ALCOAST 091/18 - MAR 2018 FINANCIAL MANAGEMENT AND PROCUREMENT SERVICES MODERNIZATION - UPDATE 2

R 140914 MAR 18
FM COMDT COGARD WASHINGTON DC//VCG//
TO ALCOAST
UNCLAS //N07000//
ALCOAST 091/18
COMDTNOTE 7000
SUBJ:  FINANCIAL MANAGEMENT AND PROCUREMENT SERVICES MODERNIZATION - UPDATE 2
1. This message provides an update on the status of the three distinct efforts which comprise the Financial Management and Procurement Services Modernization (FMPS) initiative: Financial Management Service Improvement Initiative (FMSII), Data Strategy, and Business Process Re-Engineering (BPR).
2. FMSII Developments.
    a. The Department of Interior-Interior Business Center (DOI-IBC) was originally set up to be the system service provider.  In addition to providing service to the USCG, DOI-IBC was also to provide similar service to the Domestic Nuclear Detection Office (DNDO) and Transportation Security Administration (TSA).  Collectively, USCG, DNDO and TSA Financial System Modernization (FSM) programs have been referred to as the TRIO.
    b. In July 2017, a DHS Acquisition Review Board conducted a combined Program Review of TRIO FSM programs.  Due to challenges with DOI-IBC, DHS terminated the three individual TRIO programs and the partnership with DOI-IBC.  DHS then created a new TRIO FSM Program managed by the FSM Joint Program Management Office (JPMO) at DHS.  This new DHS-led
TRIO FSM Program encompasses the same scope and requirements of the canceled individual TRIO programs.
    c. On 28 December 2017, the DHS Office of Procurement Operations announced the award of a System Deployment Agent (SDA) support services contract to the IBM Corporation, which is broken up into several task orders.  The primary objective of the first task order is to support the transition/migration of DOI-configured software and data (as completed to date in support of DNDO, TSA and USCG) from DOI-IBC to a DHS Data Center (DC2).  Additionally, this task order is intended to quantify the scope, cost and schedule of the remaining implementation work.  Once complete, award of subsequent task orders will occur to support completing the remaining software configuration and deployment work for TSA and USCG implementations.  This phased approach is consistent with an Acquisition Decision Memorandum of 06 December 2017 from DHS Deputy Under
Secretary for Management (USM), which directs FSM JPMO to segment migration and transition activities (Phase 1) from implementation activities (Phase 2).
    d. It is important to recognize that DNDO has been on the new system for over two years with FINCEN providing support.  The vast majority of the system’s financial, procurement, and asset functionality is in operation and will not change.  The major
remaining work for USCG implementation is interfacing to other systems.
    e. The USCG Program Management Office (CG-9336) will remain intact and support the JPMO, along with coordinating CG implementation activities, including work necessary to interface the new FSM system with the CG’s legacy IT systems (i.e., Direct Access, FLS, CGLIMS, MISLE) and the CG’s training infrastructure.  The anticipated USCG go-live date for the new system is FY21 (October 2020).
3. Data Strategy Developments.
    a. USCG has been working with DHS to start implementing the new Common Appropriation Structure (CAS) in FY19.  If approved by Congress, minor changes will be made in FY19 until the more significant changes occur with FMSII implementation in FY21.  For FY19, USCG plans to rename “Operating Expenses” (OE) appropriation to “Operations and Support” (O&S).  The
following legacy appropriations will be brought under O&S as Programs, Projects, and Activities (PPAs): “Environmental Compliance and Restoration” (EC&R), “Reserve Training” (RT), “Medicare-Eligible Retiree Health Care Fund” (MERHCF),
and “Alteration of Bridges”.   The “Acquisition, Construction, and Improvements” (AC&I) appropriation will be renamed
“Procurement, Construction, and Improvements” (PC&I).  The legacy PPA titled “Personnel and Related Support Costs” under C&I moves to O&S.  Starting in FY19, personnel currently paid out of that account will be paid out of either the “Military Pay and Allowances” (O&S PPA 1) or “Civilian Pay and Benefits” (O&S PPA 2) as appropriate. The “Research, Development, Test,
and Evaluation” (RDT&E) appropriation will be renamed “Research and Development” (R&D).
