Framework for Assessing the Acquisition Function At Federal	 
Agencies (01-SEP-05, GAO-05-218G).				 
                                                                 
Federal agencies are relying increasingly on contractors to	 
perform their missions. With hundreds of billions of tax dollars 
spent each year on goods and services, it is essential that	 
federal acquisition be handled in an efficient, effective, and	 
accountable manner. The Government Accountability Office (GAO),  
however--as well as other accountability organizations, 	 
inspectors general, and the agencies themselves--continue to	 
identify systemic weaknesses in key areas of acquisition. In	 
fact, the acquisition function at several agencies has been on	 
GAO's high-risk list, which identifies areas in the federal	 
government with greater vulnerability to fraud, waste, abuse, and
mismanagement. In January 2005, we added interagency contracting 
to this list. Far too often, the result of poor acquisitions has 
been an inability to obtain quality goods and services on time	 
and at a fair price. We can no longer afford such outcomes. Given
current fiscal demands and the fiscal challenges we are likely to
face in the 21st century, the federal government must improve its
ability to acquire goods and services in a cost-effective manner.
GAO developed this framework to enable high-level, qualitative	 
assessments of the strengths and weaknesses of the acquisition	 
function at federal agencies. Such assessments can help senior	 
agency executives identify areas needing greater management	 
attention, and enable accountability organizations (including	 
GAO) to identify areas requiring more focused follow-up work. The
framework consists of four interrelated cornerstones that our	 
work has shown are essential to an efficient, effective, and	 
accountable acquisition process: (1) organizational alignment and
leadership, (2) policies and processes, (3) human capital, and	 
(4) knowledge and information management. The framework supports 
an integrated evaluation approach, but each of these cornerstones
can stand alone so users of this framework may tailor evaluations
to an agency's specific needs.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-05-218G					        
    ACCNO:   A38059						        
  TITLE:     Framework for Assessing the Acquisition Function At      
Federal Agencies						 
     DATE:   09/01/2005 
  SUBJECT:   Accountability					 
	     Agency missions					 
	     Contract administration				 
	     Federal agencies					 
	     Federal procurement				 
	     Financial management				 
	     Human capital management				 
	     Information management				 
	     Internal controls					 
	     Procurement planning				 
	     Procurement policy 				 
	     Procurement practices				 
	     Risk management					 
	     Strategic planning 				 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Product.                                                 **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
GAO-05-218G

     

     * Cover page: Framework for Assessing the Acquisition Function at
       Federal Agencies
     * Preface
     * Table: Framework for Assessing the Acquisition Function
     * Table of Contents
     * Executive Summary
     * Cornerstone 1: Organizational Alignment and Leadership
     * Cornerstone 2: Policies and Processes
     * Cornerstone 3: Human Capital
     * Cornerstone 4: Knowledge and Information Management
     * Appendix I: Scope and Methodology
     * Appendix II: Additional Sources of Information
     * Order by Mail or Phone

                     U.S. Government Accountability Office

                                   FRAMEWORK

                                      FOR

             ASSESSING THE ACQUISITION FUNCTION AT FEDERAL AGENCIES

                                 September 2005

PREFACE

Federal agencies are relying increasingly on contractors to perform their
missions. With hundreds of billions of tax dollars spent each year on
goods and services, it is essential that federal acquisition be handled in
an efficient, effective, and accountable manner. The Government
Accountability Office (GAO), however-as well as other accountability
organizations, inspectors general, and the agencies themselves-continue to
identify systemic weaknesses in key areas of acquisition. In fact, the
acquisition function at several agencies has been on GAO's high-risk list,
which identifies areas in the federal government with greater
vulnerability to fraud, waste, abuse, and mismanagement. In January 2005,
we added interagency contracting to this list.

Far too often, the result of poor acquisitions has been an inability to
obtain quality goods and services on time and at a fair price. We can no
longer afford such outcomes. Given current fiscal demands and the fiscal
challenges we are likely to face in the 21st century, the federal
government must improve its ability to acquire goods and services in a
cost-effective manner.

GAO developed this framework to enable high-level, qualitative assessments
of the strengths and weaknesses of the acquisition function at federal
agencies. Such assessments can

X help senior agency executives identify areas needing greater management
attention, and X enable accountability organizations (including GAO) to
identify areas requiring more focused follow-up work.

The framework consists of four interrelated cornerstones that our work has
shown are essential to an efficient, effective, and accountable
acquisition process: (1) organizational alignment and leadership, (2)
policies and processes, (3) human capital, and (4) knowledge and
information management. The framework supports an integrated evaluation
approach, but each of these cornerstones can stand alone so users of this
framework may tailor evaluations to an agency's specific needs. The table
on page iii provides an overview of the framework. Using the table,
readers can see at a glance how the framework is structured and can
quickly identify specific areas that may be of interest.

In developing the framework, GAO consulted with federal government and
industry experts in the areas of human capital, information management,
financial management, and acquisition practices. Additionally, we drew
upon decades of experience within GAO in reviewing each of these areas.

We welcome any feedback you might have to enhance the usefulness of this
framework. Please send comments by e-mail to [email protected]. I
can also be reached at (202) 512-4841.

The framework was prepared under the direction of Bill Woods. Key
contributors to this product were Lily Chin, Christina Cromley, Timothy
DiNapoli, and Shannon Simpson.

Katherine V. Schinasi Managing Director Acquisition and Sourcing
Management

                FRAMEWORK FOR ASSESSING THE ACQUISITION FUNCTION

Cornerstones   Elements                   Critical Success Factors         
Organizational Aligning Acquisition with  o  Assuring Appropriate          
Alignment and  Agency's Missions and      Placement of the Acquisition     
Leadership     Needs                      Function  o  Organizing the      
                                             Acquisition Function to Operate  
                                             Strategically  o  Clearly        
                                             Defining and Integrating Roles   
                                             and Responsibilities             
                  Commitment from Leadership o  Clear, Strong, and Ethical    
                                             Executive Leadership  o          
                                             Effective Communications and     
                                             Continuous                       
                                             Improvement                      
                  Planning Strategically     o  Partnering with Internal      
Policies and                              Organizations                    
Processes                                 o  Assessing Internal            
                                             Requirements and the             
                                             Impact of External Events        
                  Effectively Managing the   o  Empowering Cross-Functional   
                  Acquisition Process        Teams  o  Managing and Engaging  
                                             Suppliers                        
                                             o  Monitoring and Providing      
                                             Oversight to                     
                                             Achieve Desired Outcomes         
                                             o  Enabling Financial            
                                             Accountability                   
                  Promoting Successful       o  Using Sound Capital           
                  Outcomes                   Investment Strategies            
                  of Major Projects          o  Employing Knowledge-Based     
                                             Acquisition                      
                                             Approaches                       
Human Capital  Valuing and Investing in   o  Commitment to Human Capital   
                  the                        
                  Acquisition Workforce      Management                       
                                             o  Role of the Human Capital     
                                             Function                         
                  Strategic Human Capital    o  Integration and Alignment     
                  Planning                   
                                             o  Data-Driven Human Capital     
                                             Decisions                        
                  Acquiring, Developing, and o  Targeted Investments in       
                                             People                           
                  Retaining Talent           o  Human Capital Approaches      
                                             Tailored to                      
                                             Meet Organizational Needs        
                  Creating Results-Oriented  o  Empowerment and Inclusiveness 
                  Organizational Cultures    o  Unit and Individual           
                                             Performance Linked to            
                                             Organizational Goals             
Knowledge and  Identifying Data and       o  Tracking Acquisition Data     
                  Technology                 
Information    that Support Acquisition   o  Translating Financial Data    
                                             into Meaningful                  
Management     Management Decisions       Formats                          
                                             o  Analyzing Goods and Services  
                                             Spending                         
                  Safeguarding the Integrity o  Ensuring Effective General    
                  of                         and Application                  
                  Operations and Data        Controls                         
                                             o  Data Stewardship              

TABLE OF CONTENTS

Preface i
Framework for Assessing the Acquisition Function iii
Executive Summary vii
: Organizational Alignment and Leadership 1
: Policies and Processes 11
: Human Capital 29
: Knowledge and Information Management 41
Appendix I: Scope and Methodology 51
Appendix II: Additional Sources of Information 53

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.

EXECUTIVE SUMMARY

Federal agencies have responsibility for a

What this framework is

vast array of missions-assuring national

X General guidance to evaluate

defense, building and maintaining the nation's

an agency's acquisition function and to identify areas

infrastructure, assessing and collecting tax

that need improvement

revenue, advancing scientific knowledge, and

X Consistent with and integrates

promoting the health and well-being of the nation's

existing guidance and

citizens, among many others. To achieve these

standards

various missions, federal agencies use a variety of approaches and tools,
including contracts to acquire goods and services needed to fulfill or

What this framework is not

X A tool to evaluate specific acquisition actions, contracts,

support the agencies' missions. Federal agencies

compliance with contracting

award contracts worth over $300 billion annually.

laws and regulations, or a

Acquiring these goods and services in an efficient,

source of detailed assessment

effective, and accountable manner is therefore

questions

essential. However, our work-as well as the

X A substitute or replacement for

work conducted by the inspectors general, other

existing standards

accountability organizations, and the agencies

themselves-continues to identify systemic weaknesses in key areas, which
often result in cost, schedule, and performance problems on individual
procurements.

GAO has developed this framework to provide senior acquisition executives,
as well as GAO and other accountability organizations, an ability to
assess at a high level the strengths and weaknesses of agencies'
acquisition functions. This framework comprises four interrelated
cornerstones that our work has shown promote an efficient, effective, and
accountable acquisition function: (1) organizational alignment and
leadership, (2) policies and processes, (3) human capital, and (4)
knowledge and information management. These four cornerstones are
summarized below.

CORNERSTONE 1: ORGANIZATIONAL ALIGNMENT AND LEADERSHIP

Organizational alignment is the appropriate placement of the acquisition
function in the agency, with stakeholders having clearly defined roles and
responsibilities. There is no single, optimal way to organize an agency's
acquisition function. Each agency must assess whether the current
placement of its acquisition function is meeting its organizational needs.
Committed leadership enables officials to make strategic decisions that
achieve agencywide acquisition outcomes more effectively and efficiently.

CORNERSTONE 2: POLICIES AND PROCESSES

Implementing strategic decisions to achieve desired agencywide outcomes
requires clear and transparent policies and processes that are implemented
consistently. Policies establish expectations about the management of the
acquisition function. Processes are the means by which management
functions will be performed and implemented in support of agency missions.
Effective policies and processes govern the planning, award,
administration, and oversight of acquisition efforts, with a focus on
assuring that these efforts achieve intended results.

CORNERSTONE 3: HUMAN CAPITAL

The value of an organization and its ability to satisfy customers depends
heavily on its people. Successfully acquiring goods and services and
executing and monitoring contracts to help the agency meet its missions
requires valuing and investing in the acquisition workforce. Agencies must
think strategically about attracting, developing, and retaining talent,
and creating a results-oriented culture within the acquisition workforce.

CORNERSTONE 4: KNOWLEDGE AND INFORMATION MANAGEMENT

Effective knowledge and information management provides credible,
reliable, and timely data to make acquisition decisions. Each stakeholder
in the acquisition process-program and acquisition personnel who decide
which goods and services to buy; project managers who receive the goods
and services from contractors; commodity managers who maintain supplier
relationships; contract administrators who oversee compliance with the
contracts; and the finance department, which pays for the goods and
services-need meaningful data to perform their respective roles and
responsibilities.

The framework is built on a foundation of strong internal control. Agency
management is responsible for establishing and maintaining effective
internal control, which includes the plans, methods, and procedures used
to meet missions, goals, and objectives. Internal control serves as the
first line of defense in safeguarding assets and preventing and detecting
errors and fraud. The five standards of internal control-control
environment, risk assessment, control activities, information, and
communications-support the framework's four interrelated cornerstones.

Using the Framework

The main sections in this guide focus on the four interrelated
cornerstones. To assist the user in applying the framework, each
cornerstone is broken down into elements and critical success factors.
Each element is integral to effective stewardship at an organization and
depends on critical success factors. The presence of critical success
factors-which focus on program results and mission accomplishment-can
enhance the likelihood of consistently achieving desired acquisition
outcomes. Conversely, the absence of these critical success factors can
point to areas embodying high degrees of risk or those needing greater
management attention.

To help users discover whether their organizations are employing critical
success factors, we offer three indicators: questions to ask, situations
to look for, and caution signs to be aware of. These indicators can be
found by looking for the following symbols throughout this framework-

KEY QUESTIONS

What to ask when trying to identify the presence or absence of critical
success factors.

LOOK FOR

Indicators of practices and activities that facilitate good acquisition
outcomes.

CAUTIONS

Indicators of practices and activities that hinder good acquisition
outcomes.

