FlexFiles Agenda FlexFiles - PowerPoint Presentation

FlexFiles

Agenda FlexFiles 2 This brief is a success if it demonstrates the… Evolution of the FlexFile Benefits of the FlexFileFeatures of the FlexFileProcess of the FlexFile FlexFile is an automated data collection method used to seamlessly organize and centralize data to unleash the true potential of analysis Improves Data Quality through Access to Native Cost Data Ensures Completeness through Allocation & Mapping Visibility Increases Efficiency through Seamless Data Integration The Future of Cost & Data Analysis FlexFile Data

Overview FlexFiles 3 Legacy Round 0 Rounds 1&2 Round 3 Future Crawl Walk Run The FlexFile… FlexFile Evolution Since the 1960s, Cost and Contractor Data Reports (CCDRs) have provided the same data in the same format The FlexFile initiative: Modernizes CCDR submissions Streamlines the transmission process Increases analyst efficiency Results: Improved Data Quality Complete & thorough data for better analysis Seamless Data Integration Improves Data Quality through Access to Native Cost Data Detailed insight and analysis flexibility Collect data according to the contractor’s native structure Ensures Completeness through Allocation & Mapping Visibility Minimize arbitrary allocations and errors Eliminate human error and subjectivity Increases Efficiency through Seamless Data Integration Leverage latest technology Reduce ad hoc data collection efforts FF FF 2014-2015 2015-2016 2016 - 2017 2017+ 1960 ~ 2014

Legacy Reports FlexFile Evolution: 1960 - 2014 4 Time consuming to industry Enforced standardization to contractor rate structure Allocations are not transparent No time-phasing of actual costsInsufficient data results in additional site visits Report generation prone to human error 1921, 1921-1 formatted CCDRs today require an average of 533 hours per contract, assuming set-up and 4 reports Results Based on 2012 IDA Study: Estimated Resources for Preparing Contractor Cost Data Reports [29 Responses] Same 1921 Forms have been used since the 1960s Legacy Reports

Actuals To Date FlexFiles 5 The foundation is a resource associating dollars or hours with a charge number in the accounting system at apoint in timeContracting process already requires Contract Line Item Number (CLIN)Forward Pricing Rate (FPR) Categories Reporting MonthFlexFile requires WBSRecurring or Non-Recurring (may be mapped from FPR Rate Cats) FlexFile sometimes requires Unit or Sublot Time … $/HR Charge # FPR Categories Standard Functional Category Recurring or Non-Recurring Work Breakdown Structure Reporting Month Unit or Sublot * CLIN End Item Order or Lot Contracting Reqts . Additional FlexFile Reqts . Mapping * As Required by the CSDR Plan and only for touch labor Resource

Approved DID Data Groups FlexFiles 6 Major DID Changes since 2015 Synchronized definitions and references between the DIDs, data models, and Co-Plan Reorganization of the FlexFile Data Groups Higher level Standard Functional Categories New structure for handling multiple Orders (e.g., Lot 1, Lot 2, Lot 3) and multiple End Items (e.g., Variant A, Variant B) within the same FlexFile submissionRemoved Supplemental Information (e.g. Bill of Material, Floor Hour Report, Hour Per Vehicle Report)Terminology changes to avoid EVMS termsEACs now Forecasts At Completion (FAC)Data Group AReport MetadataApproved Plan NumberSubmission EventPeriod of PerformanceReporting OrganizationDate PreparedClassificationData Group BDD Form 2794 Information(Co-Plan)WBS Code/Level/NameOrder NameEnd ItemsAdditional Tags #1-#12Data Group CContractor Definitions and RemarksCWBS DictionaryRemarks by WBS elementSummary RemarksData Group DSummary ElementsSubtotalGeneral and AdministrativeUndistributed BudgetManagement ReserveFacilities Capital Cost of MoneyContract FeePrice Data Group EActuals To Date (ATD)Account Reporting PeriodCLIN Nonrecurring/RecurringContractor Func. CategoriesContractor Rate PoolStandard Func. CategoriesUnit/Sublot First/Last NumberDollars/HoursData Group FAllocation MethodologyAllocation Method Type IDAllocation Method NameData Group GForecasts At Completion (FAC)FAC (Dollars/Hours)

