Perspectives on the U.S. for International Development · 2017. 7. 28. · Perspectives on the U.S....

Perspectives on thepU.S. Agency for International Development

RAY BJORKLUND, SVP AND CKO

10 NOVEMBER 2010

© F e d S o u r c e s 2 0 1 0 Ι 8 4 0 0 W e s t p a r k D r . M c L e a n , V A 2 2 1 0 2 Ι w w w . f e d s o u r c e s . c o m Ι 7 0 3 . 6 1 0 . 8 7 0 0

Overview

Business at USAID is growing, in selected areasg g,

Performance objectives can drive procurement

Numerous means of mapping budget to requirements

Much USAID purchasing is decentralized

Solid business opportunities for SBs, including IT

Fulfilling national interests in an increasingly dangerous world…

© FedSources 2010, All Rights Reserved. Reproduction Prohibited. 2

How USAID Aligns with Priorities

‐8%

‐13%

Administration of Justice

General Government

Contractor‐addressable Market, CAGR GFY 2010‐2011, by Governmental Function

Growth is not always as it seems

4%

8%

‐16%

3.6%

◄Medicare

◄ Income Security

Social Security

◄Veterans Benefits and Servicesalways as it seems

7%

2%

‐20%

4%

◄ Community and Regional Development

◄ Education, Training, Employment, and Social Services

◄Health

◄Medicare

‐5%

‐9%

0%

‐15%

Natural ResourcesandEnvironment

Agriculture

Commerce and Housing Credit

Transportation

‐11%

‐4%

‐21%

5%

International Affairs

General Science, Space, and Technology

◄ Energy

Natural Resources and Environment


‐4% ◄National Defense

Source: FedSources analysis of GFY2011 President’s Budget, based on net contractor addressability; “◄” represents a Presidential priority; does not include transportation or subsistence

Program Success – Contractor Success

Ownership: building on a nation’s resources

Qualitative characteristics of successful assistance become “win themes” that resonate with the customer

Capacity‐Building: strengthened, local institutions using transferred skills and appropriate policies

Sustainability: programs designed with enduring impact y p g g g p

Selectivity: resources applied according to need, local commitment, and foreign policy interests

Assessment: research and best practices suited to local conditionsAssessment: research and best practices, suited to local conditions

Results: resources focused to achieve clearly defined, measurable and strategically‐focused objectives

Partnership: close collaboration with government and private partners Partnership: close collaboration with government and private partners

Flexibility: adjusting to changing conditions, taking advantage of opportunities, and maximizing efficiency

A bili d h k d b l


Accountability: protected systems, checks, and balances

Source: FedSources analysis of GFY2011 President’s Budget

High Priority Performance Goals (1)

Afghanistan and Pakistan:

Quantitative characteristics of successful assistance become “win themes” that resonate with the customer

Enhance long‐term sustainability of nation‐building

Increase numbers of local implementers that can achieve clean audits

Iraq:Iraq:

Nation‐building, transitioning from military to civilian responsibility

Global Health:

dd i i h l h d f d hild Better address priority health needs of women and children

Prevent millions of new HIV infections

Eliminate some neglected tropical diseases

Climate Change:

Establish work programs for Low‐Carbon Development Strategies

Plan for additional meaningful reductions in national emissions


Plan for additional, meaningful reductions in national emissions

Source: FedSources analysis of GFY2011 President’s Budget; high priority performance goals are shared by DOS and USAID

High Priority Performance Goals (2)

Food Security:

Enable countries to implement comprehensive food security plans

Democracy and Good Governance:

Facilitate transparent, participatory, and accountable governance in priority emerging and consolidating democraciesp y g g g

Train 120,000 rule of law professionals, civil society leaders, democratically elected officials, journalists, and election observers

Global Security–Nuclear Nonproliferation:Global Security Nuclear Nonproliferation:

Improve global controls to prevent the spread of nuclear weapons and enable the secure, peaceful use of nuclear energy

Management–Building Civilian Capacity: Management–Building Civilian Capacity:

Strengthen capabilities of DOS and USAID to conduct diplomacy and development activities through human capital management