                            Organizational Alignment

                                       &

                                   Leadership

Aligning Acquisition with         o  Assuring Appropriate Placement of the 
Agency's Missions and Needs        Acquisition Function  o  Organizing the 
                                              Acquisition Function to Operate 
                               Strategically                                  
                               o  Clearly Defining and Integrating Roles and  
                               Responsibilities                               
Commitment from                    o  Clear, Strong, and Ethical Executive 
                                                                   Leadership 
Leadership                  o  Effective Communications and Continuous     
                               Improvement                                    

ELEMENT: Aligning Acquisition with Agency's Missions and Needs
ORGANIZATIONAL ALIGNMENT AND LEADERSHIP                     
Organizational alignment is the appropriate placement of the acquisition
function in                                                 
the organization, with stakeholders having clearly defined roles and
responsibilities.                                           
For example, Congress requires certain civilian executive agencies to
designate                                                   
a chief acquisition officer to take primary responsibility for managing
agency                                                      
acquisitions. In establishing chief acquisition officers, Congress
recognized that                                             
the person in charge of the agency's acquisition function must have a
respected                                                   
and well-defined role that is consistent with the role of acquisition in
meeting                                                     
the agency's missions. Executive leadership is key to obtaining and
maintaining                                                 
organizational support for executing the acquisition function. Executive
leadership                                                  
determines the relationship between the various functional departments and
is key                                                      
to strengthening the interaction between the agency's management and
employees.                                                  
Although there is no single, optimal way to organize an agency's
acquisition                                                 
function, officials from leading companies tell us that effective
organizational                                              
alignment enables them to implement a coordinated and strategically
oriented                                                    
approach to acquisition activities. Similarly, to move toward a more
results-                                                    
oriented government, agencies must ask themselves how they can use
acquisitions                                                
strategically to help them achieve their goals.             
Aligning Acquisition with Agency's Missions and Needs       ELEMENT        
The end goal of organizational alignment is to ensure that  
the acquisition function                                    
enables the agency to meet its overall missions and needs.  
The acquisition function                                    
needs proper management support and visibility within the   
organization to meet                                        
that goal.                                                  
                                                               CRITICAL       
Assuring Appropriate Placement of the Acquisition Function  SUCCESS FACTOR 

In response to market and other pressures, leading companies have assessed
the current placement of their acquisition function to determine if it is
meeting organizational needs, including acquiring needed goods and
services, supporting strategic decision making, and ultimately improving
overall business performance. In many cases, these organizations cut
across traditional boundaries that contributed to a fragmented approach to
buying goods and services by restructuring their acquisition function and
typically assigning it growing responsibility and authority. Similarly,
each agency must assess the current placement of its acquisition function
to determine if it is meeting the agency's needs.

         ELEMENT: Aligning Acquisition with Agency's Missions and Needs

KEY QUESTIONS

     o What percentage of the discretionary budget does the agency spend on
       the acquisition of goods and services?
     o Where is the acquisition function currently placed in the agency?
     o What are the roles and responsibilities of the acquisition function
       and acquisition personnel in the agency?
     o Do agency leaders, management, and staff view the acquisition function
       as a strategic asset in achieving their missions or supporting the
       agency's operations at lowest possible cost?
     o To what extent is the agency's acquisition spending managed or
       influenced by the agency's acquisition office?

LOOK FOR

     o The acquisition function has been assigned the appropriate degree of
       responsibility and authority for strategic planning, management, and
       oversight of the agency's purchases of goods and services, and this
       responsibility is consistent with the significance of acquisition to
       the agency's missions.
     o Agency leaders view the acquisition function as a strategic asset in
       support of core agency missions and business processes.
     o Agency managers and staff view the acquisition function as a business
       partner rather than a support function.
     o Acquisition of goods and services is viewed from an agencywide
       perspective.

CAUTIONS

     o Disconnects exist between where the acquisition function is placed in
       the agency's hierarchy and its role in achieving the agency's missions
       or supporting its operations.
     o Lack of coordination across the acquisition function results in
       redundancy, inconsistency, and an inability to leverage resources to
       meet common or shared requirements.
     o Staff views the acquisition function merely as an administrative
       support function rather than as a business partner.

CRITICAL

SUCCESS FACTOR Organizing the Acquisition Function to Operate Strategically

How an agency organizes and manages its acquisition function affects its
ability to operate strategically. Traditionally, the acquisition function
has been fragmented among business units, as each was responsible for its
own acquisition activities. We found that leading organizations
transformed the acquisition function from one focused on supporting
various business units to one that is strategically important to the
bottom line of the whole company.

A FRAMEWORK FOR ASSESSING THE ACQUISITION FUNCTION AT FEDERAL AGENCIES
GAO-05-218G

ELEMENT: Aligning Acquisition with Agency's Missions and Needs

KEY QUESTIONS

     o Has the agency assessed the current structure of the acquisition
       function and related controls? If so, what were the results of the
       study?
     o Has the agency experienced significant changes in its missions,
       budget, workforce, technology, or other internal or external factors?
       What changes, if any, did the agency make in response to such factors?
     o Does the agency have mechanisms to anticipate, identify, and react to
       risks presented by changes in conditions that can affect agencywide or
       acquisition-related goals?
     o Does the agency have metrics related to acquisition efficiency,
       effectiveness, and results that are included as part of overall
       performance plan and communicated regularly to senior leaders and
       management? Are these metrics linked to agency missions and goals?
     o Does the agency use its strategic and annual performance plan to
       document the contribution that agency officials expect the acquisition
       function will make to the agency's missions, strategic goals, and
       annual goals?

LOOK FOR

     o The acquisition function's mission is well-defined, and its vision for
       the future, core values, goals, and strategies are consistent with and
       support the agency's overall missions.
     o The current structure of the acquisition function has been assessed in
       response to changes, such as in the missions, operating environment,
       budget, workforce, or technology.
     o Outcome-oriented performance measures are used to assess the success
       of the acquisition function. These measures should be designed to
       gauge the contribution that the acquisition function makes to support
       the agency's missions and goals.

CAUTIONS

     o The agency lacks a clear definition of the acquisition function's
       mission, vision, core values, goals, or strategies.
     o The agency has not assessed the role of the acquisition function in
       response to significant changes.
     o The agency lacks a mechanism for addressing risks that arise in
       response to changing conditions.
     o Performance measures are not used to evaluate the usefulness of the
       acquisition function to support the agency's missions.

ELEMENT: Aligning Acquisition with Agency's Missions and Needs

CRITICAL

SUCCESS FACTOR Clearly Defining and Integrating Roles and Responsibilities

An acquisition function that is successful at effectively and efficiently
meeting the agency's missions generally reflects a consistent,
cross-functional, and multidisciplinary approach. This approach requires
engagement by all relevant stakeholders, including representatives from
program offices, contracting officials, financial managers, human capital
officials, information technology officials, and other appropriate
participants. An integrated approach helps agencies better define their
needs and identify, select, and manage providers of goods and services.

KEY QUESTIONS

     o What are the roles and responsibilities of stakeholders in the
       agency's acquisition process?
     o Does the agency empower stakeholders to coordinate, integrate, and
       ensure consistency among acquisition actions?
     o How are stakeholders held accountable for their actions?

LOOK FOR

     o Each stakeholder in the acquisition process has clearly defined roles
       and responsibilities.
     o There is a shared understanding of each participant's role in
       acquisition activities.
     o Key stakeholders are empowered to coordinate, integrate, and implement
       decisions about acquisitions.
     o Acquisition managers support the agency's strategic-planning and
       decision- making needs at field and headquarters levels.

CAUTIONS

     o The acquisition function's role is unclear.
     o Acquisition and other agency offices do not clearly communicate and
       cooperate.
     o There is little integration of acquisition planning among the
       different agency entities with a role in acquisitions.
     o Conflicts among stakeholders are left unresolved, thereby resulting in
       inefficient operations.
     o The agency's acquisition office is frequently bypassed.

ELEMENT: Commitment from Leadership

Commitment from Leadership ELEMENT

Organizations recognized for their best practices cite leadership as the
most                                                   
critical factor in providing direction and vision and, if necessary,
changing the                                           
organization's culture. Leaders have the responsibility to set the
corporate agenda,                                      
define and communicate the organization's values and culture, and remove
barriers                                               
that block organizational changes. Research has found that lack of senior
leadership                                             
commitment is the cause of most reengineering failures.
Congress recognized the critical role leaders play in providing direction
and vision                                             
by requiring certain civilian agencies to designate a chief acquisition
officer to                                             
take primary responsibility for managing acquisitions. The officer's
responsibilities                                       
include evaluating the performance of acquisition programs, advising the
agency                                                 
head on business strategies, and directing acquisition policy for the
agency, among                                          
others.                                                
                                                                     CRITICAL
Clear, Strong, and Ethical Executive Leadership             SUCCESS FACTOR 

Powerful, visionary leaders can set the direction, culture, and
perceptions of the agency. Clear, strong, and ethical executive leadership
can enable staff across the agency to work in an integrated fashion toward
common goals.

KEY QUESTIONS

     o Does the agency have a chief acquisition officer? Is the officer's
       primary responsibility managing acquisitions?
     o Has senior leadership articulated a strategic, integrated, and
       agencywide vision for the acquisition function?
     o Is senior leadership actively involved in pursuing changes, if
       appropriate, to how the agency acquires goods and services?
     o Are managers at all levels held accountable for their contributions to
       the acquisition process?
     o Does agency leadership promote integration and coordination among the
       agency's budgetary processes and human capital, acquisition, and
       financial management functions?
     o Does agency leadership and management have a positive and supportive
       attitude toward internal control?
     o Has agency management recently reviewed its key acquisition-related
       internal controls? If so, what were the results? Are all aspects of
       the acquisition program covered in the internal control review?

ELEMENT: Commitment from Leadership

     o Does agency management take a proactive stance to correct any
       deficiencies identified in its acquisition-related internal controls?
     o Has the agency established policies, such as a code of conduct,
       communicating appropriate ethical standards? How does the agency
       ensure that it interacts with the contractor community in a fair,
       equitable, and ethical fashion?

LOOK FOR

     o The agency has a chief acquisition officer dedicated to managing
       acquisitions in the agency.
     o Senior leadership provides direction and vision, facilitates the
       development of common processes and approaches, and is involved in
       identifying and assessing risks associated with meeting acquisition
       objectives.
     o Senior leadership promotes a strategic, integrated, and agencywide
       approach to acquisition, as appropriate.
     o Improvement initiatives involve stakeholders from across the agency.
     o Senior leadership and management set a positive and supportive
       attitude toward internal control.
     o Senior leadership and management support monitoring to assess the
       quality of internal control performance and to ensure that issues are
       promptly resolved.
     o Senior leadership and management have assessed risks the agency faces
       from external and internal sources in relation to acquisition
       objectives.
     o Actions taken to address risks are effectively implemented.

CAUTIONS

     o There is no chief acquisition officer, or the officer has other
       significant responsibilities and may not have management of
       acquisition as his or her primary responsibility.
     o Senior leadership has not defined a common direction or vision for the
       acquisition function.
     o Senior leadership does not continually support efforts to develop
       common processes and approaches.
     o Senior leadership does not adequately set and maintain the agency's
       ethical tone, provides little guidance for proper behavior, and fails
       to remove temptations for unethical behavior or provide discipline
       when appropriate.
     o Senior leadership has not comprehensively identified risks and
       considered all significant interactions between the agency and other
       parties.
     o Agency management does not have adequate resources and support to
       implement common process and approaches.
     o Agency personnel do not understand the importance of developing and
       implementing good internal controls.

ELEMENT: Commitment from Leadership

Agency leadership needs to effectively communicate to employees the
agency's missions, values, and guiding principles. Leaders use meaningful
metrics to measure the effectiveness of the acquisition function and to
provide the foundation for continuous improvement. Leading organizations
use performance measurements to gain insight into and make judgments about
(1) an organization's current performance level, (2) the critical
processes that require focused management attention, (3) realistic goals
for improvement, and (4) results over time.

KEY QUESTIONS

     o How does agency leadership communicate the agency's missions, values,
       and guiding principles, as well as its vision and expectations for the
       acquisition function, to agency personnel?
     o Have agency personnel been asked for their views on the effectiveness
       of this communication?
     o Does agency leadership facilitate and support clear lines of
       communication among all parties?
     o Have stakeholders been asked for their views on the effectiveness of
       the existing acquisition process and areas needing improvement?
     o What metrics does the agency use to demonstrate the impact and value
       of the acquisition function in supporting the agency's missions?
     o What process does the agency use to develop these metrics?
     o Are control activities an integral part of the agency's planning,
       implementation, review, and accountability activities to ensure
       results and stewardship of government resources?
     o Does the agency or an independent organization continuously monitor
       control activities for their effectiveness at ensuring acquisition
       objectives are met?

LOOK FOR

     o Agency leadership listens to its program units and other affected
       parties' needs and concerns and remains open to revising acquisition
       processes as appropriate.
     o Revisions to processes reflect appropriate incorporation of affected
       parties' needs and concerns.
     o Metrics used by agency leadership are targeted at demonstrating the
       impact and value of the acquisition function and provide useful
       feedback to identify areas for improvement.

