Acquisition Transformation in the DHA Barclay P. Butler ... · PDF fileBarclay P. Butler,...

Acquisition Transformation in the DHA

Barclay P. Butler, Ph.D., MBADefense Health Agency

Component Acquisition ExecutiveSenior Procurement Executive

J-4

November 16, 2017

Agenda

“Medically Ready Force…Ready Medical Force” 2

Ξ DHA Context

Ξ J-4 Mission, Vision, AMETL, About Us

Ξ Strategic Alignment

Ξ Strategic Sourcing

Ξ Small Business Information & Forecasting

Ξ Points of Contact

Ξ Q&A

DHA Mission and Vision

The Defense Health Agency, a Combat Support Agency, leads the MHS

integrated system of readiness and health to deliver Quadruple Aim:

increased readiness, better health, better care, and lower cost


Vision: Unified and Ready

Mission:

J-4 - About Us

The Component Acquisition Executive (CAE) is responsible for oversight and approval of all acquisition matters for the Defense Health Agency (DHA), including acquisition matters:

Ξ Performed under purview of the Agency’s Program Executive Officers (PEOs)

Ξ Undertaken within the Agency’s directorates and offices

Except explicitly reserved matters for oversight and approval by the Under Secretary of Defense (Acquisition, Technology, and Logistics)


J-4 Mission and Vision

The Component Acquisition Executive (J-4) of the Defense Health Agency, an acquisition

agency, leads an MHS integrated system of acquisition and procurement services,

delivering the quadruple aim: increased readiness, better health, better care, and

lower costs


Vision: Unified and Ready Acquisition

Mission:

J-4 Agency Mission Essential Task List

AMETL

Ξ Manage acquisition of capabilities [CAE]

Ξ Procure products and services [HCA]

Ξ Develop the acquisition workforce [DACM]

Ξ Manage Agreements [SAM]


Yesterday’s DHA: How We Got Here

DoD Task Force on MHS

Governance

DEPSECDEFPlanning Memo

DHA PlanningWG Report

DODD5136.13

DEPSECDEF“Nine

Commandments”Memo

September 2011 March 2012

Directed planning for DHA

implementation

March 2013

Directed implementation of

DHA

November 2012

Provided DHA and Shared Services

implementation plan for DEPSECDEF

approval

Recommended DHA model for MHS

governance

September 2013

Establishes the DHA

“Medically Ready Force…Ready Medical Force”


DHA Strategy Map – August 2016

Today’s DHA: How We Got Here

DoD Task Force on MHS

Governance

September 2011

DEPSECDEFPlanning Memo

March 2012

Directed planning for DHA

implementation

March 2013


DHA

Dec 2016


broader responsibilities

DHA PlanningWG Report

November 2012

Provided DHA and Shared Services

implementation plan for DEPSECDEF

approval

NDAA 2017

Recommended DHA model for MHS

governance

September 2013

DODD5136.13

DEPSECDEF“Nine

Commandments”Memo

Establishes the DHA

“Medically Ready Force…Ready Medical Force”

NDAA 2017 Conference Report

Current State: Essentially three independently managed health systems, each managed by one of the three Services, which:

Ξ Paralyzes rapid decision-making

Ξ Stifles innovation in producing a modern health care delivery system

Proposed State: A streamlined military health system management structure that will:

Ξ Eliminate redundancy

Ξ Generate efficiency

Ξ Yield monetary savings

Ξ Improve experience of care for beneficiaries


1073c (a) (1) Beginning October 1, 2018, the Director of the Defense Health Agency shall be responsible for the administration of each military medical treatment facility, including with respect to –

(A) Budgetary Matters

(B) Information Technology

(C) Healthcare Administration and Management

(D) Administrative Policy and Procedures

(E) Military Construction

(F) Any other matters the Secretary of Defense determines appropriate

DHA and the NDAA 2017, Title VII


DHA Strategy Map: Focus on the Ends

12

Further Details for the DHA Strategy Map

https://health.mil/Reference-Center/Reports/2017/10/23/Defense-Health-Agency-Strategy-Map

MHS Component Model


“A streamlined military health system management structure would eliminate redundancy and generate greater efficiency…leading to true reform” – NDAA 2017 Conference Report

Action: Implement a organizational model that endows DHA with authority to administer each MTF through three Service–led components and “geographic markets”, in accordance with NDAA 2017, Section 702.

Objective: Provide for dual responsibilities that enable DHA to administer and manage MTFs while allowing each Component to recruit, organize, train, and equip their Service medical personnel.

