ACQUI ACQ TECH SITION TECHN OLOGY SPONSORED BY
Microsoft GovCon Alliance
THE PSC ACQUISITION AND TECHNOLOGY CONFERENCE
2015 CONFERENCE INTELLIGENCE REPORT
Professional Services Council
The Voice of the Government Services Industry
DEAR READERS PSC is pleased to present our first 2015 Acquisition and Technology Conference Intelligence Report, a comprehensive guide to the keynotes, panels, and discussions held at ACQTECH on June 8. We are proud of the substantive agenda PSC put together and the 150 industry and government executives who convened for these important discussions. As you will see in the following report, our speakers and panels covered the most pressing issues facing our converged acquisition and technology space—from the future of the services market, to the pricing debate, to top CIO challenges, and achieving innovation in our market and by our government. We would like to thank our sponsors and conference presenters for making this event possible, particularly the sponsor of this report, Microsoft GovCon Alliance. It is only with their support that we are able to put on such a great event and make real progress toward a productive government-industry partnership. You’ll find a list of all of the generous sponsors on the following pages. PSC programming, such as ACQTECH, along with its business intelligence and networking opportunities, are what makes PSC the leading national trade association representing the technology and professional services industry. We hope to see you at the PSC Annual Conference at the Greenbrier from October 4 to 6, at the 2015 Vision Conference at the Fairview Park Marriott on November 17 and 18, and at many other PSC events.
Anne Altman Chair, PSC Technology Council IBM
TABLE OF CONTENTS 2
Sponsors & partners
3
Anne Rung promises a ‘Buyers Club’ for every agency, Digital Service for acquisition
4
CIOs back up findings of PSC CIO Survey
6
What’s next for the services market?
7
Price isn’t everything, but is it the only thing?
8 9
Getting innovation to government What you thought of ACQTECH
ACQUISTION & BUSINESS POLICY COUNCIL
Kymm McCabe Chair, PSC Acquisition & Business Policy Council ASI Government
TECH COUNCIL The Technology Council delivers approaches that drive innovation, improves the application of technology in federal programs, fosters the dialogue between industry and government, encourages competition, and ensures effective agency results. The Tech Council’s work focuses on three key efforts: 1) to advocate for effective legislative, regulatory and administrative policies to significantly reform and improve agencies’ acquisition and delivery of technology, 2) to educate the government and industry on significant federal market changes, and 3) to facilitate the sharing of commercial innovation for implementation within the federal government.
The Acquisition and Business Policy Council is the principal body for developing PSC’s positions and taking action on cross-cutting, major acquisition policy issues. Its focus encompasses wide-ranging issues such as multiple award and schedules contracts, the role of contractors, federal acquisition workforce development, commerciality, contract type and competitiveness, requirements development and evaluation strategies, alternative acquisition models, internal and external communication, and industrial base health and competition. The Acquisition and Business Policy Council fosters formal and informal partnerships with policymakers and allied stakeholders, and works toward an outcome-oriented federal services acquisition process through regular meetings, timely programs, and various other avenues.
Articles by Elise Castelli • PSC Senior Manager, Media Relations and Publications Photos by Jeremy Madson • PSC Senior Manager, Public Policy Design & Layout by Ivory Smith • PSC Marketing Associate
g
Thank you to all of our sponsors & partners We would like to thank the generous sponsors and partners listed below, whose support helped make this conference possible.
CHAMPION SPONSOR
MEDIA PARTNER
Conference Intelligence Report
Microsoft GovCon Alliance
Contributing Media Partner
FedScoop
Contributor Sponsor
AECOM
Bottled Water
Berkeley Research Group
Networking Breakfast
LMI Consulting
THANK YOU... Microsoft GovCon Alliance for making this Intelligence Report possible! Visit them at:
www.microsoft.com/dynamics/govcon/
ICF International Thought Leadership Compendium
JBS International, Inc. The North Highland Company
All-Day Break Service
SPONSORSHIPS Did you see something you liked? Sponsorship opportunities for 2015 still remain, but are selling fast! Contact Jean Tarascio at tarascio@pscouncil.org for more information.
