Safety and Ground Rules Where is the first aid kit? Where are the exits? Where do we assemble if ordered to evacuate the building? Where is the nearest fire extinguisher? Where are the restrooms? Cell phone to vibrate or off. Sometimes it is hard to resist flipping the switch just to see what happens……. Sometimes change happens. Competitive Sourcing Wildland Fire and Aviation Star Trek “First Contact” 1996 Resistance is Futile You Will Be Assimilated The battle to save the future has begun FY 2006 Aviation and other airborne activities. FY 2007 Dispatch/Coordination System. Fire and Aviation Training. FY 2008 Fuels Management Program. FY 2009 Safety and Occupational Health. Including fire and aviation safety. Fire Preparedness Program. Includes initial attack. Type of Study Feas. FTEs Feas. Start Date 500 10/05 Feas. End Date 03/06 Study Start Date TBD Loc. (State) S-Wide* Type FTEs of Study Feas. 300 Feas. 300 Feas. Start Date 09/06 03/07 Feas. End Date 03/07 09/07 Study Start Date TBD TBD Loc. (State) Type of Study Feas. FTEs Feas. Start Date 09/07 Feas. End Date 03/08 Study Start Date TBD Loc. (State) Type of Study Feas. FTEs Feas. End Date 03/09 Study Start Date TBD Loc. (State) 150 Feas. Start Date 09/08 Feas. 500 11/08 05/09 TBD S-Wide* 500 S-Wide* S-Wide* S-Wide* S-Wide* Part 1 – Forces of Change for Fire & Aviation Mgt. a. b. c. d. e. FAIR Act inventory Competitive Sourcing IFPM Foundational Doctrines Fire Planning Analysis Program Part 1 – Forces of Change for Fire & Aviation Mgt. FAIR ACT: – The Federal Activities Inventory Reform (FAIR) Act of 1998 requires each head of an Executive Branch agency to maintain an inventory of commercial activities. – The inventory is used to select activities for competition. – The Act requires competitions. CAUTION There will be a test! (The answer is Eisenhower but don’t tell anyone else but you and me) Part 1 – Forces of Change for Fire & Aviation Mgt. Competitive Sourcing: – (CS) is one of five of the President's Management Agenda (PMA) items. – CS is implemented through OMB Circular A-76 (revised 5/2003). Part 1 – Forces of Change for Fire & Aviation Mgt. – The 2004 revised A-76 emphasizes competition over the longstanding general principle of reliance on the private sector to perform commercial functions. – This was a big change….. Part 1 – Forces of Change for Fire & Aviation Mgt. – The new emphasis is on selection of the best service provider, public or private, as determined through competition. – This allows for Government and Private competitions of individual commercial activities, and produces the best overall (mix) program for the Government and the public. Part 1 – Forces of Change for Aviation Management Foundational Doctrines. – “Solid foundational doctrine will provide a filter through which our executive leadership team can view all aspects of the FAM program, and provide an anchor for their decisions.” Part 1 – Forces of Change for Fire & Aviation Mgt. Fire Planning Analysis Program: – Meet multiple fire management objectives as the decision criteria. – Display the most cost effective organization for any budget allocation. – Will display tradeoffs between meeting resource objectives for any given budget. Part 1 – Forces of Change for Fire & Aviation Mgt. Planning: – FPA produces the best “interagency” organization at any given budget level. – CS will maintain the capability of the FPA but may change the mix of Locations / FTEs / Equipment. (Ex: 3 engines for 1 helicopter) Part 1 – Forces of Change for Fire & Aviation Mgt. IFPM – Competency descriptors for key positions. – Minimum qualification standards. – Supplemental Standards for the GS-401 series, the selected series for professional fire management positions. FAIR Act Fire Planning Analysis Competitive Sourcing FAM MANAGERS Foundational Doctrines IFPM FAIR Act Exhibit 300 Funding Submission Competitive Sourcing NFAEB / NIAC Strategic Plan AVIATION MANAGEMENT Aviation Foundational Doctrine Fire Planning Analysis Program IFPM Part 2 - Understanding Process Understanding the Differences between: a. b. c. Privatization versus Outsourcing versus Competitive Sourcing Part 2 - Understanding Process Privatization – Privatization is the government exiting from a business line, selling the assets and no longer responsible or in control of the work or the goods to be delivered. – There is no government versus private