Service-Led Components

MTFsMTFs MTFs Regional Boundaries may Transcend Service Line (e.g.,

JBLM) Notional Boundaries

Regional Approach for Procurement

Ξ Market Driven Requirements/Market Ownership

Ξ Market Variation (ex: Snow Removal/Hurricane Preparedness)

Ξ Aligns with Facilities Regional Concept

Ξ COR and QA Program Efficiencies

Ξ Contract Support Model for Regions, Support to the MTFs

Multiple Award

Some or All Regions

Directed Subs (ex: Ability One)

CPIF (Incentive to Control Costs) – EPASS Model

PMO (Program Management Office)


Acquisition and the Component Model


Acquisition: Provide MHS-wide solutions, expertise, or business advice in acquisition related functions. Main effort will focus on addressing critical gaps, cost drivers and optimally satisfy MHS enterprise requirements while recognizing unique Region, Market, and MTF needs.

Contracting: Acquisition ESA will unify contracting solutions around critical gaps and cost drivers to optimally satisfy MHS enterprise requirements while recognizing unique Region, Market, and MTF needs.

AcquisitionESA

Contracting

Acquisition ESA Work Stream


PEO and PMOs: Existing and Needed

Ξ Program Executive Office (PEO), Medical Information Systems

Ξ PEO, Defense Healthcare Management Systems (in AT&L)

Ξ Health and Services Support Program Management Office (PMO)

Ξ Pharmaceuticals and Medical Devices/Systems PMO

Ξ Joint PMO – Medical Modeling and Simulation

Ξ Science & Technology PMO

Ξ What others do we need?


Pilot Procurement Model


Ξ Charter the Acquisition ESA; Develop Acquisition Procedural Instruction

Ξ Pursue “2nd wave” of strategic opportunities to make strategic acquisitions more effective and efficient for the MHS• Reviewed 2nd Wave efforts with MEDLOG, Pharmacy, Public Health, TeleHealth, NCR (J-11)• Review/validate prioritized efforts with J-5 Strategy Management to ensure MHS alignment• Charter IPT(s) to execute prioritized efforts (e.g. Revenue Cycle Management IPT w/J-1/8, J-3, J-5 etc...)

Ξ Implement a “Step Forward” now, with an incremental market-focused management and support approach (using the NCR as the Pilot)• A Market-Based Support Pilot will be designed and tested in the NCR to serve as a proof of concept in

support of a future Component Model• The proof of concept resulting from the NCR Market-Based Approach will refine and finalize support

under the Component Model in preparation for DHA’s future state on October 1, 2018• This pilot is necessary to ensure the model is scalable/repeatable enterprise-wide or to other Markets

Enterprise Support Activity (ESA)

NCR

Initial Indications of Market-Based Approach


Example: “Lower Cost”

Ξ Qualitative statement: “Market-based procurement is more effective than procurement at the individual MTFs”

Ξ Quantitative evidence supporting the statement: Year over year data demonstrates that CO-NCR’s ongoing effort to

consolidate actions has increased portfolio efficiency by:

• obligating MORE dollars with FEWER contract actions

• minimizing the number of contract modifications across the portfolio

Obligations /

Action

FY15

(Q1-Q4)

FY16

(Q1-Q4)

FY17

(Q1-Q3)

YoY Trend

(FY15/FY16)

Trend YTD

(FY16/FY17)

Modifications /

Action

FY17

(Q1-Q3)

CO-NCR $88.6K $108.3K $201.9K 22% 75% CO-NCR 1.03

Rest of Market $159.6K $155.1K $134.6K -3% -13% Rest of Market 2.17

• Pilot test for market-based procurement• Test market-based procurement in the NCR-eMSM• Briefed NCR-eMSM Market Board

• Approved pilot for organic and federated MTFs• Use as model for October ‘18

CAE J-4 Structure


Acquisition Support & Analysis Division

Dr. Kenneth Helgren

J4Component Acquisition

Executive (CAE)Dr. Barclay Butler

Robert Bolluyt, Deputy

Contracting Division/Head of Contracting

ActivityJohn Tenaglia

Strategic Acquisition Program Management

DivisionJoseph Mirrow

Acquisition & Procurement Policy

DivisionWinona Sewell-Hall

(acting)

Program Executive Office

Solutions DeliveryDr. Magee

Acquisition Process Support Division

Birgit Tilley

Special Projects & Acquisition Oversight

Division

Contracting Office- AuroraJames Berns

Contracting Office– Falls ChurchTim Klopfer

Contracting Office – NCRDavid Johnson

Contracting Office– DHMSLisa Eckhart (acting)

Contracting Office – HITJackie Pinkston

Contracting Office– MQSMelissa Olivia

Senior Procurement Manager– Jake Lewis

Joint Project Management Office –Medical Modeling &

SimulationCOL Scott McIntosh

Through PEO STRI

Acquisition Systems SupportMara Grissom

Region B

Region C Region D Region E

Region A

DHA Procurement OrganizationsSix Contracting Operations and locations


MHS Procurement Organizations


MHS Procurement Organizations


Notional Regions

Ξ Known and Initiated Contracts:

