DoD Business Transformation and Environmental Liabilities Recognition, Valuation and Reporting

Transcription

1 DoD Business Transformation and Environmental Liabilities Recognition, Valuation and Reporting Office of the Deputy Under Secretary of Defense for Installations and Environment ODUSD(I&E) Business Enterprise Integration March 2006

2 Overview Defense Business Transformation DUSD(I&E) Business Enterprise Integration (BEI) Initial ESOH Priority: Environmental Liabilities 2

3 Transformation Drivers Business Management Drivers The Budget CFO Act 1990 GPRA 1993 OMB A-11 GAO Reports Friedman Report Congress/ Public Laws President s Management Agenda Joint Vision 2010/2020 Industry/Government Leading Practices Warfighter Transformation Drivers Defense Planning Guidance Quadrennial Defense Review (QDR) Report Continuity of Operations Information Management Drivers Defense Transformation Planning Guidance DoD Business Transformation Clinger-Cohen Act 1996 GAO Reports Global Information Grid (GIG) OMB A-130 OMB FEA 3

4 Evolution of Business Transformation in DoD July 2001: SECDEF established Financial Management Modernization Program (FMMP) Established under DoD Comptroller to: o improve efficiencies of financial operations o achieve unqualified audit April 2003: Scope expanded and renamed Business Management Modernization Program (BMMP) Established under Comptroller, with functional Domains to: o reengineer business processes o identify standard data requirements o implement an integrated net-centric business environment to supports warfighters needs October 2005: Defense Business Transformation and BTA 4

5 Business Transformation Agency Vision The Business Transformation Agency will be recognized as the champion for driving and accelerating improvements to business operations across the Department of Defense. We will serve as a magnet to attract talented, dedicated professionals, creating a model for transformation leadership across the Federal Government. Mission The mission of the Business Transformation Agency is to guide the transformation of business operations throughout the Department of Defense and to deliver enterprise-level capabilities that align to warfighter needs. 5

6 BEA 3.0 Construct The Business Enterprise Priorities on the right address the top level responsibilities for the Department of Defense associated with each Core Business Mission (CBM) on the left. DoD Core Business Missions (CBMs) Human Resources Management Weapon System Lifecycle Management Materiel Supply & Service Management Real Property & Installations Lifecycle Management Financial Management Who are our people, what are their skills, where are they located? Who are our industry partners, and what is the state of our relationship with them? What assets are we providing to support the warfighter, and where are these assets deployed? How are we investing our funds to best enable the warfighting mission? DoD Business Enterprise Priorities (BEPs) Personnel Visibility Common Supplier Engagement Acquisition Visibility Materiel Visibility Real Property Accountability Financial Visibility Required Integration ARMY NAVY/MC Air Force DLA USTRANSCOM Components 6

7 Business Transformation Organization and Governance I&E View Defense Business Systems Management Committee DUSD(BT) DUSD(I&E) I&E Domain Governance Board DoD Component BEI Business Process Reengineering Teams RP&ILM Investment Review Board BEI Directorate Program Success Factors (i.e., Why we will succeed ) Senior leadership engagement -with realistic and robust governance model Joint warfighting imperatives -creates opportunities for collective decisions Statutory and regulatory requirements for business transformation Subject Matter Expertise DUSD(FM) Governance DEPSECDEF, USDs, CJCS, Secretaries of the Military Departments Acknowledgement of tiered accountability Continuity leverages learning from past three years, with visible opportunity for success during next four years. BRAC forcing function for integration Team members who have done this before in private sector Business Enterprise Architecture (BEA) and Enterprise Transition Plan (ETP) serve as blueprint and course of action for transformation 7

8 ODUSD(I&E) Business Enterprise Integration Vision: An I&E community that provides timely, accurate and reliable information within I&E and to the warfighter and DoD business enterprise Mission: Support both the I&E and DoD Business Transformation goals Goals: The ODUSD(I&E) Business Enterprise Integration Directorate will produce outcomes that: Provide better information for strategic and tactical decisions Reduce the cost of business operations Improve stewardship of I&E assets Support integration of DoD enterprise business operations I&E Strategic Goals Right Size and Place Right Quality Right Safety and Security Right Resources Right Tools and Metrics Alignment I&E Business Enterprise Integration Goals Enable achievement of I&E strategic and tactical goals and objectives Provide better information for strategic resourcing decisions Reduce the cost of business operations Improve stewardship of I&E assets Support integration of DoD enterprise business operations DoD BT Enterprise Goals Support joint warfighting Provide better information for strategic resourcing decisions Reduce the cost of business operations Improve stewardship to the American People 8

9 Collaborative Business Process Reengineering Enabling Transformation: The BEI Approach s Documentation Prepare document Component authorization Document Collaborative Results Integrate requirements and processes Business Enterprise Architecture (BEA) Enterprise Transition Plan (ETP) Update policies Implementation Develop enterprise capabilities Development of implementation plans and milestones Implementation Program management Achievement of outcomes Ongoing Activities Manage the real property and installations lifecycle management portfolio, and provide investment review Host new I&E enterprise capabilities Pursue new reengineering opportunities Key 9 Green: Responsibility of components Purple: Responsibility of components and BEI Blue: Responsibility of BEI

10 Environmental Liabilities Recognition, Valuation and Reporting The Initial ESOH Application of the ODUSD(I&E)/BEI Approach to Transformation

