08Dec Industry Day Bus Ops Brief_08MDA4070.pdf

Business Operations Update

December 19, 2008

Mr. Albert D. Hemphill II Deputy for Agency Operations

Missile Defense Agency

Distribution Statement A:

Approved for public release;

distribution is unlimited

Approved for Public Release

08-MDA-4070 (17 DEC 08)

08-MDA-4070 (17 DEC 08)

Overview

• Purpose

- To provide industry an update of the mission, focus, priorities, and program of work under MDA Business Operations (DOB) and Cost Estimating & Analysis (DOE)

• Agenda

- DOB / DOE mission

- DOB / DOE core areas

- Matrix management

- Integration Synchronization Center

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Deputy For Agency Operations

DO

DEPUTY FOR AGENCY

OPERATIONS

Head Of Agency Functions

DOSDOI

DOE

DOB

DOH

BUSINESS OPERATIONS INFORMATION MANAGEMENT &

TECHNOLOGY OPERATIONS

COST ESTIMATING

& ANALYSIS

INFRASTRUCTURE AND

ENVIRONMENT

SECURITY / INTELLIGENCE

OPERATIONS

DOC

HUMAN RESOURCES

DO-BRAC

DO Matrix

DO-ER

BRAC TEAM EXTERNAL REVIEW

MATRIX OPERATIONS

INTEGRATION

SYNCHRONIZATION CENTER

New

DO-ISC

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Business Operations

Mission

• Develop, allocate, execute, analyze, and review use of Agency resources, and serve as principal advisor to Director and staff on funding, manning, and accounting related matters

Vision

• MDA and the BMDS Program are resourced in an efficient, businesslike manner in which relevant, reliable, and timely management information is available on a routine basis to support informed decision-making at all levels

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Core Areas

• Program Objectives Memorandum (POM) and President’s Budget (PB) strategic planning, formulation, and integration

• Budget execution and funds control

• Performance measurement

• Chief Financial Officer (CFO) Act compliance and systems

• Cost estimating and analysis

• Congressional budget justification and defense; external review

• Comptroller for Special Access Programs

• Base Realignment and Closure (BRAC) team

• Business, Financial Management / Cost Estimating (BFM / CE)

Functional Manager support

• Integration Synchronization Center, chair Integration

Synchronization Group (ISG), manage baseline change

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• Functions as Agency’s lead for two-year Planning, Programming, Budgeting and Execution (PPBE) development

- Develops, integrates, analyzes, and manages preparation of the Program Objective Memorandum (POM) and President’s Budget (PB) submissions

- Communicates Director’s Future Years Defense Program expectations and guidance to Program Managers / Functional Staff Directors

- Primary interface with OSD for program and budget

• Recommends resource allocation strategies; sets internal fiscal controls

- Develop and maintain the resource component of the BMDS baseline

- Implementing the MDA Resource Allocation Decision System (RADS)

• Performs special studies, portfolio analyses, and investment analyses to support strategic planning and investment options in the PPBE process

POM and Budget Strategic Planning, Formulation, and Integration

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• Serves as the MDA fiscal agent and performs funds control for MDA

- Provides funds control guidance; responsible for funds distribution

- Processes and reports execution year adjustments, reprogramming, rescissions

• Monitors budget execution and informs senior management of financial status and projections

- Conducts Monthly Financial Execution Reviews (FER)

• Develops and maintains financial management databases

• Manages HQ and program-wide support

- Performs manpower database reporting and analysis

• Manages and operates the MDA travel office and associated travel service programs

Budget Execution And Funds Control

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Performance Measurement

• Integrates and reports program budget / cost performance and efficiency

- Program Assessment Rating Tool and

President’s Management Agenda

- Monthly Business Reports and

Management Information Reports

- Integrated Program Assessments

• Focal point for Earned Value Management (EVM) policy and implementation

- Ensures EVM is consistently applied across MDA

- Provides EVM and Integrated Baseline

Review (IBR) training and support

- Evaluates contract EVM and maintains

EVM “Health Status” on all programs

Missile Defense Agency Monthly Business Report

November 2008

THAAD Development Cost/Schedule Variance Chart

-$500M

-$400M

-$300M

-$200M

-$100M

$0M

$100M

$200M

$300M

$400M

$500M

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CV SV 10% Threshold MDA/DOB VAC

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CFO Act Compliance And Systems

•Financial Statements -Prepare quarterly / annual financial statements that are reliable, accurate, and timely

