R 271425Z FEB 12

ALCGFINANCE 007/12
SUBJ: REDUCED CONTRACT SPENDING FOR MANAGEMENT SUPPORT SERVICES
A. OMB CONTROLLER MEMO DTD 7NOV11
B. DHS UNDER SECRETARY FOR MANAGEMENT MEMO DTD 8DEC11
1.  DURING THE WHITE HOUSE FORUM ON ACCOUNTABILITY IN FEDERAL
CONTRACTING ON 8JUL11, THE OFFICE OF MANAGEMENT AND BUDGET (OMB)
ANNOUNCED A GOAL OF REDUCING SPENDING ON MANAGEMENT SUPPORT SERVICE
CONTRACTS BY 15 PERCENT OF FISCAL YEAR 2010 EXPENDITURES BY THE END
OF FISCAL YEAR 2012.  IN ORDER TO ACHIEVE THIS GOAL, THE COAST GUARD
WILL NEED TO REDUCE SPENDING THAT FALLS WITHIN A DEFINED SET OF
PRODUCT SERVICE CODES.  THIS ALCGFINANCE PROVIDES GUIDANCE TO HELP
PROGRAMS AND RMOS ACHIEVE THIS TARGET, AND LISTS REQUIREMENTS FOR
MONITORING PROGRESS.
2.  FOR PURPOSES OF THIS INITIATIVE, MANAGEMENT SUPPORT SERVICES
INCLUDE ACTIVITIES SUCH AS ENGINEERING AND TECHNICAL SERVICES,
ACQUISITION PLANNING, INFORMATION TECHNOLOGY SERVICES, AND PROGRAM
MANAGEMENT.  THESE TYPES OF PROCUREMENTS ARE DEFINED BY A SET OF 12
PRODUCT SERVICE CODES (PSCS):
D302  ADP SYSTEMS DEVELOPMENT SERVICES
D307  AUTOMATED INFORMATION SYSTEMS SVCS
D310  ADP BACKUP AND SECURITY SERVICES
D314  ADP ACQUISITION SUPPLY SERVICES
R408  PROGRAM MANAGEMENT/SUPPORT SERVICES
R413  SPECIFICATIONS DEVELOPMENT SERVICES
R414  SYSTEMS ENGINEERING SERVICES
R421  TECHNICAL ASSISTANCE
R423  INTELLIGENCE SERVICES
R425  ENGINEERING AND TECHNICAL SERVICES
R497  PERSONAL SERVICES CONTRACTS
R707  MGT SERVICES/CONTRACT AND PROCUREMENT SERVICES
3.  A FULL LISTING OF PSC CODES CAN BE ACCESSED VIA THE ACQUISITION
CENTRAL PRODUCT SERVICE CODE MANUAL: HTTPS://WWW.ACQUISITION.GOV.
4.  SELECT PROGRAMS (SERVICE/LOGISTICS CENTERS) IN COORDINATION WITH
RMOS HAVE BEEN TASKED WITH PRIORITIZING THEIR PORTFOLIOS OF TARGETED
CONTRACTS FOR IDENTIFICATION OF WAYS TO SCALE, REDUCE OR ELIMINATE
REQUIREMENTS TO MEET REDUX GOALS.  A HISTORICAL BREAKDOWN OF
EXPENDITURES BY ATU, CORRESPONDING REDUX TARGETS, AND REDUX
PERFORMANCE METRICS CAN BE ACCESSED VIA THE FOLLOWING LINK:
HTTP://CGWEB.COMDT.USCG.MIL/CG8/CG83/CG832/PSCREDUX.HTM.
5.  PROGRAMS SHALL SEEK RMO OR ATU COMPTROLLER/FUNDS MANAGER APPROVAL
FOR REQUIREMENTS THAT FALL UNDER ONE OF THE TARGETED PSCS.
CONTRACTING OFFICERS, IN COORDINATION WITH PROGRAM PERSONNEL, SHALL
REVIEW REQUIREMENTS FOR APPROPRIATE SELECTION OF PSCS AND SHALL NOT
ASSIGN A TARGETED PSC OR PROCEED WITH THE PROCUREMENT UNLESS ATU OR
RMO FUNDS MANAGER APPROVAL HAS BEEN GRANTED IN WRITING. THE
CONTRACTING COMMUNITY WILL BE ADVISED OF THESE NEW PROCEDURES VIA
COCO ALERT. A SAMPLE APPROVAL MEMO CAN BE ACCESSED VIA THE FOLLOWING
LINK: HTTP://CGWEB.COMDT.USCG.MIL/CG8/CG83/CG832/PSCREDUX.HTM.
6.  IF ATUS ARE IN DANGER OF BREECHING THEIR FY12 GOAL, THEY MUST
NOTIFY CG-832 AND CORRESPONDING RMO (DCMS-83, DCO-83, LANT-83,
PAC-83, CG-83, AND CG-21).
7.  CG-832 AND RMOS WILL MONITOR ATU OBLIGATIONS WITH TARGETED PSCS
THROUGHOUT FY12 AND PROVIDE CG-8D MONTHLY REPORTS OF ATU PROGRESS.
ATUS ARE ENCOURAGED TO REVIEW AND RECONCILE CONTRACT ASSIGNMENT TO
ATU TARGET LEVELS, AND INFORM RMOS IF ERRORS IN ASSIGNMENT EXIST.
8.  FOR QUESTIONS CONCERNING THE APPROVAL OF REQUIREMENTS USING ONE
OF THE 12 TARGETED PSCS, CONTACT YOUR ATU FUNDS MANAGER OR RMO.  FOR
QUESTIONS REGARDING THE BACKGROUND AND INTENT OF THIS OMB-DIRECTED
INITIATIVE, CONTACT CDR KEVIN MOHR, CG-832, AT (202)372-3565, OR LT
JESSE MILLARD AT (202)372-3569.
9.  MR. RAJK, DEPUTY CHIEF FINANCIAL OFFICER, SENDS.
10.  INTERNET RELEASE AUTHORIZED.