Procure to Pay (P2P) - Capability Summaries
Procure-to-Pay encompasses all business functions necessary to obtain goods and services using procurement processes and procedures including: executing procurement requirements, strategy, procurement award and management, receipt and acceptance, entitlement, disbursement and closeout.
For more information and diagrams of the End-to-End (E2E) P2P process flow, please visit: http://dcmo.defense.gov/Products-and-Services/End-to-End-Business-Process-Integration-Framework/
- Contract Administration Office Management
Incorrect determination of Contract Administration Office (CAO) and Payment Office on DoD contracts are two of the most frequent errors that occur on contract actions. To combat this, Defense Pricing and Contracting (DPC) partnered with multiple parties to create the Purpose Code Module (PCM) in the Procurement Integrated Enterprise Environment (PIEE). The new module allows the contracting community to look up the appropriate CAO and associate DoD Activity Code (DoDAAC) by the proposed contractor’s Commercial and Government Entity Code (CAGE) Code, ZIP Code, or country.
- Contract Line Items
DPC led efforts to update FAR 4.10 to create uniform requirements for line item creation across the Federal Government.
- Miscellaneous Payments
A miscellaneous payment occurs as a result of a claim for payment or reimbursement of a valid, non-recurring, non-contractual expense of the DoD (that is not payroll related) for a military or civilian member. The Department of Defense Guidebook for Miscellaneous Payments was developed to create a central source for miscellaneous payment standards and ultimately enable faster, and more accurate payments and auditability.
- Order of Application of Contract Modifications
New rules have been published regarding the order in which to apply contract modifications. DFARS 204.7007 defines the new sequence of modifications to a contract.
- Payment Instructions
In order to reduce the number of contract deficiency reports related to payment instruction errors, DPC updated DFARS PGI 204.7108 to require contracts funded by multiple accounting classification citations and meeting certain other guidelines to carry a table of payment instructions in section G of the contract.
- Procurement Instrument Identifier Rule
The PIID rule aims to combat the disparate numbering systems, which have made it difficult to trace transactions across electronic interfaces. This rule facilitates standard reporting across the Federal Government, eases data collection by Enterprise systems, and improves system-to-system communication.
- Procurement Office DoDAAD Flag
DPC collaborated with Enterprise Business Standards Office (EBSO) in 2016 to define the business rules by which the DoDAAD would be used to identify and track offices with procurement authority.
- Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) transactions are system-agnostic and used across functional communities to provide a data format for different electronic transactions used in the procure-to-pay process, such as contracts, shipping notices, or invoices. The use of EDI transactions improves the visibility of procure-to-pay data and has enabled system owners to improve data integrity.
- Global EXchange (GEX)
The GEX, managed by the Defense Logistics Agency, is an Interface Broker which utilizes proven products and processes to deliver superior data integrations by enabling application of the “Hub and Spoke” design approach to interface development. The GEX validates, secures, translates, routes, archives, and delivers mass volume of XML, EDI, and other transactions with guaranteed delivery and end-to-end accountability. This system reduces the amount of interfacing systems, thereby diminishing complexity of interface maintenance and creating a flexible business environment.
- Procurement Data Standard (PDS)
The Procurement Data Standard (PDS) is a system-agnostic data standard that supports the creation, translation, processing, and sharing of procurement actions often generated by proprietary data models in other systems. This data standard was implemented to support visibility and data integrity of contract data, ultimately increasing the ability to generate more accurate and comprehensive business intelligence.
- Procurement Data Standards Validation Services
Defense Pricing and Contracting (DPC) has created several system-agnostic standards that support procurement actions, including standards for purchase requests (Purchase Request Data Standard (PRDS)) and contracts (Procurement Data Standard (PDS)). The data from those standards are then sent via the Global EXchange (GEX) to the appropriate systems where certain business rules are set for validation via the PDS Validation Response Schema, which is available on Procurement Business Intelligence Service (PBIS). Overall, this has had a huge improvement on data quality (e.g 98% improvement in the use of some required clauses).