    b. With the FMSII delay, the Data Strategy team has shifted its focus from converting data to the new line of accounting format to identifying areas that require data cleanup, business process changes, or a combination of both.  This shift will better prepare USCG for re-engagement with a system implementation team.  The USCG now has additional time to properly correct data at the source and change business processes that negatively impact data capture in the current financial system (i.e., the Core Accounting System).  Areas that continue to be of major concern are reimbursable agreements, outstanding
obligations, and open contracts as these are the most complicated transactions to transition from the old system to the new. 
FINCEN has made great progress in cleaning up master tables such as vendors and customers, but there is still more that needs to be done beyond the walls of FINCEN.
4. BPR Developments.
    a. Four Districts have gone through BPR implementations to date (in implementation order): 5, 13, 11 and 9.  Variations in those implementations generally center on how those doing the financial management, property management and procurement-contracting work are organized.  In an effort to achieve standardization among those districts and future BPR implementations, the following is noted:
      1) The team has created a catalogue of services (a.k.a., the FMPS BPR Framework). This governing document communicates to FMPS personnel and supported units the services that shall be performed and received.  It shall inform all future implementations. The latest version of the draft Framework is posted in the Master References section of the FMPS Common Core Site:  http://cglink.uscg.mil/FMPS.
      2) The team has created a standard Service Level Agreement (SLA).  This governing document communicates the performance standards to which FMPS personnel will be held in their delivery of FMPS services.  It shall inform all future implementations.  The latest draft version is posted to the Master References section of the FMPS Common Core
Site:  http://cglink.uscg.mil/FMPS.
      3) On 24 October 2017, the USCG Leadership Council endorsed the Regional Support Team (RST) construct.  Consequently, there will be no more “pilot” implementations.  The implementations in Districts 9 and 11 are most demonstrative of the standard for future district implementations.  RSTs are virtual (i.e., no PAL changes or geographical movement of billets involved, personnel remain under current command authority but receive FMPS technical and workload management direction from RST supervisors). FMPS personnel from Small Boat Stations, Sectors, Air Stations, Bases and TRACEN will dedicate a
portion of their time to create a personnel resource pool to perform FMPS functions.  That portion is expected to be approximately 75 percent of their time. The remaining 25 percent is expected to be spent on performance of non-FMPS duties at their legacy units.  In concert, the FMPS workload has been pooled as throughout the RST to ensure workload leveling as well (e.g., procurement requests within an entire district can now be routed to a single inbox).
      4) The creation of Regional Property Support Officer (RPSO) sub-teams is the greatest change from legacy property management processes.  These teams function in an advise and assist capacity, providing extensive administrative support to help units achieve compliance with property management and reporting requirements.
      5) In addition to above items, an extensive number of tracking tools, templates, metrics, user guides, training videos, and customer surveys have been created and are available on the FMPS Common Core site.  These efforts are being led by the
FMPS Integration Team at CG HQ.
    b. A notional schedule for further implementations is being developed by the FMPS Integration Team and BPR Team.  It will be published separately and posted to the FMPS Common Core site once finalized.  The BPR Team (centered in Norfolk), along
with BPR Field Liaisons assigned in each district, is chartered to assist Districts and units in implementing BPR changes.  Their approach is focused on collaboration with District Guidance Teams to implement FMPS BPR changes with adherence to
Framework and SLA standards while still accounting for factors that may be unique to respective AORs.
    c. While the final implementation schedule is being determined, there are advance preparations that districts and units can take before the BPR Team engages for formal preparations.  A list of suggested preparations may be found at: http://cglink.uscg.mil/BPRpreps.
5. Questions and Concerns.  The FMPS Integration Team has created an online communications center to address questions and concerns regarding BPR and system changes: http://cglink.uscg.mil/VCC.  The latest BPR team org chart is also posted to the Master Directory section of the FMPS Common Core Site:
http://cglink.uscg.mil/FMPS.
6. ADM C.D. Michel, Vice Commandant, sends.
7. Internet release authorized.