Gaining Efficiencies: New Initiatives in ecommerce

Transcription

1 Gaining Efficiencies: New Initiatives in ecommerce Don Gullett Chief, Accounts Payable Operations, Defense Agencies & USMC Defense Finance and Accounting Service April 6, 2011

2 Agenda Systems and Customers Outputs and Billings Current Status Dollars & Cents Initiatives Potentials Integrity - Service - Innovation 2

3 Systems and Customers CAPSW Computerized Accounts Payable System Windows Army, Defense Agencies, National Guard IAPS Integrated Accounts Payable System Air Force STARS Standard Accounting and Reporting Systems (aka OnePay) Navy MOCAS Mechanization of Contract Administration System All Services and Defense Agencies WAWF Wide Area Workflow All Services and Defense Agencies SPS Standard Procurement System All Services and Defense Agencies Integrity - Service - Innovation 3

4 Outputs and Billings FY11 Vendor Pay 09 Manual invoice 29 Invoice received electronically 39 Purchase card 49 Hands free 19 DLA manual invoice 30 DLA electronic invoice 31 SAVES invoice 32 FABS invoice $ (LOA) $ (LOA) $ 6.25 (LOA) $ 4.89 (LOA) $ (invoice) $ 1.37 (invoice) $ 2.83 (LOA) $ 4.77 (LOA) Contract Pay 06 Manual invoice 26 Invoice received electronically 36 API (Automatic Payment Indictor) $ (LOA) $ (LOA) $ 9.63 (LOA) ERP 11 DBH (Direct Billable Hour) $ (hour) Integrity - Service - Innovation 4

5 Vendor Pay EC/Hands-Free Processing FY11 YEAR TO DATE ANALYSIS FY11 YTD (Actual) Manual Partial EC EC Hands Free 09 - Commercial Pmts 30 - DLA AVEDS Baseline 19 - DLA AVEDS % 29 - Commercial Pmts 31 - DECA (CONUS) % % 31 - DECA (OCONUS) 32 DITCO (DTI) Transactions 32 - DITCO 39 - Govt Purchase 49 - Commercial Pmts Commercial Pmts 1,463,827 57% 540,667 21% 557,769 22% DLA AVEDS 17,994 43% 23,645 57% DITCO FABS 171,381 97% 6,208 3% DECA 9,811 2% 630,341 98% Govt Purchase 316, % Vendor Pay Total 1,663,013 45% 540,667 14% 1,534,757 41% FY11 YTD (Actuals taken from Workcounts as of Jan-11) Partial EC 14% Vendor Pay FY11 YTD EC 41% Manual 45% MONTHLY ANALYSIS DOD Vendor Pay Hands-Off YTD Actual/Budget/Goal 50% 40% 30% 20% 10% 0% 40% 41% 42% 40% Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Monthly Act OSD GOAL (43%) Outputs 30, 31, 32,39, 49 Integrity - Service - Innovation 5

6 MOCAS EC/Hands-Free Processing FY11 YEAR TO DATE ANALYSIS MOCAS FY11 YTD FY11 YTD (Actual) Manual Partial EC EC Hands Free Baseline 06 - Contract Pmts % 26 - Contract Pmts % 36- Contract Pmts % Partial EC 32% EC 11% MOCAS 388,966 57% 221,458 32% 74,116 11% FY11 YTD (Actuals taken from Workcounts as of Jan-11) Manual 57% MONTHLY ANALYSIS DOD MOCAS Hands-Off YTD Actual/Budget/Goal 50% 40% 30% 20% 10% 0% 11% 10% 11% 12% Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Monthly Act OSD GOAL (12%) Output 36 Integrity - Service - Innovation 6

7 DOD Vendor Pay Workcounts (9/29/39/49) DoD Workcount Analysis DoD Workcount FY Totals 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 FY08 FY09 FY10 FY11 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 FY08 FY09 FY10 FY11 1QTR - 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 0 Total FY DoD Vendor Pay Workcounts (OP 09, 29, 39, 49) FY08 FY09 FY10 FY11 1st Qtr 2,466,563 2,428,114 2,453,729 2,183,625 2nd Qtr 2,464,091 2,427,703 2,184,091 3rd Qtr 2,472,249 2,561,045 2,308,446 4th Qtr 2,629,479 2,753,459 2,530,101 Total 10,032,382 10,170,321 9,476,367 2,183,625 Integrity - Service - Innovation 7

