DEFENSE PROCUREMENT AND ACQUISITION POLICY PROCURE-TO-PAY TRAINING SYMPOSIUM. The Decoder Ring

Transcription

1 DEFENSE PROCUREMENT AND ACQUISITION POLICY PROCURE-TO-PAY TRAINING SYMPOSIUM The Decoder Ring Presented by: Carmen Schwenk CAGE Program Manager DLA Information Operations Lisa Romney Procurement Analyst DPAP-PDI May 30 June 1, 2017 Hyatt Regency Orlando FL 1

2 Beyond Contract Numbers and Line Items Standardizing the use of key data elements being used to identify organizations and what is being purchased in procure to pay processes We re going to cover the latest on the use of: CAGE codes DoDAACs PSCs 2017 Procure-to-Pay Training Symposium 2

3 Commercial and Government Entity Codes - CAGE 2017 Procure-to-Pay Training Symposium 3

4 What is a CAGE Code? FAR states that the CAGE code is: (1) An identifier assigned to entities located in the United States or its outlying areas by DLA s Commercial and Government Entity (CAGE) Branch to identify a commercial or government entity; or (2) An identifier assigned by a member of NATO or by the NATO Support and Procurement Agency (NSPA) to entities located outside the United States and its outlying areas that the DLA CAGE Branch records and maintains in the CAGE master file. This type of code is known as an NATO CAGE (NCAGE) code. FAR requires that an offeror s CAGE code be validated prior to award CAGE codes are used to identify contractors throughout DoD s procure-topay processes 2017 Procure-to-Pay Training Symposium 4

5 Recent Policy Changes CAGE code requirements for contractors moved from the DFARS to the FAR required for all federal contractors FAR 4.18 also includes Ownership of Offeror requirements Offerors must self-represent if they are owned by a higher level entity or had a predecessor identify and identify the related CAGE code(s) Collected when registering in SAM or otherwise obtaining a CAGE code Results in the availability of a contractor-provided hierarchy DFARS PGI provides instructions to contracting officers and explains how CAGE code records are maintained DPAP Policy Memo (Aug ) issued CAGE Standard Operating Procedures Available on DoD Procurement Toolbox at Procure-to-Pay Training Symposium 5

6 CAGE Program Office Located in DLA Information Operations J62C Assigns/Updates CAGE codes for business/entities in the U.S. and it s territories Receives and Displays NATO CAGE (NCAGE) data for NON US business/entities from NATO and partner nations Close partnership with the GSA System for Award Management program office Maintains the CAGE-SAM validation interface 2017 Procure-to-Pay Training Symposium 6

7 Did You Know? Over 2 Million Active CAGE Codes CAGE PMO processes 900K registrations each year Yearly increase of 10% of total registrations each year since Procure-to-Pay Training Symposium 7

8 What s New? CAGE Search & Inquiry replaces BINCS Instructions CAGE/NCAGE registration 2017 Procure-to-Pay Training Symposium 8

9 CAGE Search & Inquiry (CSI) 2017 Procure-to-Pay Training Symposium 9

10 CAGE Expiration Date 2017 Procure-to-Pay Training Symposium 10

11 CAGE Status Code 2017 Procure-to-Pay Training Symposium 11

12 CAGE/NCAGE Instructions Procure-to-Pay Training Symposium 12

13 Coming Attractions FAR case Requirements for DD Form 254 implements new DD254 processing Requires use of WAWF module to process requests Requires CAGE codes for contractor and subcontractor locations obtaining facility clearance Availability of the immediate and highest level owner data in CAGE web service CAGE codes on contract action reports submitted FPDS Deployed February 3 rd in service pack 33 (applicable point forward for new awards); available in ad hoc reports and ATOM feed now Users will see the CAGE codes on screen with FPDS v1.5 implementation Federal Integrated Award Environment (IAE) change control board and Intergovernmental Suspensions and Debarment Committee (ISDC) approved change request(s) to: Include CAGE code from SAM registration (when one exists) automatically on an exclusion record Assign a CAGE code to new exclusion records for firms when a suspension/debarment is reported to SAM for a U.S. vendor Use of pre-population and validation between CAGE and DoDAAD for contractor entries Vendor validation error reports between what is reported to EDA and FPDS (i.e., new anomaly reports) 2017 Procure-to-Pay Training Symposium 13

14 Department of Defense Activity Address Codes DoDAAC 2017 Procure-to-Pay Training Symposium 14

15 What is a DoDAAC? The Activity Address Code is a six-character code that refers to an office location. The AAC number is associated with an office name, and up to four addresses: TAC 1: Physical Address (TAC 1 is always required. May not be a PO Box.) TAC 2: Ship to/freight Address TAC 3: Bill to Address TAC 4: Commercial Shipping Address In DoD there is some logic to the codes (e.g., first character is always a letter which represents which DoD component/agency it is) In Federal (non-dod) usage, the first two characters are numbers that correspond to the series. Series lines up with Treasury Index code about 99% of the time, but there are some differences. AACs were created for use in logistics/supply chain. They have been used in DoD for years to ensure uniqueness of contract numbers and for FPDS reporting. The FAR has recently changed to require this of non-dod Agencies as well Procure-to-Pay Training Symposium 15