- Purchase Request Data Standard (PRDS)
PRDS is a system-agnostic data standard that supports the creation, translation, processing, and sharing of procurement requirements. This data standard aligns to and enforces FAR and DFARS rules on the creation and numbering of Purchase Requests. PRDS improves data visibility of requirements, enables system owners to improve data integrity and standardization, and identifies policy and process gaps across the DoD.
Procurement Integrated Enterprise Environment (PIEE):
- 3in1 Tool
The 3in1 Tool automates and enhances three key procurement processes - Field Order, Receipt, and Payment - into one solution normally accomplished using Standard Form 44 (SF-44) through an intuitive web application that can be accessed by any device and operating system. It is a joint procurement and financial solution, that aims to mitigate unnecessary risk, improve visibility, and minimize duplicative and excessive paper reproduction.
- Contract Deficiency Reporting (CDR) Module
DPC led efforts to standardize policy and procedures for Contract Deficiency Reports,’ and create modern tools for creating and resolving CDRs.
- Clause Logic Service (CLS)
DPC issued a policy memorandum dictating the use of the Clause Logic Service for all new contract writing systems and encouraging its use by Legacy DoD systems. CLS implements a Question & Answer session to encourage uniform application of required FAR and DFARS provisions and clauses across DoD.
- Commercial Item Determination (CID) Database
Access to commercial items and practices brings significant benefit to DoD including, inclusive of the integration of new technology, greater product availability and reliability, reduced acquisition cycle times, lower life cycle costs, increased competition, and an expanded pool of innovative and non-traditional contractors that seek to do business with the DoD.
- Electronic Data Access (EDA)
The Electronic Data Access (EDA) system is an online repository for contractual instruments and supporting documents, and is the Department of Defense’s (DOD) authoritative source for electronic distribution of contract documents and contract data. Prior to the being tech refreshed in June 2019, EDA stood for Electronic Document Access and had been operational for 20 years.
FedMall is an eCommerce ordering system for DOD, Federal, State, and authorized local Agencies to search for and acquire products from government reserves and commercial sources. Buyers have access to over 29 million individual items of supply, including centrally-managed DOD and General Service Administration (GSA) assets as well as commercial off-the-shelf products.
- Government Purchase Card (GPC)
The Department of Defense (DoD) GPC Program provides commercial charge card capabilities to enable the Department to streamline its business processes. The Procurement Integrated Enterprise Environment (PIEE), the crux of the GPC Ecosystem, enables the DoD GPC Program to be more efficient and secure.
MyInvoice is a software application that allows vendors to track invoice payment status. The integration of this module with PIEE has reduced IT maintenance costs for the DoD, while consolidating and standardizing invoice payment information.
- Procurement Hierarchy
Over the years, different systems have developed different hierarchies, hampering reporting and analysis. A standard hierarchy in PIEE (synced with other Integrated Award Environment systems) promotes system design efficiency, enables accurate reporting of procurement actions, fosters better comparative analysis of actions, and allows easier assignment of roles in procurement support systems.
- Procurement Integrated Enterprise Environment (PIEE)
PIEE is an information technology platform of enterprise services, capabilities, and systems grouped into modules with the objective of seamlessly supporting the end-to-end Procure-to-Pay (P2P) business processes for the Department of Defense (DoD). Leveraging role-based access, PIEE provides users with the access to many of the critical enterprise capabilities used every day by hundreds of thousands of users spanning all Services, Defense Agencies, and Industry such as the Department’s e-Invoicing, contracts repository, and contract surveillance tools.
- Procurement Acquisition Lead Time (PALT) Tool
PALT is defined in legislation as the amount of time from the date on which a solicitation is issued to the date of an initial award of the contract or task order. The PALT tool properly tracks the acquisition lead time, providing visibility into PALT and Pre-PALT timelines across the Department’s programs.
- Protest Tracker
The Protest Tracker Tool, hosted in PIEE, tracks protests filed at the Government Accountability Office (GAO) and the Court of Federal Claims (CoFC). This tool provides aggregated data about bid protests, enabling the DoD to understand procurement timeline impacts.
- Single Sign On (SSO)
DPC issued policy to implement a single sign on capability within PIEE to institute role-based access across DoD enterprise procurement systems. For the users responsible for account administration, the single sign on allows them to manage a wide range of users accessing multiple systems from one location.