Ξ DHA requires strategic management and approaches for purchasing

Program/Requirement Strategic Contract(s)

Q Services – Professional Medical Services MQS, Overseas, 8a

Medical Support Services Coding (MSS), Revenue Cycle Mgt (MSS)

HIT Asset Mgt, WIFI, R&D for IT, JOMIS

Research and Development VPSS, R&D, OMNIBUS IV

HQ Knowledge Mgt OASIS

Delivery Services TRANSCOM

Supplies DLA and Prime Vendor

Strategic Sourcing Approaches


Example Broad Requirement ProgramHospital Operations Support Services

Hospital Operations Support Services (HOSS) contracts would control the demand for high volume, low dollar MTF support on a region-wide bases. Requirements include:


• Accreditation

• Education and Training

• Nuclear Licensing

• Lab Certification

• Management Support

• Cable TV

• BOS / BOM

• Regulated Medical Waste

• Linen

• EVS / Custodial

• Revenue Cycle Mgt (use MSS)

• Equipment Maintenance / Cal / Warranty / Parts

FY17 DHA Small Business (Prime) Contract Goals and Achievements (as of 11/9/2017)


Small Business Category Goal

Dollars by SB Category

(Total SB Eligible

$1,427,920,124)

DHA SB

Achievements

(FY17)

Small Business 40.00% $791,289,928 55.42%

Small Disadvantaged Business 5.00% $477,839,771 33.46%

8(A) Procedure Actions ** 0% $254,724,696 17.84%

Veteran-Owned Small Business ** 3.00% $138,928,129 9.73%

Service-Disabled Veteran-Owned Small Business 3.00% $111,781,683 7.83%

Women-Owned Small Business 5.00% $221,208,931 15.49%

HUBZone Small Business 3.00% $41,846,150 2.93%

Achievements as of 11-9-2017: Source FPDS.GOV; Values for Fiscal Year 2017

Doing Business with the DHA

Ξ 1st Review/Preference to GSA Vehicles (GWACs/S70)

Ξ GSA HIT SIN Schedule 70 (132-56)

Ξ OASIS for Professional Services

Ξ NASA SEWP for Commodities

Ξ SBA Direct Award process

Ξ Creation of new contract vehicle

Ξ Forecast

• Fall forecast covering 24 months

• Spring forecast covering year end close


Doing Business with DHA (cont.)


Ξ Investigate the GSA Schedule Program: www.gsa.gov

Ξ HIT Schedule 70 /SIN questions should be directed to [email protected]

Ξ Check blog on GSA Interact site within the DHA HIT-DHA/GSA Partnership community

Ξ Provide quality responses to our Requests for Information (RFI)/Sources Sought Notices posted on FedBizOpps

Ξ Monitor FedBizOpps for SB events/engagements, Industry day announcements, and other solicitations

Ξ Submit your Vendor Information Form (VIF) (www.health.mil/VIF)

Ξ Check NASA SEWP website for HW/SW (www.sewp.nasa.gov/index.shtml)

http://www.gsa.gov/

mailto:[email protected]

http://www.health.mil/VIF)

http://www.health.mil/VIF)

DHA Points of Contact


Ξ Dr. Barclay P. Butler, Ph.D., MBA, Component Acquisition Executive (CAE), For inquiries contact Ms. Alison Thompson, Executive Assistant, (703) 681-6069, [email protected]

Ξ Mr. John M. Tenaglia, Head of the Contracting Activity (HCA), For inquiries contact Ms. Judy Waters, Executive Assistant, (703) 681-8911, [email protected]

Ξ Ms. Jackie L. Pinkston, Chief, J4 CAE Contracting Operations - HIT, (CO-HIT), Defense Health Agency, (210) 295-7188 or via email at [email protected]

Ξ Mr. David T. Guillory, Contracting Officer and Small Business Specialist, Contracting Operations -HIT, (CO-HIT), Defense Health Agency, (210) 221-6688 or via email at [email protected]

Ξ Mr. Jon Lind, Chief, Health Information Technology Branch DHA Contracting Office - Health Information Technology (CO-HIT), (210) 221-8391 or via email at [email protected]

Ξ Mr. Joseph A. Preusser, Team Lead, Contracting Operations, Defense Health Agency (CO-HIT), (210) 221-8681 or via email at [email protected]







Summary

Ξ The DHA is an integrated system of readiness and health

Ξ The DHA will manage and administer the MTFs - October ‘18

Ξ Acquisition is evolving to support integration in the DHA

Ξ Component model will likely include regions and markets

Ξ Your customers evolve to become the regional contracting offices

Ξ Together we can bring innovative solutions in support of the Quadruple Aim


Q&A


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