AF Life Cycle Management Center Budget Topics Rob

AF Life Cycle Management Center Budget Topics Rob Lymangrover AFLCMC/FZA 28 Mar 2019 Providing the Warfighter’s Edge

Agenda AFLCMC… Providing the Warfighter’s Edge • AF Macro Budget Perspective • Civilian Pay and Direct Cite Authority • Future LCMC DEAMS Transition • Centralized Asset Management • Unliquidated Obligation Management • Upward Adjustment Requests • Mentorship Thoughts • Summary 2

Macro Do. D Budget Summary AFLCMC… Providing the Warfighter’s Edge Info from FY 19 Defense Budget Overview, 13 Feb 2018 https: //comptroller. defense. gov/Portals/45/Documents/defbudget/fy 2019/FY 2019_Budget_Request_Overview_Book. pdf 3

Macro Do. D Budget Summary FY 19 Fiscal Environment AFLCMC… Providing the Warfighter’s Edge • Previous AF ~$2 B ATR halted due to uncertainty wrt plan to fund administration’s priorities • No planned future FY 19 ATR requests (at this time) • Significant AF FY 19 UFRs • LCMC cash flowed high priority UFRs (BPC OCO, Afloat, etc. ) and now being asked to internally source • Do not anticipate add’l funds from SAF or OSD…seek ways to internally solve issues / problems 4

Macro Do. D Budget Summary Personnel Costs AFLCMC… Providing the Warfighter’s Edge “Comprising roughly one-third of the Do. D budget, military pay and benefits are, and will likely always be, the single largest expense category for the Department. Total compensation funding, including civilian personnel, consumes nearly half of the budget. People are the Department’s most valuable asset, but Do. D must continually balance these requirements with other investments that are critical to achieving the Department’s strategic goals. ” • We understand challenges associated w/ lack of manpower to execute acq programs • Strategic AF and Do. D imperative balancing personnel w/ modernization & readiness • LCMC continuing to advocate for add’l funding/authorizations 5

LCMC Civilian Pay Complexity AFLCMC… Providing the Warfighter’s Edge AMR Direct Cite RDT&E Acq Wkfc FMS (Admin & Direct Case) Other (F-35, O&M, & RBA) LCMC Civilian Pay • • RDT&E Acq Workforce– 8 Programs Elements ~$1. 3 B & ~9700 authorizations AMR Direct Cite– Weapon System PE RDT&E or O&M funded ~720 authorizations YTD Foreign Military Sales-- ~$0. 3 B & ~2700 authorizations Other includes +1 K authorizations (F-35, LCMC/PZI, DLA RBA, etc. ) 6

Life Cycle Management Center DAF Civilian Workforce AFLCMC… Providing the Warfighter’s Edge O&M Funded (FY 17 & Prior) • O&M funded civilian pay in FY 17 & prior years RDT&E Funded & Initiate AMR* (FY 18) AMR Direct Cite (FY 19) • Transitioned civilian pay • Fully implement AMR (FY 19 PB approved) to RDT&E (8 LCMC PEs) • Begin AMR – Programs can “buy down acquisition program risk” by BTR’ing RDT&E funding from weapon system PE to one of 8 centralized civ pay PEs – Initiated AMR gov. structure to ensure Lead MAJCOM transparency and spt Explore Options for Future as Req’d FY 21 and Beyond • Evaluate WCF/other options as required • Weapon system PE direct cite construct – Maintains 8 centrally funded RDT&E civ pay PECs – Provides add’l flexibility to utilize program funds for civ pay to buy down program risk (no BTR) – Continue AMR gov. structure to ensure Lead MAJCOM transparency and spt • Positive Congressional engagement – Congress supported via FY 19 PB RDT&E Civ Pay and AMR, Includes All Acq Centers– LCMC, SMC, and NWC * AMR = Agile Manpower Resourcing — Fund Requirement — “Super” Direct Cite — Other fee approaches

Acquisition Workforce Program Elements AFLCMC… Providing the Warfighter’s Edge • FY 18 O&M to RDT&E transition – – Acq workforce visibility and stability Budget flexibility (8 PEs = ~$10 M flex in X 8) Consistent funding approach across all acquisition Centers (SMC, NWC, & LCMC) Enabler for future AMR direct cite implementation • Challenges exist wrt managing eight separate PEs • Evaluating PE consolidation as part of FY 21 POM iaw SECAF PE consolidation tasking 8

