Lean Government EPA Region 4 Large Procurement Process Review Lean Six Sigma DMAIC (Define Measure Analyze Improve Control) Method Summary EPA Region 4 conducted a DMAIC event starting with a formal project kickoff meeting on Nov 2, 2012, to reduce the Regional Acquisition Program processing time for large procurements (Competitive Procurements greater than $150,000) adhere to Federal Acquisition Regulation (FAR), Contracts Management Manual (CMM), and EPA guidance. The project team completed the DMAIC method final Tollgate on Jul 1, 2013. The project team completed the five DMAIC steps to evaluate solutions to reduce the procurement processing time of 582 days to the expected Procurement process standard of less than or equal to 360 days. The project team also wanted to reduce the Procurement Identification Notice (PIN) Processing Time from 232 days to meet the EPA standard of 90 days. The Team identified cause and effect issues contributing to increased processing time, and prioritized critical items with recommended solutions. The Team recommended the Acquisition Management Staff and SuperFund staff members acquire knowledge and experience in drafting, coordinating, and finalizing procurements documents. By acquiring the knowledge and skills, the Team felt that staff members would enhance their ability to coordinate and finalize the procurement documents to reduce processing time. During the event, participants developed maps of the existing process, "To Be" Value Stream map, and team solutions to reduce processing time. The team proposed prioritized solutions were: Priority Solution 1 Solution A: Quick "Win Wins," Best Practice Document 2 Solution B: Tech Panel Training/CO provides instructions to Tech Panel/CO involvement with panel/Work Group to improve TEP Report 3 Solution C: On-going Training 4 Solution D: Employee Experience/EASTraining/Template 5 Solution E: Roles & Responsibilities Doc, FAR Policy, CO provides options to PO, CO consults with legal advisory groups, SRMAC, and supervisors & Staff members Mutual Respect 6 Solution F: Protocol Resolution, CO get early input from Advisory Groups Results The team developed a new request for Procurement Assistance process that starts with the Program Office's (customer) email to the Acquisition Section Chief (Process Owner) to assigning the Contracting Officer within 5 days, and scheduling the Questionnaire meeting within 15 days. The improved state will achieve the following results: Support reducing the processing time Improve the preparation of the PIN document The event also helped participants to communicate and collaborate more on how to improve the procurement process from PIN to contract award and use the Questionnaire meeting to collaborate, draft, and complete the PIN document with less re-writes. The team recommendation is to review Quick "Win Wins" process in December 2013. The goal is to evaluate recommendations based on the "To Be" Value Stream Map processing times. The team's Quick "Win Wins" proposal provided opportunities to reduce the PIN processing time therefore reducing the total processing time for large procurements. ------- Scope of the Lean Project Project Scope: The first step of the process is PIN Package development, and the last step of the process is Award Notifications (Scope-out: The project did not address non-competitive acquisition or actions under existing contracts). Goal of the Lean Event: Streamline the process to complete new procurements greater than $150,000 in less than 415 days and complete and approve Pre-Solicitation packages within 65 days. Problem statement: The R4 Procurement process is currently operating at an estimated average of 582 days (232 days- Procurement Initiation Notice (PIN) work; 350 daysacquisition), the expected Procurement process standard is less than 360 days (90 days-PIN work; 360 days-acquisition) for Competitive Procurements greater than $150,000. Note: Problem statement adjusted to meet EPA Proposed standard. Figure 1: Quick "Win Wins" PIN Process Acquisition Plan I PO Email CO tor Procurement Assistance PIN Prep (Scope, Value,andlGCE)-6E Calendar Days CO Acknowledge Receipt/ Lngin Data Base ± RCO Assigns CO (5 Calendar Days) eltfll dft Compl Requirement Document (RD) Doc (AMS/ Customer) (CLG tamer Prep ares Draft- 6 Months) PO Id/Coontact Panel Member; AMS Chief Assigns CO/ Questionnaire Meeting/ Start Final Acq Package I PIN Receipt I PIN Receipt PIN Forwarded to PO for Revision I Approves/ Accepts Package I ------- Figure 2: Current Process Map Process Map - Reduce Procurement Administrative Lead Time (PALT) standard less than 415 days for PRs greater than $150,000. CIWI Phase I/II j Phase III/IV VciceoftheBusiness EstJimtedProcesangllim 4D&7 Acquisition Process (Joint CO/PO Processing) \titEiftteQdaTB- ------- Process Changes and Improvements Participants in the Lean event mapped the procurement