HeiTech Services, Inc. Sotera Defense Solutions, Inc.
ADVERTISING
Luncheon
Dell Services Federal Government
Wi-Fi Access
Grant Thornton LLP
Mobile App
SRA International, Inc.
We have many advertising opportunities for you to take part in. Contact Joe Carden at carden@pscouncil.org to discuss how we can custom fit a solution for you.
g 2
Anne Rung promises a ‘Buyers Club’ for every agency, Digital Service for acquisition
Panelists (from left): Anne Rung, OFPP; Francis Rose, Federal News Radio; Anne Altman, IBM.
O
of IBM, in a discussion moderated by Federal News Radio personality Francis Rose. Altman offered an insightful critique of the challenges the federal government faces in hiring the right people to buy and manage the complex, technology-integrated solutions on the market.
In addition to the Buyers Club guidance, Rung is also working on rolling out an acquisition equivalent of the Digital Service team to bring the best minds in acquisition together to solve the problems in the process, much the way that the U.S. Digital Service is aimed at solving the government’s technology problems.
It is easier for industry to attract the kind of skilled talent government needs because industry has more agile hiring and pay policies, Altman said. Current workforce demographics mean that the government’s IT workforce has 10 times more people over 50 than under 30 and is facing a talent loss as veteran employees retire. While Millennials have a passion for public service and are filling the entry level ranks, there is a gap in the mid-levels that industry can help fill, not only through contracts, but through an exchange program that would allow industry professionals to work inside government for a few years, Altman said. g
FPP Administrator Anne Rung presented her plans for the future of government acquisition at the 2015 Acquisition and Technology Conference on June 8. Top among them: A “Buyers Club” for every CFO Act agency with the aim of accelerating “speed to innovation.” The clubs would be modeled on the Health and Human Services Department’s Buyers Club. Rung plans to issue guidance this summer.
Where the Digital Service went to Silicon Valley to find talent, the acquisition equivalent will pull from the ranks of current federal employees, Rung said. Rung is also focused on completing DATA Act implementation and other data-based initiatives across the government acquisition space. To go along with these technical innovations, OFPP will also issue innovative workforce training strategies, to include online, game-style training modules that allow for competition between users. The competition with other students allows the employees to learn concepts faster as they strive to win, she said.
Three basics to improve acq data: follow the money; unleash, unlock data; greater quality, usability says @OMBPress #OFPP Rung. #acqtech. @jmillerWFED
Following her keynote speech to the conference, Rung joined PSC Technology Council Chair Anne Altman,
3
CIOs back up findings of PSC CIO Survey #ACQTECH @PSCSpeaks @DHSgov CIO & CPO need to agree on outcomes so that processes can align accordingly. @reedARC
Panelists (from left): Dave Wennergren, PSC; Joe Klimavicz, DoJ; Margie Graves, DHS; Dave DeVries, DoD; Steve Cooper, Commerce.
C
ybersecurity is the number one challenge facing federal CIOs, according to the 2015 Federal CIO/ CISO Survey, which PSC and Grant Thornton released at ACQTECH. A panel of CIOs we gathered to respond to the survey’s findings agreed. Justice CIO Joe Klimavicz, DHS CIO Margie Graves, DoD Principal Deputy CIO David DeVries and Commerce Department CIO Steve Cooper, all echoed the report’s major findings that cybersecurity was the top challenge facing CIOs. The survey reported that approximately 28 percent of respondents have seen a 51 to 100 percent increase in the number of attacks and their level of sophistication. Another challenge our panel of CIOs and the survey respondents identified is the adoption of “as-a-service” acquisition practices, which are considered important for improving the cyber strength of government networks. Survey respondents also identified IT modernization as a high priority, especially as it concerns adoption of cloud computing, mobility and modular IT development/ agile strategies. CIOs reported progress in these areas, but agencies are still moving very slowly. While the survey reveals a number of areas where innovative approaches are being used, it highlights the need to accelerate
adoption of new approaches, like cloud computing, and to stop using contracting approaches that impede the ability of companies to offer innovative solutions. Panelists agreed that the current acquisition process is too slow to ensure the government is on the leading edge of cybersecurity. Agencies need to be able to get access to promising tools quickly and scale them up fast, they said. Alternatively, agencies also need to learn to “fail fast” and apply lessons learned, but government and Congress has a low tolerance for failure, which delays learning and solutions, according to the panel. Compounding the cyber and innovation challenges is the perennial workforce challenge. Survey respondents reported difficulty competing for professionals with highly sought-after technology skills due to government’s limited compensation compared to the commercial sector. Further, 63 percent of respondents said their agencies were “not at all” or “insufficiently” equipped to support talent development needs. Panelists reported similar experience, with one reporting a 25 percent vacancy rate and a lack of qualified applicants to fill those positions. g
Agencies need to be able to get access to promising tools quickly and scale them up fast. —CIO Panel
Click here to view the 2015 CIO/CISO Survey!