sector competition in this process. – We are not using the privatization process. Part 2 - Understanding Process Outsourcing. – Outsourcing is not competitive sourcing. Outsourcing is when the government buys a product or service from the private sector. This is often for common products and services. – Example: making light bulbs & non-profits. – We are not using the outsourcing process. Part 2 - Understanding Process Competitive sourcing. – CS requires public and private sector competition to improve value. – CS is applied to commercial activities (FAIR Act) – CS can result in performance by the Public Sector (Agency or reimbursable provider) or Private Sector (taxable or non-profit). – There are no FTE reduction goals in the CS process, (there may be FTE increases or reductions based on the outcome of the competitions). Part 2 - Understanding Process We are using the competitive sourcing process as directed in Circular A-76. What is the answer to the test? WHY? Part 2 - Understanding Process Competitive Sourcing –Identifies the scope of work to be competed (Preliminary Planning) –Defines the work to be done (Performance Work Statement) Part 2 - Understanding Process –Develops how the work is to be done (Agency Tender and Proposals) –Compares proposals and tenders to determine savings (Technical and Price Evaluation) Part 3 – The Process a. b. c. The FAIR Act Inventory The Feasibility Study The A-76 Process FAIR ACT Part 3 – The Process FAIR Act inventory definitions “IG” – Inherently Governmental is a function that is so intimately related to the public interest as to mandate performance by Government Employees such as governing monetary transactions and entitlements (awarding contracts) or enforcing the CFRs (law enforcement). Part 3 – The Process FAIR Act inventory definitions “Commercial Code A” Indicates that the commercial activity is eligible, but not appropriate for private sector performance pursuant to a written determination by the CSO. Part 3 – The Process FAIR Act inventory definitions “Commercial Code B” The commercial activity is suitable for a streamlined or standard competition. Part 3 – The Process Does it matter which code you are in the FAIR ACT inventory when the Commercial Activity is identified for feasibility studies? NO – the entire business unit is studied. Inherently governmental and other “residual” activities are initially included in the study. FEASIBILITY STUDIES Part 3 – The Process The Feasibility Study is a tool for preannouncement A-76 study planning, which establishes logical study parameters and a solid foundation for executing an A-76 study. – The Feasibility Review presents a full set of recommendations on the scope of the study, mission impacts and risks, the estimated savings, study type and proposed timeline. – Feasibility Study is often not releasable because it is a Procurement document Part 3 – The Process Management is conducting feasibility studies to develop a fair and effective method for the competitive sourcing of the identified commercially available functions that would provide a good return on investment. Are you in the telephone book? Can another agency do the job? Part 3 – The Process The studies ask the following types of questions: – Is there a market in the private sector for the activity? If so, would potential bidders be interested? – What is the potential for future savings? – Is the work in scope severable from other activities? Part 3 – The Process Depending on the answers to the questions it may be determined that particular fire & aviation activities or functions are not good candidates for competition. Part 3 – The Process In other words……. A Feasibility Study can stop a competition, IF it determined by the team that: - It is a skill we need in Government - There are no obvious savings - A reorganization is recommended before proceeding (ASC) – OR - Part 3 – The Process A-76 Business Process Reengineering High Performing Organization As Is Other Mix Part 3 – The Process In the case of the Aviation Program: – Aircraft – Pilots – Airtanker Bases – Helicopter Program Managers (HIPS / HOS) – Helicopter Crews – Smokejumper Program – Infrared Program – Leadplane / ASM Program – Non-Fire Aviation Linked Programs Part 3 – The Process Support Components – Contracted Aircraft – Contracted Personnel – Facilities – WCF Program including Maintenance Inspectors. Part 3 – The