16 DoDAAC Recent News DATA Act and new FAR updates require that all federal agencies Identify their contracting and funding offices using DoDAACs Use a standard contract action numbering schema, including the DoDAAC of the contracting office issuing an award as the first six (6) characters These changes have resulted in increased focus on the DoDAAC and an opportunity to enhance the data elements within the records Several new data elements have been or will be introduced to improve: Identification of what type of organization the DoDAAC represents Identification of the DoDAAC s owning organization/place in the hierarchy Identification of the role(s) the DoDAAC activity has in the business process 2017 Procure-to-Pay Training Symposium 16

17 New DoDAAC Fields/Elements Organization Type Code: A 1-character A/N code used to discretely identify an activity s (represented by a DoDAAC) organizational type. Codes will identify DoD, Non-DoD/Civilian Federal, State/Local, NGO, Foreign. Common Government-Wide Accounting Classification (CGAC): 3-character A/N Code assigned by the Department of Treasury to represent a federal agency captured in Appendix C of the Office of Management and Budget (OMB) Circular number A-11. Sub Tier Agency Code: 4-character A/N code used to identify agencies and their sub tier organizations (e.g., the Bureau of Indian Affairs within the Department of Interior) in the federal award environment. Authoritative list of codes values provided by GSA. (Similar to FPDS Agency Code.) Contractor Flag: Binary Yes/No flag that represents whether the activity is a contractor or not. Note: This does not affect existing DoDAAC number logic (e.g., wherein the C series represetnts contractor DoDAAC), but will help identify contractors in the H series and in non- DoD AACs Procure-to-Pay Training Symposium 17

18 Purpose Codes Purpose Codes: Procurement Office, Funding Office flags will be rolled into Purpose Codes that help identify the roles the office plays. Procurement Office Flag: Binary Yes/No flag that represents that this office has the authority to award federal contract actions. In production now at the DoDAAD and used to identify procurement offices in FPDS. Funding Office Flag: Binary Yes/No flag that represents that this office has the ability to initiate requirements (e.g., the office has a budget and can initiate requirements packages that will result in contracts, grants, and other types of awards). Future Flags may include flags for Grants, Payment, Intergovernmental Transactions, Finance, Receiving locations A DoDAAC may have more than one flag, depending on the roles that office serves 2017 Procure-to-Pay Training Symposium 18

19 New Field Status Including a CGAC data element in the DoDAAD Completed Existing DoDAAC records will be pre-populated with the appropriate CGAC for the 24 CFO Act agencies by end of January GSA-IAE will be incorporating the use of the CGAC to organize agencies in FPDS in the March 31 release Procurement Flag data element already existed in the DoDAAD Completed DoD records were recently refreshed in the DoDAAD based on Components review of FPDS data. GSA-IAE will be incorporating the use of the Procurement Flag to identify contracting offices in FPDS in the March 31 release PDS validation rules have already been updated to require the Procurement Flag when validating the Issuing Office DoDAACs Funding Office Flag, Organization Type Code, Contractor Flag, and Sub Tier Code have all been added as fields Guidance forthcoming on how best to populate these fields Procure-to-Pay Training Symposium 19

20 DoDAAC and CAGE 2017 Procure-to-Pay Training Symposium 20

21 CAGE vs DoDAAC Contractors get one CAGE code to use for life (per location); contractors who need DoDAACs get them specific to the contract under which they are performing (for example, if they are required to requisition items under a contract). DoDAAC should expire/be closed at contract closeout. DoDAAC address is limited to MILSTD 129 for shipping labels, CAGE address is not CAGE is issued at the vendor s request. CAGE PMO performs multiple validations on the company prior to issuing a CAGE to check for fraudulent vendors. DoDAACs are issued at the contracting officer s request. CAGE data is synced with data from external sources such as SAM and Excluded Parties List. DoDAAC data is standalone. DoDAAC data identifies the purposes for which a contractor has the code. CAGE just identifies the contractor Procure-to-Pay Training Symposium 21

22 Sharing CAGE Data Can use CAGE checks to reduce risk on contractors who are provided DoDAACs CAGE conducts investigation when new request has an address match an existing record; or on a renewal when significant data elements (e.g., legal business name) change CAGE has implemented MELISSA DATA as a check on provided addresses CAGE database is updated to show debarred/suspended status based on SAM (and submitted by own DoD SDOs); working to more closely integrate with SAM Can improve currency of and aligning of data on contractors CAGE program has developed web services to better enable validating against database and returning CAGE data Planning an interface to more easily share/update contractor data, including address, between the two systems Procure-to-Pay Training Symposium 22