11 Environmental Liabilities Recognition, Valuation and Reporting s Problem: DoD is unable to provide auditable environmental liabilities information (a material weakness) Key efforts Collaborative development of standard processes and data (in process) Upgrade of policies (in process) Incorporation by Components (in process) Outcomes Standard and auditable process and data model for recognizing, valuing and reporting environmental liabilities Complete, accurate and visible inventory of environmental liabilities reconciled with asset records (includes real and some personal property) 11

12 Real Property Placed in Service Notification Business Plan Real Property Accountability (RPA) Perform ESOH Services Business Process Environmental Cost Estimate Environmental Cost Estimate Liability Update No Environmental Liability Remote or Operational Cost or Non Environmental Liability Execute Sourcing Strategy Process Environmental Cost Estimate Manage Organization Generate s Response Environmental Cost Estimate Develop Sourcing Strategy Manage Sales and Procurement Conduct Program Management End ESOH Operations Environmental Cost Estimate Manage Defense Acquisition System Cost Information Request Define Cost Performance Model Analytical Results Perform Cost Analysis Manage Financial Management Policy Form and Content Guidance ESOH Issue Description Program and Funding Document Deployed ESOH Solution Perform Forecasting Planning Programming and Budgeting Manage Liabilities Environmental Liability Cost Information Environmental Liability Information [Rejected] RPA - Perform ESOH Services (OV-06c Business Process) System Architect Fri Oct 14, :07 External Non-DoD User or Non-DoD Source Warfighter or DoD User or DoD Source ESOH Issue Communication Research Information Human Resources Manageme nt Weapon System Lifecycle Manageme nt Stakeholder Input ESOH Issue Communication Materiel Supply and Service Manageme nt Real Property and Installation Lifecycle Manageme nt Manage Sales and Procurement Perform ESOH Aspect Identification Real Property Placed in Service Notification Dispose or Return Property and Materiel Evidence of Goods Tendered and Services Rendered Perform ESOH Aspect Assessment Assess ESOH Risk Develop ESOH Solution Develop Agreement Perform Installations Support Real Property Operation Ceased Notification Implement ESOH Solution Potential Environmental Liability Determine Likelihood of Potential Liability Classify Environmental Liability Develop or Collect Verify Accuracy and Environmental Liability Completeness of Estimate Required Documentation Environmental Liability Failed Document Verification Documentation Verified Failed Attestation Attest to Documentation Attestation Complete Provide Information for Environmental Liability Form and Content Verify Environmental Liability Summary Documentation End - Environmental Liability Process ESOH Issue Description Deployed ESOH Solution Shared Cost Information Request Analytical Results Perform Asset Accountability Environmental Liability Cost Information Financial Manageme nt Form and Content Guidance Program and Funding Document Environmental Liability Information 12

13 ESOH Interest Area and Unique Identification Definition: ESOH Interest Area (EIA) is a place, location, or a program management initiative of specific interest that may be described, located, or referenced geospatially Attributes -- may Be created due to one or more ESOH events or because an area has ESOH interest Not be constrained by RPI boundaries Be part of an asset, or linked to one or more real property assets (RPA) Be overlaid Definition: ESOH Interest Area Unique Identifier (EIAUID) is a code used to permanently and uniquely identify an ESOH interest area Attributes: Permanently and uniquely identifies ESOH Interest Areas Is owner or organization independent Does not change over the life of the EIA even if EIA attributes change Links to the common data describing financial, legal, and physical attributes at the enterprise level Supports parent child relationships and enables audit trails within and between DoD systems 13

14 ESOH Interest Area Examples ESOH INTEREST AREA Grounds: Govt Land (Partial) DoD-owned land parcel cultural UST release wetland ESOH INTEREST AREA Grounds: Govt Land (Partial) ESOH INTEREST AREA UST: Structure Lake: Natural Water body Grounds: Govt Land (Partial) Grounds: TPS #1 (Partial) Grounds: TPS #2 (Partial) LAKE ESOH INTEREST AREA Ground Floor: Building ESOH INTEREST AREA Grounds: TPS Land (Partial) Privately owned land parcels TPS #1 TPS #2 release DoD-owned Building 14

15 BEA, ETP and FIAR Plan Relationship 15

16 ESOH Enterprise Transition Plan Activities, Milestones, Responsibilities and Status 09/30/05 03/31/06 09/30/06 03/31/07 09/30/07 EL Process and Data Model in BEA 3.0 Update Data Model and Begin Linkage to Asset Records Environmental Liabilities, Recognition., Valuation & Reporting s Issue Final Implementation Plan Release Environmental Liabilities Recognition, Valuation and Reporting s document Complete Linkage to Real Property Inventory Implement Environmental Liabilities s Hazardous Materials Process Controls & Information Management s Hazardous Materials Controls in BEA 3.0 Draft Phase I Hazardous Materials Process Controls and Information Management s Document BPR Phase II Define Approach for Unique Association of Haz. Products and Std. Product Haz. Data Release Phase I Hazardous Materials Process Controls and Information Management s Document Draft Configuration Control Process for Hazardous Materials Management Incorporate Phase II Results in BEA 5.0 Implement s into Core Business Mission Areas Draft Phase II Hazardous Materials Process Controls and Information Management s Document Incorporation of Product Data in DoD Data Master 12/31/05 06/30/06 12/31/06 06/30/07 Component Responsibility Milestone I&E BT Responsibility Efforts complete or scheduled for completion on/before 12/31/05 Status Efforts funded, on schedule and underway; No issues at this time. Efforts funded; schedule or deliverable risk potential BT Efforts currently unfunded 16 Component status unknown

17 One More Thing. Business Enterprise Integration Booth (#1037) Please visit the Business Enterprise Integration booth! Located in Exhibit Hall D, space #1037, across from the Lounge 17