- Solicitation Module
The integration of the Solicitation Module into PIEE ultimately allows the DoD and Industry partners to effectively monitor, manage, and oversee solicitation opportunities. It provides an operationally secure environment to conduct business, establishes a common face to Industry for the DoD, creates continuity within the solicitation process, enables time saving efficiencies, and enforces regulatory compliance.
- Supplier Performance Risk System (SPRS)
Initially, the Supplier Performance Risk System (SPRS) presented vendor on-time quality and delivery scores ranked by the Federal Supply Class (FSC). Since 2013, three risk analysis tools (Price Risk tool, Item Risk tool, and Supplier Risk tool) were added and modified to display National Security System (NSS) Class Determinations to support the 2019 National Defense Authorization Act (NDAA). Overall, SPRS allows for clear visibility when evaluating ongoing performance and prospective performance.
- Documenting DoD Cybersecurity Assessments in SPRS
Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.204-7012 requires contractors and subcontractors to document their cyber security implementation of National Institute of Standards and Technology (NIST) Special Publication (SP) 800 - 171. Assessment results are to be posted in the Supplier Performance Risk System (SPRS) to provide DoD Components with visibility to the results of these strategic assessments.
- SPM, JAM, Warranty
- Surveillance and Performance Monitoring (SPM) Module
SPM, formerly the Contracting Officer Representative Tracking (CORT) Tool, will be hosted in PIEE, and serves to facilitate management, oversight, surveillance, and performance monitoring. SPM will provide the visibility and accountability necessary for leaders to manage the thousands of Contracting Officer Representatives (CORs) assigned throughout the Department.
- Warranty Tracking Information (WTI) and Source of Repair Instruction (SORI)
Department of Defense (DoD) Components are required to collect specific warranty information. When a warranty for a serialized item is included in a contract, the Contractor and the Government must work together to complete and submit the Warranty Tracking Information (WTI) and Source of Repair Instruction (SORI) attachments included in the contract.
- Joint Appointment Module (JAM)
JAM is set to improve management and accountability for formal appointments mandated by policy. As a centralized electronic appointment module, JAM strengthens the controls over and visibility into appointments across both the purchase card program and Contracting Officer Representatives managed contracts.
- Request for Equitable Adjustment (REA) Tracker Tool
Section 855 of the 2019 Department of Defense (DoD) National Defense Authorization Act (NDAA), “Construction Contract Administration”, calls for agencies to provide information on their policies regarding Requests for Equitable Adjustments (REAs) and the timeliness with which the agency has definitized REAs in the past. Defense Pricing and Contracting (DPC) has created the REA Tracker to enable DoD services and agencies to capture data on their REAs in a centralized database for use in meeting the NDAA reporting requirements.
- Virtual File Management / Electric File Folder
The Virtual Contract File Management Folder was implemented to provide a platform that enables the storage and retrieval of documents and data ranging across the Procure-to-Pay end-to-end process and be the official contract file structure for data created across the PIEE modules. This ultimately reduces unnecessary administrative effort in transmitting data across various platforms.
- Wide Area WorkFlow (WAWF)
Wide Area Workflow (WAWF) utilizes a standards-based architecture that allows vendors to submit invoices and receiving reports electronically through web entry, File Transfer Protocol (FTP), and Electronic Document Interchange (EDI) to all DoD payment systems to perform required acceptances or approvals and send the results to financial systems.
- Procurement Business Intelligence Service (PBIS)
PBIS is a data warehouse capability used for mining enterprise procurement data across the DoD. The primary purpose of the PBIS is to serve Senior Procurement Executives and provide management-level reports that enable them to make well-informed business decisions on DoD-wide issues prior to issuing new procurement policy that may impact other functional areas within the DoD supply chain.
- All Government Contract Spend (AGCS) Reports in PBIS
Since April 2015, the AGCS reports have been available in PBIS. Reports include real time data from the Federal Procurement Data System (FPDS) for actions awarded by DoD and civilian agencies for each of the Combatant Command (COCOM) areas of responsibility (AORs) based on the primary place of performance.