© FedSources 2010, All Rights Reserved. Reproduction Prohibited. 6Source: FedSources analysis of GFY2011 President’s Budget; high priority performance goals are shared by DOS and USAID

How Will USAID Spend OE Budget?$400M

$200M

$300M

$400M

addressable

dget

USAID Operating E (OE)

CAGR GFY$0M

$100M

$200M

Contractor‐a

BudExpense (OE)

budget is part of the spending picture

GFY2009 GFY2010 GFY2011 CAGR GFY 10‐11

Prof services (incl R&D) $50.6M $73.2M $95.0M 30%

Other white collar services $74.7M $112.5M $117.2M 4%

Medical services $0 5M $0 5M $0 5M 0%

p

Medical services $0.5M $0.5M $0.5M 0%

Investment products $42.4M $90.0M $91.0M 1%

Consumable products $18.3M $22.0M $22.0M 0%

Blue collar services $25.7M $28.0M $24.0M ‐14%

b l ( i l lSubtotals (not incl Real property) $212.3M $326.2M $349.7M 7%

IT products (memo) $14.0M $29.8M $30.1M 1%

IT services (memo) $0.9M $1.5M $1.6M 2%

R l ( i l) $ $ $


Real property (not in total) $39.6M $307.0M $45.0M ‐85%

Source: FedSources analysis of GFY2011 President’s Budget and agency justifications, based on net contractor addressability; includes spending on Personal Services Contractors but does not include transportation or subsistence

How Will USAID Spend Total Budget?

$5,000M

$6,000M

udget

Overall, about 10% of

f d

$3,000M

$4,000Mdd

ressab

le Buprogram funds

are converted to USAID contracts

$1,000M

$2,000M

Contractor‐ad

GFY2009 GFY2010 GFY2011 CAGR GFY 10‐11

$0M

$ ,

Addressable Program funds $5,137.2M $5,565.6M $5,169.8M ‐7%Addressable Operating

Expense $212.3M $326.2M $349.7M 7%

Totals $5,349.5M $5,891.8M $5,519.5M ‐6%


$ , $ , $ ,

Source: FedSources analysis of GFY2011 President’s Budget and agency justifications, based on net contractor addressability; includes spending on Personal Services Contractors but does not include transportation or subsistence

Program Implementation

Assistance programs Assistance instruments (grants, subsidies, cooperative agreements)(g , , p g )

Acquisition instruments (contracts)

Operating Expenses (OE) budgetS l i Policy and practical Salaries

Contracts

Some grants and subsidies

Policy and practical tradeoffs between grants

and contracts

Sometimes Assistance and OE funds merged for contracts

Fuzzy lines of demarcation within “Function 150” accounts State Department

USDA

Other independent foreign assistance agencies


Source: FedSources analysis of USAID ADS Chapter 304 “Selecting Between Acquisition and Assistance (A&A) Implementing Instruments” and ADS Chapter 621 “Obligations”

What USAID Buys

CategoryObligated Amount Category

Obligated Amountg y

Management Support Services $3,583.8MTraining Services $765.9MMedical R&D $235.6MDefense R&D $213 3M

g yEducation R&D $21.8MAgriculture R&D $20.4MComputing Services $12.9MEnergy R&D $10 9MDefense R&D $213.3M

Miscellaneous Products $192.4MTechnical Services $93.9MConstruction Services $56.6M

$

Energy R&D $10.9MPiping and Valves $8.1MCulinary Equipment $4.8MComputing Equipment $4.4M

$Medical Services $39.2MStudies & Analysis $31.0MBiomedical Supplies $22.7M

Vehicles and Vehicle Components $4.1MEngineering R&D $3.8MOther $23.9M

Total $5,349.5M

“Pure‐play” IT largely purchased under headquarters OE budget

© FedSources 2010, All Rights Reserved. Reproduction Prohibited. 10Source: FedSources analysis of GFY2009 FPDS‐reported contract spending for purchasing by USAID and on behalf of USAID

How USAID Buys

Unique Vehicles

Dollars Obligated

1 023 3 027 81M$Type of Contract Vehicle

USAID ID/IQ (IQC) 1,023 3,027.81M$ Definitive Contract

2,026

Purchase 1 694

1,917.16M$ USAID Contract

USAID ID/IQ (IQC)