4
Compliance and Agility
Microsoft GovCon Alliance Microsoft GovCon Alliance members successfully deliver Microsoft Dynamics ERP and CRM solutions that help customers pass DCAA audits, elevate project management and accounting capabilities, and improve capture management processes. Through the Alliance, government contractors can access solution providers that strike a better balance between the regulatory mandate for compliance and the business imperative for flexibility and agility.
Successfully navigate change and uncertainty. Demand: •
Holistic insight into your Commercial and Government Contracting businesses
•
Cost-plus accounting for Manufacturing and Services, in one solution
•
Agile capture management for your more dynamic enterprise
Compliance and Agility. Learn more at: www.microsoft.com/dynamics/govcon
What’s next for the services market?
Panelists (from left): Angela Billups, HHS; Alan Estevez, DoD; Henry A. “Trey” Obering III, Booz Allen Hamilton.
B
udget austerity is driving how agencies approach services, according to ACQTECH panelists HHS Senior Procurement Executive Angela Billups, the department’s associate deputy assistant secretary for acquisition, and Principal Deputy Under Secretary of Defense for AT&L Alan Estevez. In a discussion moderated by Booz Allen Hamilton’s Henry “Trey” Obering III, the procurement executives said that while there is no one-size-fits-all approach for services, they’re looking to where component agencies can reduce duplication, share services and otherwise reduce costs in one area to reinvest in others. At the Defense Department, the implementation of the third iteration of Better Buying Power (BBP 3.0) is driving procurement strategy across the department. While budget pressures have created a low cost environment that is pushing the field to go LPTA, despite DoD guidance to the contrary, DoD is working to ensure the right messages are reaching the field and to train staff on how to better articulate areas where the department is willing to pay more for quality, performance or innovation. g g
Watching a panel on services contracting at @PSCSpeaks conference #acqtech. @CommonCenser
Follow us on Twitter @PSCSpeaks!
6
Price isn’t everything, but is it the only thing?
Panelists (from left): Kevin Youel Page, GSA; Shay Assad, DoD; Dyson Richards, RGS Associates.
“
Am I getting a fair price?” That’s the question Shay Assad, the Defense Department’s director of pricing, cares about the most. “The reality of life is that price is important,” Assad said at ACQTECH 2015. “It’s going to be important and it’s not going to change.”
Price is also driving behavior at the GSA, said Keivn Youel Page, the deputy commissioner of GSA’s Federal Acquisition Service. GSA’s customers love the speed and compliance guarantees of the Schedules program, “but they’re not sure on price,” he said. GSA is taking steps to address those doubts through its current efforts, such as the prices paid portal and improved training tools, designed to build in more transparency to customers so they are sure they are getting the best prices, he said. By the end of the year, Youel Page said GSA will also open up the category management hallways to industry. “We can’t fear information in the hands of decision makers,” he said. “We need to empower people to make smart decisions.” g
“
We can’t fear information in the hands of decision makers. We need to empower people to make smart decisions.
“
Price will continue to drive DoD procurements, but the department is moving toward what Assad calls “valuebased pricing,” situations where program executives identify the kinds of capabilities they’re willing to pay a premium for so companies can then bid accordingly. Currently, Assad’s office is also working to create centers of excellence to provide tools and resources to support buying activities as they execute these practices.