- Product Service Code (PSC) to Object Class Code (OCC) Crosswalk + Tool
DPC and partners developed a tool that helps users select the correct Product Service Code (PSC) for contract line items, and created a crosswalk between these PSC and Object Class Codes (OCCs).
- Handshake 2 Talkback Schema
The Pre-Awards Funds Validation Results Schema is a system-agnostic data standard that supports the standard funds validation process. It is intended to be used by accounting systems to return an automated response to contract writing system(s) when asked if funds are available and suitable to be obligated for a given contract. This standard will assist the Department in avoiding Anti-Deficiency Act violations, support auditability, and increase the ability to electronically post contracts/contract obligations into accounting systems.
- P2P Handshakes
“Handshakes” or electronic data exchanges between Procurement, Finance, and Logistics systems enable interoperability in support of Procure-to-Pay processes.
- Capturing Contract Closeout in EDA
With enterprise systems collecting and storing data about contracts, a mechanism was needed to identify contract completion and trigger records retention. This EDA capability provides enterprise-wide transparency of contract closeout actions, including visibility on the closeout status of orders on defense-wide contract actions, and facilitates sharing of closeout data between purchasing and contract administration organizations.
- Contract Closeout in FPDS
In FY2018, FPDS implemented a requirement that all federal procurement organizations must report closed contracts to FPDS. The Department had already implemented automated electronic contract closeout in FY17 so a solution was identified where a file would be created centrally from the DoD closeout notice to notify FPDS. During the first 18 months of operation, 5.9 million closeout actions were reported to FPDS, creating a cost avoidance of $33.4M.
- PIEE Automated Closeout
DPC has worked to expand the performance of automated closeout across the DoD through the Procurement Integrated Enterprise Environment (PIEE) tool. The PIEE automated closeout process helps to reduce closeout backlogs and alleviates administrative burdens on the procurement community.
- PIEE Manual Closeout Capability
It was determined that many DoD organizations lacked the capability to provide an electronic notice of contract completion required by DFARS Procedures. Manual contract closeout within the PIEE Contract Closeout module has enabled organizations without an electronic closeout tool the capability to meet their electronic closeout requirements efficiently, while at the same time reducing the use of resources through utilizing enterprise data and electronic workflow capability.
- Quick Closeout
The Quick-closeout Procedure in FAR 42.708 requires the contracting officer responsible for contract closeout to negotiate the settlement of direct and indirect costs for a specific contract, task order or delivery order ready to be closed, in advance of the determination of final indirect rates based on risk assessment. Closing contracts within required time frames ultimately helps to limit the government’s exposure to financial risks.
Government Furnished Property (GFP):
- Contractor Acquired Property (CAP) Pre-Screening
Contractor Acquired Property (CAP) is property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the Government has title. Based on specific DFARS clauses, the contractor may recommend to the Contracting Officer that items of CAP be bought back by the contractor, be transitioned to Government Furnished Property (after delivery), or be donated to the contractor. The CAP Pre-screening capability in the GFP Module formalizes and provides visibility to the contractor’s request and the Contracting Officer’s determination.
- GFP Module GFP Attachment
To ensure accountability of property provided as GFP, a contract attachment that identifies which items and the quantity of those items authorized to a contractor for performance, must be attached to the solicitation and the contract. Ensuring that the data on this attachment is accurate and sufficient to track performance is a team sport requiring engagement by requiring activities, logisticians and contacting personnel, and is a critical audit and readiness for the DoD.
- GFP Module Overview
The GFP Module, deployed as a new application in the Procurement Integrated Enterprise Environment (PIEE) April 2018, provides a single face to industry for reporting and tracking GFP. The GFP Module consolidates all information about GFP throughout the GFP lifecycle and is used by DoD and industry to ensure collaboration and a common view of authorized and actual GFP.
- GFP Module Plant Clearance
The GFP Module Plant Clearance Capability Area is the tool contractors and DoD personnel use to track the execution of dispositioning. The GFP Module Plant Clearance Capability has replaced the previous Plant Clearance Automated Reutilization and Screening System (PCARSS) tool which will be decommissioned during calendar year 2023.