process from acquisition planning to contract award. The team identified the following changes (Quick "Win Wins") to improve the process with recommendations: Email Request for Procurement Assistance: Email from Program Office (PO) to Contracting Office (CO) requesting procurement assistance. Email content/attachments (examples/but not limited to):Statement of work/performance work statements. Independent Government Cost Estimate (IGCE). AMS Chief assigns Contracting Officer within 5 days of request for procurement assistance. Questionnaire Meeting scheduled 15 Days after AMS Chief assigns a Contracting Officer. Purpose: Contracting Officer/PO complete questionnaire together (collaboration). PO identifies contact/panel member. Recommendations: Continue to manage Quick "Win Wins" Procedures. Review process in 6 months (NLT Dec 14, 2013). The "To Be" Value Stream Map shows the seven major steps relevant to the Acquisition process for large procurement with processing times. The processing times are EPA proposed times and will establish the standard to measure future procurement processing. Figure 3: "To Be" Value Stream MapGoal: Total Processing Time standard less than 360 Days for PRs greater than $150,000 Represents Phone Calk, finals, Documents, etc. ------- Implementation During the event, the team identified the following steps that they will take to implement the improvements identified during the event: 1. Implemented PIN Quick "Win Wins." The PIN request process was implemented on February 22, 2013. 2. Complete Joint Training Schedule. The Acquisition Management Office and Program Office will schedule and complete joint training sessions. 3. Complete Dispute Resolution Protocol Document. The Acquisition Management Office and Program Office agreed to complete the protocol document to facilitate communication and resolve differences at the lowest organizational level. 4. Contracts Management Manual (CMM). The Acquisition Management Section will continue to provide input to EPA and share informational updates with the Program Offices. 5. Coordinate and complete the transition document. Figure 4: Transition Plan Step DueDate Action/Task FebMH Implemented PIN Qui<* "Win Wins" Grants & Acquisition Management Branch J n2Q13 Complete Joint Training AMSChief/PO Schedule Sect ion Chief JUN2Q13 Re solution Protocol Document JUNM1J Contract! Marugcflient Transition Document Grants & Acquisition Management Branch ,/PO Section Chief Aomm table AMS Consulted AMS/Program Off';.;: AMS/PO HQEFA BBc Grant; & Acquisition Management Bran* Chief /Acquisition Management Section and SF staff members AMS/PO AMS/PO Grants £ Acquisition Management Brancha Chief/ Acquisition Management Section Chief Grants Si Acquisition Management Branch Chief/ Acquisition Management Section andSF Section Sponsors, AMS, PO Sponsors, AMS, PO Sponsors. AMS, and PO AMS/PO Grants & Acquisition Management Brancha Chief/ Acquisition Management Section Grants& Acquisition Management Branch Chief /Acquisition Management Sect ion and SF naff members Sponsors, AMS, PO The team also concurred with the transition plan and several recommendations to support implementing the process improvements identified during the event: Tech Panel Training/CO provides instructions to Tech Panel/CO involvement with panel/Work Group to improve TEP Report. Develop employee experience and knowledge. Train staff members on EAS. Develop and share Procurement Process Template(s) such as presentation for PIN Questionnaire meeting. ------- Lessons Learned After the event, the following lessons were provided: Future project teams should include Subject Matter Experts, stakeholders, customers representing Information Technology, Budget, Legal, etc. Plan the project with process owner - process owner take lead on some administrative activities, and assign team members specific responsibilities for each step. For More Information: Lean Event Contacts: Black Belt (Candidate): Abe Morrall, EPA Region 4, (404) 562-9651, morrall.abraham@epa.gov Event Sponsor: Ken Lapierre, EPA Region 4, (404) 562-8570, lapierre.ken@epa.gov Process Owner: Keith Mills (Raquel Hill), EPA Region 4, (404) 562-8366, mills.keith@epa.gov Customer: David Keefer, EPA Region 4, (404) 562-8932, keefer.david@epa.gov Team Members: Ed Chu, Franklin Hill, Randall Chaffins, Cory Berish Dorothy Rayfield Gary Wells JohnSpruill Debbie Hoover Kim Washington, Michael Allen & M. Benson David Keefer, Charles Swann, Dora Johnson, Luis Flores EPA Lean Government Initiative: Kimberly Green-Goldsborough, EPA Office of Policy, (202) 566-2355 green-goldsborough.kimberly@epa.gov www.epa.gov/lean/government Champions Stakeholder MBB, Mentor MBB, Mentor Resource Manager/ Subject Matter Expert (SME) Process SMEs Program Office/ Customers United States Environmental Protection Agency Office of Policy (1807T) September 2013 EPA-100-F-13-004 ------- |