                                                                     CRITICAL
Effective Communications and Continuous Improvement         SUCCESS FACTOR 

                      ELEMENT: Commitment from Leadership

CAUTIONS

     o There is inadequate communication from agency leadership regarding the
       effectiveness of the acquisition function and how it supports agency
       missions.
     o There is no mechanism in place for stakeholders to provide suggestions
       for improvement to the acquisition process.
     o Little change is made to acquisition processes based on the needs and
       concerns expressed by affected parties.
     o Internal control monitoring does not occur in the course of normal
       operations, is not performed continually, and is not ingrained in the
       agency's operations.
     o The agency has inadequate policies, procedures, techniques, and
       mechanisms in place to ensure effective implementation of management
       directives.
     o The agency has not implemented a program to continuously measure and
       assess the acquisition function's performance in supporting the
       agency's missions or achieving acquisition goals.
     o Performance measures are in place but are not consistently utilized or
       communicated.

X Where the acquisition function falls in the agency's hierarchy and how
the function is perceived are in balance with the overall agency missions.

X Agency leadership views the acquisition function as a strategic asset.

X Staff views the acquisition function as a business partner rather than
merely a support function.

X An integrated approach to acquisition-involving stakeholders from
program, contracting, finance, and human capital offices-helps agencies
better define their needs and identify, select, and manage providers of
goods and services.

X Agency leadership enables an integrated and agencywide approach to
acquisition.

X Effective communications and use of measurements allow leaders to
actively assess and continuously improve performance.

X Agency leadership establishes and maintains an environment that fosters
a positive and supportive attitude toward internal control and
conscientious management.

Learn more about organizational alignment and leadership by reading the
reports found in appendix II.

                                    Policies

                                       &

                                   Processes

ELEMENT: Planning Strategically

POLICIES AND PROCESSES                                      
Policies and processes embody the basic principles that govern the way an
agency                                                      
performs the acquisition function. Ideally, policies and processes clearly
define                                                      
the roles and responsibilities of agency staff, empower people across the
agency                                                      
to work together effectively to procure desired goods and services, and
establish                                                   
expectations for stakeholders to strategically plan acquisitions and
proactively                                                 
manage the acquisition process. To be effective, policies and processes
must be                                                     
accompanied by controls and incentives to ensure they are translated into
practice.                                                   
Major acquisitions require special attention to promote successful
outcomes.                                                   
Policies and processes that fail to address these objectives contribute to
missed                                                      
opportunities to achieve savings, reduce administrative burdens, and
improve                                                     
acquisition outcomes.                                       
Planning Strategically                                      ELEMENT        
Planning strategically requires attention to the larger     
context within which                                        
acquisitions occur. First, it requires identifying and      
managing relationships among                                
the parties involved in the acquisition process. Second,    
sufficient attention should                                 
be given to analyzing aggregate agency needs and devising   
strategic acquisition                                       
plans to meet those needs. Acquisition planning should also 
take into consideration                                     
the effects of the appropriations process and other         
external factors on the timing                              
and execution of major contracts.                           
                                                               CRITICAL       
Partnering with Internal Organizations                      SUCCESS FACTOR 

Leading organizations have found that an acquisition function that
successfully supports their missions generally employs a multidisciplinary
approach. This approach requires engagement by all stakeholders, including
contracting, finance, legal, and other appropriate participants to
identify needs, assess alternatives, develop cost-effective acquisition
approaches, and help ensure financial accountability.

KEY QUESTIONS

     o Do end-users of the goods and services acquired work with the
       acquisition office to discuss requirements for meeting end-users'
       needs?
     o Do stakeholders work together to develop a joint strategy for
       acquisitions?
     o How receptive are stakeholders to evaluating different acquisition
       approaches and solutions and making trade-off decisions?
     o How does the agency promote coordination among the stakeholders as an
       acquisition action moves through the various steps in the process?
     o Do stakeholders work together to understand each other's needs?

                        ELEMENT: Planning Strategically

LOOK FOR

     o The agency has empowered stakeholders and holds them accountable for
       coordinating, integrating, and implementing effective acquisition
       decisions.
     o Acquisition planning and strategy development support the agency's
       missions rather than focus on the needs of individual units.
     o Stakeholders work on an ongoing basis to define key business and
       acquisition drivers and to understand each other's needs.
     o Lessons learned are identified and shared among stakeholders.
     o The agency has structures in place that require appropriate
       coordination among stakeholders developing and implementing
       acquisition strategies.

CAUTIONS

     o There are only limited mechanisms for coordinating acquisitions in the
       agency.
     o Stakeholders do not clearly communicate their needs or work together
       to identify solutions.
     o Lack of integration across the acquisition function results in
       redundancy, inconsistency, and an inability to leverage resources to
       meet shared requirements.
     o Acquisition and financial management executives do not partner to
       develop a shared vision.

CRITICAL Assessing Internal Requirements SUCCESS FACTOR and the Impact of
External Events

Successful acquisition strategies require sufficient attention to
analyzing agencywide needs. Acquisition planning should include market
research to identify appropriate products and services, determination of
the extent of competition in the market, assessment of core competencies
and opportunities to compete commercial-type activities, and
identification of contract approaches that best meet end-users' needs.
Additionally, past acquisitions should be reviewed to identify trends and
opportunities for consolidating similar acquisitions planned in the coming
year to leverage buying power and reduce administrative burdens.

Acquisition planning should take into consideration the effects of the
appropriations process on the timing and execution of major contracts.
Additionally, agencies must be cognizant of congressional mandates,
administration initiatives, socioeconomic policy objectives,
governmentwide fiscal imbalances, and other factors external to agencies.
Additionally, acquisition processes should be sufficiently flexible to
address unforeseen external events and emergencies.

                        ELEMENT: Planning Strategically

KEY QUESTIONS

     o Does the agency strategically assess its needs and develop acquisition
       approaches to help it meet those needs?
     o Does the agency leverage purchasing volume by identifying agencywide
       acquisitions of goods and services?
     o Does the agency systematically identify and analyze agencywide
       acquisitions planned in the next 12 to 24 months?
     o Are needs identified in the budget request submission consistent with
       planned acquisition strategies?
     o Does the agency track the types of acquisition methods used for
       acquiring goods and services to ensure it is employing the most
       appropriate contract type?
     o Does the agency have a mechanism to review planned acquisitions and
       identify opportunities for suppliers from the small or disadvantaged
       business community? Has the agency achieved its goals in each of the
       socioeconomic acquisition categories?
     o Has the agency determined the type or extent of work that is and
       should be performed in-house and which could be contracted out?
     o Has the agency assessed its core competencies and identified
       opportunities to compete commercial-type activities?
     o Do agency officials track new or pending legislation that might affect
       acquisition policies and processes, training, and workload?
     o Have agency officials assessed whether their acquisition processes are
       capable of responding to unforeseen external events and emergencies?
     o Do agency officials carefully consider how to meet competing demands
       on the acquisition system?

LOOK FOR

     o Strategic acquisition plans are current and reflect anticipated
       budgetary resources.
     o The agency considers recurring purchases and develops acquisition
       plans that best leverage these acquisitions.
     o The agency appropriately selects among contracting tools available,
       including commercial item acquisition, performance-based contracting,
       and government purchase cards to best meet end-user needs in a
       cost-effective manner.
     o Adequate and relevant data are available and used to make strategic
       decisions about what work the agency should perform in-house and to
       identify opportunities to compete work with the private sector.
     o The agency identifies opportunities for small and disadvantaged
       businesses and consistently achieves socioeconomic goals.
     o There is an awareness of current and pending legislation and its
       potential implications on the agency's acquisition policies,
       processes, and practices.
     o The agency has assessed and incorporated changes, as appropriate, to
       enable its acquisition processes to better respond to unforeseen
       external events and emergencies.
     o There is an awareness of the agency's long-term budgetary outlook.

             ELEMENT: Effectively Managing the Acquisition Process

CAUTIONS

     o The agency lacks a strategic acquisition plan.
     o Acquisition planning is completed on a contract-by-contract basis
       rather than with consideration of agencywide needs.
     o The agency lacks data on the types of contracts used on procurement
       actions.
     o Frequent emergency or sole-source purchases are made to meet routine
       or recurring agency needs.
     o The agency fails to achieve socioeconomic goals.
     o Little knowledge exists of what work is contracted out and what work
       is performed in-house.
     o The agency has not assessed its core competencies or identified
       opportunities to compete commercial-type activities.
     o The agency makes frequent changes to acquisition plans due to
       unforeseen expenses or budgetary shortfalls.
     o The agency is ill-equipped to purchase goods and services needed to
       respond to emergency situations.

ELEMENT Effectively Managing the Acquisition Process

                    The role of the acquisition function does not end with    
                    the award of contracts.                                   
                    Acquisitions that help the agency meet its needs require  
                    continued involvement                                     
                    throughout contract implementation and close-out. In      
                    other words, agency                                       
                    processes need to ensure that contracted goods and        
                    services will be delivered                                
                    according to the schedule, cost, quality, and quantity    
                    specified in the contract.                                
                    Factors that can help an agency effectively manage its    
                    acquisition process include                               
                    empowering cross-functional teams, managing and engaging  
                    external suppliers,                                       
                    providing effective monitoring and oversight, and         
                    implementing sound financial                              
                    accountability measures.                                  
CRITICAL SUCCESS                                                           
FACTOR           Empowering Cross-Functional Teams

Leading organizations make extensive use of cross-functional teams to make
sure they have the right mix of knowledge, technical expertise, and
credibility. This approach helps organizations better define their needs
and identify, select, and manage providers of goods and services, which in
turn helps ensure that users' needs are met at the lowest total costs to
the organization. Teams may vary in size but generally include
representatives from the organization's purchasing unit, internal users of
goods and services, and the budget or finance office. Teams are
responsible for analyzing spending data, identifying and prioritizing
potential opportunities for more detailed review, defining internal needs
and requirements, and conducting market research.

ELEMENT: Effectively Managing the Acquisition Process

KEY QUESTIONS

     o To what extent does the agency use cross-functional teams in
       performing acquisition activities? Are staff from field offices
       involved at any level? How?
     o Do team members feel empowered to make decisions and are they invested
       in the project's outcome?
     o Do the teams use a project plan to manage and control project
       implementation?
     o Does the project plan include performance measurement baselines for
       schedule and cost, major milestones, and target dates and risks
       associated with the project?
     o Do individuals outside the project team regularly review the status of
       cost, schedule, and performance goals?
     o Are incentives in place to encourage teams to meet project goals?
     o How are teams held accountable for meeting cost, schedule, and
       performance goals?
     o Is there good communication among all stakeholders?

LOOK FOR

     o The agency uses cross-functional teams to plan for and manage
       projects. These teams develop a project plan to implement projects
       effectively.
     o The agency systematically monitors project performance and establishes
       controls and incentives for accountability.
     o Open, honest, and clear communication is encouraged among all parties,
       including team members, program officials, and contractors.

CAUTIONS

     o The agency makes limited use of cross-functional teams.
     o Project team members do not feel empowered to make decisions or
       invested in the project outcome.
     o Teams fail to use key elements of good project management techniques,
       including monitoring project performance and establishing controls and
       incentives to meet project goals.

CRITICAL

Managing and Engaging Suppliers SUCCESS FACTOR

Leading organizations have found that more cooperative business
relationships with suppliers have improved their ability to respond to
changing business conditions. Such relationships have led to lower costs,
higher quality, and shorter product design and delivery times. Among the
strategies employed by leading organizations are to establish commodity
managers to oversee key goods and services and to establish an effective
feedback system between the agency and its suppliers.

ELEMENT: Effectively Managing the Acquisition Process

Agencies can develop effective supplier relationships within the context
of the Federal Acquisition Regulation by

X establishing effective supplier relationship management as a core
business strategy,

X employing rigorous supplier selection to create a strong supplier base,

X establishing commodity managers to more effectively manage key goods and
services, and X establishing and maintaining an effective communication
and feedback system with suppliers.

KEY QUESTIONS

     o Does the agency have a process to identify key suppliers?
     o Does the agency use a rigorous supplier selection process to create a
       strong supplier base?
     o Has the agency established commodity managers for key goods and
       services?
     o What is the role of the commodity manager?
     o Has the agency embraced effective supplier relationships as a core
       business strategy?
     o Does the agency train its acquisition workforce on how to manage
       supplier relationships?
     o Has the agency established an effective communication and feedback
       system with its suppliers to continually assess and improve its own
       and its suppliers' performance?
     o Does the agency foster an environment in which suppliers invest their
       intellectual capital-their ideas-into the venture?