Direct Cite Authority Process AFLCMC… Providing the Warfighter’s Edge Annual Aggregate MAJCOM Requests Out of Cycle Requests) LCMC/DP tasks Directorates Notify LCMC/DP/XP/FM of Rqmt Directorates Submit Rqmts to DP w/ Funds Availability Validation Center Validates Rqmts & Leadership Determines Rqmts to Submit to Each MAJCOM Center Validates Rqmts AFLCMC/CA Sends Request to Lead MAJCOM Directorate Leadership Completes e. SSS and Obtains Lead MAJCOM Agreement Lead MAJCOM Approves AFMC Approves & Builds Non-FYDP Positions Funds Suballotted to OBAN LCWB LCMC/FZA Places WS PE LOA into DCPS LCMC/FZA Reports Execution to Programs Notes: Only major process steps shown. Modified process exists for SAPs (not shown on this chart). AFMC Approves & Builds Non-FYDP Positions Funds Suballotted to OBAN LCWB LCMC/FZA Places WS PE LOA into DCPS LCMC/FZA Reports Execution to Programs 9

AMR Direct Cite Civ Pay Execution in CCa. RS AFLCMC… Providing the Warfighter’s Edge • Understand the rqmt to show Direct Cite civ pay execution within program CCa. RS budgets • IDS developing training materials which will be provided shortly– IDS personnel should be able to support/train now • Summary of CCa. RS process for Direct Cite civ pay reporting – – – • Programs create new “Direct Cite Civ Pay” budget in CCa. RS Programs create new “Direct Cite Civ Pay” CCa. RS record Programs add funding source in the Program Tool Programs implement Civ Pay Auto-Recon feature w/ support of CCa. RS SMEs Programs link new funding source to BMR composite budgets Civ Pay Auto-Recon feature requires program office FMs (with support of CCa. RS SMEs) to manually backfill “documents” one time – After manual backfill is completed once, the subsequent “documents” with the same “document number” (related to civ pay EEICs) will automatically backfill – Cca. RS Auto-Recon feature ignores civ pay accruals…that is a good thing • Detailed training is forthcoming 10

LCMC DEAMS Transition AFLCMC… Providing the Warfighter’s Edge • • LCMC originally scheduled to deploy DEAMS in FY 16 Decision made in 2015 to delay LCMC DEAMS deployment until acq rqmts met AFLCMC programs within Business Enterprise Systems (Maxwell & WP), Battle Management (Offutt), and C 3 I&N (Lackland) using DEAMS since 2016 Two major aspects of DEAMS transition– (1) new business system and (2) new Standard Financial Information Structure (SFIS) 11

DEAMS “Tone from the Top” AFLCMC… Providing the Warfighter’s Edge n Auditability q “Our legacy systems are just not able to be audited to the level required of generally accepted accounting principles” n Technology Advancement Dr. Heather Wilson SECAF David L. Goldfein General USAF q “DEAMS allows us to consolidate older systems and keep you on the cutting edge of business technology” n Enhanced capability q q John P. Roth SES USAF “DEAMS can do things that our legacy systems cannot do” “Weapons get upgraded, why shouldn’t our financial systems” 12

DEAMS Air. AFLCMC… Force’s Way Forward Providing the Warfighter’s Edge DEAMS provides the architecture to overcome audit deficiencies ü Auditable ü Accurate ü Single-Entry ü Standardized ü Sustainable ü Timely ü Reliable DEAMS Form creation; approval routing; accounting transactions (payables, receivables, travel, civ pay), including for and by others; payment processing; target loads; General Ledger updates; prior year adjustments; Posts Interfund transactions 13

