MRO and MRO-S SOO.pdf

Statement of Objectives (SOO)

STATEMENT OF OBJECTIVES (SOO)

FOR

Maintenance, Repair, & Overhaul (MRO) and

Maintenance, Repair, & Overhaul - Supply (MRO-S)

Contents

1. BACKGROUND

1.1. BACKGROUND MRO

1.2. BACKGROUND MRO-S

1.3. Stakeholders

2. PURPOSE

3. REQUIREMENTS OVERVIEW

4. OBJECTIVES

5. SCOPE

6. APPLICABLE DOCUMENTS AND STANDARDS

7. SECURITY

1. BACKGROUND

The USAF fulfills its mission to fly, flight, and win with airpower anytime, anywhere through substantial organic sustainment operations. The information technology (IT) systems and infrastructure supporting the daily sustainment operations are dated. The capability to modernize these systems is either increasingly cost and resource prohibitive or impracticable. As a result, our legacy systems are considered high risk due to their vulnerability to cyber-attacks and obsolescence. Therefore, it is critical that the Air Force Sustainment Center (AFSC) invest in modern IT systems.

Overall, the sustainment operations of the USAF must have modern application platforms to streamline processes, enable and enhance mission readiness, and decrease flow days. A successful implementation of maintenance and supply will enhance the security of infrastructure required to fulfill the AFSC sustainment mission.

The USAF is developing an Enterprise Resource Planning (ERP) integrated application to manage integrated depot maintenance and Air Force Working Capital Fund (AFWCF) financials, referred to as MRO throughout this document. The USAF will build upon this ERP by adding supply requirements to include Wholesale and Depot Retail capabilities, referred to as MRO-S throughout this document.

MRO and MRO-S will be accessed from multiple locations based on their site-unique systems, which provide varying degrees of MRO-like support. The design of these systems specifically supports their respective operations, without standardization across the Sustainment Center. In order to prevent degradation of current capabilities at each site, the ERP development, release, and implementation strategy must consider the production and legacy systems environments into which each release will be applied. The MRO Program uses the following terms to clarify where the software is within the acquisition process. These terms are different from both standard acquisition terms and Agile terms. The terms are Promote, Deployment Release, and Implement and are defined as:

Promote Product instantiated in Government

Integrated Testing (GIT) (Quality, Test, and Evaluation (QT&E)) environment

Deployment Release Product instantiated in production environment and ready for user training and operational testing

Implement Training to initial users is complete.

Operational testing continues. Product provided to users in operating locations and AFSC users actively using the software on production work, having already been trained. There may be multiple incremental implementation decisions planned, to manage introductions into additional Shops, Squadrons, Maintenance Groups (MXGs) or Complexes.

The contractor shall perform requirements for both MRO and MRO-S as detailed in the below sections.

1.1. BACKGROUND MRO

MRO core capabilities include the configuration and integration of key Oracle Modules including complex Maintenance, Repair, and Overhaul (cMRO), Discrete Manufacturing, Federal Financials, Projects, Production Scheduling, Inventory, and Advanced Supply Chain Planning (ASCP). Other supporting modules from the Oracle EBS and Oracle Business Intelligence (OBI) suite will be configured in support of creating an integrated capability for planning, scheduling, executing organic depot maintenance, organic manufacturing, optimizing workload assignment, managing resource allocation, and enabling financial and managerial reporting. Integration of these maintenance support capabilities applies at the AFSC level, the Air Logistics Complex (ALC) level, and down to the lowest level of individual repair items within repair/maintenance shops. MRO standardizes and consolidates antiquated legacy system-driven processes to promote an integrated and streamlined workforce that transforms depot operations.

1.2. BACKGROUND MRO-S

MRO-S will mandate a data-driven approach, along with business process reengineering (BPR), to ensure the Supply capability MRO-S satisfies applicable Department of Defense (DoD) and Department of the Air Force (DAF) policies. The expected outcome from this development process is the subsumption of functions currently performed by multiple legacy systems.