LOOK FOR

     o The agency uses stringent supplier selection criteria while
       maintaining an appropriate level of competition among suppliers.
     o The agency has established commodity managers for key goods and
       services.
     o Commodity managers are actively involved in defining requirements with
       internal clients, negotiating with potential providers of goods and
       services, and assisting in resolving performance or other issues after
       the contract is awarded.
     o The agency has established an effective communication and feedback
       system

with its suppliers, such as designating an authoritative person as a
single interface with key suppliers; using integrated teams to facilitate
sharing of information; establishing an objective basis for providing
feedback by setting performance measures and expectations in terms of
quality, responsiveness, timeliness, and cost; providing periodic "report
cards" and meeting formally with key suppliers to discuss issues; and
using surveys, supplier meetings, and formal agency-supplier councils or
supplier advisory councils to assess existing customer-supplier working
arrangements, identify problem areas, and report back to suppliers.

ELEMENT: Effectively Managing the Acquisition Process

CAUTIONS

     o Knowledge of its key suppliers is not shared across the agency.
     o The agency does not take full advantage of the suppliers' intellectual
       capital, such as design or product ideas.
     o The agency makes limited or no use of commodity managers to manage the
       acquisition of key goods and services.
     o Commodity managers lack expertise, knowledge, or adequate training in
       the goods and services being procured.
     o The agency is dependent on one or two suppliers for key goods or
       services.
     o The agency continues to select the same suppliers without periodically
       assessing whether the goods and services offered are competitive in
       terms of price, quality, and performance.
     o The acquisition workforce lacks the skills, knowledge, and expertise
       to manage supplier relationships effectively.

Monitoring and Providing Oversight CRITICAL to Achieve Desired Outcomes SUCCESS
FACTOR

Over the past decade, the federal government has increasingly relied on
contractors to help carry out its missions. Consequently, agencies require
effective oversight processes and staff with the right skills and training
to ensure contractors provide the needed goods and services. Earned value
management is one method to monitor large projects' progress toward cost,
schedule, and performance goals.

KEY QUESTIONS

     o Does the agency track the types of acquisition methods used for
       acquiring goods and services to assess workload and training
       requirements?
     o What tools, processes, and controls does the agency use to ensure
       effective oversight of contractor performance?
     o What tools, processes, and controls does the agency use to ensure
       effective oversight of employees making purchases?
     o What incentives does the acquisition workforce have to effectively
       monitor contractor performance?
     o Does the agency clearly define the roles and responsibilities for
       those who perform contract management and oversight?
     o What actions has the agency taken to ensure that it has adequate staff
       with the right skills, knowledge, and training to implement policies
       and processes and to oversee contractors?
     o Do agency personnel or external parties with appropriate knowledge,
       skills, and responsibilities monitor internal control over the
       acquisition process on a continuous basis?
     o Does the agency effectively use and require its contractors to use
       earned value management as an investment planning and control tool?

             ELEMENT: Effectively Managing the Acquisition Process

LOOK FOR

     o The agency has undertaken a workforce-planning effort to ensure that
       individuals who award, manage, and monitor contracts have clearly
       defined roles and responsibilities and have the appropriate workload,
       skills, and training to perform their jobs effectively.
     o The agency employs contract monitoring plans or risk-based strategies,
       and tracks contractor performance.
     o The agency regularly reviews contract oversight processes, identifies
       areas needing improvement, and establishes and implements corrective
       action plans.
     o The agency monitors the effectiveness of policies and processes,
       completes a cost benefit analysis when considering alternative
       policies and processes, and follows up on findings identified in
       monitoring efforts.
     o The agency's suppliers have established earned value management
       systems, and the agency verifies that it and its suppliers effectively
       implement earned value management processes and procedures on all
       applicable programs.

CAUTIONS

     o Personnel responsible for contract management have skills and
       knowledge gaps that inhibit their ability to properly oversee the
       types of contracts used by the agency.
     o The agency does not monitor whether its contracts meet cost, schedule,
       performance, and quality requirements.
     o A significant percentage of contracts fail to meet cost, schedule,
       performance, and quality requirements.
     o The agency does not assign clear roles and responsibilities for
       overseeing contracts.
     o There are material weaknesses and/or reportable conditions related to
       acquisitions in the agency's performance and accountability report.
     o Earned value data are unavailable or unreliable, and earned value
       management principles are not properly implemented.

CRITICAL

SUCCESS FACTOR Enabling Financial Accountability

The need for organizations to deliver goods and services despite shrinking
budgets requires agencies to spend their resources wisely. Throughout the
acquisition process, financial information should be tracked and
communicated in a way that enables effective evaluation and assessment of
acquisition activities. When financial data are not useful, relevant,
timely, or reliable, the acquisition function-as well as other functions
across an organization-are at risk of inefficient or wasteful business
practices.

             ELEMENT: Effectively Managing the Acquisition Process

KEY QUESTIONS

     o Does the acquisition workforce have access to and use timely
       contractual financial information to monitor and oversee individual
       acquisitions?
     o Is the agency's financial management system integrated with its
       contract management system?
     o Does the financial management system report frequently enough to
       provide reasonable assurance of accountability in acquisitions?
     o Are financial data resulting from new contracts, task orders, and
       contract modifications clear and recorded properly?
     o Does the agency measure how often erroneous or improper payments are
       made? Is a risk assessment process in place to address improper
       payments?

LOOK FOR

     o The acquisition workforce has ready access to information on obligated
       and expended funds, with sufficient information to assure proper
       oversight and accounting at the contract level.
     o Entries are made to the financial management system that update the
       contract management and property accountability systems.
     o The agency reports frequently enough-monthly or quarterly-to ensure
       accountability in the acquisition function.
     o Adjustments to contract accounting records are clearly reported and
       accurate; such adjustments represent a low percentage of financial
       transactions.
     o Erroneous and improper payments and cost overruns are tracked and are
       not a significant problem.
     o The agency takes appropriate corrective action when the contractor is
       not meeting expectations for cost, schedule, or performance.

CAUTIONS

     o Acquisition and financial management staff lacks access to critical
       information, including fiscal year; appropriation/Treasury fund
       symbol; organization code; cost center; object classification;
       estimated amount; project code; program code; transaction date; action
       code; subject-to-funds-availability indicator; asset identifier code;
       contractor code/name; trading partner; trading partner code; award
       date; and amounts increased and/or decreased.
     o Acquisition and financial management staff independently update the
       same types of data into independent financial and contract management
       systems.
     o Financial management systems fail to provide transaction details to
       support account balances or identify the method of acquisition, lack
       evidence that the contractor's final invoice has been submitted and
       paid, or fail to perform other transaction processing and routine
       accounting activities adequately.
     o Inadequate transaction processing, particularly improper payments,
       occur frequently.
     o Financial management systems fail to include the taxpayer
       identification number for contractor identification and income
       reporting and debt collection purposes.

ELEMENT: Promoting Successful Outcomes of Major Projects

     o The agency receives a qualified, disclaimed, or adverse audit opinion,
       which may indicate poor accountability.
     o Auditors note weaknesses in the agency's acquisition or financial
       management function in the agency's audit report.

            ELEMENT Promoting Successful Outcomes of Major Projects

The federal government spends billions of dollars each year on major
physical capital investment projects and to research, develop, and produce
large custom projects. Capital investments and custom projects are
generally expensive, span multiple years, and are crucial to the agency's
strategy. Capital investments therefore usually require more analysis,
support, and review than projects that cost less, have shorter time
frames, or have less agencywide impact. Particular attention must be given
to these long-term, capital-intensive projects.

Using Sound Capital Investment Strategies

CRITICAL SUCCESS FACTOR

Capital investment includes expenditures for water, power, and natural
resource projects; construction and rehabilitation of Postal Service
facilities and veterans' hospitals; major equipment; facilities for space
and science programs; the air traffic control system; and information
technology for the entire federal government.

To ensure an effective capital investment strategy, leading organizations

X integrate organizational goals into the capital decision-making process;
X evaluate, select, and control capital assets using an investment
approach; and X balance budgetary control and managerial flexibility when
funding capital

projects.

  Integrating organizational goals into the capital decision-making process

Leading organizations begin capital decision-making by defining the
organization's mission in comprehensive terms and results-oriented goals
and objectives. This process enables managers to identify resources needed
to satisfy program requirements based on program goals.

KEY QUESTIONS

     o Are the agency's capital investments linked to and driven by its
       missions and long-term strategic goals?
     o Has the agency completed a comprehensive capital investment needs
       assessment?
     o Does the agency thoroughly consider alternatives to capital
       investments?

ELEMENT: Promoting Successful Outcomes of Major Projects

     o Does the agency perform an annual needs assessment on large capital
       investment projects lasting more than 1 year?
     o Does the agency have an asset inventory? If so, does it contain
       assessments of the condition of the assets?
     o Does the agency ensure it has the necessary resources available before
       beginning investments in capital projects?

LOOK FOR

     o Capital and strategic plans are clearly linked.
     o The agency has completed a comprehensive needs assessment that
       considers the overall missions and identifies the resources needed to
       fulfill immediate requirements and anticipated future needs.
     o Gaps between current and needed capabilities have been identified.
     o The agency tracks the use and performance of existing assets and
       facilities.
     o The agency routinely evaluates alternatives, including noncapital
       options, and repair and renovation of existing assets, before choosing
       to purchase or construct a capital asset or facility.
     o The agency annually assesses capital investment projects lasting more
       than 1 year to assess the continued viability, need, and size of the
       project.
     o The agency has an asset inventory that includes condition assessments.
     o The agency ensures it has adequate time, money, technology, and other
       resources in place before beginning major projects.

CAUTIONS

     o Capital investment decisions are made without strategic consideration
       of what assets the agency already has and what it needs or the
       resources needed to fulfill its long-term and short-term goals and
       objectives.
     o There is little consideration of alternatives to satisfy agency needs.

  Evaluating and selecting capital assets using an investment approach

An investment approach builds on an agency's assessment of where it should
invest its resources for the greatest benefit over the long term. Projects
that are expensive, span multiple years, and are crucial to the agency's
strategy usually require more analysis, support, and review than projects
that cost less, have shorter time frames, or have less agencywide impact.

KEY QUESTIONS

     o Does the agency develop a decision or investment package, such as a
       business case, to justify capital project requests?
     o Does the agency have preestablished criteria and a relative ranking of
       investment proposals?

            ELEMENT: Promoting Successful Outcomes of Major Projects

o  Does the agency develop a long-term capital plan that defines capital
asset decisions?

LOOK FOR

     o The agency develops an investment package that includes common
       categories of information, such as links to organizational objectives;
       solutions to organizational needs; project resource estimates and
       schedules; and project costs, benefits, and risks.
     o The agency requires appropriate levels of management review and
       approval, supported by proper financial, technical, and risk analyses.
     o Processes for ranking and selecting projects are based on
       preestablished criteria, a relative ranking of investment proposals
       and trade-offs, and an understanding of potential project risks.
     o A long-term capital plan guides implementation of organizational goals
       and objectives and helps decision makers establish priorities in the
       long run.

CAUTIONS

     o No framework exists to ensure appropriate levels of management review,
       analysis, and approval for capital investment projects before
       initiating projects.
     o Projects are selected without using preestablished criteria and
       without consideration of project risks.
     o Year-to-year changes are made in the absence of a long-term capital
       plan, without consideration of strategic decisions.

  Balancing budgetary control and managerial flexibility

Leading organizations generally require that the total life cycle costs of
a project be considered when making decisions to provide resources. In the
federal environment, to mitigate the risks of unplanned changes in future
budgets, agencies may budget for "useful segments" of capital projects.1

KEY QUESTIONS

     o Does the agency budget for useful segments of capital projects?
     o Do managers have the necessary information to plan for capital
       investment projects? For example, does the agency have systems to
       estimate the full cost of a project?
     o Are alternatives to full up-front funding considered when they may be
       in the

1 The Office of Management and Budget has defined a "useful segment" as a
component that

(1) provides information that allows the agency to plan the capital
project, develop the design, and assess the benefits, costs, and risks
before proceeding to full acquisition (or canceling the acquisition) or
(2) results in a useful asset for which the benefits exceed the costs even
if no further funding is appropriated.

A FRAMEWORK FOR ASSESSING THE ACQUISITION FUNCTION AT FEDERAL AGENCIES
GAO-05-218G

ELEMENT: Promoting Successful Outcomes of Major Projects

best economic interest of the government?

LOOK FOR

     o The agency budgets projects in useful segments.
     o Information and data systems are in place to develop estimates of the
       full cost of a project or segment early in the life of the project.
     o The agency considers innovative approaches to full up-front funding,
       such as outsourcing capital-intensive services and developing
       public/private partnerships, when these are in the best economic
       interest of the government.

CAUTIONS

     o Capital projects are not funded in useful segments, which leads to
       acquisitions that may not be fully analyzed or justified, cancellation
       of major projects, and loss of associated sunk costs.
     o Agencies lack information to make strategic capital investment
       decisions.

CRITICAL

Employing Knowledge-Based Acquisition Approaches SUCCESS FACTOR

The federal government spends billions annually to research, develop, and
produce large custom projects, such as weapon systems, air traffic control
systems, information technology, and space projects. Undesirable
acquisition outcomes often occur, however, because agency officials
proceed further into development or production without obtaining
sufficient knowledge that the product will be able to meet established
cost, schedule, performance, and quality targets.