8 By Service Vendor Pay Workcounts (9/29/39/49) 1,100, ,000 1,050, ,000 1,000, , , , ,000 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY08 FY09 FY10 FY11 300, , ,000-1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY08 FY09 FY10 FY11 US Army USAF 700, , , , , , , ,000 FY08 FY09 FY10 FY11 200, , ,000 50,000 FY08 FY09 FY10 FY11-1st Qtr 2nd Qtr 3rd Qtr 4th Qtr - 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr US Navy USMC Integrity - Service - Innovation 8

9 By Service Rates and Workcounts FY11 Sources : Jan 2011 DFAS Workcount Report/DFAS FY11 Billing Rates Army / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,969 $2,706, Commercial Payments $ ,721 $15,826, Contract Payments - MOCAS EC $ ,574 $2,293, Commercial Payments EC $ ,597 $1,323, Contract Payments - MOCAS EC-API $ ,865 $171, Commercial Payments - Govt Purchase Card $ ,406 $286, Fully Electronic Vendor Pay $ ,260 $492,594 Total >>> 827, , ,531 $23,100, % 18.61% 22.87% % USAF / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,436 $2,109, Commercial Payments $ ,965 $10,554, Contract Payments - MOCAS EC $ ,709 $1,216, Commercial Payments EC $ ,550 $1,139, Contract Payments - MOCAS EC-API $ ,265 $256, Commercial Payments - Govt Purchase Card $ ,551 $316, Fully Electronic Vendor Pay $ ,063 $144,888 Total >>> 427, ,259 92,879 $15,737, % 20.02% 14.28% % U.S Navy / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,906 $6,346, Commercial Payments $ ,931 $3,663, Contract Payments - MOCAS EC $ ,033 $652, Commercial Payments EC $ ,913 $1,765, Contract Payments - MOCAS EC-API $ ,570 $214, Commercial Payments - Govt Purchase Card $ ,757 $224, Fully Electronic Vendor Pay $ ,273 $583,992 Total >>> 367, , ,600 $13,450, % 26.37% 28.07% % Integrity - Service - Innovation 9

10 By Service Rates and Workcounts FY11 Sources : Jan 2011 DFAS Workcount Report/DFAS FY11 Billing Rates DAGY / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,795 $863, Commercial Payments $ ,624 $3,332, Contract Payments - MOCAS EC $ ,595 $154, Commercial Payments EC $ ,935 $911, DECA Vendor Pay $3.39 3, ,884 $532, Contract Payments - DITCO $ ,381 6,208 $706, Contract Payments - MOCAS EC-API $ ,955 $34, Commercial Payments - Govt Purchase Card $ ,926 $138, Fully Electronic Vendor Pay $ ,426 $147,109 Total >>> 361, , ,399 $6,821, % 15.13% 35.87% % DLA / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,064 $227, Commercial Payments $ ,542 $314, DLA AVEDS $ ,994 $238, Contract Payments - MOCAS EC $ ,570 $93, Commercial Payments EC $ $3, DLA AVEDS EC $ ,645 $52, Contract Payments - MOCAS EC-API $ ,159 $163, Commercial Payments - Govt Purchase Card $ $ Fully Electronic Vendor Pay $ $1,549 Total >>> 34,600 4,866 38,302 $1,095, % 6.26% 49.25% % USMC / Output Billing Rate Manual EC Manual EC Total $ 06 - Contract Payments - MOCAS $ ,796 $283, Commercial Payments $ ,044 $485, Contract Payments - MOCAS EC $ ,977 $101, Commercial Payments EC $ ,376 $367, Contract Payments - MOCAS EC-API $ ,302 $15, Commercial Payments - Govt Purchase Card $ ,105 $870, Fully Electronic Vendor Pay $ ,298 $114,013 Total >>> 26,840 39, ,705 $2,237, % 15.56% 73.83% % Integrity - Service - Innovation 10

11 Initiatives Proposing Contracts under $3K to GPC Controlled Spend Accounts (CSA s) SPS Enhancements WAWF Training esolutions Lean6 Projects DARTS TEAMS Integrity - Service - Innovation 11

12 Initiatives Controlled Spend Accounts (CSAs) AF Pilot Program to reduce CBAs DoD Solution AF rolling out in Spring Army Pilot in Fall then year long rollout USMC rolling out in Fall Navy rolling out in Fall Elimination of CBA workcounts mostly Manual (Output 09) CSAs will not flow through DFAS entitlement systems Direct impact to DFAS revenue Estimated reduction of workcounts annually (CBAs) 1.6M 1 Estimated reduction in customer bill annually (CBAs) $42.5M 1 1 Based on 80% elimination of CBA workcounts (annualized based on 1QFY11) Integrity - Service - Innovation 12