Access to Native Data FlexFile Evolution: Round 0 2014 - 2015 7 Goal: Develop initial prototypes to obtain native [raw] data Result: Three (3) prototypes determined concept was possible Led to CAPE engaging with additional contractors Led to cost and acquisition communities kicking off the official pilotsRound 0F-35 (LMCO)PAC-3 (LMCO)SBIRS (LMCO) Legacy 1921 costs are an aggregate of lower level cost categories Bottoms Up AnalysisInsight into Cost Accounts and Unallocated dataCosts reported the way the contractor collects it based on the contractor’s structure for accumulating and managing costs Actuals + UnallocatedDetailed “on-the-ground” data from a single program Benefits Mapped Needs Allocation Native Data 3 Pilots   Legacy 1921 FlexFile SCOPE:     - End Item X X - Order/Lot X X - CLIN   X COST DATA:     - WBS X X - Cost Account   X - Rec/NR X X - Unit/Sublot ( as req'd ) X X FUNCTIONAL CATEGORIES:     - Forward Pricing Rate Cats   X - CCDR Standard Cats X X TIME-PHASING:     - Actuals by Month   X

Allocation and Mapping FlexFile Evolution: Round 1 & 2 2015 - 2016 8 Round 1 GPS III CAP (LMCO) OCX (Raytheon) WGS (Boeing)Round 2F-35 LRIP 3 (LMCO)WGS v2 (Boeing)B-2 EHF (NGC)DDG 113 (HII)GMD (Boeing) Goal:To obtain insight into cost accounts and allocation methodologiesExpanded scenarios with contractors and system commands Result:Learned native data filescan recreate Legacy 1921 reports Top Down Analysis Ability to recreate Legacy 1921 reports Mapping to the CSDR approved WBS Allocation methodologiesMapping to CCDR standard functional categories Allows crosscheck to historical CCDRs Allows analysts to view standardized data across business units and commodities Benefits Variant A Variant B Material Labor Labor Material 3 Pilots 5 Pilots Native Data Mapped Needs Allocation

Allocation and Mapping FlexFile Evolution: Round 3 2016 - 2017 9 Round 3 F-35 LRIP 3 (LMCO) GMD (Boeing )AEHF (LMCO)Stryker (GDLS)PIM (BAE)B-2 (NGC)WSF (TBD)F-22 (LMCO)C130J (LMCO)SBIRS (LMCO)SANR (TBD) Goal:Prove data files conform to the DIDAssess if contractors could enter data into the data model Result:Lessons learned informed the recent updates to the DID, Data Model, and Co-Plan IndustryWorking with vendors and removing the human elementInnate data Efficient report generationReduces costGovernment Cost data will be housed in a relational database Ability to apply own methodologies allows for dynamic views Flat file download for analysisComparison across contracts, business units, programs Goals: FF Native Data Variant A Variant B Material Labor Labor Material 11 Pilots Mapped Needs Allocation

10 Submission Process FlexFiles Process FlexFile Business Process ERP ERP GFI ERPRaw SourceOne Source Multiple SourcesSource(s) w/ GFI Flex FileData Schema FlexFile SQL DBIT Solution 1 Converts Raw Source Into FlexFile Data Schema Options: Contractor manually manipulates into data model Contractor uses own IT solution to produce data model Contractor uses a CADE developed tool Third Party Solution [Optimal]: Automatically export data model from ERP system Allows industry verification and validation before submission (CADE Developed Tool) Raw Data - FlexFile Conversion (JSON) Industry Validation & Submission Industry Overview Industry Submission IT Solution 2a SUBMIT

11 Validation Process FlexFiles Process CADE Analytics FlexFile Business Process IT Solution 2bDCARC ValidationAllow other government analysts to review data before acceptanceGovernment Overview Industry Submission FlexFile SQL DBDisplay CADE DatabaseMake data viewable in CADE Acceptance FlexFile Interface Government Review Flex File Data Schema

Concerns vs. Reality FlexFiles 12 Concerns Government is requiring contractors to allocate their source data Government is requesting E ACs at the lowest levelRealityRealityContractors are only required to disclose allocation methodology if data are not discretely accounted forAsking for Forecasts at Completion (FAC); FACs need not come from EVMS and may be tailored to higher levelsGovernment is dictating how contractors set up their control accounts Contractor shall map to every functional categoryGovernment is forcing industry to develop an IT solution to ingest the data file into CADE Government requires a minimal level of tagging for actual cost accumulation onlyThe DID requires contractor to map to the most applicable functional category Government is working with industry and vendors to develop an optimal IT solution. In parallel, CADE IT is developing its own validation tool