DEAMS Deployment Schedule AFLCMC… Providing the Warfighter’s Edge FY 19 FY 20 MAR OCT APR ~. 8 K ~. 9 K ~ 1. 4 K INCREMENTALS MAJCOM COMPLETION R 12 Upgrade – FY 19 FY 21+ Tenants at: Eglin Hill Kirtland Patrick Peterson Robins Schriever Tinker Wright-Patt DFAS-CO AFSPC Incr Buckley Los Angeles Patrick Peterson Schriever Vandenberg AFGSC Incr AFMC Incr Arnold Edwards Eglin Hanscom Hill Robins Rome Tinker Wright-Patt Kirtland DFAS-CO ~ 4. 1 K CONTINUOUS CAPABILITY DEVELOPMENT Acquisition Labs/Ranges Eglin Hanscom Maxwell-Gunter Kirtland Tinker Wright-Patt Sustainment Hill Robins Tinker AFOSR Arnold Edwards Eglin Kirtland Rome Other AFRLs AFIPPS All MILPERS users DFAS-CO Currently Deployed to ~14, 700 AF & DFAS users at 155 installations For Official Use Only 14

DEAMS Deployment Activities AFLCMC… Providing the Warfighter’s Edge D– 210 D– 180 D– 150 D– 120 D– 90 D– 60 D– 30 D+60 Change Communications Weekly Site Readiness Meetings Deployment Notification Cutover Activities SAF/FMF notification to MAJCOM FM; identification of Base POCs underway End User Registration Request end user data for user registration into DEAMS; data will be used throughout the pre-deployment process to Go Live GO LIVE! Execute cutover activities between site, MAJCOM, AFAFO, DFAS, interface partners and other representatives User Accounts End User Registration Process Continues End user data bulk load into DEAMS Town Hall Meetings Site Profile/FFQ Kick Off Provide base-level POCs with DEAMS requirements and request site profile information and Financial Factfinding Questionnaire Provides future DEAMS users with information to help prepare them for the changes ahead End User Training Prepare the workforce with the knowledge and skills required to use DEAMS with Instructor. Led Classroom Training’ ECD 31 May Post-Deployment On-site Go Live Support, On-the-Job Training, sustainment activities. & Post-Deployment Survey 15

CCa. RS and DEAMS Overview AFLCMC… Providing the Warfighter’s Edge PM, PEO, SAF/AQX, & SAE program / portfolio management & decision support DEAMS and CCa. RS dual interface required to transfer data • Planning – – • Management & Reporting – – • Rqmts Mngt / Prioritzation Unfunded Rqmts & Impact Statements Obl & Exp Forecasting FYDP Budget Planning Snake Charts & Event Timelines SAF/AQ MAR Reporting Should Cost & Small Business WML, AML, & IML • Financial execution – – • Reporting – • Manual funds loading Requisitions Status of funds reports Official accounting system Financial execution – – TLS & BQ automated funds loading Requisitions MIPR Checklist & New Start Validation Form Conwrite Interface 16

DEAMS Communication & Education AFLCMC… Providing the Warfighter’s Edge • DEAMS Outreach Portal: http: //go. usa. gov/x. RPxd q Announcements (Help Desk, DEAMS) q Active User support (DEAMS Answer Bank, forms, tables, tools, etc. ) q Communications Library (Fact Sheets, DEAMS News) q Education & Training Corner (Job Aids, ad hoc training, continuing education, etc. ) • mil. Book/DEAMS Users Group: http: //go. usa. gov/Z 3 u. A • Base Town Halls • DEAMS Monthly Users Forum • DEAMS Discoveries (Lessons Learned, Live Wire recognition, etc. ) • Strategic Communications Mailbox: F. DEAMS. Strat. Comms@us. af. mil Two-way communication between the FMO and the user helps increase understanding of the system 17

Agenda AFLCMC… Providing the Warfighter’s Edge • AF Macro Budget Perspective • Civilian Pay and Direct Cite Authority • Future LCMC DEAMS Transition • Centralized Asset Management • Unliquidated Obligation Management • Upward Adjustment Requests • Mentorship Thoughts • Summary 18