The risk of undesirable acquisition outcomes can be significantly reduced.
All product development efforts, whether for an automobile, airplane,
missile, or satellite, go through a process of building knowledge.
Ultimately, this process brings together and integrates the technology,
components, and subsystems needed for the product to work and be reliably
manufactured. GAO has identified three discrete points in the development
process at which obtaining certain levels of knowledge promote successful
outcomes. The attainment of each successive knowledge point builds on the
preceding one. These knowledge points-technology maturity, design
stability, and production process maturity-are defined in the following
manner.

     Knowledge point 1: A match between resources and needs occurs when the

    customer's requirements and the available resources-which are knowledge,

  time, and funding-correspond. Achieving a high level of technology maturity

at the start of development is an important indicator of whether this
match has

been made.

Knowledge point 2: Design stability occurs when a program determines that
a

product's design is stable-that is, it will meet customer requirements and
cost

and schedule targets.

ELEMENT: Promoting Successful Outcomes of Major Projects

Knowledge point 3: Production process maturity occurs when it has been
demonstrated that the product can be manufactured within cost, schedule,
and quality targets and that the process is repeatable and sustainable.

KEY QUESTIONS

     o Is a knowledge-based approach used to develop new products?
     o What techniques does the agency use to match end-users' requirements
       with the technology resources available and the program's ability to
       meet cost and schedule predictions?
     o Does the agency have an established metric or benchmark, such as the
       percentage of engineering drawings complete or similar criteria, to
       demonstrate that the product's design is stable?
     o Is there an established metric or benchmark, such as having 100
       percent statistical control over key manufacturing processes, to
       demonstrate that the product can be reliably produced and with high
       quality?
     o Do program managers quantify the extent to which development efforts
       fail to achieve established benchmarks and assess whether those
       shortcomings are critical and correctable during the next phase?
     o Does the agency measure the extent to which new product development
       activities meet the baseline cost, schedule, or performance
       requirements of the activities?
     o Does the agency use lessons learned from programs that did not meet
       their baseline requirements to improve the agency's acquisition
       processes?

LOOK FOR

     o The agency embodies a knowledge-based approach to acquisition that is
       reinforced in its policies, implemented in its processes, reflected in
       individual acquisition decisions, and demonstrated through
       knowledge-based deliverables.
     o At knowledge point 1 or an equivalent milestone, the agency regularly
       matches requirements and technology resources before beginning product
       development.
     o At knowledge point 2 or an equivalent milestone, agency policy
       requires the developer to demonstrate that the design is able to meet
       requirements. To do so, the agency uses an established benchmark, such
       as the release of at least 90 percent of its engineering drawings, as
       its criteria.
     o At knowledge point 3 or an equivalent milestone, agency policy
       requires the developer to demonstrate that the production process is
       mature and uses an established benchmark, such as 100 percent
       statistical control of key manufacturing processes, as its criteria.

            ELEMENT: Promoting Successful Outcomes of Major Projects

CAUTIONS

     o The agency does not use a knowledge-based process for developing new
       products.
     o The agency does not use the necessary controls, such as demonstrating
       knowledge-based deliverables, to gauge whether adequate knowledge has
       been attained before deciding to move a product to the next phase of
       development.

X Effective partnering with internal organizations and awareness of
external factors that could impact acquisitions are two keys to strategic
acquisition planning.

X Effectively managing the acquisition process leads to improved
acquisition outcomes and involves

-
           empowered agencywide teams,

-
           a strategy for managing external suppliers,

-
           monitoring and oversight, and

-
           steps to ensure financial accountability throughout the
           acquisition process.

X Major acquisition projects, including capital investment and large
custom projects, require special attention to achieve desired outcomes.

Learn more about policies and processes by reading the reports found in
appendix II.

                                 Human Capital

ELEMENT: Valuing and Investment in the Acquisition Workforce
HUMAN CAPITAL                                               
People are assets whose value can be enhanced through investment. Leading
organizations understand that the success of an organization and its
ability to satisfy                                          
customers is dependent on the contributions of its people. Human capital
policies                                                    
and practices should support an organization's overall missions and
performance                                                 
goals.                                                      
Human capital permeates virtually every effort within an agency, including
successfully acquiring goods and services and executing and monitoring
contracts.                                                  
Effective human capital management ensures that an agency has the right
staff                                                       
in the right numbers applying skills where needed to accomplish the
mission                                                     
effectively. Creating an acquisition workforce with the right skills and
capabilities                                                
can be a challenge, given changes to acquisition processes, the
introduction or                                             
expansion of alternative contracting approaches, and increased reliance on
services                                                    
provided by the private sector. In addition, agencies are facing a growing
number                                                      
of employees who are eligible for retirement, which could create an
imbalance with                                              
regard to acquisition experience and skill sets.            
Valuing and Investing in the Acquisition Workforce          ELEMENT        
Successful acquisition efforts depend on agency leadership  
and management                                              
valuing and investing in the acquisition workforce.         
                                                               CRITICAL       
Commitment to Human Capital Management                      SUCCESS FACTOR 

In leading organizations, senior leadership is committed to developing
better ways to invest in human capital and are personally committed to
implementing change.

KEY QUESTIONS

     o How does the agency's leadership demonstrate commitment to the
       acquisition workforce?
     o What is the role of acquisition officials in developing the agency's
       human capital strategic plans?
     o Does the agency have performance expectations for senior leaders and
       managers to foster collaboration within and across organizational
       boundaries and demonstrate a commitment to lead and facilitate change?
     o How are senior leaders and managers held accountable for effectively
       managing the acquisition workforce?

          ELEMENT: Valuing and Investing in the Acquisition Workforce

LOOK FOR

     o Acquisition officials play a significant role in developing the
       agency's overall human capital strategy and ensure that it reflects
       the goals of the acquisition function.
     o Acquisition officials develop, implement, and evaluate human capital
       approaches designed to meet customer needs and improve overall
       business performance.
     o Acquisition officials secure the support of managers at all levels for
       human capital approaches.
     o Acquisition officials are held accountable for managing the
       acquisition workforce effectively.
     o Acquisition employees are provided with resources for continuous
       learning efforts, competency-based appraisal systems, and retention
       and reward programs.

CAUTIONS

     o Agency leadership views people as costs rather than as assets.
     o Agency leadership makes decisions about the workforce without
       considering how the decisions affect mission accomplishment.
     o Agency leadership and management are not held accountable for managing
       the acquisition workforce.
     o Business decisions proceed without consideration of the human capital
       needs they entail or human capital approaches necessary for success.

CRITICAL

SUCCESS FACTOR Role of the Human Capital Function

The human capital function should incorporate a strategic approach for
accomplishing the agency's missions and program goals. This requires the
agency to elevate the role of human capital professionals from paperwork
processors to trusted advisors and partners of senior leaders and
acquisition managers. To accomplish this, agency leaders need to ensure
that human capital professionals have the appropriate authority,
competencies, and experience.

KEY QUESTIONS

     o What are the roles and responsibilities of human capital officials
       with respect to the acquisition workforce?
     o How do acquisition managers collaborate with human capital personnel
       to make hiring and staffing decisions?

ELEMENT: Strategic Human Capital Planning

LOOK FOR

     o Human capital professionals partner with the agency's leaders and
       managers, including acquisition officials, to develop strategic and
       workforce plans.
     o Human capital professionals use streamlined personnel processes and
       other means to meet customer needs, including hiring and retaining an
       acquisition workforce with the right skills.

CAUTIONS

     o Leaders view human capital management as a support or overhead
       function.
     o Human capital management is largely process-oriented and compliance-
       focused.
     o Acquisition and human capital officials do not coordinate with each
       other.

Strategic Human Capital Planning ELEMENT

By focusing on recruiting, hiring, training, and professional development,
strategic                                  
workforce planning outlines ways to help the agency fill gaps in
knowledge, skills,                         
and abilities.                             
                                                                     CRITICAL
Integration and Alignment                                   SUCCESS FACTOR 

Leading organizations take human capital into account when developing ways
to accomplish their missions, program goals, and results. These
organizations assess the effectiveness of the integration and alignment
effort by how well human capital approaches help to achieve organizational
goals.

KEY QUESTIONS

     o Does the agency have a strategic human capital plan that incorporates
       the needs of the acquisition function? If not, does the acquisition
       function have its own plan?
     o Does the agency's strategic human capital plan address the use of
       contractors that provide commercial-type services to the agency?
     o Does the agency's succession planning and management of its
       acquisition workforce: receive active support from top leadership;
       link to strategic planning; identify people with critical skills;
       emphasize development assignments in addition to formal training; and
       address such human capital challenges as diversity, leadership
       capacity, and retention?

                   ELEMENT: Strategic Human Capital Planning

     o Does the agency ensure that teams developing plans for the acquisition
       workforce consist of all stakeholders, such as customers or end-users,
       contracting officers, representatives from budget and finance, legal
       counsel, and human capital personnel?
     o How does the agency track the effectiveness of human capital
       strategies for its acquisition workforce?

LOOK FOR

     o Comprehensive strategic workforce planning efforts.
     o A strategic workforce plan that reflects the needs of the acquisition
       function, including consideration of which functions to maintain
       in-house.
     o Strategies for recruiting, retaining, and developing acquisition
       staff, including performance measures to evaluate the contribution
       these strategies make in supporting the agency's acquisition function
       and achieving its mission and goals.
     o A knowledge and skills inventory is used to identify current and
       future weaknesses and needs in acquisition skills.

CAUTIONS

     o The agency does not fully recognize the link between its human capital
       approaches and organizational performance objectives.
     o The agency adopts human capital approaches without considering how
       well they support organizational and acquisition goals and strategies
       or how these approaches may be interrelated.

CRITICAL

SUCCESS FACTOR Data-Driven Human Capital Decisions

A fact-based, performance-oriented approach to human capital management is
crucial to maximizing the value of human capital and to managing risk.
Leading organizations use data to determine key performance objectives and
goals, enabling them to evaluate the effectiveness of their human capital
approaches.

KEY QUESTIONS

     o Who is included in the acquisition workforce?
     o How does the agency track data on the acquisition workforce?
     o How does the agency determine the appropriate size of its acquisition
       workforce?
     o Is the mix of entry-level, mid-level, and top-level executives
       appropriate given the agency's missions and role of the acquisition
       function?
     o What training and professional certifications have current acquisition
       employees attained?
     o How does the agency track the workload of the acquisition staff?

ELEMENT: Acquiring, Developing, and Retaining Talent

     o Does the agency have a skills inventory for the acquisition workforce?
       How is it used to make human capital decisions?
     o How long does the recruitment process take?
     o What has the attrition rate been for the acquisition workforce?
     o Does the agency conduct exit interviews with departing acquisition
       workforce employees to determine why people are leaving? If so, how
       are lessons learned used?
     o What is the acceptance rate of applicants offered positions?
     o How are training and development programs and results evaluated, and
       how does the agency track, report, and use this information?

LOOK FOR

     o Data on the agency's acquisition workforce are reflected in strategic
       workforce- planning documents. This includes size and shape of the
       workforce; skills inventory; attrition rates; projected retirement
       rates and eligibility; deployment of temporary employee/contract
       workers; dispersion of performance appraisal ratings; average period
       to fill vacancies; data on the use of incentives; employee feedback
       surveys; and feedback from exit interviews, grievances, or acceptance
       rates of job candidates.
     o Data are available on staff development, including the number of
       people receiving training; money spent on training; and measures to
       determine the real impact on the agency's goals and objectives (such
       as increased productivity, enhanced customer satisfaction, increased
       quality, and reduced costs and errors).
     o The agency uses data to evaluate and continuously improve the
       effectiveness of training and development programs.

CAUTIONS

     o Agency officials lack critical information with which to create a
       profile of the workforce or to evaluate the effectiveness of human
       capital approaches.
     o Performance measures and goals for the agency's human capital
       programs, especially as they link to programmatic outcomes, have yet
       to be identified.
     o The agency has little knowledge of what work is contracted out and
       what work is performed in-house.

Acquiring, Developing, and Retaining Talent ELEMENT

Recent trends in hiring and retirements in the federal government will
leave many agencies with workforce imbalances in terms of skills,
knowledge, and experience. Without sufficient attention given to
acquiring, developing, and retaining talent, federal agencies could lose a
significant portion of their contracting knowledge base.

GAO-05-218G A FRAMEWORK FOR ASSESSING THE ACQUISITION FUNCTION AT FEDERAL
AGENCIES

ELEMENT: Acquiring, Developing, and Retaining Talent

CRITICAL

SUCCESS FACTOR Targeted Investments in People

Leading organizations realize that investing in and enhancing the value of
their acquisition staff benefits both employers and employees alike. For
example, investing in training for the acquisition workforce is critical
to ensuring adequate oversight of the quality, cost, and timeliness of
goods and services delivered by third parties.