Order1,694

230 276.84M$ 152 91.62M$

GSA SchedUSAID BPA

9 30.66M$ 7 7.89M$ 1 0.34M$ 2 0 32M$

DOS BOANASA ID/IQArmy ID/IQ

GSA Telecomm

2 0.32M$ 1 0.02M$ 73 3.19M‐$

Army ID/IQAir Force ID/IQTreasury ID/IQ


Source: FedSources analysis of GFY2009 FPDS‐reported contract spending for purchasing by USAID and on behalf of USAID; IQC represents Indefinite Quantity Contract

Major IT Investments (1)

GFY 2009

GFY 2010

Joint Financial Management System $9.3M $8.3M $1.8MUpgrades to comply with federal financial requirements; enhanced reporting, integration

GFY 2011 RequestInvestment Category

requirements; enhanced reporting, integration with other systems, and user interface upgrades

Foreign Assistance Coordination & Tracking System (FACTS)

$1.0M $1.3M

Global Acquisition & Assistance System $24.2M $24.0M

Knowledge Management $4.1M $3.5M

Convert legacy project evaluations archive to searchable electronic form and develop a expertise locator system, content management system, wiki, and KM plan

IT T i i $9 5M $2 0MProjects, including integrated tool for budget f l i i d i i USAIDSy

stem

s

IT Transition $9.5M $2.0M formulation, execution, and reporting in USAID Missions and centrally

E‐travel (implementation) $0.8M $2.0MT&A System $0.5M

Interface the E2 travel system with Phoenix

IT S

Systems Maintenance $5.8Mfinancial system; increase project management capacity; enhance development environment; conduct security testing

E‐Gov Initiatives $1.9M $20.3M $3.5ME‐Gov contributions; Enterprise Wide Document Records Management; one‐stop, secure Human R I f i S


Source: FedSources analysis of GFY2011 President’s Budget and agency justifications, both contractor addressable and non‐addressable; capital investments only, not entire Agency IT budget

Resource Information System

Major IT Investments (2)

GFY 2009

GFY 2010

IT Steady State Infrastructure & Modernization

$2.2M $13.8M $24.6M

Replace obsolete IT components to enhance Agency staff productivity by minimizing downtime and improving the effectiveness of IT

Investment Category GFY 2011 Request

Modernization downtime and improving the effectiveness of IT operations

Disaster Recovery $10.6MUSAID/DOS Infrastructure $3.7M $0.8M

Web Services $2.3MEnhance Agency web services for security, ll b ti d di tIn

frastructure

Web Services $2.3M collaboration, and disaster recovery

Clearance Records and Investigation $1.0MTo plan and acquire a Clearance Records and Investigation system to comply with the new Federal Investigative StandardsSupport to Quality Management; Risk Management; Systems Solutions Support;

IT I

ure

Systems and Process Engineering $5.2M

Management; Systems Solutions Support; Systems Solutions Repository; System Profiles; Configuration Management Databases; Test Management Centralization & Modernization; IV&V Support; and Special/Ad Hoc SupportTo formalize, develop, and maintain an EA tori

se Architectu

Enterprise Architecture $1.1M

To formalize, develop, and maintain an EA to maximize alignment between the Agency’s strategic direction, business model, supporting operations, and investments in a results‐driven framework

Totals $43.1M $95.1M $50.9M

IT Enterpr


Source: FedSources analysis of GFY2011 President’s Budget and agency justifications, both contractor addressable and non‐addressable; capital investments only, not entire Agency IT budget

Totals $43.1M $95.1M $50.9M

Summary

Foreign assistance facing some cost‐cutting pressuresg g g p

Expansion of national interests demands more USAID effort

Numerous means of mapping budget to requirements

Many Obama administration investments now completed

Fewer USAID contractor‐addressable dollars means more intense competitionintense competition

About half the purchasing is centralized, the rest by missions

A $5.5B, worldwide market


Experience | Intelligence | Integrity

Perspectives on theU.S. Agency for U.S. Agency for International Development

Ray BjorklundRay Bjorklund10 November 2010

www.fedsources.com

Perspectives on the U.S. for International Development · 2017. 7. 28. · Perspectives on the U.S....

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