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Contract management: a fundamental component of any resource management program.

IMCOM's Services & Infrastructure Enterprise Contract Management Program

"In any organization that spends a large portion of its annual funding program on contracts, a leader cannot afford to not have a contract management program where the leaders and managers of the organization are integrally involved."

Today's National Security and Defense leaders face a daunting daunt  
tr.v. daunt·ed, daunt·ing, daunts
To abate the courage of; discourage. See Synonyms at dismay.



[Middle English daunten, from Old French danter, from Latin
 challenge. Simply stated, the nation's economy cannot sustain the level of defense spending that the country has experienced since the attacks of September 11. Over the past decade, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  (U.S.) defense budget has more than doubled. The U.S. Army's top line has more than tripled, growing at a unprecedented pace from $78 billion in 2000 to over $250 billion in 2008.

A growth of this magnitude and pace cannot be assimilated easily in a burea of the Department of Defense (DoD). Consequently, growth--by design--has come through the use of contra mentation mentation

mental activity, state of mind.
 contracts, service contracts, weapon system procurement contracts, and large enterprise systems acquired through contracts in virtually every aspect of national security, contractors are present and contributing. From Highly Qualified Executives, think tanks, and expert advisory/consulting services at the highest levels of the DoD, to aviation and vehicle mechanics, groundskeepers, and dishwashers at the tactical level, an outsourced capability is integral to virtually every operation.

Dependence on Contracted Services

The National Security apparatus's dependence on contracted capability has never been greater in our nation's history. In the U.S. Army alone, taxpayers spend over 50 percent of the Service's annual budget on outsourced capabilities (contracts), spending on average over $400 million a day on contracted capabilities. The Army's ability to manage these contracts has not grown commensurate with its dependence on them

The Army's Installation Management Command (IMCOM IMCOM Installation Management Command ) represents a microcosm mi·cro·cosm  
n.
A small, representative system having analogies to a larger system in constitution, configuration, or development: "He sees the auto industry as a microcosm of the U.S.
 of this dependence, spending roughly 50 percent of its Base Operating Support funding on service contracts, The other major capability areas in the Installation Management Community rely heavily on contracting. These include the following:

* Sustainment, Restoration, and Modernization modernization

Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family,
 of the Army's existing infrastructure

* Army Family Housing Operations, which is almost totally privatized and operated by a contractor

* Military construction of new buildings and real property to replace those that have outlived their life span or to support key legislation, such as Base Realignment and Closure Base Realignment and Closure (or BRAC) is a process of the United States federal government directed at the administration and operation of the Armed Forces, used by the United States Department of Defense (DoD) and Congress to close excess military installations and realign  and the growth and movement of Army formations to other operating bases

* Support to Overseas Contingency Operations (formerly known as the Global War on Terrorism Terrorist acts and the threat of Terrorism have occupied the various law enforcement agencies in the U.S. government for many years. The Anti-Terrorism and Effective Death Penalty Act of 1996, as amended by the usa patriot act ). These funds, primarily provided through supplemental legislation are used in IMCOM to ensure that the Army's deploying and redeploying formations from overseas theaters are fully supported and prepared to conduct their missions across the Army Force Generation (ARFORGEN ARFORGEN Army Force Generation (US DoD) ) continuum, as well as to care for deployed Soldiers' family members remaining at home.

Comprehensive Management Program Promotes Fiscally Informed Contracting Decisions

To ensure that the Army maximizes its purchasing power Purchasing Power

1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.

2.
 throughout its installations while exacting a greater level of fiscal discipline, IMCOM developed and implemented in 2009 a comprehensive contract management program that empowers its leaders to better manage and resource installation-level services contracts. Commonly referred to as SIECMP (Services and Infrastructure Enterprise Contract Management Program), this IMCOM program has become an invaluable tool, enabling leaders at both garrison and IMCOM Headquarters levels to make better, fiscally informed contracting and resourcing decisions concerning the Army's installation's services. Implemented properly, the program gives leaders and other decision makers full contract visibility and a holistic view of the outsourced capabilities that are essential when making fiscally and operationally sound sourcing decisions.

IMCOM developed SIECMP as a Leader's program founded on three fundamental Lines of Effort (LOE LOE Ley Orgánica de Educación (Spanish)
LOE Level Of Effort
LOE Limited Objective Experiment
LOE Letter of Explanation
LOE Language Other than English.
):

* Establish a structured management program

* Leverage Enterprise Sourcing and other available tools

* Conduct full-spectrum training

Establish a Structured Management Program

LOE 1 establishes a structured management program. To achieve this, IMCOM developed a Contract Management Staff Officer (CMSO CMSO Center for Medicaid and State Operations
CMSO Center for Magnetic Self-Organization in Laboratory and Astrophysical Plasmas
CMSO Canada on the Move: Step One
CMSO Computer-Integrated Manufacturing for Multi-Supplier Operations
) position and authorized each garrison to hire one individual whose job is to help the garrison manage the entire contracting spectrum from requirements generation and validation to contract execution and closure. Residing within this LOE is the most important facet of SIECMP--the periodic conduct of Contract Review Boards at established intervals that complement and inform both operational and resourcing activities in an organization. Over time, commands are expected to develop and mature a comprehensive contract database to serve as an authoritative and current source for all command service contracts.

