Subject: Update on Transition to the Federal Procurement Data System--Next Generation (FPDS-NG).

OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, DC 20301-3000

JAN 24 2005

DPAP/EB

MEMORANDUM FOR DIRECTOR, ADMINISTRATION AND MANAGEMENT

DIRECTORS, DEFENSE AGENCIES

DEPUTY ASSISTANT SECRETARY OF THE ARMY (POLICY AND PROCUREMENT), ASA(ALT)

DIRECTOR, ARMY CONTRACTING AGENCY

DEPUTY ASSISTANT SECRETARY OF THE NAVY (ACQUISITION MANAGEMENT), ASN(RDA)

DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC

DEPUTY DIRECTOR FOR LOGISTICS OPERATIONS (DLA)

SUBJECT: Update on Transition to the Federal Procurement Data System--Next Generation (FPDS-NG)

I am taking this opportunity to provide you with an update regarding the Department of Defense's (DoD) transition to the Federal Procurement Data System--Next Generation (FPDS-NG). I also want to recognize the hard work and dedication displayed by those many individuals who have contributed to the significant progress made to date.

On December 20, 2004, DoD became the first government agency to certify that it completed submission of its FY04 contract reporting data to the General Services Administration (GSA) for loading into FPDS-NG. Since DoD is the source for over 60 percent of contract reporting information for the entire federal government, this accomplishment signifies completion of a major milestone. Following the certification of other agencies, FPDSNG <https://www.fpds.gov> was made available on December 27, 2004, to the public for queries and reports on government contract actions. Also during December, the first DoD contracting office, Fort Sill, began reporting FY05 transactions via the Standard Procurement System's (SPS') machine-to-machine interface with FPDS-NG. SPS provides contract reporting capability for the majority of our DoD contracting offices, and their timely completion of this important work positions us well for the next phase of the overall transition.

Although much transition work is complete, we continue to take a conservative approach. We are committed to ensuring the transition is handled in such a way as to minimize the impact on our people's ability to report timely and accurate information, as well as on the ability of the public and Congress to access that data. At this time, FPDS-NG's schedule to implement all the critical items necessary for DoD to complete migration to the machine-to-machine reporting environment extends further into the year than originally planned. Accordingly, I want to highlight for you several important issues and changes we are enacting to our transition schedule as a result.

First, the majority of DoD contracting activities will continue to use DD Form 350s to report contract actions greater than $2,500 through FY05. Summary reporting DD Form 1057s will not be accepted for FY05 actions. DoD will use the feeder system infrastructure already in place and a similar migration process for loading its F05 data into FPDS-NG as that used for FY97-04. This allows DoD to maintain report generation capability through our Statistical Information Analysis Division (SIAD) (formerly the Directorate for Information Operations and Reports (DIOR)), while finetuning continues on FPDS-NG capabilities. Meanwhile, there will be a small number of contracting activities identified, with your concurrence, to transition to the machine-to-machine environment this fiscal year in order to monitor the capabilities offered.

Second, it is essential that our contracting offices focus on eliminating any reporting backlog accumulated in FY05, as we are committed to making our data available to the public SIAD Web site within the next several weeks. However, it is equally important that the data being entered via the DD Form 3502 are accurate. Given the current operating environment is in transition, it becomes even more important to ensure DoD reports our contracting actions in a timely and accurate manner.

Finally, DoD contract writing systems are still required to complete the FPDS-NG interface certification process by February 1, 2005. SPS completed this process in October 2004. In my last update memo to you, I requested you submit a detailed contingency plan by December 17, 2004, if you anticipated any issue with successfully achieving this milestone. For those who have not responded, please notify my action officer, Lisa Romney, [phone], [e-mail], immediately.

I thank you for all for your continued cooperation, patience, and support in this very complex transition to the new federal system. Again, my action officer for FPDS-NG is Lisa Romney. If you have specific Component questions, please contact your designated DoD FPDS-NG Transition Team representative below:

* Department of Army and Other Defense Agencies: Brian Davidson, [e-mail], 703-681-9781

* Department of Navy -- Patricia Coffey, [e-mail], 202-685-1279

* Department of Air Force -- Kathryn Ekberg, [e-mail], 703-588-7033

* Defense Logistics Agency (DLA) -- Judy Lee, [e-mail], 703-767-1376

* Defense Contracts Management Agency: Barbara Roberson, [e-mail], 703-428-0856

* Standard Procurement System: Joyce Allen, [e-mail], 703-460-1507

Deidre A. Lee

Director, Defense Procurement and Acquisition Policy