R -- Request For Information - DFAS Accounting Services

Defense Finance and Accounting ServiceAccounting Business Line (ABL) Request for Information (RFI) NOTE: DUE TO FEDBIZOPS SPACE CONSTRAINTS THE ENTIRE RFI CAN BE FOUND AT WWW.DFAS.MIL AT THE FOLLOWING LINK: HTTP://WWW.DFAS.MIL/ABOUT/ACQUISITIONS/AS_INDEX.HTM. YOU WILL NEED TO OBTAIN THE FULL RFI IN ORDER TO RESPOND. THE ESTABLISHMENT OF THE DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) in January 1991 was an important first step in the continuing process to improve the Department of Defense (DoD) finance and accounting operations. Prior to DFAS, DoD performed finance and accounting functions at various installations/activities using non-standard systems and procedures. Over the years, DFAS consolidated from 338 offices to 26, reduced manpower by 9,200 positions, reduced systems from 324 to 65, reorganized into business line structure, and received an unqualified audit opinion on its financial statements for fiscal years 2000, 2001, and 2002. DFAS CONSISTS OF THREE MAJOR BUSINESS LINES, ONE BEING ACCOUNTING SERVICES. The Accounting Services Business Line (ABL) is responsible for providing responsive, professional finance and accounting service to the DoD by recording financial events, classifying, summarizing, and reporting the results of business transactions in financial (monetary) terms, monitoring budget execution, and analyzing the results of these processes. The ABL performs these operations for appropriated/general funds, working capital funds, and trust fund activities. DFAS accounting professionals develop procedures to implement federal accounting requirements mandated by Congress, Office of Management and Budget, Department of Treasury and DoD, and maintain the current operational accounting systems to accomplish their accounting service mission. The DFAS has announced four additional Accounting Business Case Analyses for Fiscal Year 2004. As a result, A JOINT REQUEST FOR INFORMATION (RFI) is being published to obtain Industry interest in accomplishing services for: AIR FORCE ACCOUNTING ARMY ACCOUNTING DEFENSE AGENCY ACCOUNTING NAVY ACCOUNTING THE PURPOSE OF THIS RFI IS TO CONDUCT MARKET RESEARCH to determine if the private sector has the capability and interest to perform DFAS Accounting Services. This is not a solicitation for services. This RFI presents some background of each accounting network, clarifies the purpose, provides an overview of the four DFAS Accounting entities, includes approximate staffing levels, and lists specific instructions for providing information about the capabilities of potential private sector service providers to perform these services. Air Force, Army, Defense Agency, and Navy Accounting are separate entities under the ABL and are performed at different DFAS locations, which will be outlined later in this document. Note: Marine Corps Accounting is NOT included in this document. Please note that responses to this RFI can be accomplished by Accounting Network (e.g., Navy Accounting, Air Force Accounting, Army Accounting and/or Defense Agency Accounting); by Accounting function (e.g., Departmental Level Accounting, Field Level Accounting, functional Systems Management); or any combination thereof. OVERVIEW OF ACCOUNTING FUNCTIONS: Overall, all four Accounting Lines (Air Force, Army, Navy, and Defense Agency) provide similar types of services (accounting product lines) for their respective customers as follows: FIELD LEVEL ACCOUNTING/REPORTING support services which include budgetary and proprietary accounting, reporting and accounting statement preparation for all funds (general/appropriated, working capital, revolving and trust). At a minimum this would include accounts payable; accounts receivable; billings; cash accountability; funds authentication; accounting for plant, property and equipment and other elements of expense; and preparation and consolidation of assigned Office of Secretary of Defense (OSD) accounting and financial management reports. DEPARTMENTAL ACCOUNTING/REPORTING services which involve the consolidation, reconciliation, and roll-up of trial balances and subsidiary accounts into consolidated budget execution reports and Chief Financial Officer (CFO) Act financial statements; and reconciling and reporting cash accountability to the Department of Treasury. MANAGEMENT AND CONTINUAL IMPROVEMENT of accounting processes which include accounting procedures and guidance; accounting systems functional maintenance and support to accomplish capturing, transmitting, analyzing, recording and reporting accounting transactions; electronic commerce and business process improvement initiatives; and customer service and business management. For purposes of this RFI, Field Level and Departmental Accounting/Reporting services can be further categorized in 10 CORE ACCOUNTING PROCESSES. This RFI will relate each