Industry and government experts recognize that training is a critical tool
in successfully introducing and implementing new ways of doing business as
well as reacting to change. An agency's overall training
strategy-including planning, developing, implementing, and continuous
improvement of its programs-is an important factor in ensuring staff has
the necessary skills, knowledge, and experience to meet agency missions.
The success of investment in training can be measured with balanced
indicators that are results-oriented and client-based, encompass employee
feedback, and incorporate multiple dimensions of performance.

KEY QUESTIONS

     o What process does the agency follow to determine the appropriate level
       of spending on training, recruiting, and retention efforts?
     o Does the agency have individual training plans established for all
       employees?
     o Do employees have opportunities for continuous learning-such as
       attending meetings, seminars, and summits-to hear about best practices
       or otherwise stay up-to-date on issues in their fields?
     o What are the training requirements for new and current acquisition
       staff and related positions?
     o How is staff trained regarding new practices in acquisition?
     o Does the agency have a comprehensive training management system that
       can track the delivery of training? Does it identify and track the
       associated costs of specific training and development programs?
     o Do managers consistently provide resources (funds, people, equipment,
       and time) to support training and development priorities for the
       acquisition staff?
     o Does the agency actively work with colleges and universities to: (1)
       market the opportunities available for acquisition professionals and
       (2) include a federal acquisition course that will prepare students
       for careers in federal acquisition and help promote federal career
       possibilities?
     o Are model career paths charted for acquisition staff?

LOOK FOR

o  The agency demonstrates that it has prioritized the most important
training initiatives; secured top-level commitment and provided resources;
obtained and considered input on training and resource needs from
management and staff; identified those needing training, and set training
requirements; tailored training to meet the needs of the workforce;
tracked training to ensure it

ELEMENT: Acquiring, Developing, and Retaining Talent

reaches the right people at the right time; and measured the effectiveness
of training.

     o The agency targets investments in human capital to help it attract,
       develop, retain, and deploy talented, high-performing staff to
       accomplish its mission. These investments include training and
       professional development, recruiting bonuses, retention allowances,
       and skill-based pay.
     o Goals, expectations, and criteria for investments in human capital
       development are clearly defined, transparent, consistently applied,
       and based on expected improvement in results.
     o Agency investments are monitored and evaluated for effectiveness.

CAUTIONS

     o Training and other human capital expenditures are minimized rather
       than viewed as an investment.
     o Funding decisions are made without clearly defined objectives or
       adequate consideration of how they will impact the workforce.
     o The agency does not establish priorities, provide adequate funding, or
       track investments in human capital.

Human Capital Approaches Tailored to Meet CRITICAL Organizational Needs SUCCESS
FACTOR

Existing laws, rules, and regulations provide the agency with flexibility
to offer competitive incentives to attract skilled acquisition employees;
to create performance incentives and training programs; and to build
constructive labor-management relationships based on common goals. Such
flexibility should enable agency officials to tailor their human capital
approaches to their agency's specific needs and context.

When making decisions about the most appropriate approaches, the agency's
acquisition officials should work with human capital professionals,
managers, employees, and employee unions. Managers must be held
accountable for applying these approaches in a fair and equitable manner
across the agency.

KEY QUESTIONS

     o What human capital flexibilities have agency officials used over the
       past few years and with what results?
     o What laws, regulations, or policies, if any, do agency officials view
       as limiting flexibility in human capital approaches?

           ELEMENT: Creating Results-Oriented Organizational Cultures

LOOK FOR

     o The agency has a human capital strategy for the acquisition workforce,
       and it is based on the agency's missions.
     o The agency explores opportunities to increase its competitiveness as
       an employer and eliminate barriers to building an effective, skilled
       acquisition workforce and takes appropriate action.

CAUTIONS

     o Managers view improvements in the acquisition workforce as improbable.
     o Managers fail to fully explore the range of tools and flexibilities
       available under existing laws and regulations.

ELEMENT Creating Results-Oriented Organizational Cultures

Leading organizations foster a work environment in which people are
empowered and motivated to contribute to continuous learning and mission
accomplishment.

CRITICAL

SUCCESS FACTOR Empowerment and Inclusiveness

Getting employees directly involved in the planning process helps to
develop goals and objectives from a front-line perspective. Leading
organizations commonly seek employee input on a periodic basis and
explicitly address and use it to adjust their human capital approaches.

KEY QUESTIONS

     o Does the agency seek ideas from the acquisition workforce? Do
       employees feel a sense of ownership about policies and procedures?
     o Do managers involve employees when planning and sharing acquisition
       performance information?
     o Has the agency established a communication strategy to create shared
       expectations about the acquisition function and to report progress?

LOOK FOR

     o The agency obtains employees' ideas, involves employees in planning
       and sharing acquisition performance information, and incorporates
       employee feedback into new policies and procedures.
     o Employee unions or councils are involved in major workplace changes,
       such as competitive sourcing or redesigning work processes.
     o The agency has established a communication strategy to create shared

ELEMENT: Creating Results-Oriented Organizational Cultures

expectations and report progress.

o  Alternative dispute resolution programs are used effectively to resolve
workplace disputes.

CAUTIONS

     o Managers and staff rigidly adhere to standardized procedures.
     o Relations between management and employees and their representatives
       appear adversarial.
     o Substantial time and resources are consumed by reacting to workplace
       disputes and long-standing sources of conflict.

Unit and Individual Performance CRITICAL Linked to Organizational Goals SUCCESS
FACTOR

Leading organizations find that effective performance management systems
can transform their cultures to be more results-oriented,
customer-focused, and collaborative in nature. These systems are used to
achieve results, accelerate change, and facilitate discussions about
individual and organizational performance throughout the year. An
effective performance management system links organizational goals to
individual performance for all acquisition-related employees and creates a
"line of sight" between individual activities and organizational results.

KEY QUESTIONS

     o Has the agency recently assessed whether its performance management
       systems for the acquisition workforce adequately meet its needs?
     o What efforts, if any, are underway to review or improve existing
       performance management systems?
     o Does the agency's performance management system provide candid and
       constructive feedback to help individuals understand their
       contributions and help the organization achieve its goals; objective
       information to reward top performers; and documentation and
       information to deal with poor performers?

LOOK FOR

     o Individual performance expectations are aligned with organizational
       and crosscutting goals.
     o Performance information is routinely used to track and plan follow-up
       actions to address organizational priorities.
     o Competencies are used that enable fuller assessments of performance.

           ELEMENT: Creating Results-Oriented Organizational Cultures

     o Pay is linked to individual and organizational performance.
     o Meaningful distinctions in performance are made.
     o Roles and responsibilities are defined and enable staff to maintain a
       consistent focus on programmatic priorities even during organizational
       transitions.

CAUTIONS

     o The agency has not aligned performance expectations with
       organizational goals.
     o The agency does not use performance information to track progress at
       meeting organizational priorities.

X Agency leadership and managers value and invest in the acquisition
workforce.

X Human capital professionals partner with acquisition managers to make
staff development decisions.

X Acquisition managers take human capital approaches into account when
developing ways to attain organizational goals.

X A strategic workforce plan profiles the current staff and projects
staffing needs for the future.

X The agency invests in talented, high-performing staff.

X The agency fosters a work environment in which people are empowered

and motivated to meet missions and goals.

Learn more about human capital by reading the reports found in appendix
II.

                                   Knowledge

                                       &

                             Information Management

Identifying Data and Technology that Support Acquisition Management
Decisions

Safeguarding the Integrity of Operations and Data

     o Tracking Acquisition Data
     o Translating Financial Data into Meaningful Formats
     o Analyzing Goods and Services Spending
     o Ensuring Effective General and Application Controls
     o Data Stewardship

  ELEMENT: Identifying Data and Technology that Support Acquisition Management
                                   Decisions

KNOWLEDGE AND INFORMATION MANAGEMENT

Knowledge and information management refers to a variety of technologies
and tools that help managers and staff make well-informed acquisition
decisions. Such decisions have a direct impact on many levels-program and
acquisition personnel who decide which goods and services to buy; project
managers who receive the goods and services from contractors; commodity
managers who maintain supplier relationships; contract administrators who
oversee compliance with the contracts; and the finance department, which
pays for the goods and services. They all need meaningful data to perform
their respective roles and responsibilities.

Identifying Data and Technology that Support Acquisition Management Decisions
ELEMENT

Leading organizations gather and analyze data to identify opportunities to
reduce                                     
costs, improve service levels, measure compliance with supplier
agreements,                                
and provide better management of service providers. Information systems
help                                       
managers learn how much is being spent with which service provider and for
what supplies or services. Additionally, data collected in support of
meaningful                                 
metrics can assist agencies track achievements in comparison with plans,
goals,                                     
and objectives. They can also allow agencies to analyze differences
between actual                             
performance and planned results. Generating meaningful data, however,
requires                                   
good data stewardship.                     
                                                                     CRITICAL
Tracking Acquisition Data                                   SUCCESS FACTOR 

When buying goods and services, many leading organizations have
implemented comprehensive systems that integrate contracting, financial,
and other data to support management decision making and external
reporting requirements. These data

X track events throughout the life of a contract; X monitor contractor
performance and work progress; X record and validate the receipt of goods
and services; and X link to human capital systems to obtain information
that monitors workload

levels of contracting officers and contract specialists, and workforce
training and education.

The agency's financial systems support the preparation of auditable
financial statements, track financial events, and help to ensure correct
and timely payments for goods and services acquired. Financial data can,
in conjunction with contracting and other data, enable strategic decision
making by supporting an analysis of the

ELEMENT: Identifying Data and Technology that Support Acquisition
Management Decisions

agency's buying patterns. External data are obtained from commercial
sources or other federal organizations. Examples include market research
information and supplier financial status and performance.

Additionally, metrics, when designed to measure outcomes rather than
inputs, can be used to: evaluate and understand an organization's current
performance level; identify critical processes that require focused
management attention; obtain the knowledge needed to set realistic goals
for improvement; and document results over time.

KEY QUESTIONS

     o What acquisition-related data does the agency collect? Are data kept
       current?
     o Are the agency's financial (including budgetary), acquisition,
       operating, and management information systems integrated? Do the
       systems provide timely, accurate, and relevant information?
     o Do stakeholders believe the agency's information systems meet their
       business needs?
     o How does the agency make needed data available to stakeholders within
       the acquisition process, such as program officials, commodity
       managers, and contracting officers?
     o How does the agency manage institutional knowledge and identify and
       share best practices?
     o Has the agency established specific goals and metrics-and collected
       data in support of those metrics-to assess the performance of the
       acquisition function?

LOOK FOR

     o Stakeholders generally agree that the agency's information systems
       provide credible, reliable, and timely information that they can use
       to make informed decisions.
     o An effective agencywide system integrates financial, acquisition,
       operating, and management information and allows decision makers to
       access relevant information easily and perform ad-hoc data analysis.
     o The agency's contracting management information system tracks events

throughout the life of a contract, such as contract award; period of
performance; contract modifications; key milestones; contractor
performance, including cost and schedule status; contract closeout;
identification of outstanding acquisition requests; expected cost;

  ELEMENT: Identifying Data and Technology that Support Acquisition Management
                                   Decisions

types of goods and services acquired; receipt and acceptance of goods and
services; and trouble spots and progress in dealing with them.

     o Financial data-such as budgetary resources and funds availability,
       status of obligations and expenditures on individual contracts,
       outstanding purchase requests, and payments for the receipts of goods
       and services-are readily available to stakeholders.
          * Knowledge and information management systems support strategic
            planning
          * and performance improvement by enabling real-time benchmarking;
            sourcing and volume discount tracking; complete vendor
            information; contractors' past performance; and "what-if"
            analysis and planning.
          * Data are available on the agency's overall "health," internal
            capabilities, and the
          * external environment. Useful sources include agency financial
            statements; customer and employee satisfaction surveys; knowledge
            and skills inventories; workforce training and education data;
            retention and recruitment reports; and internal audit reports.
     o Metrics have been established and are used to assess the effectiveness
       of the acquisition function, and measurements taken are credible.
     o Metrics established allow the agency to assess the acquisition
       function's progress in meeting financial, customer satisfaction, and
       business operation objectives, as well as day-to-day activies, such as
       compliance with applicable laws, regulations, and best practices.

CAUTIONS

     o The agency has not collected the full set of information or data to
       make effective and fact-based decisions.
     o Incomplete data prevent the agency from maximizing information tools
       for strategic acquisition planning and analysis.
     o Data are not current, reliable, complete, or accurate.
     o The agency does not make needed data accessible to decision makers,
       leading them to rely on informal, ad-hoc systems to make acquisition
       decisions.
     o Decisions are not supported by demonstrable, underlying information.
     o Lack of integration among systems hinders a user's ability to access
       acquisition-related information in a timely manner.
     o Metrics established measure only inputs rather than outputs.
     o Measurements taken in support of metrics are not credible, leading to
       disagreements over numbers and the value of the assessment process.