Leverage Enterprise Sourcing and Other Available Tools

LOE 2 seeks to leverage enterprise sourcing and other available tools to ensure that the command maximizes efficiencies. This is accomplished by contracting like services in the same manner and, where it makes sense, using an enterprise-level contracting vehicle that has the potential to produce large savings (such as the storage of privately owned vehicles for Soldiers deploying from installations in the Continental United States).

Conduct Full-Spectrum Training

LOE 3 seeks to develop key non-acquisition personnel professionally by conducting full-spectrum training for leadership and management personnel. Currently, the command conducts CMSO training via Defense Connect Online, has instructed the program at command-level symposiums and forums to mid-level management, and has integrated instruction about the SIECMP in key executive leadership courses like the General Officer Senior Commander's Course and the Garrison PreCommand Course.

SIECMP Shows Substantial Progress and Great Promise

While the command has realized varying degrees of success and progress within each of these three LOEs, the progress is evident in the program's first year of operations: garrisons conducted four SIECMP Quarterly Contract Review Boards and reported identifying cost avoidance Cost avoidance is a management accounting term referring to an expense one has avoided incurring. It is commonly used in the field of energy management to describe the energy costs you avoided due to energy management initiatives.  and savings estimated at approximately $50 million.

With just a little over a year in operation at the garrison level, SIECMP still has room for improvement and greater opportunities for the Installation Management Community. The essential ingredient for continued success is emphasis from the same leaders who rely upon it to empower them to make sound contracting and resourcing decisions. Maximum benefit results from key leadership involvement; deployment with a dedicated staff (the CMSO); disciplined reviews, analyses, and reporting; and integration into the organization's resource management program.

SIECMP is not without precedence and is applicable at virtually every level in any environment. Similar programs have been implemented with excellent results in operational units and deployed environments, such as in support of Operation Iraqi Freedom. SIECMP is a powerful tool in aiding commanders in one of their fundamental duties--being good stewards of the Army's resources while providing quality installation services to the Soldiers, families, and civilians they are privileged to serve.

The Army's ability to sustain itself fiscally as the world's premier fighting force Fighting Force is a 1997 3D beat 'em up developed by Core Design and published by Eidos in the same lines of classics such as Streets of Rage and Double Dragon.  is dependent on tools like SIECMP. It has proven to facilitate sound and timely sourcing and resourcing decisions that fully support ARFORGEN operations and other key operating and generating force requirements while maximizing the purchasing power of its operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements
budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g.
.

To learn more about IMCOM's Services and Infrastructure Enterprise Contract Management Program, log on to https://www.us.army.mil/suite/page/604044 or contact Chris Greiman (the IMCOM G8 SIECMP Program Manager) at christopher.greiman@us.army.mil/(210) 424-8792, or Kathy Thomas (the IMCOM G8 Acquisition and Sourcing Division Chief) at kathy.j.thomas@us.army.mil/(201) 424-8620.

ENDNOTES

(1.) Secretary of Defense Robert M. Gates, the Pentagon, January 06, 2011

(2.) President Barack Obama in his White House Memorandum titled Government Contracting for the Heads of Executive Departments and Agencies released March 4, 2009

"... But this country's dire fiscal situation and the threat it poses to American influence and credibility around the world--will only get worse unless the U.S. Government gets its finances in order. And as the biggest part of the discretionary federal budget, the Pentagon cannot presume to exempt itself from the scrutiny and pressure faced by the rest of our government." (1)

SECRETARY OF DEFENSE ROBERT M. GATES

"Contracts must be adequately managed from start to finish, ensuring funds are spent wisely. Government-wide assessment of contracts is needed in order to identify those contracts that are wasteful or inefficient. In addition, federal agencies should be sensitive to contractors performing inherently governmental activities that should not be outsourced." (2)

PRESIDENT BARACK OBAMA

"The Army's capacity to effectively manage contracts has not grown commensurate with its dependence on them."

BG THOMAS A. HORLANDER, IMCOM G8

BRIGADIER GENERAL THOMAS A. HORLANDER, CDFM CDFM Certified Defense Financial Manager
CDFM Computational Dynamic Fracture Mechanics (Dept of Aerospace Eng, Indian Institute of Science, Bangalore, India) 
 

[ILLUSTRATION OMITTED]

Brigadier General Thomas A. Horlander currently serves as the U.S. Army Installation Management Command G8/ Resource Manager. He is a U.S. Army Master Strategist and holds three master's degrees in business administration, military arts and science--international relations and national security. He is a sitting member of ASMC's CDFM Certification Commission and a member of ASMC's Washington Chapter.
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Author:Horlander, Thomas A.
Publication:Armed Forces Comptroller
Date:Jun 22, 2011
Words:1427
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