of these areas to the specific business line entities later in this document, as each Accounting network does not perform all 10. MAINTAIN GENERAL LEDGERS – involves receiving and processing data for general ledgers, validating incoming data, performing follow up concerning missing reports and/or data; recording departmental level entries, providing assistance to the field sites, explaining balance issues, submitting final reports, preparing journal vouchers. PERFORMS FUNDS CONTROL – BUDGETARY ACCOUNTING - involves recording obligations, monitoring funds availability, recording expenditures, reconciling fund targets, monitoring reimbursable orders, recording commitments. MAINTAIN ACCOUNTS RECEIVABLE – involves preparing billings, recognizing revenue (establish estimates), establishing receivables, maintaining and updating account information, recording collections, managing delinquent debt, managing advances, managing unfunded reimbursables. MAINTAIN ACCOUNTS PAYABLE – involves recording payments, accruing liabilities, recognizing liabilities and establishing payables; processing payments; maintaining electronic funds transfer data; conducting unliquidated obligation reviews; processing billings. MAINTAIN INVENTORY ACCOUNTING – involves reconciling inventories; processing adjustments; updating inventory; reviewing and validating end of month/year inventory reports; validating and adjusting sales of inventory. PERFORM PROPERTY, PLANT AND EQUIPMENT ACCOUNTING – involves reviewing and validating end of month/year fixed asset reports; preparing journal vouchers for property/plant/equipment; receiving incoming data for property/plant/equipment; reconciling data. PERFORM PAYROLL ACCOUNTING – involves processing payroll data and accruing wages for both US and Local National civilians and military personnel at standard rates. MAINTAIN COST ACCOUNTING – involves performance of cost accounting and monitoring cost accounting. GeENERATE ACCOUNTING REPORTS – involves receiving and processing data for accounting reports; recording installation, departmental, and agency entries for accounting reports; creating installation, departmental and agency accounting reports; providing customer assistance; accumulating information for accounts receivable reports; providing trust fund accounting reports; and providing ad hoc financial information reports to the military services, Defense Agencies, Foreign Military Sales (FMS), OSD, Office of Management and Budget (OMB), Department of Treasury and Congress. MAINTAIN CASH REPORTING – involves processing departmental and detail cash reporting, resolving problem disbursements. As previously stated, in addition to the preceding 10 core accounting processes, are functions related to management and continual improvement of the accounting, which includes functional Systems Management. While legacy systems are primarily used to support accounting operations, there are many manual work-around processes within Accounting. Although the processes within these function may be few in number, the manual labor to perform these processes result in expending many man-hours to support the work. AN OVERVIEW OF EACH ACCOUNTING NETWORK IS PROVIDED to outline Accounting Services performed at four of the five major DFAS locations, to include the systems used, as well as an approximation of personnel and workload data. (Note: Marine Corps Accounting is not included in this RFI). When systems and processes are discussed in the following Network descriptions it includes legacy, migratory, and personal computer based applications. Recognize that both systems and processes in some cases are: 1) shared across all networks; 2) shared across a couple networks; or 3) network unique. As we move forward in this process, when appropriate, we will issue detailed information that fits under each of the three categories. However, at this time such detail is not necessary for purposes of the RFI. FULL RFI WITH NETWORK DESCRIPTIONS AVAILABLE AT WWW.DFAS.MIL INSTRUCTIONS FOR PROVIDING INFORMATION: This Request for Information is to assist the Government in determining if there is sufficient industry interest in performing DFAS Accounting Services. The DFAS Accounting Business Line (ABL) will hold an Industry Day in Columbus, Ohio on December 18, 2003, beginning at 8:00 a.m. at the Greater Columbus Convention Center. The Greater Columbus Convention Center is located at 400 N. High Street, Columbus, OH 43215. Information regarding directions, parking, etc., can be found at http://www.ovr.org/sites/sites.php?id=GCCC. Instructions will be divided into two segments with different due dates: 1) Industry Day and 2) Written Capability Statements and Questions. Industry Day: The Industry Day format will be as follows: 1) DFAS presentation on the DFAS Accounting Business Line functions to all attendees. 