ANNUAL PERFORMANCE GOAL 6 — Customer-oriented, Innovative Delivery of Administrative and Information Services, Acquisitions, and Assistance.
I/P: Worldwide Logistics: Integrated Logistics Management System
INDICATOR: Integrated Logistics Management System Development and Implementation
Input
JUSTIFICATION: The selected performance indicators track the most critical success factors in the overall logistics management program of the Department.
FY 2006 PERFORMANCE
Target
Complete domestic deployment of asset management transportation and status tracking functions.
Complete design and development of integration with Global Financial Management System Phase 1.
Develop and begin deployment of secure system domestically.
Deploy enterprise performance management to domestic warehouses.
Conduct overseas pilots of selected supply chain management components.
Results
Completed domestic deployment of assaet management, transportation, and status tracking functions.
Completed design and development of integration with Global Financial Management System Phase 1.
Made planned progress with development and deployment of secure domestically.
Made planned progress with deployment of enterprise performance management to domestic warehouses.
Rating
Below Target
Impact
When fully implemented, this system will provide a more efficient, effective, customer-oriented global logistics support system, and it is thus an important component of the Department’s Management and Organizational Excellence strategic goal.
The consequences of the target shortfall include a delay in realizing end-to-end asset visibility across the enterprise and the extension of legacy system operations and maintenance costs that remain in service.
Reason for Shortfall
Funding approved at levels significantly less than requested. Consequences and impact include a delay in overall return on investment and moderate life-cycle cost growth.
Steps to Improve
Actions planned include a delay in overseas pilots and deployments consistent with projected available funding.
PERFORMANCE DATA
Data Source
Integrated Logistics Management System program management plan and earned value management system.
Data Quality
(Verification)
The performance data are accurate and complete. Data from posts are reviewed and verified on site; other data are verified by program supervisors in Washington, DC.
PAST PERFORMANCE
2005
Asset management 88% deployed in FY 2005, with full domestic deployment completed in December 2005.
2004
Requisitioning/procurement module deployed to all bureaus domestically with two overseas pilots.
Distribution module deployed to domestic warehouses.
Asset management deployed for motor vehicle and Worldwide Property Accountability System inventory and piloted in two domestic bureaus.
2003
Procurement module operational in four domestic bureaus (fully integrated with the Department’s Central Financial Management System) and one overseas regional procurement facility.
Asset Management module piloted at one overseas post.
Diplomatic Pouch and Mail module fully deployed and operational at both the unclassified and classified pouch facilities.
I/P: Competitive Sourcing
INDICATOR: Cost Savings or Cost Avoidance Generated through Competitive Sourcing
Outcome
JUSTIFICATION: This indicator measures the cost effectiveness of Competitive Sourcing results by comparing current cost of performance to the results of competitions between the public and private sectors.
FY 2006 PERFORMANCE
Target
15% cost savings or cost avoidance of competed areas’ baseline costs, predominantly from standard competitions.
Results
$79.2 million in projected cost savings to customers over 10 years, from one standard competition that was completed in FY 2006. This amount represents approximately 33% of the competed area’s baseline costs. Customers are expected to save approximately $8 million per year, or $79.2 million over the life of the contract.
Rating
Above Target
Impact
Achievement of this Competitive Sourcing cost savings and/or cost avoidance target contributes to the Department’s success in conducting its vital foreign policy mission while being effective and accountable stewards of the taxpayer’s money.
PERFORMANCE DATA
Data Source
Competitive Sourcing Program Office.
Data Quality
(Verification)
OMB Circular A-76 provides guidance on how to calculate the cost of government performance versus the cost of contractor performance. The 15% targets for cost savings or cost avoidance refer to the percentage of the cost of the contract(s) services being competed. Until a particular service that is being competed has been identified (and its base costs determined), there is no dollar amount that can be cited in lieu of a percentage.
PAST PERFORMANCE
2005
$9.8 million in cost avoidance from streamlined competitions. This amount represents approximately 18% of competed areas’ baseline costs.
2004
Baseline: $6.2 million, predominantly in cost avoidance from streamlined competitions. This amount represents approximately 44% of competed areas’ baseline costs.