@GSA_ITS’ Kevin Youel Page: Acq’n risk aversion is not about getting wrong price, but how quickly do I get to ‘speed to value’. #acqtech. @WyattKash
—Kevin Youel Page, GSA
Click here to check out all of our upcoming events! 7
Getting innovation to government Interesting idea from GSAs @MarkNaggar at #ACQTECH: stovepiped training of Fed Acq professionals should be integrated to drive collaboration. @carlosaotal
“
Panelists (from left): Chris Dorobek, DorobekINSIDER; Kymm McCabe, ASI Government; Jim Lee, Microsoft; Chris Cairns, GSA; Mark Naggar, HHS.
“
This community is incredibly innovative. We’re trying to figure out how to play in an environment where the government now finally wants to move at the speed at which we want to move.
—Kymm McCabe, ASI Government
H
ow do we get government to adopt innovation?
For Chris Cairns of GSA’s 18F, it’s getting government to be more like Silicon Valley and buy the way Silicon Valley companies want to work—fast. “18F is focused on speeding up the cycles of getting things done,” Cairns said. GSA is working with its customer agencies to “hack away all the waste in the processes” so that the acquisition process is responsive to changing business needs and changes in technology, he said. Part of getting government into this agile development world is to integrate training of contracting officers, program managers, and others so they’re interacting from day one and thinking critically about the project, said Mark Naggar the project manager for the HHS Buyers Club. Currently, they’re trained separate and apart from each other, Naggar said. Jim Lee, director and chief of staff to Microsoft’s Vice
President for Worldwide Public Sector Services, said integrated training across functional areas allows Microsoft to be agile and innovative. It will take a cultural change in government to get agencies to operate at Silicon Valley speed, but they can get there by partnering with industry to create centers for excellence in technology that can drive that culture change, Lee said. PSC Acquisition and Business Policy Chair Kymm McCabe of ASI Government said government also needs to recognize that Silicon Valley-like innovation is already present in its current contractor base. If the traditional industrial base is not fast enough for the government, it’s not because of a lack of innovation, but because the companies are constrained by arcane government rules, she said. “This community is incredibly innovative,” McCabe said. “We’re trying to figure out how to play in an environment where the government now finally wants to move at the speed at which we want to move.” g
8
“
“
What you thought of ACQTECH
ACQTECH 2015 offered invaluable insights into the rapidly changing acquisition and technology policy landscape. —Elliott Ichimura, Microsoft GovCon Alliance
MORE #ACQTECH TWEETS For every IT worker under 30, there are 10 over 50. I just heard this at the PSC Acquisition & Tech conference. #ACQTECH. @vdhenderson
Proud to participate with Anne Rung OFPP and Francis Rose at PSC TECH COUNCIL conference #acqtech @pscspeaks. @AnneAltman
#ACQTECH @PSCSpeaks @RepComstock Looking for more structural stability in the way we govern. Can’t be shutting government down. @areedARC
At @PSCSpeaks #AcqTech: Justice CIO Joe Klimavicz: We need to rethink the way we do cyber-security. @cdorobek
Part of way @DeptofDefense pushing down value-added pricing is by meeting with 150 or so COs every few weeks to discuss BBP 3.0 #ACQTECH. @jmillerWFED
Great session: “The “So What?”: Top Federal CIOs Comment on the CIO Survey Results” @PSCSpeaks #ACQTECH. @Mschrader21 Closing out #ACQTECH with a terrific grp talking innovation incl @KymmMccabe @usgsa 18f, Jim Lee & @hhsgov Mark Naggar. @stansoloway
Follow Stan on Twitter @stansoloway!
Rep. Barbara Comstock, R-Va., delivers the keynote address!
Visit www.pscouncil.org to learn more about PSC!
9
Professional Services Council
The Voice of the Government Services Industry
4401 Wilson Blvd., Suite 1110 Arlington, VA 22203 Phone: 703-875-8059 Fax: 703-875-8922 www.pscouncil.org