

FEMA Specific Needs and Challenges

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Needs

• Integration

• Robust compliance capability

• Disaster response requirements

• Automated, robust, real-time reporting

Challenges

• Lack of Integration: Unable to efficiently integrate / interface with mixed systems.

Existing environment requires extensive manual workarounds.

• Operational Inefficiency: Unable to handle project accounting, calculate multiple levels of interest, house adequate commercial / grantee data, and generate time series reports.

• Lack of System Flexibility: Outdated proprietary software, insufficient documentation, and lack of COBOL programmers. Changes are time-consuming, costly, and require manual workarounds. Unable to meet all federal / DHS compliance requirements.

• Inability to Consistently Produce Accurate, Relevant, and Timely Data: Unable to provide timely and accurate data due to non-standardized data across multiple sources.

FEMA Systems Landscape

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Operations 19

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James Gregory

Immigration and Customs Enforcement

ICE Overview

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• Mission: Protect America from the cross-border crime and illegal immigration that threaten national security and public safety.

• Scale: 20,000 Federal Personnel, over 400 offices in United States and foreign countries.

• Annual Budget: $7.9B; 104 Funds/Treasury symbols

• Financial Operations: Provides a financial system and financial transaction services for

DHS-HQ, USCIS, S&T, and CISA

ICE Specific Needs and Challenges

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Challenges:

•Duplicative manual entry of financial, procurement and asset data •Limited data analytics capability •Integration with e-Invoicing and g-Invoicing •Reporting software has reached “End-Of-Life”

Needs:

•Integrated Financial, Procurement, and Asset Management Solution •Improve the speed and accuracy of financial reconciliation and reporting •Improved analytics for decision-making •Legal, regulatory, and policy compliance

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Tammie Page

Citizenship and Immigration Services

• Mission: administer the nation’s lawful immigration system, safeguarding its integrity and promise by efficiently and fairly adjudicating requests for immigration benefits while protecting Americans, securing the homeland, and honoring our values

CIS Overview

• Scale: 17,830 Federal and 13,228 contractor employees

• Operations: Field offices in every state and Territory, plus 20 international field offices

• Funding: $4.484B annual budget, 34 funds/Treasury symbols

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CIS Specific Needs and Challenges

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• USCIS is a fee-based component of DHS which receives over 94% of its funding from fees collected for immigration benefits and services

• USCIS needs a solution that provides activity-based costing (ABC) functionalities or enable the use of integration of third party tools to analyze and extract data directly

• The solution shall provide the ability to accomplish the Cost Management end-to-end standard business process

• Currently relies on external databases and SAP Business Objects Profitability and Cost Management software

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James Murray

Cybersecurity and Infrastructure Security Agency

• Mission: Lead the national effort to protect and enhance the resilience of the nation's physical and cyber infrastructure

CISA Overview

• Scale: 3,542 Federal and 1,833 contractor employees

• Operations: include National Risk Management Center, and

Divisions for Cybersecurity, Emergency Communications, and Infrastructure Security

• Funding: $3.387B annual budget, 30 funds/Treasury symbols

• * Budget includes OBIM and FPS dollars which have been realigned to MGMT (OBIM – FY 2019, FPS – FY 2020)

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CISA Specific Needs and Challenges

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Needs •Enhanced reporting capabilities to track, reconcile, and report budget execution with procurement data from an integrated financial management solution •Use of a comprehensive revenue management system to perform billing to Federal trading partners; currently performed in Federal Protective Services (FPS) Data Systems* •Integrated financial data for reporting and reconciliations.

Challenges •FPS performs many recurring/non-recurring security work agreements (SWAs) annually and lacks reporting to accurately track revenue activity •FPS experiences challenges with tracking outstanding accounts receivables for its SWAs which impact timely contract closeout •CISA, FPS, & Office of Biometric Identity Management (OBIM) have separate financial management software instances.* •Due to lack of an integrated solution, manual processes exist which results in users performing labor-intensive workarounds thereby increasing risk of errors and inefficiencies •Current gaps include: insufficient data integrity, insufficient security and internal controls, lack of integrated financial systems, restricted legacy system flexibility and reporting capabilities, absent or impaired integrated business systems capability

* CISA in process of transitioning FPS and OBIM to Departmental Management and Operations

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Lauren Simpkins

Departmental Management Operations

• Mission: Support the Secretary and Deputy Secretary of the Department, by managing budget, appropriations, expenditure of funds, accounting and finance; procurement; human resources and personnel; information technology systems; facilities, property, equipment, and other material resources; and identifying and tracking of Departmental performance.