-Manage audit committee and associated workgroup meetings -Review policies, processes, and procedures; recommend changes for CFO compliance; prepare financial statement assertions for submission to OSD / DoD IG

-Develop needed policies and procedures (e.g., accounting, reporting, internal controls)

-Publish and maintain the MDA Business Process Documentation •Systems

-Manage MDA Integrated Business Management System (IBMS) initiative

-Manage systems implementations

– Coordinate training

– Coordinate IT (hardware, software, security) requirements

– Identify sustainment requirements

-Review systems internal controls

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Cost Estimating

•Ensure overall quality of MDA cost estimating processes and cost estimates

•Advise MDA senior leadership on matters relating to system costs

•Assist MDA Directorates in developing cost estimates -Common Cost Model Working Groups -Matrixed Cost Support -General Support (analysts assigned to more than one cost estimating activity)

•Provide cost estimating support to MDA Studies, Business Case Analyses, and Analysis of Alternatives

Cost Estimating Process

Cost Risk Analysis Results

0.000

0.020

0.040

0.060

0.080

0.100

0.120

10000 12000 14000 16000 18000 20000 22000 24000 26000 28000 30000

Cost TY$M p

Baseline Alt 1 Alt 2 Alt X Alt 3

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FY09 Defense Appropriations:

MDA Marks And Concerns

October 2009

Mr. Albert D. Hemphill II Deputy For Agency Operations

Missile Defense Agency

Congressional Budget Justification & Defense And External Review

• Defend the BMDS program

- Independent review and analysis of budget documentation and Congressional cuts

- BMDS Booklet

- BMDS overview and other related briefings

• Respond to GAO and DoD IG audits

- GAO / DoD IG interface

- GAO / DoD IG tracking database, audit overview

- Audit Document Request Status Report

- Audit-related inquiries, data requests, and document requests

• Respond to Congress

- Congressional requests for information

- Legislative appeals and proposals

- Congressional Actions Summary Report

- Legislative analysis

- Review and coordinate Congressional Reports

GAO Action Officer Audit Tracking Database

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Comptroller For Special Programs

•Serves as the MDA Special Access Program Central Office (SAPCO) comptroller and the primary business advisor to the DOS Director

•Provides MDA / Special Access Programs (SAP) customers with secure cradle-to-grave financial management and comptroller services

•Supports all aspects of the planning, programming, budgeting, and execution process for the DOS Director

•Ensures appropriate internal management controls to support operational requirements within the SAP environment in adherence with DoD and MDA Management Control Program policies

•Performs a limited paying agent capability to support MDA SAP activities

•Maintains auditable and detailed financial records for MDA SAPs

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• Under BRAC Steering Panel guidance, the team develop plans, policies, and strategy options to ensure successful BRAC implementation while supporting both MDA reengineering and mission execution

• Implementation planning includes risk mitigation, facility action plans, budget and funding strategy, manpower realignment, and controlling internal and external communications

• Leads daily MDA BRAC project management activities

- Develop and maintain BRAC Business Plan

- Provide for cost and schedule control of approved plans

- Manage financial resources as assigned

- Ensure accountability of BRAC funds, positions, and space

- Achieve BRAC Savings Goals

Base Realignment And Closure (BRAC) Team

Smooth Transition While Maintaining Critical Workforce SkillsSmooth Transition While Maintaining Critical Workforce Skills

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Business, Financial Management / Cost Estimating Functional Manager Support

• Develop common policies, processes, standards and practices within business, financial management, cost estimating areas

• Provide executing organizations with trained, qualified personnel

• Responsible for career development of matrixed BFM / CE staff

• Collaborate with Program Directors / Program Managers to determine appropriate level of support and funding

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Integration Synchronization Center

• Analysis arm of Program Change Board / Integration Synchronization Group

- Integration and Change Management – Six BMDS Baselines

- Responsibilities include:

- Configuration Control / Policy & Guidance

Compliance

- Baseline Change Management / Battle

Rhythm for the six baselines

- PPBES Integration / Strategic Planning

- Baseline Integration

- Program Evaluation and Assessment

Technical

Operational Test

Schedule

Contracts

Resources

6 Baselines

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Summary

Mission Develop, allocate, execute, analyze, and review use of agency resources, and serve as principal advisor to Director and staff on funding, manning, and accounting-related matters

Vision MDA and the BMDS Program are resourced in an efficient, businesslike manner in which relevant, reliable and timely management information is available on a routine basis to support informed decision-making at all levels

Business Operations

Questions ?Questions ?