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Financial Management Quality ServiceManagement Office (FM QSMO)Shared Services Forum for Agency Implementation LeadersJanuary 14, 2021

Guiding Principles and Shared Goals for the FutureGuiding Principles Focus on customer experience Maximize the strategic value of data Deliver progress using agile processesShared Goals Standardize processes and data Reduce operation and maintenance costs Modernize and automate processes Improve customer satisfactionPage 2LEAD TRANSFORM DELIVERPresident’s ManagementAgenda

A New Approach to Financial ManagementIn the Future State, the FM QSMO acts as the broker between agencies and commercialand federal solutions. Solutions are centrally coordinated, standards are embedded insolutions, and there is a unified effort to achieve goals.Page 3LEAD TRANSFORM DELIVER

What is different now?The FM QSMO will 1.2.3.4.Create a marketplace that is customer-centric rather than provider-centricDesign the marketplace with customer inputFacilitate access to marketplace with choice and flexibility - not a single providerOffer government-wide contract vehicles with quality, standards-based solutions andservices5. Ensure marketplace solutions: Quickly adopt emerging government-wide standards Advance shared goals Encourage innovation and commercial competition6. Transition agency solutions to modern cloud platforms and SaaS solutions7. Lead long-term strategic planning for agency adoption of standards-based solutionsPage 4LEAD TRANSFORM DELIVER

FM QSMO PartnershipsThe FM QSMO is brokering partnerships between industry and agencies to accomplish key,customer-focused goals.Upcoming engagementswith Federal customeragencies and industry willhelp to further refine andvalidate roles andresponsibilities.Page 5LEAD TRANSFORM DELIVER

Acquisition ApproachThe FM QSMO continues discussions with GSA to establish agovernment-wide acquisition solution providing access to commercialvendor offerings in the Marketplace.ACCESSAgency PlanningAgencyengagement withFM QSMODecision toprocureMarketplace AcquisitionSolution BenefitsAccess to commercial offerings in theMarketplaceAgency ConductsAcquisition underMarketplace VehicleAgency Task OrderAwarded againstMarketplaceVehicleCHOICEChoice of multiple standards-based solutionsEFFICIENCYStreamlined and cost-effective procurementsDESIGNWith vendor assistance, FM QSMO will assistagencies with Guidance Best practices Requirements development Task order templatesPage 6FM QSMO Task OrderReview ProcessAgency choice to design their own requirementsCONTROLAgencies retain buyer controlALIGNMENTAligns with other government-wide initiatives.LEAD TRANSFORM DELIVER

Future State Vision for Core FSFuture StateCurrent StateAgency ACore FSAgency BCore FSCOTSInterfacesCommon "MixedSystems"Agency BSpecific SolutionFIBFStandardsFSSPsAgency ASpecific SolutionBaseline SolutionAgency CSpecific SolutionAgency CCore FSAgencies purchase software and configure solutionsindependently, resulting in many variations and challenges inreporting and transferring data across governmentPage 7All agencies share a common starting point forplanning, implementing, and maintaining a new Core FSresulting in streamlining reporting and data transferacross government. Agencies will build additionalconfiguration, enhancements and/or extensions tosupport their mission.LEAD TRANSFORM DELIVER

Core FS Baseline SolutionBaseline SolutionProvider 3A combination of configuration, enhancements andextensions designated as the starting point for allFederal agency implementations of the Core FS(also may be referred to as “common code base”)Collaboration AgenciesFSSPsVendorsConsultantsFMSCOther LOBs &QSMOsPage 8Provider 2Provider 1Core FSAgency Additional Configuration,Enhancements and/or ExtensionsBaseline SolutionWill createStandard AccountingCode Structure &Reference DataStandardFM Controls & KeyInformation ExchangesStandardFM ReportsBudget Levels &StructureStandardPosting LogicStandardFM RolesLEAD TRANSFORM DELIVER

Business Information Exchange Capabilities*Interfaces between mixed systems have been identified asan area of duplication and an opportunity for standardizationacross the government. Standard business information exchangesacross all mixed systems. Shared Mixed Systems chosen as proposedpriorities: Grants – Grants QSMO solutionsHR & Payroll – HR QSMO solutionsTravel – ETS2 solutionsPayment Management – Invoice Payment Platform,G-invoicing, SmartPay3 solutions, System for AwardManagement (SAM)Acquisitions – Contract writing*Data standards will be developed to be system agnostic.FIT, in collaboration with the FMSC and FM QSMO, has aproject underway to standardize certain businessinformation exchanges that are common across manymixed systems.Page 9LEAD TRANSFORM DELIVER

Journey to Core FSFY 2021FY 2020FY 2022FY 2023Jul 2021Marketplace Solicitation “Final” issued withBaseline "Final v1.0”Nov 2022Baseline-compliantMVP Core FSsolutions ready foragency adoption.Dec 2020RFI IssuedBecause we are agileand iterative, continuousengagement withagencies and industrywill occur throughout theprocess.StartJul 2020 – Jun 2021Customer ExperienceEngagement(CXE) Session “Kick-off” &Engage w/ otherLines of BusinessWorkshopsPrepare &ReadyOct 2021Vendors propose baselinecompliant Core FSsolutions includingdemonstrationsJan 2021RFI Results ReceivedAgency CX / HCD WorkshopsEvaluateIdeatePersonas, Journey MapsPrioritizePage 10PrototypeCore FSSolicitationUser StoriesMay 2021Industry & Customer Day Key milestone or activityAug - Nov 2022Providers bring selectedCore FS solutions toMarketplace for validationApr 2021Solicitation “Draft” posted with draftspecifications for baseline-compliant Core FSLEAD TRANSFORM DELIVERJul 2022Award of FM QSMOMarketplace BPAs