23 DoDAAC Database Updates 2017 Procure-to-Pay Training Symposium 23

24 DoDAAD Enterprise Resources Website New DoDAAD front end planned. Provides a public web presence for the DoDAAD - particularly critical for users who are not part of the DoD Supply Community (Google search takes you to DoDAAD vice DAASINQ. ) Can initiate a request for a new record, update an existing record, or delete an existing record; Replaces use of DAASINQ/eDAASINQ for DoDAAD. Perform simple and advanced searches. 24

25 DoDAAD Request Tool Can request a New, Update, or Delete to a DoDAAC or RIC. User provides contact information/reason for request. Form Templates allow user to identify fields and enter data therein. Once information is saved, user selects Agency/Component POC from a routing list. Upon submitting, the form is attached to a system-generated as an XML file. CSP receives and saves attachment. CSP uploads XML file into Update Application. If there are any issues with the request, the CSP will have the contact information provided by the Requestor to discuss offline. CSP saves record in Update Application. 25

26 DoDAAD Realignment DoDAAD traditionally reflected the three main functions of the 1970 s supply chain. Addresses follow purpose: Get it, ship it, pay for it = TAC1, TAC2, TAC3 Uses today: Acquisition, Supply, Transportation, Financial Management, Maintenance, Readiness, Facilities, Human Resources, etc. Who is ordering? Where do I send it? Who do I bill? 2017 Procure-to-Pay Training Symposium 26

27 To-be: Front end will be realigned around Purpose Codes. Tabbed data is specific to the type of information. Record information includes the core data for the record. TAC1 is now the Record Address (you can t create a DoDAAC w/o a TAC1). Authority and Purpose Codes will warrant further required data when selected. DoDAAD Realignment 2017 Procure-to-Pay Training Symposium 27

28 Product Service Codes 2017 Procure-to-Pay Training Symposium 28

29 What is a Product / Service Code? A product / service code (PSC) is an identifier to describe products and services purchased by the federal government Is not the same as a North American Industrial Classification System (NAICS) code which is used to identify an industry when determining applicable size standards for a procurement; the are complementary identifiers, but there is no direct map between the two The PSC is THE identifier used for many international trade reports and to determine compliance with place of manufacture requirements of the Buy American Act and numerous treaties with other countries The PSC Manual is maintained by the General Services Administration (GSA) on behalf of the federal government PSCs assigned for supplies in the Manual are often referred to as Federal Supply Codes (FSCs) and are currently all maintained by DLA through existing committees in the federal logistics process PSCs assigned for services have been maintained by GSA through the IAE CCB governance process These maintenance processes are changing to be governed by the Federal Category Management governance process 2017 Procure-to-Pay Training Symposium 29

30 Tracing What is Purchased Across Functional Areas While procurement processes use PSCs to identify what has been purchased, budget processes use object class codes (OCC) (a higher level of classification) Object class means the category assigned for purposes of the annual budget of the President submitted under section 1105(a) of title 31, United States Code, to the type of property or services purchased by the Federal Government Specific object classes are defined in OMB Circular A-11 In an effort to better establish the traceability between DoD budget and procurement, on April 14, 2014 OUSD AT&L and OUSD(C) issued a memo announcing the first PSC to object class map (Version 1.0) Version 2.0 of the crosswalk issued March 4, 2016 DoD Comptroller s office working with Component financial management community to update crosswalk for version 3.0 DoD s Deputy Chief Financial Officer issued February 24, 2015 memo requiring that OCCs and PSCs be included on purchase request line items starting March 1, 2015 Better visibility and linkage of budget, obligation, and expenditure data DPAP launched the PSC Selection Tool February 25, Procure-to-Pay Training Symposium 30

31 PSC Selection Tool The PSC Selection Tool is available at Presents PSCs in terms of: DoD s Better Buying Power portfolio groups and portfolios Object class map (version 2.0) Recommended NAICS codes (where available) Enables keyword searches and drill downs through portfolios using portfolio group or object class as a starting point Provides APIs for system integration 2017 Procure-to-Pay Training Symposium 31

32 PSC Selection Tool 2017 Procure-to-Pay Training Symposium 32

33 Selecting PSCs with the PSC Selection Tool Step 1: Select portfolio group Step 2: Select portfolio Step 3: Select Details to learn more about the PSC 33

34 What You Can Find 2017 Procure-to-Pay Training Symposium 34

35 Summary Standardization of processes across key data elements continues in DoD Procure-to-Pay and at the federal level Enabling better interoperability and transparency Expect increased use of validations and prepopulation as underlying systems are integrated and expanded 2017 Procure-to-Pay Training Symposium 35

36 Questions? 2017 Procure-to-Pay Training Symposium 36

37 DEFENSE PROCUREMENT AND ACQUISITION POLICY PROCURE PAY TRAINING TO SYMPOSIUM May 30 June 1, 2017 Hyatt Regency Orlando FL 37