Process Remember! A Feasibility Study can recommend: – – – – – An A-76 Competition Business Process Reengineering (BPR) High Performing Organization (HPO) To remain As Is (AI) Or a combination of the above or Other A-76 COMPETITIONS Part 3 – The Process A-76 Process Once the Feasibility Study has identified an area to be competed; Preliminary planning is completed to allow for the public announcement. Part 3 – The Process A-76 Result – Competition between the Agency, public reimbursable sources (other agencies), and private sector (taxable or nonprofit) A-76 Streamlined Process Preliminary Planning Make Public Announcement (Start Date) 65 FTEs or Less / 90-135 Days Develop Cost Estimate Make Performance Decision (End Date) Perform Post Competition Accountability Award Contract OR Issue Agreement A-76 Standard Process Preliminary Planning Make Public Announcement (Start Date) Develop And Issue Solicitation Receive Offers And Tenders Perform Source Selection Develop Offers And Tenders Make Performance Decision (End Date) Any size / 12-18 Months Perform Post Competition Accountability Award Contract OR Issue Agreement Part 3 – The Process If the A-76 process and subsequent competition only produces one bid, that being the Government, the Agency will require a determinations as to why and either resolicit or implement the MEO (recognizing that the average efficiency and / or cost savings is 20 to 30 percent). Part 4 – By Example FIREWALLS – Input yes! – Rumor NO! – Specific Information – No as too much distribution of specific plans can be “accidentally” leaked to potential contractors or the media. – TRUST YOUR SUBJECT MATTER EXPERTS! Part 4 – By Example Some things to think about… Part 4 – By Example The Fire Planning Analysis Program has removed interagency boundaries so that all federal fire resources are taken into account for initial attack. Q? Does the “standard” mix of crew, engine, aircraft and other contractors meet this new challenge or can we use the A-76 process to improve? Part 4 – By Example In 2004, a relatively statistically normal aviation use year nationally, we spent $124,598,099.10 for aircraft. We spent approximately $13,500,000 on personnel and support costs. If we create a 10% efficiency savings through this process the aviation program will have saved 14 million dollars. Part 4 – By Example Can we use the A-76 process to identify faster pressurized aircraft with larger capacities to consolidate smokejumpers / helitack into a More Efficient Organization? Part 4 – By Example Using the MEO process could we identify a standard helicopter platform for each type? And then tie it to an Exhibit 300 for Funding? Part 4 – By Example Over 96% of our aviation activities are already contracted. Should we look at reverse A-76s (that is look at what is being contracted now that may come into Government operation and ownership?) Helicopters? Airtankers? ATGS Aircraft? If a significant cost savings can be shown then.. Part 4 – By Example Part 4 – By Example What about the contracting process? Many forests contract for the same type of aircraft as the next forest (ATGS Platforms – etc.). Can a cost savings be found by consolidating contracting Regionally? Nationally? By Contracting with another Agency? Dispatchers – Do they have to see the smoke? What about India National Call Centers…… Part 4 – By Example What about the Organization? Dispatchers – Do they have to see the smoke? What about India National Call Centers…… Do pilots have to be located everywhere? Can one Fire Director direct more than one geographic area? Can there be a Hot Shot Town USA? Part 5 Current Information The Aviation 50 SMEs met for a week and produced: – An As Is document for each area – A To Be draft for each area – Identified a common Function list for each position – Identified 897 positions to study (about 500 FTEs total). Part 5 Current Information Each attendee got a letter The Contractor is working on a presentation product for the Team And a communication plan with Rose Davis at NIFC Part 5 Current Information The next step is identification of 5 Line Officers who will sit opposite of the 5 SMEs and review the data and follow the Office of the Chief Financial Officer’s letter of direction for the completion of a Feasibility Study in the Forest Service. This will take 6 months. Out of the box is now the edge of the box! Bob Kuhn (801) 725-5988