Financial Management Procurement Services FMPS Business Process Reengineering

Financial Management & Procurement Services (FMPS) Business Process Reengineering (BPR) Spring 2019 PDT Chesapeake, Virginia April 24, 2019 CAPT Brett Millican Financial Management and Procurement Services

Commandant Priority “Re-engineered business processes and procedures will reduce the administrative burden on field units, achieve economies of scale, and ensure enduring audit compliance through improved internal controls and accountability of resources. ” COMMANDANT’S STRATEGIC INTENT 2015 - 2019 Financial Management and Procurement Services

Program Overview Financial Management and Procurement Services (FMPS) modernization will shift the Coast Guard away from customized processes and workarounds to standard processes that will result in 1) compliance and 2) effective operational support. Business Process Reengineering (BPR) Team (Norfolk, VA, and our Field Liaisons) • • Implement regionalized financial management, procurement, and property support for field units Move de-centralized programs to the CG Business Model and Product Line principles Maximize opportunities for Strategic Sourcing Improve effectiveness, efficiency, stewardship of resources Data Strategy Team • • Plan the migration of financial, procurement, and asset data to the new service Move the CG to project based accounting and new accounting classification structure Meet DATA Act requirements Develop key interfaces: e-Travel, CG-LIMS, Direct Access, MISLE Financial Management Service Improvement Initiative (FMSII) • Financial and Procurement Desktop (FPD) non-compliant, unsustainable, inefficient • Acquire integrated financial, procurement, and asset management system as a service Financial Management and Procurement Services

Way Forward – Implementation As of 10 Sep 2018 FY 18 Q 1 O N Q 2 D J FY 19 Q 3 F M A M Q 4 J J A Q 1 S O N Q 2 D J F FY 20 Q 3 M A M Q 4 J J A Q 1 S O N D Value Stream Mapping – Alignment of Property/P&C/FM - Intersections SLA/FW BPR Rollout District 1 D 5 Retrofit District 7 District 8 D 13 Retrofit District 17 District 14 = BPR “go live” NLT Dates FMSII Go-Live (Oct 2020) = completion date (tbd for VSM - updated after VSA meeting for VSM) Financial Management and Procurement Services 4

Framework - Catalog of Services Redefines how services are requested/provided: • Financial Management • Property/Asset Management • Procurement and Contracting • Contingency Support Financial Management and Procurement Services

Regional Support Teams (RSTs) Functional Service Lines Financial Management (FM) Property/Asset Management Budget Procurement & Contracting (P&C) Staffed by Comptrollers, CWOs (F&S), SKs, SFCOs & Civilian Counterparts from units having personnel primarily performing duties in one of the 3 service lines Accounting Financial Management and Procurement Services 6

Service Level Agreement (SLA) Supported Units (SU) ➢Funds Ownership ➢Determine & Communicate need Regional Support Team (RST) ➢Management ➢Execution Financial Management and Procurement Services

BPR Benefits • • • Reorganize the FMPS workforce into Regional Support Teams for optimal efficiency, workload balancing & mentoring/pro-dev Reduce the admin burden on non-FMPS professionals Develop Process Guides Establish Subject Matter Experts across the three Service Lines Promote CG Common Core use Prepare the service through training and education for the implementation of FMSII/FSMS in OCT 2020. Duty SK Contingencies/ICS Challenges/changes: • 75/25 split; unit identity • Rotating E-6 and below • BPR does not fix everything that many want to see changed • Reservists • Other units – Area units, Training Centers, etc Financial Management and Procurement Services 8

Questions? Financial Management and Procurement Services 9

Back-up Slides Financial Management and Procurement Services 10

BPR Operational Success - Executed D 9 | Hurricane Irma & Hurricane Maria 29 SEP 17 – Closeout: RST surged to release $587 k from D 7’s obligations (within 1 hour & remotely from D 9). (Result = Funds immediately available for operational execution. ) SEP-OCT 17 – Contingency Response: RST utilized for CBLs, Fuel Card Assist & to Issue, Obligate, & De-obligate Travel TONOs. (Result = Increased logistic response. ) Pending Approval – OCT 17: RST utilized to relieve IMT purchase burden. Entire Detroit Micro Purchase Team, Remote Assist (Result = Faster Goods/Services Delivered. ) Financial Management and Procurement Services 11

BPR Operational Success D 9 | Hurricane Irma & Hurricane Maria OCT 17 – Contingency Response Property: RPSO+ surged to Puerto Rico for 100% Cap & GPP Accountability. Utilize RPSO authority ($50 k), BPR Standardized Processes & RST Staff Remotely. (Result = Relieve Operational Units from Property Admin Burden. ) OCT 17 – Contingency Response Finance: RST Staff postured to reconcile $20 M in Hurricane Travel Obligations and Purchases remotely from D 9. (Result = Relieve Operational Units from Financial Admin Burden. ) OCT 17 – Post Contingency Response Procurement: RST Staff standing by for post IMT watch procurement assist. (Result = Relieve Operational units from “procurement catch-up” burden & return to normal operations. ) Financial Management and Procurement Services 12

Course of Actions Presented to Leadership Council Oct 2017 *#1 (Base) Billets Shift to DCMS (Base) PAL *Recommended in accordance with current charter* #2 (Hybrid) Billets for Reconciliation & Property Shift to DCMS (Base) PAL P& C centralized w/in Sector/Air. Sta • PAL changes done via PAL changes done for district-by-district/RST OMR reconciliation & property functions only • Billets will start as detached duty billets • BPR SABs allocated to Lead remaining at current unit Bases as RPSOs reporting to Base RST • P&C functions are pending further analysis regionally centralized at Sector, Air. Sta, and Base • Not all SK billets are impacted (No change for SKs • COA 2 A: Position Backfills working in shipping and receiving, mailroom & Air. Sta parts management. Financial Management and Procurement Services #3 (Unit) Billets Remain on Unit PAL Reflects current BPR Operations but following D 9/D 11 model • No PAL changes • Team is a “virtual” one, blended of SKs from District, DCMS, and FORCECOM units • Many SKs have FMPS & non. FMPS bosses in separate locations • COA 3 A: Source Bases (~ 30 billets) – recommended by Sector/Base COs #4 (pre-BPR) Return to pre-BPR State • Undo all BPR efforts to date and disband BPR team • Focus on new system and associated preps