The preliminary list of current systems includes:

• Stock Control Suite (SCS) o D035A o D035K o D035J (Financial Inventory Accounting and Billing System (FIABS)) o Other SCS modules to be evaluated.

• DFAS Transaction Interface Module (DTIMS)

• General Accounting & Finance System – Reengineered (GAFS-R)

• General Accounting & Finance System – Base Level (GAFS-BQ)

• Keystone Decision Support System (KDSS)

• Standard Material Accounting System (SMAS)

Identified systems are subject to partial or full subsumption as requirements are finalized.

This list is subject to revision.

A successful implementation would allow the USAF to reduce or discontinue use of legacy systems and reallocate resources currently required to operate and sustain the programs. The resulting product would enable the 448th SCMW and AFSC to support next generation weapons systems, contribute to audit readiness, deliver financial accountability, provide materiel support, and promote mission readiness.

1.3. Stakeholders

The preliminary identified stakeholders and customers are as follows:

Headquarters Air Force Materiel Command (HQ AFMC) Air Force Sustainment Center Financial Management Directorate (AFSC FM) Air Force Sustainment Center Logistics Directorate (AFSC LG) Oklahoma City Air Logistics Complex (OC-ALC) Ogden Air Logistics Complex (OO-ALC) Warner-Robins Air Logistics Complex (WR-ALC) 448th Supply Chain Management Wing (SCMW) Defense Finance Accounting Service (DFAS) Defense Information Systems Agency (DISA) Defense Logistics Agency (DLA) Federal Aviation Administration (FAA) Foreign Military Sales (FMS) United States Army United States Navy United States Marine Corps The National Aeronautics and Space Agency (NASA)

2. PURPOSE

The purpose of this acquisition is to build upon the existing solution in order to deliver new capabilities and sustain the existing system while utilizing an Agile software development methodology. The USAF is seeking a partner to bring innovation, business process re-engineering, continuous process improvement, and responsiveness to the program using Agile methodologies. The USAF needs a partner to apply the tenets above in providing a supportable implementation strategy based upon the current MRO Oracle EBS ERP solution.

3. REQUIREMENTS OVERVIEW

The Government’s intent is for this requirement to operate under a phased approach between MRO and MRO-S. The initial phase is to begin MRO-S integration efforts utilizing MRO’s

Oracle EBS solution as the baseline. A form of a test database or MRO clone Oracle EBS environment will be available for use as the baseline for initial MRO-S integration efforts towards a fully integrated product. Agile principles shall be used to develop, configure, integrate, and deploy the MRO-S integration effort with a final product that is fully integrated, deployed, and operational within MRO’s Oracle EBS environment utilizing DevSecOps pipeline. MRO-S will mandate a data-driven approach, along with BPR, to ensure MRO-S satisfies applicable DoD and DAF policies.

The Government’s intent and second phase is to systematically “ramp off” and eventually transition the existing contracted MRO effort onto this requirement at a to-be-determined Minimal Viable Product (MVP) state or phase. The USAF currently has an existing effort to cover all tasks necessary for continued design, development, and implementation of the MRO program. The USAF has selected Oracle EBS as the ERP solution for MRO, which provides application services, implementation services, operations support, training, sustainment, and workstream preparation activities. MRO program requirements are contained within an Agile requirements hierarchy called the program backlog. The product allows the Government to manage the MRO program by utilizing Agile principles to develop, configure, integrate, and deploy the product. The Government will ramp off the current MRO effort and transition all MRO activities onto this contract. The second phase shall require continued MRO development of the Oracle EBS environment. This includes sustainment of the current MVP release, continued development, configuration, and deployment of future MVP releases through full deployment, and simultaneously incorporating the MRO-S requirements into the EBS platform.

