Streamlining Procurement Through Electronic Commerce

Streamlining Procurement through Electronic Commerce

• By March 1994, define the architecture for the Government-wide EC acquisition system.
• By September 1994, establish an initial EC capability
• By July 1995, implement a full scale Federal EC system; and
• By January 1997, complete Government-wide implementation of EC for appropriate Federal purchases

Charter for ECAT

• Mission was to develop a comprehensive plan for implementing an initial EC procurement capability
• 120-day detail
• Co-chairs from GSA and DoD
• Approximately 50 interdisciplinary, interdepartmental staff members from finance, acquisition, and IRM fields
• Focus was on commodities less than $25,000.00

ECAT Focus Areas

• Acquisition requirements
• Vendor registration
• Implementation conventions
• Value added networks (VANs)
• Finance linkages
• Technical architecture
• Implementation projects

Business Requirements

• Single face
• Vendor registration
• Regulatory changes
• Posting of solicitation
• Small purchase commodities
• Other purchases and functional areas
• Send minimum data
• Common data bases
  • Registration
  • Master solicitation provisions
  • Master Government contracts
  • Vendor catalogs
  • Past performance
• Agency systems
  • Review current processes
  • Improvements
• Policy issues
• Outreach and training

ECAT Results and Plans

• Results
  • Draft "Streamlining Procurement through EC," April 29, 1994
  • Draft implementation conventions
  • Identified additional projects and lead Agencies necessary to attain full scale EC
• Agency briefings
• Plans
  • Continue briefings
  • Commerce Program Management Office (PMO) operations
    • Facilitate implementation and lead Agency actions
    • Review, refer, and assist Agency implementation efforts

Target Electronic Commerce Architecture

Figure 1 (GIF - 21980 bytes)

Implementing the Virtual Network

• Connectivity
• Standards-based interfaces
• Help desk
• Audit and security
• Data base accessibility
• Technical assistance
• Directory services
• Addressing

Implementing EDI

• Software and/or hardware to translate between internal format(s) and the standard
• Trading partner agreements
  • Who/when to exchange data
  • What data to exchange
  • Format of data
• Capability to communicate with trading partners
  • Direct connection
  • Through a third party (value-added network or VAN)
• Integrating EDI into internal systems and procedures

Identify EDI Translation Software Requirements

• EDI translation software converts data between your Agency application system and the ASC X12 EDI format
• A wide variety of translation software is commercially available
• Translation software is available that operates on: mainframes, minis, and PCs utilizing a variety of operating systems
• The features/capabilities of translation software vary tremendously and selecting the correct one for your Agency should be carefully considered
• 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

• Telecommunications will get data from your translator(s) to your VAN
• Determine your path of choice: Internet, DoD Network, FTS, others
• Consider alternatives of Gateways, agency alliances, etc.

EDI Standards Organizations

• 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
• The Secretariat for ASC X12 is the:

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

Selected Examples of ASC X12 Transaction Sets - Phase 1

• Registration
  • 838 - Registration
  • 838 - Confirmation of registration
• Purchasing
  • 840 - Request for quotation
  • 843 - Response to request for quotation
  • 850 - Purchase order
• Finance
  • 810 - Invoice
  • 820 - Payment order/remittance advice
• Control
  • 997 - Functional acknowledgement

Selected Examples of ASC X12 Transaction Sets - Phase II

• Contract Management
  • 836 - Notice of award
• Purchasing
  • 855 - Purchase order acknowledgement
  • 860 - Purchase order change (buyer initiated)
  • 865 - Purchase order change acknowledgement/change request (seller initiated)

Selected Examples of ASC X12 Transaction Sets - Phase III

• Engineering
  • 841 - Specifications/technical information
• Purchasing
  • 832 - Price/sales catalog
• Contract management
  • 869 - Order status inquiry
  • 870 - Order status report
• Safety
  • 848 - Material safety data sheet
• Transportation
  • 856 - Ship notice/manifest

Selected Examples of ASC X12 Transaction Sets - Potential Use

• Management
  • 806 - Project schedule reporting
  • 839 - Project cost reporting
  • 864 - Text message
• Quality
  • 842 - Non-conformance report
  • 863 - Test results
• Transportation
  • 861 - Receiving advice
  • 858 - Shipment information

Trading Partner Registration

Figure 2 (GIF - 32983 bytes)

"Single Face" Registration Recommendations

• Register once
  • One place of registration
  • Collect and share like information
• One trading partner agreement
  • Rules of electronic commerce
  • Electronic agreement
• One vendor identification code
  • Widely used
  • Vendor obtained from a single source
  • No cost

Vendor Registration

Figure 3 (GIF - 35680)

Communications

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

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