DMO Overview

• Scale: 2,346 Federal and 628 contractor employees

• Operations: Financial Operations Division oversees budget formulation and execution, financial transaction processing, financial reporting, and internal controls

• Funding: $1.144B annual budget, 17 funds/Treasury symbols

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DMO Specific Needs and Challenges

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NOTE: The Department is in the process of transferring FPS and OBIM financials over to DMO. There are still several management decisions that have to be made regarding how to fully effectuate both transfers and as such the data for those two entities is still contained within CISA’s slides

• Based on the structure of WCF operations, DMO requires the ability to support a one-to-many relationship when establishing agreements with Customers.

• DMO requires an integrated financial management, procurement, and asset management solution for FSM.

• DMO is responsible for the management and oversight of the DHS Working Capital Fund (WCF).

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Carol Cribbs

Science and Technology

S&T Overview

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• Mission: Enable effective, efficient, and secure operations across all homeland security missions by applying scientific, engineering, analytic, and innovative approaches to deliver timely solutions and support departmental acquisitions

• Scale: 513 Federal and 600 contractor employees

• Operations: Mission & Capability Support, Science &

• Engineering, Innovation & Collaboration and

Enterprise Services

• Funding: $820M annual budget, 28 funds/Treasury symbols

Accounting Transactions Annual Volume Vendor payments 58,433

Payroll 133,316

Receivables 30,428

Travel vouchers 1,579

Purchase Requisitions 6,577

Purchase Orders 10,123

Travel Card Payments 6,726

Purchase Card Payments 4,557

Obligations 24,480 Procurement Transactions Annual Volume Awards 1,683

Milestone Plans 0

Advance Procurement Plans 60

Solicitations 500

Acceptance/Receiving 9 Asset Management Number/Value Real Property Owned Assets 130 / $533,303,012 Leased Assets 10 / $6,302,613 Total Footprint 1,063,900 SF Personal Property

Total Portfolio 9,989 / $84,795,500

Capitalized Assets 31 / $34,563,055

Motor Vehicle Assets 31 / $1,797,225

Aircraft Assets 5 / $321,500

Marine Assets 6 / $12,424,803

S&T Specific Needs and Challenges

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Needs:

•Integrated Financial, Procurement, and Asset Management workflows •Improve the efficiency of financial transaction recording, processing and management •Multi-year financial analytics and reporting •Greater visibility to transactional data •Increases operational efficiency Challenges:

•Limited data analytics and data visualization capability •Lack of G-Invoicing integration •Limited Procurement data and business systems integration •Absence of configurable workflows •Operational Cost

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Thomas Eason

Federal Law Enforcement Training Centers

• Mission: Provide law enforcement training to over 90 federal agencies and partner organizations, plus state, local, rural, tribal, territorial, and international law enforcement agencies

FLETC Overview

• Scale: 1,106 Federal and 2,464 contractor employees

• Operations: Facilities in Georgia, New Mexico, South

Carolina, and Maryland. Support for International Law Enforcement Academies in Botswana, El Salvador, Thailand and Hungary. Accounting service provider for DHS Office of Intelligence & Analysis (IA) and DHS Office of Operations Coordination (OPS)

• Funding: FLETC: $260M annual direct, ~$120M annual reimbursable. IA/OPS: $260M annual direct. 32 funds/treasury symbols

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FLETC Specific Needs and Challenges

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Challenges:

•Majority of customers are non-DHS entities

Includes international, state and local governments

•Comparatively large population of real property assets Needs:

• Hosting environment with less time spent on IT operations and more time spent on system operations

• System operating environment with less time spent on data entry and more time spent on data analysis and data quality

• Better tools for managing information, such as:

Images in the system of record, not paper files in the file room Artificial intelligence Embedded data analytics Robotics process automation

Procurement Innovation Lab (PIL)

Evaluation Process Best Value/Trade Off Streamlined Evaluation

Notional Timeline Draft Solicitation – August 2019 Final Solicitation Release – October 2019 Award Date – 2nd Quarter of Fiscal Year 2020

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Solicitation Overview – OPO

OCFO/JPMO

OCIO

Component Personnel

• FEMA

• ICE

• CIS

• CISA

• DMO

• S&T

• FLETC

• OPO

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Question and Answer (Q&A) Panel

Thank you for attending the Joint Industry Day!

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