            ELEMENT: Identifying Data and Technology that Support Acquisition
                                                         Management Decisions
CRITICAL        
SUCCESS FACTOR  Translating Financial Data into Meaningful Formats         

New technology tools can generate volumes of data, but the data are
meaningless unless they can be translated into relevant, understandable
formats for acquisition officials. Financial information is meaningful for
acquisition officials when it is relevant, timely, and reliable, and
enables them to manage costs, measure performance, and make program
funding decisions.

KEY QUESTIONS

     o Do finance executives work with acquisition executives and managers to
       determine their information needs?
     o What types of financial data or reports are regularly provided to
       acquisition officials?
     o To what extent do acquisition personnel use financial information to
       support acquisition decisions?

LOOK FOR

     o Finance executives work with acquisition executives and managers on an
       ongoing basis to determine business and acquisition information needed
       to manage and oversee the agency's missions and objectives.
     o Relevant financial information pertaining to acquisition is presented
       with suitable detail in an understandable format. Multiple levels of
       detail are available to provide complete and consistent obligation and
       expenditure information for an agency's overall contracting activities
       and for individual contracts.
     o Financial management staff and officials receive feedback from
       acquisition staff and officials to ensure the acquisition function's
       data and reporting needs are being met.

CAUTIONS

     o Financial information pertaining to acquisition is not of the proper
       scope, level of detail, timing, content, and presentation format to
       provide real value to users.
     o Acquisition information received by financial management staff is not
       clear and understandable, impairing efficient processing of the
       information into management reports.

  ELEMENT: Identifying Data and Technology that Support Acquisition Management
                                   Decisions

Leading organizations continually analyze their spending on goods and
services to answer basic questions about how much is being spent and where
dollars are going. This approach is called "spend analysis." When
organizations complete these analyses, they often realize they are buying
similar goods and services from numerous providers, often at greatly
varying prices.

KEY QUESTIONS

     o Does the agency regularly conduct and make use of spend analyses for
       key goods and services?
     o What process does the agency use to conduct a spend analysis?
     o Does the agency include purchases made with purchase cards in its
       spend analysis?
     o If spend analyses have been conducted, how were the results used?
     o Does the agency use a standard taxonomy to uniquely identify the
       products and services being analyzed?

LOOK FOR

     o The agency makes regular use of spend analysis techniques to support
       strategic planning efforts.
     o The agency knows how much it is spending using purchase cards and has
       considered this information in its spend analysis.
     o The agency uses a variety of information, including financial data, to
       conduct a

spend analysis. At a minimum, the agency's spend analysis identifies what
types of goods and services are being acquired; how many suppliers for a
specific good or service the agency is using; how much they are spending
for that good or service, in total and with each supplier; which units
within the agency are purchasing the goods and services; and what goods
and services have been or could be purchased to meet socioeconomic
supplier goals.

CAUTIONS

     o The agency does not conduct or make regular use of spend analysis.
     o The agency information and financial management systems are unable to
       provide credible, reliable, and timely data needed to conduct a spend
       analysis.
     o Information is not maintained in a standardized format or is of poor
       quality, thus hampering efforts to use the data to more effectively
       manage goods and services spending.

                                                                     CRITICAL
Analyzing Goods and Services Spending                       SUCCESS FACTOR 

ELEMENT: Safeguarding the Integrity of Operations and Data

ELEMENT Safeguarding the Integrity of Operations and Data

Internal controls-such as structures, policies, and procedures-promote
efficiency, reduce the risk of asset loss, help ensure that financial and
acquisition management systems issue reliable reports and that the
organization is in compliance with laws and regulations. It is essential
that acquisition management systems contain appropriate, cost-effective
controls to safeguard assets, ensure accurate aggregation and reporting of
information, and support the accomplishment of organizational objectives.
Internal control actions and activities occur throughout an agency's
operations and on an ongoing basis. Management must balance safeguards
with the need to make accessible, timely, and accurate data available to
managers and others needing acquisition information.

There are two broad groupings of information systems controls that can
help safeguard the integrity of operations and data: general controls and
application controls. Assessing general and application controls is a
technical analysis and requires the assistance of persons knowledgeable in
computer systems evaluation.

CRITICAL

  SUCCESS FACTOR Ensuring Effective General and Application Controls

General control applies to all information systems and includes agencywide
security program planning, management control over data center operations,
system software, acquisition and maintenance, access security, and
application system development and maintenance. Application control is
designed to help ensure the completeness, accuracy, authorization, and
validity of all transactions during application processing.

General and application controls over computer systems are interrelated.
General control supports the functioning of application control, and both
are needed to ensure complete and accurate information processing.

KEY QUESTIONS

     o When was the last information systems control review performed?
     o What documentation exists of the reviews?
     o What issues or problems did the reviews identify?
     o How were the issues and problems addressed?
     o What are the unresolved issues or problems?
     o What is the impact of the unresolved issues and problems?
     o What practices and procedures does the agency use to ensure that
       hardware and software are reliable, secure, and user-friendly?

ELEMENT: Safeguarding the Integrity of Operations and Data

LOOK FOR

     o Evidence in general controls that the structure, policies, and
       procedures- which apply to all or a large segment of the agency's
       information systems-help to ensure proper operation, data integrity,
       and security.
     o Evidence in application controls that the structure, policies, and
       procedures that apply to individual application systems-such as
       inventory or payroll- produce outputs that are complete, accurate,
       authorized, consistent, timely, relevant, and useful for its intended
       purpose.

CAUTIONS

     o The agency has not recently reviewed the internal controls governing
       its major systems.
     o The agency has not addressed all identified major internal control
       issues or established corrective action plans.

CRITICAL

  Data Stewardship SUCCESS FACTOR

Data stewardship ensures that data captured and reported are accurate,
accessible, timely, and usable for acquisition decision making and
activity monitoring. Effective stewardship provides the structure,
oversight, and assurance that data can be accurately translated into
meaningful information about organizational activities. Taking the time to
manage quality of data ultimately helps support the agency's acquisition
management needs.

KEY QUESTION

o  How does the agency ensure that data reflected in its knowledge and

information management systems have the following properties: integrity of
data; synchronization of data collection; reduced data redundancy;
accessibility of data; transferability of data; and flexibility in the
data management process?

LOOK FOR

     o The agency's internal controls provide reasonable assurance that data
       are accurate, complete, timely, and reliable.
     o There is consistency among data definitions, sources, controls, and
       edit routines.
     o Managers group data into logical categories and collect data according
       to commonly accepted reporting time frames.

           ELEMENT: Safeguarding the Integrity of Operations and Data

     o Data are redundant only when necessary. Inconsistencies are
       eliminated.
     o Data are accessible to authorized users when needed.
     o Data can be transferred to other systems for operational, analytical,
       and forecasting processes.

CAUTIONS

     o Data are unreliable, incomplete, or unsuitable for efficient and
       effective management decisions.
     o Users have little or no confidence in the credibility of the data and
       outputs from information systems.
     o Management does not periodically test the reliability of its data.

X Acquisition personnel should track data on the contracting, financial,
and external environment when developing an integrated acquisition
information system.

X Data are relevant, timely, reliable, and presented with suitable detail
in understandable formats.

X Spend analyses answer basic questions about how much is being spent and
where the money is going.

X Hardware and software are safeguarded to ensure the integrity of
operations and acquisition data.

Learn more about knowledge and information management by reading the
reports found in appendix II.

APPENDIX I: SCOPE AND METHODOLOGY

The purpose of this framework is to provide a systematic method for
evaluating the acquisition function within federal agencies. The framework
can be used to identify opportunities for improvements in acquisition
processes as well as to highlight specific risks faced by each agency.

To develop the evaluation framework, we made use of the experience,
knowledge, and expertise within GAO, the executive branch, state agencies,
the private sector, and academia to develop key cornerstones that comprise
an integrated acquisition function. The outline of the evaluation
framework was then further refined in discussions with

     o federal officials from a procurement executive council working group
       set up to assist GAO in assessing the acquisition function;
     o individuals with acquisition expertise from the private sector and
       academia; and
     o senior acquisition executives at a forum held at GAO in March 2004.

To provide us with a broad understanding of the weaknesses, issues, and
potential reforms of the acquisition function, we consulted studies and
reports from organizations such as Rand Corporation, the National Academy
of Public Administration, the Australian National Audit Office, the
National Association of State Purchasing Officials, the
PricewaterhouseCoopers Endowment for the Business of Government, the
Corporate Executive Board's Procurement Strategy Council, the Center for
Advanced Purchasing Studies, and audit reports from GAO and various
federal agency inspector general offices.

We also consulted guides on acquisition, human capital, financial
management, and information technology from the Department of Defense,
Office of Management and Budget, Office of Personnel Management,
Department of Veterans Affairs, Department of Energy, Department of
Transportation, Department of Treasury, Joint Financial Management
Improvement Program, and GAO. Many of these resources are listed in
appendix II.

To verify the accuracy of the information provided and improve the
technical usefulness of the information reported, we asked acquisition,
human capital, financial management, and information technology experts to
review a draft of the evaluation framework. We incorporated their comments
to create an exposure draft, which was distributed to obtain comments from
interested parties of the federal, state and local acquisition community,
acquisition experts from associations, academia, and professional
organizations. We then incorporated these additional comments as
appropriate in this publication.

APPENDIX II: ADDITIONAL SOURCES OF INFORMATION

To download GAO reports, please visit our Web site at www.gao.gov and
enter the report numbers specified below.

CROSS-CUTTING INFORMATION

U.S. Department of Energy, Office of Contract Management, Office of
Procurement & Assistance Management. Acquisition & Financial Assistance
Self-Assessment Checklist. Revised March 2005.

GAO. 21st Century Challenges: Reexamining the Base of the Federal
Government. GAO-05-325SP . Washington, D.C.: February 2005.

GAO. Financial Management: Effective Internal Control Is Key to
Accountability. GAO-05-321T . Washington, D.C.: February 16, 2005.

GAO. High-Risk Series: An Update. GAO-05-207 . Washington, D.C.: January
2005.

U.S. Department of Energy, Office of Procurement and Assistance
Management.

Balanced Scorecard: Performance Measurement and Performance Management
Program. Revised January 2005.

U.S. Department of Transportation. Department of Transportation's
Procurement Performance Management System, Guidance Manual. Revision 3,
October 2004.

GAO. Highlights of a GAO Forum: Workforce Challenges and Opportunities for
the 21st Century: Changing Labor Force Dynamics and the Role of Government
Policies. GAO-04-845SP . Washington, D.C.: June 2004.

GAO. Transportation Security Administration: High-Level Attention Needed
to Strengthen Acquisition Function. GAO-04-544 . Washington, D.C.: May 28,
2004.

GAO. Highlights of a GAO Forum on High-Performing Organizations: Metrics,
Means, and Mechanisms for Achieving High Performance in the 21st Century
Public Management Environment. GAO-04-343SP . Washington, D.C.: February
13, 2004.

Rand Corporation. Project AIR FORCE Research Brief: Speeding Acquisition
Reform in the U.S. Air Force. RB-119-AF. Full report: MR-1711-AF. 2004.

U.S. Department of Energy. Office of Procurement and Assistance
Management, Balanced Scorecard Performance Measures Information Document.
Revised April 22, 2005.

Department of Veterans Affairs. Procurement Reform Task Force Report. May
2002.

                 APPENDIX II: Additional Sources of Information

GAO. Best Practices: Taking a Strategic Approach Could Improve DOD's
Acquisition of Services. GAO-02-230 . Washington, D.C.: January 18, 2002.

GAO. Internal Control Management and Evaluation Tool. GAO-01-1008G .
Washington, D.C.: August 2001.

Australian National Audit Office, Commonwealth of Australia. Contract
Management: Better Practice Guide. February 21, 2001.

Schooner, Steven L. Fear of Oversight: The Fundamental Failure of
Business-like Government. Washington, D.C.: American University Law
Review, Vol. 50, No. 3, 2001.

GAO. Standards for Internal Control in the Federal Government.
GAO/AIMD-00-21.3.1 . Washington, D.C.: November 1999.

Procurement Executives' Association. Guide to a Balanced Scorecard
Performance Management Methodology. Chartered 1998.

ORGANIZATIONAL ALIGNMENT AND LEADERSHIP

GAO. Military Transformation: Clear Leadership, Accountability, and
Management Tools Are Needed to Enhance DOD's Efforts to Transform Military
Capabilities. GAO-05-70 . Washington, D.C.: December 17, 2004.

GAO. HUD Management: Actions Needed to Improve Acquisition Management.
GAO-03-157 . Washington, D.C.: November 15, 2002.

GAO. Business Process Reengineering Assessment Guide. GAO/AIMD-10.1.15 .
Washington, D.C.: May 1997, Version 3.

GAO. Reengineering Organizations: Results of a GAO Symposium.
GAO/NSIAD-95-34 . Washington, D.C.: December 13, 1994.

POLICIES AND PROCESSES

GAO. Defense Acquisitions: Assessments of Selected Major Weapon Programs.
GAO-05-301 . Washington, D.C.: March 31, 2005.