Current FM EnvironmentThe FM QSMO conducted a data call to agencies in May 2020 requesting information on existingcore financial systems. The results of that data call is summarized below: Government-wide FM System Summary (not inclusive of DoD): 53 installations are owned and operated by agencies 65% reach maturity by 2025 57% are hosted on-premises by agencies FM QSMO compiled profiles for each CFO Act agency to summarize data points for each installation including: In the coming months, the FM QSMO will validate and refine data, and learn about financial system modernizationplans so that we can provide support, share information about the Marketplace timeline and ensure theMarketplace will meet agency needs. Page 11FS ProviderFS Product NameFS Product VersionFS Product De-Support Date Of the 53 installations: 25 (47%) are Oracle 48 (90%) are Oracle,CGI, and SAPAgency De-Support DateHosting EnvironmentHosting ProviderFinancial System User CountLEAD TRANSFORM DELIVER

Initial Customer Experience Workshop LearningsFM QSMO conducted the first phase of customer engagement workshops in 2020, withrepresentation from CFO Act Agencies and others. Key learnings from participants included thefollowing:Customer NeedsCustomer needs must drive system functionalityStandardizationCustomers support standardizationFM QSMO should deliver value in overseeing andstreamlining the system modernization / service deliveryprocess, by providing consultative supportFM QSMO & Customer RolesBalance Standards with NeedsFM QSMO must balance standards with agency-specificneedsCritical Success FactorsDelivery Value in Overseeing and StreamliningSubject matter expertise, training, communications andresources are critical to successFM QSMO should provide structure and support, butcustomer agencies want to retain responsibility andownershipAdvocate SolutionsFM QSMO should advocate with providers for standardized,responsive, economical solutionsCommunicate and CoordinateFM QSMO should strategically communicate and coordinate new government-wide requirements (e.g., DATA Act,G-Invoicing, Unique Entity ID) with vendorsPage 12LEAD TRANSFORM DELIVER

Next Phase of WorkshopsWorkshops resumed in January 2021 to engage agencies to obtain input on the FM QSMOMarketplace. Workshops will continue through June. Planned areas of focus and outcomes includethe following: Core FS and FM Capability Framework Development Identify boundaries and capabilities of the Baseline and Agency SolutionsReach agreement on Standardized Accounting Code Structure (including standard values)Reach agreement on standardized interfaces (Business Information Exchange) Technical Capabilities Define IT security and Financial System infrastructure Marketplace Acquisition In collaboration with GSA, define the ideal acquisition experience when obtaining FM QSMO services and solutions Marketplace Validation Page 13Gain feedback and input on the FM QSMO Marketplace Operating Model, Catalog, and RoadmapValidate Performance MeasuresLEAD TRANSFORM DELIVER

Upcoming Partnership OpportunitiesTreasury needs agencies and industry as partners to help build the FM QSMO Marketplace:Page 14AgenciesIndustry Participate in Workshops Core FS (Jan, Feb) Marketplace (Feb, Mar) Share how the FM QSMOMarketplace can best supportagency financial systemmodernization planning activities Contact us to help you connect withother agencies to share insights andlessons learned Review the RFI to understand theinitial draft of the Marketplace vision,scope and description of proposedsolutions and services Review “Draft” RFP that containsbaseline capabilities Participate in Industry/Customer Day Respond to “Final” RFP Provide Core FS with embeddedbaseline capabilities (in a PaaS / SaaS model)LEAD TRANSFORM DELIVER

Contact UsEmail the FM QSMO at FMQSMO@fiscal.treasury.gov orVisit us at www.fiscal.treasury.gov/fmqsmoPage 15LEAD TRANSFORM DELIVER

AppendixPage 16LEAD TRANSFORM DELIVER

Our Journey to DateBeginning over two years ago, a series of important events and policy actions have taken place forthe Department of Treasury to start building out its core services in October.March 2018PMA EstablishesCAP Goal 5“Sharing Quality Services”April 2019Agency QSMOsPre-Designated as part ofOMB’s M-19-16 Memoand approach to sharedservicesApril 2018Treasury outlines its10-year vision, publishingThe Future of FinancialManagementPage 17September 2019FM QSMO creates its5-year implementationplan that details how FMQSMO will supportagencies and FSSPsMay 201924 CFO Act Agenciesappoint executiveaccountable to coordinateactions and supportadoption of commonservicesAugust 2020FM QSMO begins agencyworkshops to developMarketplace Deliverablesand Core FS BaselineSolutionJune 2020Department of Treasuryreceives formalDesignation as FM QSMOby OMB.LEAD TRANSFORM DELIVERDecember 2020FM QSMO issues RFI togather input fromindustry on the solutions,services and operatingmodel envisioned for theFM QSMO MarketplaceSeptember 2020Department of Treasurybegins developing theCore FS and BaselineSolution

Implementation PlanImplementationMarketplace AvailableSolution DesignAnalysisFM QSMO andstakeholders will designthe Marketplace Core FSSpecifications Operating Model Acquisition PackageFM QSMO Marketplacesolutions are available toagencies to use or to beginmigration planning Core FS FM Services & SolutionsFM QSMO will engage withstakeholders to understandneeds and software capabilities System Profiles Service Catalog Government-wide Adoption Roadmap Acquisition Plan FSSP & Agency PlansPage 18LEAD TRANSFORM DELIVERFM QSMO will workwith agencies to supportMarketplace use andmoves to Core FS Core FS Validation M3 Planning MarketplacePerformanceMonitoring