Centralized Asset Management Mission, Vision and Governance AFLCMC… Providing the Warfighter’s Edge Governance Structure CAM Mission Centralize and integrate management of AF sustainment to optimize warfighting capability through effective and efficient allocation of resources across the enterprise. CAM Vision Enterprise Perspective. . . Warfighter Focus! CAM Executive Committee (EC) Co-Chairs: AFMC/CD, SAF/FMB, AF/A 4 Mbrs: AF/A 2 R, A 8 P, A 3 O, A 4 L, A 4 P, A 5 X, REC, SAF/AQD, AQXR, ACC/CD, AETC/CD, AFGSC/CD, AFRC/CD, AFSOC/CD, AFSPC/CD, AMC/CD, ANG/CD, PACAF/CD, USAFE/CD, AFMC/CA, Advisors: AFSC/CC, AFLCMC/CC, AFNWC/CC CAM Executive Steering Group (ESG) Chair: AFMC/CA Mbrs: AFMC/A 1, A 2, A 3, A 4, A/5/8/9, FM, EN, PK; 2 -Ltr Equiv’s (A 2, A 3, A 4, A 6, A 8, A 10, FM) from MAJCOMs, AFRC, ANG, AFFSA; 3 -Ltr Equiv’s from Air Staff; Weapons System PEOs; OC/OO/WR Air Logistics Complex Commanders CAM Advisory Council (AC) Co-Chairs: AFMC/FMM & A 4 F Mbrs: 3 -Ltr Equiv’s (A 2, A 3, A 4, A 6, A 8, A 10, FM) from MAJCOMs, AFRC, ANG, AFFSA; 4 -Ltr Equiv’s from Air Staff; Program Office PMs/PSMs; AFSC/LG; AFNWC/LG; AFLCMC/LG; Service Core Function Representative **Note: One vote per MAJCOM at each tier 19

Unliquidated Obligation Management AFLCMC… Providing the Warfighter’s Edge • Managing contract funding through contract closeout is a program office IPT responsibility– includes teaming / collaborating w/ DCMA and DCAA • Question to consider: Does your program office have a list of all open contracts w/ assigned PM, FM, PK, etc. POCs? • LCMC understands focus on executing active year funding and manpower constraints • ULO Management (to include Cancelling Year ULOs) Process: Is Accounting System Accurate? • BQ / CRIS reconciled w/ actual invoices • Understand ULO in relation to CLIN / ACRN • Utilize tools such as CCa. RS contract module or CLIN / ACRN matrix Is Supply / Service Complete / Delivered? • Confirmation from contractor & gov. PM that supply / service is complete • Validated by DD 250 receiving report Has Contractor Invoiced for Completed Work? Has DFAS Paid Contractor? • Engage w/ contractors concerning timely invoicing • Research WAWFs • Validate via AEU in BQ / CRIS • Verify DFAS paid invoice correctly & iaw contract payment instructions DCMA & DCAA Contract Closeout Activities • Support DCAA w/ final indirect rates • Support DCMA in contract closeout activities 20

Cancelling Year ULO Analysis AFLCMC… Providing the Warfighter’s Edge • Majority of Cancelling Year ULO risk does not materialize as Cx. C bill • Majority of Cancelling Year ULO risk results in deobligation after funds cancel • AF view both Cx. C invoices and excess funding (deobligations after expiration/cancellation) as lost buying power • Analyze Cx. C invoices and post expiration / cancellation deobligations to determine root cause & corrective actions 21

Upward Adjustment Requests Purpose / Justification AFLCMC… Providing the Warfighter’s Edge • Clearly state type of UOA being requested (e. g. Cx. C, incentive fee, etc. ) • Address purpose, time, and amount • Identify Po. P of the original effort • Cite law, regulation, AFI, or at a minimum AFMAN 65 -605 v 1 • If UOA relates to Cx. C invoice, then identify detail of the invoices (e. g. invoice number, amount, DMACT package number, etc. ) • Utilize UOA purpose templates! – https: //org 2. eis. af. mil/sites/21114/AFLCMC. FZA/FZAGuidebooks/Forms/All. Ite ms. aspx – Current for Cancelled – Award Fee Determination – Request for Equitable Adjustment – Cost Reimbursement Contract Overrun – Pension Harmonization Ruling 22