- GFP Module Property Transfer
The GFP Module property transfer capability, deployed as an enhancement to the GFP Module in July 2018, provides a single face to industry for reporting and tracking shipments and receipts of physical GFP items.
- GFP Property Loss
When items of government property are lost, stolen, damaged, or destroyed while in the custody of contractors, those items must be reported to the government Property Administrator by the contractor. The Property Administrator in collaboration with the Contracting Officer will adjudicate the case and determine contractor liability.
Commercial and Government Entity (CAGE):
- CAGE SOP
The CAGE SOP provides users with the policies and procedures for requesting and updating Commercial and Government Entity (U.S.CAGE) and North Atlantic Treaty Organization (NATO) Commercial and Government Entity (NCAGE) Codes.
- CAGE Request
DPC and DLA developed a CAGE Request process for entities that are not receiving contracts and/or grants from the U.S. government to obtain or update a CAGE code by direct request.
- CAGE Ownership of Offeror (OoO)
Effective November 1, 2014 outlined by FAR 4.18, CAGE Ownership of Offeror data is collected to provide insight into federal spending patterns, traceability in tracking performance issues, and supply chain traceability and integrity efforts.
- CAGE Search and Inquiry (CSI)
DLA and DPC deployed a CAGE Search and Inquiry functionality allows users to query the CAGE database for entities registered with CAGE.
System for Award Management (SAM):
- Beta.SAM.gov (now SAM.gov)
Beta.SAM.gov is a production website managed by the General Services Administration that will be the government-wide, authoritative source of federal award data. Furthermore, it is a technology refresh for the System of Award Management’s (SAM) consolidation of legacy procurement-related systems within the federal Integrated Award Environment (IAE). Beta.SAM standardizes the user access, entity hierarchy (both government and industry), system interfaces, and data retrieval process for each of the capabilities.
- DoD Contractor Manpower Reporting
DoD policy requires contractor reporting of manpower data on services contracts and the Federal Acquisition Regulations provide specifics on the data to be reported and requires Federal civilian agencies to provide this data to the System for Award Management. All manpower data will now be captured in a single Federal-wide portal, removing duplicate requirements and establishing a less burdensome process on both industry and Government, while improving data integrity and accuracy.
- FedBizOpps (Now Contract Opportunities)
Federal Business Opportunities (FBO.gov) retired November 2019 and its functionalities were migrated to the System for Award Management (SAM.gov) under the Contract Opportunities module. Contract Opportunities provides a common, secure business environment which facilitates and supports cost-effective acquisition of, and payment for, goods and services; effective management of federal acquisition and assistance awards; and consistent transparency into federal acquisition and assistance awards.
- Federal Procurement Data System (FPDS)
The Federal Procurement Data System (FPDS) is a centralized web-based tool used by the federal government’s executives to report and maintain publicly available information about all unclassified contract actions exceeding the micro-purchase threshold, and any modifications to those actions that change previously reported contract action report data, regardless of dollar value. FPDS provides transparency and visibility into government contracting, allowing the government’s procurement leadership to make better buying decisions.
- Representations and Certifications
In FY2012, the federal government added the requirement to collect vendor representations and certifications in SAM (see FAR 4.12). Doing so dramatically reduced the burden on contractors, improved the data quality by having a standard, and centralized the collection and dissemination mechanism.
- SAM Modernized Environment
SAM has been modernized to consolidate legacy procurement systems within the Integrated Award Environment (IAE); with additional legacy systems scheduled to transition in the future. In May 2021, the legacy SAM functionalities were merged with the Beta.SAM environment, at which time the two merged systems became known only as SAM. The new consolidated SAM provides a modern portal for entities to register, update, renew, and check the status of their registration in the rebranded SAM.
- Unique Entity Identifier (UEI)
The Federal Acquisition Regulations (FAR) has long required the need for a Unique Entity Identifier (UEI) to uniquely identify the successful offeror on a government contract action. Since the 1970s, the Federal government had been using a DUNS® number. However, in March 2019, the government announced its plan to move to a new Government-owned UEI. All DoD agencies and services must plan for the impact of the new UEI on their contract writing systems as well as the many systems that are affected downstream.