GAO. Best Practices: Using Spend Analysis to Help Agencies Take a More
Strategic Approach to Procurement. GAO-04-870 . Washington, D.C.:
September 16, 2004.

GAO. Contract Management: Guidance Needed to Promote Competition for
Defense Task Orders. GAO-04-874 . Washington, D.C.: July 30, 2004.

APPENDIX II: Additional Sources of Information

GAO. Information Technology: DOD's Acquisition Policies and Guidance Need
to Incorporate Additional Best Practices and Controls. GAO-04-722 .
Washington, D.C.: July 30, 2004.

GAO. The Federal Acquisition Streamlining Act of 1994--Fair opportunity
procedures under multiple award task order contracts. B-302499 .
Washington, D.C.: July 21, 2004.

GAO. Acquisition/Financial Systems Interface Requirements: Checklist for
Reviewing Systems under the Federal Financial Management Improvement Act.
GAO-04-650G . Washington, D.C.: June 2004.

GAO. Contract Management: Impact of Strategy to Mitigate Effects of
Contract Bundling on Small Business Is Uncertain. GAO-04-454 . Washington,
D.C.: May 27, 2004.

GAO. Federal Acquisition: Increased Attention to Vehicle Fleets Could
Result in Savings. GAO-04-664 . Washington, D.C.: May 25, 2004.

GAO. Contract Management: Agencies Can Achieve Significant Savings on
Purchase Card Buys. GAO-04-430 . Washington, D.C.: March 12, 2004.

GAO. Defense Acquisitions: Stronger Management Practices Are Needed to
Improve DOD's Software-Intensive Weapon Acquisitions. GAO-04-393 .
Washington, D.C.: March 1, 2004.

GAO. Financial Management: Some DOD Contractors Abuse the Federal Tax
System with Little Consequence. GAO-04-95 . Washington, D.C.: February 12,
2004.

GAO. Best Practices: Using a Knowledge-Based Approach to Improve Weapon
Acquisition. GAO-04-386SP . Washington, D.C.: January 2004.

GAO. Contracting for Information Technology Services. GAO-03-384R .
Washington, D.C.: February 14, 2003.

GAO. HUD Management: Actions Needed to Improve Acquisition Management.
GAO-03-157 . Washington, D.C.: November 15, 2002.

GAO. Contract Management: Guidance Needed for Using Performance-Based
Service Contracting. GAO-02-1049 . Washington, D.C.: September 23, 2002.

GAO. DOE Contractor Management: Opportunities to Promote Initiatives That
Could Reduce Support-Related Costs. GAO-02-1000 . Washington, D.C.:
September 20, 2002.

GAO. Contract Reform: DOE Has Made Progress, but Actions Needed to Ensure
Initiatives Have Improved Results. GAO-02-798 . Washington, D.C.:
September 13, 2002.

APPENDIX II: Additional Sources of Information

GAO. Best Practices: Capturing Design and Manufacturing Knowledge Early
Improves Acquisition Outcomes. GAO-02-701 . Washington, D.C.: July 15,
2002.

Gansler, Jacques S. A Vision of the Government as a World-Class Buyer:
Major Procurement Issues for the Coming Decade. The PricewaterhouseCoopers
Endowment for the Business of Government. January 2002.

GAO. Information Technology: Leading Commercial Practices for Outsourcing
of Services. GAO-02-214 . Washington, D.C.: November 30, 2001.

GAO. Strategies to Manage Improper Payments: Learning from Public and
Private Sector Organizations. GAO-02-69G . Washington, D.C.: October 2001.

GAO. Best Practices: DOD Teaming Practices Not Achieving Potential
Results. GAO-01-510 . Washington, D.C.: April 10, 2001.

GAO. Best Practices: Better Matching of Needs and Resources Will Lead to
Better Weapon System Outcomes. GAO-01-288 . Washington, D.C.: March 8,
2001.

GAO. Best Practices: A More Constructive Test Approach Is Key to Better
Weapon System Outcomes. GAO/NSIAD-00-199 . Washington, D.C.: July 31,
2000.

GAO. Executive Guide: Creating Value Through World-class Financial
Management. GAO/AIMD-00-134 . Washington, D.C.: April 2000.

GAO. Defense Acquisition: Best Commercial Practices Can Improve Program
Outcomes. GAO/T-NSIAD-99-116 . Washington, D.C.: March 17, 1999.

GAO. Executive Guide: Leading Practices in Capital Decision-Making.
GAO/AIMD-99-32 . Washington, D.C.: December 1998.

GAO. Best Practices: DOD Can Help Suppliers Contribute More to Weapon
System Programs. GAO/NSIAD-98-87 . Washington, D.C.: March 17, 1998.

GAO. Budget Issues: Budgeting for Capital. GAO/T-AIMD-98-99 . Washington,
D.C.: March 6, 1998

GAO. Best Practices: Successful Application to Weapon Acquisitions
Requires Changes in DOD's Environment. GAO/NSIAD-98-56 . Washington, D.C.:
February 24, 1998.

Joint Financial Management Improvement Program. Framework for Federal
Financial Management Systems. FFMSR-0. January 1995.

APPENDIX II: Additional Sources of Information

HUMAN CAPITAL

GAO. Human Capital: Principles, Criteria, and Processes for Governmentwide
Federal Human Capital Reform. GAO-05-69SP . Washington, D.C.: December 1,
2004.

GAO. Posthearing Questions Related to Assessing Progress in Human Capital
Management. GAO-04-1072R . Washington, D.C.: September 3, 2004.

GAO. Human Capital: Building on the Current Momentum to Transform the
Federal Government. GAO-04-976T . Washington, D.C.: July 20, 2004.

GAO. Human Capital: Increasing Agencies' Use of New Hiring Flexibilities.
GAO-04-959T . Washington, D.C.: July 13, 2004.

GAO. Human Capital: Key Practices to Increasing Federal Telework.
GAO-04-950T . Washington, D.C.: July 8, 2004.

GAO. Human Capital: Selected Agencies' Use of Alternative Service Delivery
Options for Human Capital Activities. GAO-04-679 . Washington, D.C.: June
25, 2004.

GAO. Posthearing Questions Related to Agencies' Implementation of the
Chief Human Capital Officers (CHCO) Act. GAO-04-897R . Washington, D.C.:
June 18, 2004.

GAO. Human Capital: Additional Collaboration Between OPM and Agencies Is
Key to Improved Federal Hiring. GAO-04-797 . Washington, D.C.: June 7,
2004.

GAO. Human Capital: Status of Efforts to Improve Federal Hiring.
GAO-04-796T . Washington, D.C.: June 7, 2004.

GAO. Highlights of a GAO Forum: Workforce Challenges and Opportunities For
the 21st Century: Changing Labor Force Dynamics and the Role of Government
Polices. GAO-04-845SP . Washington, D.C.: June 2004.

GAO. Human Capital: Senior Executive Performance Management Can Be
Significantly Strengthened to Achieve Results. GAO-04-614 . Washington,
D.C.: May 26, 2004.

GAO. Human Capital: Observations on Agencies' Implementation of the Chief
Human Capital Officers Act. GAO-04-800T . Washington, D.C.: May 18, 2004.

GAO. Human Capital: A Guide for Assessing Strategic Training and
Development Efforts in the Federal Government. GAO-04-546G . Washington,
D.C.: March 2004.

APPENDIX II: Additional Sources of Information

GAO. Human Capital: Selected Agencies' Experiences and Lessons Learned in
Designing Training and Development Programs. GAO-04-291 . Washington,
D.C.: January 30, 2004.

GAO. Human Capital: Implementing Pay for Performance at Selected Personnel
Demonstration Projects. GAO-04-83 . Washington, D.C.: January 23, 2004.

GAO. Acquisition Management: Agencies Can Improve Training on New
Initiatives. GAO-03-281 . Washington, D.C.: January 15, 2003.

GAO. Acquisition Workforce: Status of Agency Efforts to Address Future
Needs. GAO-03-55 . Washington, D.C.: December 18, 2002.

GAO. Human Capital: Effective Use of Flexibilities Can Assist Agencies in
Managing Their Workforces. GAO-03-2 . Washington, D.C.: December 6, 2002.

GAO. Acquisition Workforce: Department of Defense's Plans to Address
Workforce Size and Structure Challenges. GAO-02-630 . Washington, D.C.:
April 30, 2002.

GAO. A Model of Strategic Human Capital Management. GAO-02-373SP .
Washington, D.C.: March 15, 2002.

U.S. Office of Personnel Management. Human Resources Flexibilities and
Authorities in the Federal Government. Washington, D.C.: July 25, 2001.

GAO. Managing For Results: Emerging Benefits From Selected Agencies' Use
of Performance Agreements. GAO-01-115 . Washington, D.C.: October 30,
2000.

GAO. Best Practices: DOD Training Can Do More to Help Weapon System
Programs Implement Best Practices. GAO/NSIAD-99-206 . Washington, D.C.:
August 16, 1999.

KNOWLEDGE AND INFORMATION MANAGEMENT

GAO. Defense Acquisitions: Better Information Could Improve Visibility
over Adjustments to DOD's Research and Development Funds. GAO-04-944 .
Washington, D.C.: September 17, 2004.

GAO. Best Practices: Using Spend Analysis to Help Agencies Take a More
Strategic Approach to Procurement. GAO-04-870 . Washington, D.C.:
September 16, 2004.

GAO. Information Technology: DOD's Acquisition Policies and Guidance Need
to Incorporate Additional Best Practices and Controls. GAO-04-722 .
Washington, D.C.: July 30, 2004.

APPENDIX II: Additional Sources of Information

GAO. Acquisition/Financial Systems Interface Requirements: Checklist for
Reviewing Systems under the Federal Financial Management Improvement Act.
GAO-04-650G . Washington, D.C.: June 2004.

GAO. Defense Acquisitions: Knowledge of Software Suppliers Needed to
Manage Risks. GAO-04-678 . Washington, D.C.: May 25, 2004.

GAO. Information Technology Investment Management: A Framework for
Assessing and Improving Process Maturity. GAO-04-394G . Washington, D.C.:
March 2004, Version 1.1.

GAO. Financial Management: Some DOD Contractors Abuse the Federal Tax
System with Little Consequence. GAO-04-95 . Washington, D.C.: February 12,
2004.

GAO. Best Practices: Using a Knowledge-Based Approach to Improve Weapon
Acquisition. GAO-04-386SP . Washington, D.C.: January 2004.

GAO. Best Practices: Improved Knowledge of DOD Service Contracts Could
Reveal Significant Savings. GAO-03-661 . Washington, D.C.: June 9, 2003.

GAO. Contracting for Information Technology Services. GAO-03-384R .
Washington, D.C.: February 14, 2003.

GAO. Assessing the Reliability of Computer-Processed Data. GAO-03-273G .
Washington, D.C.: October 2002, External Version 1.

Joint Financial Management Improvement Program. Acquisition/Financial
Systems Interface Requirements. JFMIP-SR-02-02. June 2002.

Joint Financial Management Improvement Program. Core Financial System
Requirements. JFMIP-SR-02-01. November 2001.

GAO. Executive Guide: Creating Value Through World-class Financial
Management. GAO/AIMD-00-134 . Washington, D.C.: April 2000.

GAO. Federal Information System Controls Audit Manual, Volume I -
Financial Statement Audits. GAO/AIMD-12.19.6 . Washington, D.C.: January
1999.

GAO. Assessing Risks and Returns: A Guide for Evaluating Federal Agencies'
IT Investment Decision-making. GAO/AIMD-10.1.13 . Washington, D.C.:
February 1997.

GAO. Information Technology Investment: Agencies Can Improve Performance,
Reduce Costs, and Minimize Risks. GAO/AIMD-96-64 . Washington, D.C.:
September 30, 1996.

Joint Financial Management Improvement Program. Framework for Federal
Financial Management Systems. FFMSR-0. January 1995.

GAO's Mission

The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.

The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO's Web site ( www.gao.gov) . Each weekday, GAO posts GAO
Reports and newly released reports, testimony, and correspondence on its
Web site. To

have GAO e-mail you a list of newly posted products every afternoon, go to
www.gao.gov and select "Subscribe to Updates."

                             Order by Mail or Phone

The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:

U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
D.C. 20548

To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
512-6061

To Report Fraud, Contact:

Web site: www.gao.gov/fraudnet/fraudnet.htm

E-mail: [email protected]

Federal Programs Automated answering system: (800) 424-5454 or (202)
512-7470

Gloria Jarmon, Managing Director, [email protected] (202) 512-4400 U.S.
Government Accountability Office, 441 G Street NW, Room 7125 Relations
Washington, D.C. 20548

Paul Anderson, Managing Director, [email protected] (202) 512-4800

Public Affairs

U.S. Government Accountability Office, 441 G Street NW, Room 7149
Washington, D.C. 20548

  PRINTED ON

RECYCLED PAPER
*** End of document. ***