Upward Adjustment Requests Template Example (Award Fee) AFLCMC… Providing the Warfighter’s Edge Award Fee Determination: UOA request for execution of ($xxx, xxx. xx) of expired (FYxx) funding as a result of the (Period XX) award fee determination for the (effort) on (contract #/DO #). In accordance with AFI 65 -601 V 1 Ch 8, para 8. 3. 1 for procurement appropriations (or Ch 13, para 13. 3. 3 for RDT&E appropriations), “Award fee requirements are planned and budgeted for as part of the total weapon system cost. Award fees are a bona fide need of the same fiscal year and appropriation that finances the related effort on which the award fee is based. ” Award fee requirements must be budgeted for and funded with the same appropriation as the associated effort. For the award period (DD MMM YYYY through DD MMM YYYY), a (Xx. X%) award determination was made on a total award pool of ($xxx, xxx. xx) resulting in an award of ($xxx, xxx. xx). The work effort associated with the award was funded with (FYxx Approp. XX) funds. As such, funds were reserved via contingent liability on funding document (F 4 FDAM 0236 BY 01) in accordance with the AFI referenced above. Request authority to execute the reserved funds. Per AFI 65 -601 V 1 Ch 6, para 6. 3. 6. 1, this type of UOA is considered an ordinary adjustment. Original fund cite: 57 23010 112 4720 16 A 876 4 G 123 B 12345 F Source fund cite: 57 23010 112 4720 16 A 876 4 G 123 B 12345 F 23

Upward Obligation Adjustment Resources AFLCMC… Providing the Warfighter’s Edge • AFMAN 65 -605 V 1 Chapter 6 • FZA Share. Point (https: //org 2. eis. af. mil/sites/21114/AFLCMC. FZA/default. aspx) – FZA Guidebooks / Upward Obligation Adjustments (UOA) / Guidance (https: //org 2. eis. af. mil/sites/21114/AFLCMC. FZA/FZA%20 Guidebooks/Upward%20 Obligatio n%20 Adjustments%20(UOAs)/Guidance) • • FMSuite UOA Module DD Form 2875 UOA Purpose Template AFLCMC FM Process Guide – Upward Obligation Adjustment Requests AFLCMC UOA Module Training • FMSuite https: //fmsuite. af. mil/home – AFFSO help desk email: saf. fmpaffso. customerservice@us. af. mil – AFFSO phone: DSN 787 -3117 Com 937 -257 -3117 – AFFSO hours of operation: 0800 -1700 EST • POCs – Primary: Rebekah Buck, AFLCMC/FZAI, DSN 986 -5447 – Alternate: Cherrelle Flores, AFLCMC/FZAO, DSN 986 -5411

Mentorship Thoughts AFLCMC… Providing the Warfighter’s Edge • “FM earn their seat at the table” vs. “FM is the most valued member at the table” • Don’t only think of yourself as a Financial Manager…think of yourself as being responsible for executing your programs’ & the AF’s mission – FMs postured to bring integrated advice/decision support to program leadership – Integrated analysis related to rqmts, acq strategy, risk analysis, contract structure, logistics strategy, contract negotiations, cost savings initiatives, comm strategy, etc. is critical to program success – Caveat: You are a Financial Manager…focus on your FM responsibilities • Acquisition Financial Management is challenging! – Be resilient and stay positive – Try to minimize “us vs them” perspective • Focus on servant leadership and servant followership 25

Summary AFLCMC… Providing the Warfighter’s Edge • Thank you for all you do to support the AF mission • LCMC continuing to improve AMR Direct Cite processes • DEAMS is coming…deployment schedule is uncertain…working interface to leverage benefits of DEAMS and CCa. RS • Managing unliquidated obligations, minimizing Cx. C invoices, and minimizing deobligations after funds expiration/cancellation is critical to maximizing AF TOA • AFLCMC/FZA is a customer support organization…supporting LCMC PEOs, program offices, and 66 ABG…while teaming with external stakeholders 26

AFLCMC… Providing the Warfighter’s Edge Backup Charts 27

DEAMS Program Overview AFLCMC… Providing the Warfighter’s Edge DEAMS is the Air Force’s core accounting and finance system supporting: – – – • • Joint Commands, with Air Force as executive agent or supporting host base DFAS services provided to Air Force customers DEAMS serves as target core financial & reporting system for all other functional system development with financial or mixed financial transactional data DEAMS is currently deployed to 87% of the expected 16, 900 users – – n Air Force General Fund and Transportation Working Capital Funds (TWCF) control, Execution & Reporting ~155 Active Duty, Reserve, Air National Guard, and DFAS sites All MAJCOMS have users processing on DEAMS Other Organizations using DEAMS: § HQ USCENTCOM § § § AFCENT - AOR HQ USSOCOM HQ USSTRATCOM HQ USTRANSCOM DFAS Locations (5) 28

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