Streamlining
                   Procurement Through
                   Electronic Commerce

                   Electronic Commerce
                 Acquisition Team (ECAT)

                        May 1994

========

Streamlining Procurement through Electronic Commerce

  o  By March 1994, define the architecture for the Government-wide
     EC acquisition system.

  o  By September 1994, establish an initial EC capability

  o  By July 1995, implement a full scale Federal EC system; and

  o  By January 1997, complete Government-wide implementation of EC
     for appropriate Federal purchases

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Charter for ECAT

  o  Mission was to develop a comprehensive plan for implementing an
     initial EC procurement capability

  o  120-day detail

  o  Co-chairs from GSA and DoD

  o  Approximately 50 interdisciplinary, interdepartmental staff
     members from finance, acquisition, and IRM fields

  o  Focus was on commodities less than $25,000.00

========

ECAT Focus Areas

  o  Acquisition requirements

  o  Vendor registration

  o  Implementation conventions

  o  Value added networks (VANs)

  o  Finance linkages

  o  Technical architecture

  o  Implementation projects

========

Business Requirements

  o  Single face

  o  Vendor registration

  o  Regulatory changes

  o  Posting of solicitation

  o  Small purchase commodities

  o  Other purchases and functional areas

  o  Send minimum data

  o  Common data bases

     -  Registration
     
     -  Master solicitation provisions

     -  Master Government contracts

     -  Vendor catalogs

     -  Past performance

  o  Agency systems

     -  Review current processes

     -  Improvements

  o  Policy issues

  o  Outreach and training

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ECAT Results and Plans

  o  Results

     -  Draft "Streamlining Procurement through EC," April 29, 1994

     -  Draft implementation conventions

     -  Identified additional projects and lead Agencies necessary to
        attain full scale EC

  o  Agency briefings

  o  Plans

     -  Continue briefings

     -  Commerce Program Management Office (PMO) operations

          Facilitate implementation and lead Agency actions

          Review, refer, and assist Agency implementation efforts

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Target Electronic Commerce Architecture

Government Procurement/Financial EDI & Related Applications

(see edi.houser.figure1.gif)

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Implementing the Virtual Network

  o  Connectivity

  o  Standards-based interfaces

  o  Help desk

  o  Audit and security

  o  Data base accessibility

  o  Technical assistance

  o  Directory services

  o  Addressing

========

Implementing EDI

  o  Software and/or hardware to translate between internal format(s)
     and the standard

  o  Trading partner agreements

     -  Who/when to exchange data

     -  What data to exchange

     -  Format of data

  o  Capability to communicate with trading partners

     -  Direct connection

     -  Through a third party (value-added network or VAN)

  o  Integrating EDI into internal systems and procedures

========

Identify EDI Translation Software Requirements

  o  EDI translation software converts data between your Agency 
     application system and the ASC X12 EDI format

  o  A wide variety of translation software is commercially available

  o  Translation software is available that operates on: mainframes, 
     minis, and PCs utilizing a variety of operating systems

  o  The features/capabilities of translation software vary tremendously
     and selecting the correct one for your Agency should be carefully
     considered

  o  Translation software usually requires application programs to extract 
     data from your application and place it in a flat-line format for 
     conversion to X12 format (and vice versa)

========

Establish Telecommunication Strategy

  o  Telecommunications will get data from your translator(s) to
     your VAN

  o  Determine your path of choice:  Internet, DoD Network, FTS, others

  o  Consider alternatives of Gateways, agency alliances, etc.

========

EDI Standards Organizations

  o  The Accredited Standards Committee (ASC) X12 consists of individuals
     and representatives of all types of organizations, including
     commercial and Government.  Activities of X12 include:

     -  Develop and maintain EDI standards for common usage

     -  Provide education and information regarding the use of EDI

  o  The Secretariat for ASC X12 is the:

        Data Interchange Standards Association (DISA)
        1800 Diagonal Road
        Suite 355
        Alexandria, VA 22314-2852
        (703) 548-7005

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Selected Examples of ASC X12 Transaction Sets - Phase 1

  o  Registration

     -  838 - Registration
 
     -  838 - Confirmation of registration

  o  Purchasing

     -  840 - Request for quotation

     -  843 - Response to request for quotation

     -  850 - Purchase order

  o  Finance

     -  810 - Invoice

     -  820 - Payment order/remittance advice

  o  Control

     -  997 - Functional acknowledgement

========

Selected Examples of ASC X12 Transaction Sets - Phase II

  o  Contract Management

     -  836 - Notice of award

  o  Purchasing

     -  855 - Purchase order acknowledgement

     -  860 - Purchase order change (buyer initiated)

     -  865 - Purchase order change acknowledgement/change request
        (seller initiated)

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Selected Examples of ASC X12 Transaction Sets - Phase III

  o  Engineering

     -  841 - Specifications/technical information

  o  Purchasing

     -  832 - Price/sales catalog

  o  Contract management

     -  869 - Order status inquiry

     -  870 - Order status report

  o  Safety

     -  848 - Material safety data sheet

  o  Transportation

     -  856 - Ship notice/manifest

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Selected Examples of ASC X12 Transaction Sets - Potential Use

  o  Management

     -  806 - Project schedule reporting

     -  839 - Project cost reporting
  
     -  864 - Text message

  o  Quality

     -  842 - Non-conformance report

     -  863 - Test results

  o  Transportation

     -  861 - Receiving advice

     -  858 - Shipment information

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Trading Partner Registration

(see edi.houser.figure2.gif)

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"Single Face" Registration Recommendations

  o  Register once

     -  One place of registration

     -  Collect and share like information

  o  One trading partner agreement

     -  Rules of electronic commerce

     -  Electronic agreement

  o  One vendor identification code

     -  Widely used

     -  Vendor obtained from a single source

     -  No cost

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Vendor Registration

(see edi.houser.figure3.gif)

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Communications

        Federal Electronic Commerce Acquisition Team
        Skyline 2, Suite 400
        5113 Leesburg Pike
        Falls Church, Virginia 22041

        Tel: (703) 681-0364
        Fax: (703) 681-0362

        Electronic mail can be sent to the ECAT at:
        <useop_at_sif1@cc.ims.disa.mil>