4. OBJECTIVES

The Government’s objective is to further build upon the current MRO solution within Oracle Enterprise Business Suite (EBS). The product vision for the USAF logistics community is an integrated solution that modernizes, improves, and sustains capabilities for planning, scheduling, and executing organic depot maintenance production operations, and integrating Wholesale and Depot Retail Supply into the Oracle EBS solution. Unlike the current disparate legacy systems, the ERP provides an integrated holistic view of the maintenance and supply operations and standardized processes across the USAF to modernize maintenance and supply operations, with integrated AFWCF, to improve warfighter capabilities.

MRO-S is envisioned to build upon and enhance the current capabilities and configurations within the MRO ERP solution, with emphasis on areas utilized for the management of Wholesale and Depot Retail Supply functions and AFWCF financial statements. The system will augment additional features enabling Supply functionality to support Maintenance and the larger Air Force Supply needs. The application will standardize and modernize AFSC Supply processes and improve integration with Maintenance. Depot retail supply supports local customers and is an intra-AF business. Wholesale supply supports customers who are located all around the world and is an inter-service business process. The definition of which will be better defined as system requirements evolve in accordance with Agile methodology.

This solution intends to enhance the ability to execute the lifecycle supply plans for reparable materiel and other relevant inventory under AFSC management. This includes, but is not limited to, the procurement, repair, fulfillment, disposal, and management of inventory.

MRO-S will be interoperable with other modern systems to ensure a seamless transfer of data between activities. The solution will provide a streamlined and integrated model for the reporting and execution of the supply business activities.

Overall, MRO-S will establish a baseline to satisfy Wholesale and Depot Retail Supply requirements and to expand the ERP capabilities of the Air Force across appropriate logistics, financial, and other AFSC functions, as determined by future-state requirements.

The USAF requires ERP capabilities to manage Wholesale Supply, Depot Retail Supply functions, AFWCF financials, and to seamlessly integrate with and expand the capability of the existing MRO ERP using Oracle EBS. Supply core capabilities will require a review of the MRO baseline configuration for any modifications and/or updates required to existing Oracle modules. Additionally, existing Reports, Interfaces, Conversions, Extensions, and Workflows (RICE-W) objects will be evaluated, modified as needed, and eliminated wherever possible.

The inclusion of Supply capabilities into MRO presents the opportunity to integrate AFSC Supply and Maintenance processes into a single solution. To maximize the capabilities of supply chain functions and to fully integrate with MRO and AFSC stakeholders, MRO-S must manage wholesale inventory and streamline the integration of supply and material support for depot manufacturing and repair operations within the existing ERP system.

Additionally, new ERP functions must feature robust inventory management capabilities that allow for real-time tracking of stock levels, order processing, and requisition status. This will ensure supply chain responsiveness to customer requirements and can manage Air Force inventory at all echelons.

In addition to the integration opportunities, MRO-S would resolve additional outstanding system deficiencies. Currently, AFSC systems are unable to seamlessly communicate with stakeholder systems, resulting in additional overhead, failure points, and lifecycle costs.

Seamless integration is essential for a cohesive supply chain. The ERP should facilitate interoperability between stakeholders and suppliers, automate order processes, and enhance order accuracy. Moreover, integration should extend to the warehouse management solution.

This would allow for efficient inventory handling, storage, and retrieval ensuring that inventory is organized and accessible. These improvements will contribute to the reduction lead times and minimize disruptions to depot manufacturing and repair operations.

Furthermore, USAF and DFAS systems have various unresolved IT deficiencies. These deficiencies have been identified in AFSC audit opinions as critical impediments to Financial Improvement and Audit Readiness (FIAR) compliance and will only be remediated in a new system. This includes, but is not limited to, a lack of IT General Controls (ITGC) and an outstanding material weakness due to an incomplete financial Universe of Transactions (UoT). If not addressed, there will be an assessment that AFWCF is at high risk for potential material misstatement. The USAF will be incapable of eliminating critical impediments outlined in the AFSC audit opinion by the Congressionally mandated date of 31 December 2028.

AFSC cannot efficiently and optimally support USAF mission objectives without a modernized and integrated ERP capable of supporting AFSC operations and delivering financial accountability. The current schedule for implementing MRO-S includes a critical path timeline to meet the Fiscal Year (FY) 2028 goal for receiving an unmodified audit opinion.