What do we need from you? FlexFiles 13 Become and advocate for the FlexFile on new contracts Socialize the benefits of the FlexFile Become early adapters Allow us to come train Train government analysts on the benefits and uses of the FlexFileTrain industry on how to report to the new requirementsIdentify early adapters that can benefit from a FlexFileSUMMARY:FlexFile is the future of Cost & Data Analysis through:Access to Native Cost DataAllocation & Mapping Visibility Seamless Data IntegrationRound 3 Pilots [22 Pilots Total] informed our path forward Process to convert raw source data to the FlexFile Flatfile has been vetted and validated The Future of Cost & Data Analysis CSDR EVM ICE SCP

Quantity Report (-Q)

15 Legacy Reporting Quantity Report Quantity information has been provided in three separate forms (1921, 1921-1, and 1921-2) Quantity to date has historically been a calculated field Most quantity information is provided by a different department than cost data Financial vs. ManagementSome quantity information was provided as a summary remark in the 1921No consistent way of receiving internal vs. delivered units Quantity information has been provided on the same form as costs since the 1970s 1921 1921-2 1921-1

16 Improved R equirement Quantity Report Requirements Legacy 19211921-QUNITS AT COMPLETIONXX Delivered UnitsXX Internal UnitsXX GFEXASSESSED UNITS TO DATEXX Completed to DateXX Quantity In ProcessXXCONCURRENT UNITSX X Complete Production SequenceX Quantity Report is closely related to the FlexFileCurrent update improves on the existing quantity requirements Same information collected as before with the addition of GFE data and sequencingSeparate form outside of a CCDR allows for a more streamlined submission process Will collect more accurate quantity information prior to final report WBS Element Code Deliverable/End Item Delivered Units At Completion Internal Units At Completion GFE Units At Completion Deliverable/End Item First Unit Number Last Unit Number Delivered/Internal WBS Element Code Units Completed To Date Units In Process Units to date should be an actual count of physically completed units Units At Completion Concurrent Units Assessed Units To Date

17 Improved Requirements : November 2017 DID Quantity Report Major DID Changes Synchronized definitions and references between the DIDs, data models, and Co-PlanReorganization of the Data GroupsAllow sequencing quantities to be optional through Co-Plan process for each End-Item as not all End Items may require sequencing (e.g., Kits)Sequencing was allowed for lower level WBS elements in legacy 1921-2, but FlexFile does not sequence WBS elements (only End Items)To Date and In Process to be defined by contractor in the Remarks section Data Group A Report MetadataApproved Plan NumberSubmission EventPeriod of PerformanceReporting Organization Date PreparedClassification Data Group B DD FORM 2794 Data Elements (Co-Plan) WBS Code/Level/Name Order/Lot End Items Data Group C Units At Completion Delivered Units At Completion Internal Units At Completion Concurrent Units At Completion Government Furnished Equipment At Completion Remarks Data Group D Assessed Units To Date Units Completed To Date Units In Process Remarks Data Group E Sequencing (as required by Co-Plan) First Unit Number Last Unit Number Delivered/Internal Areas of Evolution

18 Submission Process Quantity Report FlexFile Business Process Financial Systems Raw Source Flex FileData Schema FlexFile SQL DBIT Solution 1 Raw Data Conversion (JSON)Industry Validation & Submission Industry Overview Industry Submission IT Solution 2a SUBMIT FlexFile Management Systems Raw Source Quantity Report Data Schema Quantity SQL DB Raw Data Conversion (JSON) Industry Validation & Submission Industry Submission SUBMIT Quantity Report

19 Process Quantity Report FlexFile Business Process DCARC Government Overview Industry SubmissionFlexFile SQL DBFlexFile Interface Government ReviewFlex FileData Model DCARCIndustry Submission Quantity SQL DB Quantity Data Model CADE Database Acceptance Acceptance Government Review Display FlexFile Flat File Quantity Flat File

Points of Contact FlexFiles 20 Government Lead: Daron Fullwood Director, Defense Cost and Resource Center (DCARC) 571-372-4267 Office 301-580-7222 CellDaron.D.Fullwood.civ@mail.milFlexFile Lead:Marc Stephenson(703) 697-0362 OfficeMarc.J.Stephenson.ctr@mail.mil