13 Initiatives SPS Enhancements Implement LOA Formatter for Theater contractual data to increase electronic posting into CAPSW (Mar 2011) Expand usage of GEX process and reduce number of point to point interfaces for SPS CAPSW contractual data (Mar 2011) Develop process to increase acceptance of informational and funded sub-clins (May 2011) SMD is developing an IAPS modification to improve electronic interface posting (TBD pending CCB approval) Integrity - Service - Innovation 13

14 Initiatives WAWF Training WAWF 5.0 Training Guides for Vendor and GAM completed and posted to DFAS.MIL(Feb 2011) WAWF 5.0 Training Guides for GAM completed and posted to DFAS.MIL(Feb 2011) WAWF 5.0 Training Guides for Government to be completed and posted to DFAS.MIL (Mar 2011) Implement WAWF implementation strategy for DFAS Japan (May 2011) Two DFAS trainers are tentatively scheduled to train at Camp Zama and DFAS-Japan (March 24 - April 7, 2011) Plans for Europe training under development = Completed = Targeted Integrity - Service - Innovation * no Gov t contacts 14

15 Initiatives Lean6 Black Belt project ideas, focused on increasing EC rates, are in the scoping phase: Increasing WAWF Optimization for IAPS Increasing WAWF Optimization for CAPS Increasing WAWF Optimization for OnePay Kick off meeting held Feb 17, 2011 Increasing EC Rate for the Government Purchase Card (GPC) Increasing EC Rate for Centrally Billed Accounts (CBAs) Decreasing Output 9 for PowerTrack (all Services) Increasing EC Processing for Miscellaneous Pay The following Lean6 Black Belt projects are in process: DMAIC Eliminate/Reduce CAPS (Army/Defense Agency) Suspended CLINs (ECD April 2011) Estimated one year DFAS cost savings is $37,070 to begin April DMAIC Increase SPS/IAPS Contract Modification Acceptance Rate (ECD pending team review): Estimated one year DFAS cost savings is $207,090 to begin at completion of project. Project currently in Analyze phase. DMAIC Improve the PowerTrack Reconciliation Tool (ECD June 2011): Estimated one year DFAS cost savings is $571,274 to begin Sept Project currently in Improve phase. 10CLE008 - Reducing Redundant One Pay Electronic Invoice Processing (ECD Aug 2011): Estimated one year DFAS cost savings is $845,801 to begin Aug Project currently in Improve phase. DMAIC Increase Contract and Modification Acceptance Into MOCAS (ECD Dec 2011): Estimated one year DFAS cost savings is $423,449 to begin Jan Project currently in Define phase. DMAIC Increasing WAWF Optimization for One Pay (ECD Nov 2011): Project currently in Define phase. Estimated savings will be available at completion of Define. Integrity - Service - Innovation 15

16 Initiatives DFAS Automated Routing & Tracking System (DARTS) Central location for customer requests Requests are routed to the correct POCs based on select keywords Original is assigned a ticket number, and replies to the original are linked within DARTS based upon that ticket number Multiple employees have visibility of each request Subsequent responses remain linked to the original request History remains in the system Customer receives confirmation upon receipt and resolution Availability of daily, weekly, monthly and Ad-Hoc reports Allows both customer and service provider to have visibility of open and resolved requests Integrity - Service - Innovation 16

17 Initiatives TeaMS display future common baseline Alert banner 30 day volume forecast Workload Management: today s overage, discount, fast pay and high value invoices Performance and Context: timeliness, quality, and agency-specific volume info Commenting system 17

18 Initiatives 18

19 Potential Vendor Pay Customer Bill Reductions Expand WAWF Misc Pay Increase EC Contracts Increase EC Modifications Improve SPS Interfaces Improve GPC EC Interfaces Participation Reduce manual CBAs Reduce EC Rejects WAWF Info SLINs Zero CLIN UOM PowerTrack GPC Millions $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 FY 11 Budget $8.07 $16.14 $24.20 $32.27 $ % 20% 30% 40% 50% For every 10% increase a potential for $8.07 M in Customer Bill Reduction With 50% EC increase Bill reduction potential of $ 40.15M Service/Agency ERP implementation(s) not included Integrity - Service - Innovation 19

20 Potential Contract Pay Customer Bill Reductions Policy Updates Increase Contract Acceptance Improve Destination Acceptance System Updates EDA MOCAS Special Pay Instructions Info SLIN DoDAAC Edits Millions $10 $9 $8 $7 $6 $5 $4 $3 $2 $1.75 $3.51 $5.26 $7.01 $8.77 $1 $0 0 FY 11 Budget 10% 20% 30% 40% 50% For every 10% increase a potential for $ 1.75 M in Customer Bill Reduction With 50% EC increase Bill reduction potential of $ 8.77 M Integrity - Service - Innovation 20

21 Integrity - Service - Innovation 21