The successful offeror must show the technical skill sets to support an Agile implementation to include, but not limited to, the following:

1. Collaborate with the Government stakeholders and technology professionals to properly understand business requirements and develop an industry best practice approach to technology solutions.

2. Collaborate with the Government to refine functional requirements and business rules into features and user stories in order to promote discretely implementable capabilities.

3. Develop, configure, test, stage, and release business applications by applying iterative processes utilizing the proposed offeror’s Agile methodology and a release cycle that takes into account user training timelines and minimal disruption to continuous maintenance and supply operations.

4. Design solutions that offer role-based identity management, authorization, and authentication across all business applications.

5. Ensure all content is according to federal and maintenance-specific record retention requirements, and applications shall have the ability to protect Personally Identifiable Information (PII).

6. Provide the ability to conduct studies.

7. Provide the capability for business analytics (e.g. Oracle Business Intelligence).

8. Provide comprehensive documentation and information necessary to analyze processes, procedures, and/or policies that are implemented in the creation of the applications.

9. Provide expertise in business process analysis with regard to optimizing the utilization and adoption of the software platform among Government users. The contractor shall seek to recommend business process changes, optimize out of the box capability, and configure off-the-shelf aspects of Oracle EBS before recommending a customized coding approach.

10. Collaborate with the Government in assuring MRO and MRO-S meet regulatory compliance requirements associated with Financial Information System Controls

Audit Manual (FISCAM) and Financial Improvement and Audit Remediation

(FIAR).

11. Collaborate with the Government in assuring the system meets regulatory compliance requirements associated with cyber security/risk management framework.

12. Sustain the current MRO MVP release.

13. Provide incremental documentation through iteration/increment cycles that results in full technical and end-user documentation and/or configuration for all software development efforts and product releases. All information necessary to document processes, procedures, code artifacts, and/or policies that were implemented in the creation of the development work include but are not limited to:

i. Agile metrics reporting (e.g., team velocity)

ii. System design documentation and updates

iii. Architecture reference/compliance documentation

iv. Automated testing scripts and results

v. Lessons learned

vi. Periodic progress reports

vii. Training content and supporting desktop guides

viii. Information support plan

ix. Collaboration tools and plan

x. Requirements traceability

5. SCOPE

The USAF requires an Agile software development methodology to architect, design, configure, develop, update, integrate, test, train, transition, promote, deployment release, and implement the MRO and MRO-S solution. The USAF requires any contractor to monitor and optimize application performance, support network performance, troubleshoot and facilitate resolution of application and network anomalies, maintain configuration management, and sustain the solution as incremental capabilities are produced, delivered, and implemented.

Work will be conducted in accordance with the prioritized program backlog that enables discretely implementable capabilities.

The contractor should consider the dependencies of an ERP, training timelines, and impacts to production operations to meet the requirements of the contract. The contractor’s responsibilities will be to develop, deploy, release, and implement usable capabilities to the program in contractor defined increments that align to a production environment. Each increment includes testing, training, and information assurance. The solution should include an explanation of how project and contract management, communication/collaboration with the Government, security and privacy requirements, documentation, and reporting will function in conjunction with the development and implementation methodology.

Under the Agile methodology, identify the roles and responsibilities of the contractor versus the Government. Each deployment release should consist of properly configured software and any necessary RICE-W objects, training materials and associated manuals/guides. Each deployment release represents a distinct set of capabilities with each deployment release’s configuration building upon the previous. At completion, MRO will include requirements listed in the Capability Requirements Document (CRD) as well as, but not limited to, the following:

a. Utilize automated testing to the greatest extent possible.

b. Perform transition management of activities and resources related to the transfer of maintenance for the ERP solution (i.e. source code, Configuration Management (CM) tools, data, documentation, status and documentation of work-in-process, software licenses, Government Furnished Equipment (GFE, etc.). Transition management includes both phase-in from incumbent contractor(s) and phase-out to the follow-on contractor(s).