2) Opportunities for individual service provider presentations consisting of an overview of their capabilities. Presentations will be one-on-one; service provider and DFAS, and be strictly limited to 30 minutes. 3) Brief closing statement to all attendees. Industry Day attendance will be strictly limited to no more than 4 representatives per service provider. Parties interested in attending the Industry Day as well as providing a 30-minute briefing to DFAS personnel must notify Ms. Cheryl Marquez, Acquisition Services Directorate, DFAS-ASD-Columbus, OH no later than 4:00 p.m. EST, by December 11, 2003 via e-mail ([email protected]). Notification of Industry Day attendance should include the company name, attendee names and titles, and whether a briefing to DFAS personnel will be provided. No audio/visual equipment will be available for service provider presentations. Paper copies/handouts of briefings are required at a minimum, and should be limited to 15 slides that are focused on the capabilities to perform DFAS Accounting Services. DFAS representatives will not answer questions during individual vendor presentations. Capability Statements and Questions: Service providers may submit questions by e-mail only to Ms. Cheryl Marquez at [email protected]. Questions must be received no later than 4:00 p.m., EST, December 16, 2003. Answers to questions will be provided as questions are received. A consolidated list of questions and answers will be posted to www.dfas.mil after the Industry Day concludes (mid-January 2004). Using information in this RFI as a baseline and the following guidelines, written capability statements must be received no later than 4:00 p.m. EST, December 16, 2003 via e-mail to ([email protected]). 1. This Request for Information (RFI) is not a commitment by the Government to pursue competitive sourcing for DFAS Accounting services. This RFI is being used solely as a Market Research tool. However, Vendors must include with this notification, a brief non-binding statement indicating their potential interest in competing for DFAS Accounting if it is competed under OMB Circular A-76, and a Statement of Capabilities responding to areas outlined below in paragraphs 7 a-k. 2. Only interested vendors need reply. 3. RFI Capability Statements are limited to 10 pages. A Cover sheet limited to 2-pages may be included, but will not be considered in determining capability to perform DFAS Accounting services. 4. This RFI outlines DFAS Accounting Services by Network (Air Force Accounting, Army Accounting, Navy Accounting, and Defense Agency Accounting). 5. This RFI outlines DFAS Accounting Services by major function (Departmental Level Accounting, Field Level Accounting, functional Systems Management). 6. Only one capability statement will be accepted from each company. The capability statement must outline, at a minimum areas covered in #7 below. The capability statement can be inclusive or it may specify any separate area or combination of areas outlined in #4 and #5 above. The combinations are varied. It is up to each vendor to specify what their capability(ies) is/are covering. This must be the opening paragraph of each capability statement. 7. Using information in this RFI as a basis as to what constitutes accounting services, vendors must provide a brief Statement of Capabilities that they have accomplished or participated within the last 3 years (limited to no more than 10 pages). Statements of Capabilities are to be in Word format, 1 inch margins, Times New Roman, Font 11. The Statement of Capabilities must include, at a minimum, responses to the following areas. Responses should outline a demonstrated capability to include when, who, what. a. Company Overview – Size, location(s) and primary capabilities. Can also include additional information not provided by the already defined functionalities, to include any other pertinent information desired. b. Ability to perform core accounting functions using both manual and automated processes. c. Ability to perform core accounting functions of a large scope. d. Ability to perform core accounting functions in and with a geographically dispersed environment. e. Ability to perform core accounting functions independently and/or cooperatively with Government and/or other service providers. f. Similar services provided (current or within the last 3 years). Type of service (in detail) – to whom, volume (dollars and transactions) for each category, to include accounting methods/mechanisms. g. Ability to manage multiple financial management systems. h. Familiarity with Government Policies and Procedures. i. Ability to expand accounting services delivery quickly, when necessary (e.g., human resources flexibility). j. Critical performance metrics/standards of service process. k. Best practices utilized today and processes for anticipating changes/trends in how accounting services may be provided in the next 5 years.