c. Develop new product capability as defined by the Government through the requirements refinement and feature development activities.

d. Provide the Government with a plan to deploy, release, and implement the solution, as well as support in executing the provided plan to the locations identified in the Background section of this SOO (Paragraph 1).

e. Develop/deliver USAF compliant training material (AFI 36-2650 Maintenance Training) to end users and conduct role-based training for all users on an agreed to schedule.

f. Evaluate and assist in resolution of System Problem Reports, Deficiency Reports, Cyber Security, on-going system sustainment activities, etc. (vulnerability remediation to application code).

g. Evaluation and application of government-approved, vendor provided releases.

h. Level 2/3 help desk operations, responding to incident requests.

i. Update, maintain and optimize the government-provided draft legacy migration plan with the intent of minimizing impact on legacy systems and to limit the number of point-to-point interfaces (operational, transitional and data exposure).

j. Manage and execute data extraction, transformation, loading and/or conversion activities.

k. Plan and execute site activation and solution cutover by operating location.

The scope includes the requirements for non-personal technical and functional support services required by MRO and MRO-S. The Contractor shall provide IT services for a wide-range of tasks, while applying government-mandated standards and industry and Government best business practices in the disciplines of software development, software testing, training, technology integration, cyber security, implementation, and sustainment of MRO and MRO-S.

The contract scope is not limited to currently identified requirements but shall encompass all IT disciplines to include new innovations and advances in technology, processes, and procedures. The Contractor should be knowledgeable of the functional, technical, and business process environments of the ERP and the customers supported and be responsible for responding and adapting to technology and Oracle applications advancements.

In addition to the requirements above, the following preliminary mission tasks, features, functions, and constraints are essential to fulfilling the goals and objectives for MRO-S integration and implementation. This is a preliminary list and is subject to change.

1.) Currently identified capability requirements include, but are not limited to:

a. Performance of Order Management Functions

Sales Order Management Order Fulfillment Backorders Order Modification Government Furnished Property Customer Returns Customer Information Management

b. Performance of Procurement Functions Sourcing Repair Requisitioning Purchasing Disposal Supplier Management

c. Perform Inventory Management Functions Receiving Inspecting Stocking Picking Shipping / Delivery / Relocation Warehouse Management Inventory Accountability WRM, IPE, and NWRM Readiness

d. Perform Financial Management Functions Financial Reporting Budgetary Resource Management Payables Management Receivables Management General Ledger Management Inventory Valuation Asset Valuation Purchase Order Management – Commit / Obligate Order Management – Unfilled Customer Orders

e. Performance of Asset Management Functionality Lifecycle Tracking Planning Custody Management Accountability Maintenance

2.) Perform the following functions:

Alerts Attachments Audit Trails Collaboration Dashboards History Metrics Notes Notifications Permissions Query Reports Status Data Warehouse Interface Interface with other systems Validation

3.) Comply with governmental rules, regulations, and guidance, such as and not limited to:

DOD 4140.xx

FIAR

CFO Act

DLMS

IUID/UII

PRDS/PDS

TFM

4.) Implement role-based access control (RBAC) capabilities.

5.) Identify and develop a conversion strategy to migrate essential data from legacy environments.

MRO-S will operate in an environment where it must be interoperable with various systems.

These systems include, but are not limited to, the following customer systems: Army LMP, Navy ERP, DFAS, DLA WMS, DAAS, NASA, FAA.

Additionally, the Air Force maintains a mix of modern and legacy systems that will need to be supported. These include, but are not limited to: ESCAPE, FLITES, DCPDS, DTIMS, EXPRESS, and BLADE.

Any remaining legacy systems that communicate with systems targeted for subsumption will need to have their interface and interoperability needs identified and addressed. The offices for MRO and MRO-S will communicate with downstream legacy system partners regarding potential impacts to their systems. Downstream partners will be responsible for code adjustments and training that may result from modifications required by the implementation of MRO and MRO-S.

6. APPLICABLE DOCUMENTS AND STANDARDS

The MRO and MRO-S solution shall be compliant with all documents referenced below (or superseding instruction):

NIST SP800-53 Rev 4, Security and Privacy Controls for Federal

Information Systems and Organizations.

National Institute of Standards and Technology (NIST) SP800-37 Rev 1, Guide for Applying the Risk Management Framework to Federal Information Systems

Financial Management Regulation (FMR) 7000.14R, Vol 1, Ch. 4. Target Financial Business Feeder Systems, as defined in paragraphs 040204, 05, and 0403 mandate the business rules, implementation procedures, compliance checklist, and compliancy requirements meet all SFIS requirements.

Standard Financial Information Structure (SFIS) AFMAN 17-1303 – Cybersecurity Workforce Improvement Program

AFMAN 17-1301 – COMPUSEC

AFI 17-101 – Risk Management Framework for AF IT AFI 17-130 – AF Cybersecurity Program Management AFI 33-360 – Publications and Forms Management AFI 36-2650 Maintenance Training AFMAN 33-363 – Management of Records AFPD 17-1 – Information Dominance and Cyberspace Governance and

Management CNSSI No. 4005 – (FOUO) Safeguarding Communications Security

(COMSEC) Facilities and Materials CNSSI No. 4016 – (FOUO) National Policy Governing the Acquisition of

Information Assurance (IA) and IA-Enabled Information Technology (IT) Products

DoDI 8500.01 – Cybersecurity DoDI 8420.01 – Commercial Wireless Local-Area Network (WLAN)

Devices, Systems, and Technologies DoDI 8520.02 – Public Key Infrastructure (PKI) and Public Key (PK)

Enabling DoDI 8540.01 – Cross Domain (CD) Policy DoDI 8520.03 – Identity Authentication for Information Systems DoDI 8551.01 – Ports, Protocols, and Services Management (PPSM) DoDI 8580.1 – Information Assurance (IA) in the Defense Acquisition

System DoDD 8570.01 – Information Assurance Training, Certification, and

Workforce Management DoD 8570.01-M – Information Assurance Workforce Improvement

Program CJCSI 6510.01F – Information Assurance (IA and Computer Network

Defense (CND) CJCSM 6510.01A – Information Assurance (IA) and Computer Network

Defense (CND) Volume 1 (Incident Handling Program) DoDI 8510.01 – Risk Management Framework (RMF) for DoD Information

Technology DoD 4140.01 -DoD Supply Chain Materiel Management Policy Financial

Improvement and Audit Readiness (FIAR) Chief Financial Officers (CFO) Act Defense Logistics Management Standards (DLMS) Item Unique Identification (IUID)/Unique Item Identifier (UII) Procurement Request Data Standard (PRDS)/Procurement Document

Standard (PDS) Treasury Financial Manual (TFM)

7. SECURITY

The Contractor performing work under this contract must comply with all applicable security requirements. Contractor personnel must have at a minimum a favorable Tier 1 Investigation prior to network access and issuance of a CAC. All requests for Interim Tier 1 Investigation and CAC waivers will be handled IAW the current governing policy in place at time of request. Contact the AFLCMC/GB (WP) Security Office Security Manager (SM) for the current governing policy.

Contractors necessary to perform software development of MRO and MRO-S and/or work inside the DISA hosted environments will be required to have IT Level II access. IT Level II access requires a favorably adjudicated Tier 3 Investigation. Contractor personnel required to obtain IT Level II access are required upon contract award.

Only those contractors necessary to perform database/application administration of MRO and MRO-S and/or work inside the DISA hosted environments will be required to have IT Level I access. IT Level I access requires a favorably adjudicated Tier 5 Investigation.

Contractor personnel required to obtain IT Level I access are required upon contract award.

See AFI 16-4505, Personnel Security Program Management, Wright-Patterson AFB Supplement 1 for more information regarding security investigation and clearance requirements.