Coast Guard Logistics Information Management System (CG-LIMS) Mission Needs Statement (MNS) version 1.0 dated 6/17/2008

1. U.S. Department of Commandant 2100 2
Homeland Security United States Coast Guard Washington, DC 20593-0001
nd
Staff Symbol: CG-924
S t
United States Phone: (202)475-3150
Coast Guard S .
W .
5000
J N1 72 0
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MEMORANDUM
•'••
From: V . S. Crea, VAD M Reply to M r . Pete Boyd
VCG Attn of:
To: C G - 9
Subj: A C Q U I S I T I O N DECISION MEMO RANDUM, MILESTONE ( MS) 1 FOR CG-LIMS
Ref: ( a ) Major Systems Acquisition Manual, COMDTINST M5000.10 (series)
(b) Command, Control, Communications, Computers and Information Technology
(C4&IT) Systems Development Life Cycle (SDLC) Policy, COMDTINST 5230.66
1. A s a result of the successful May 23, 2008 MS1 (Project Authorization) brief to the Coast
Guard Acquisition Review Council (CGARC), I approve the Coast Guard Logistics Information
Management System (CG-LIMS) project for entry into the Concept & Technology Development
(C&TD) Phase as a major system acquisition project based on the importance of the project to
the Coast Guard mission and level of visibility expected.
2. A s a major system acquisition, the CG-LIMS project should be managed in accordance with
the requirements in reference (a). I n addition, an IT Project Tailoring Plan should be developed
and approved by the Coast Guard CIO to ensure compliance with applicable requirements of
reference (b). I n addition to the standard Concept and Technology Development objectives listed
in reference a, chapter 2, the following exit criteria need to be satisfied before the project can
enter the Capability Development & Demonstration Phase:
a. Dev elop Migration Plans for the first increment of capability
b. Dev elop an Implementation Plan for CG-LIMS beginning 1QFY10
c. O btain an Independent Lifecycle Cost Estimate
3. I f you have any questions, please contact the CGARC Executive Secretary, Mr. Pete Boyd at
(202) 475-3150 or peter. t. bovd us eg. mi I.
#
Copy: CG-01
CG-ACO
CG-1
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CG-4
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CG-6
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CG-91
CG-92/924
CG-93/934

2. MISSION NEED STATEMENT
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Coast Guard Logistics Information Management System (CG-LIMS)
Submitted by: ( 0 1 1 alOCI W
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Approved by:
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CG Acquisition Executive (VCG) D a t e
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DHS Acquisition Decision Memorandum Approval Received:
Date

3. TABLE OF CONTENTS
Title I Paragraph P a g e Number
EXECUTIVE SUMMARY
SECTION 1. MISSION(S) AND CAPABILITIES 1
1.1 Required Mission(s) and Need(s) 1
1.2 Authority 2
1.3 Capability Gap 2
1.4 Resource Availability 3
SECTION 2. PRO G RAM JUSTIFICATION 3
2.1 Linkage to Strategic Plan 3
2.2 Compelling Federal Government Interests 4
2.3 Efficiency and Effectiveness 4
2.4 Acquisition Goals and Objectives 5
2.5 Impact of Disapproval 5

4. EXECUTIVE SUMMARY
The Coast Guard currently invests in multiple logistics information systems representing many
communities and business processes. The systems are not well integrated and do not provide the
necessary asset and parts visibility to effectively support Coast Guard missions. To the contrary,
the inability to share real time information regarding asset status, configuration, inventory, and
maintenance history degrades preparedness and has a negative impact on operations.
Additionally, many of these systems have been organically developed and carry with them
significant support costs.
The Coast Guard's inability to comply with the Chief Financial Officers (CFO) Act of 1990 and
the related Federal Financial Management Improvement Act of 1996 (FFMIA) is closely tied to
our inability to correctly capture and track financial information in our Core Accounting System
that is traceable back to the transaction level of detail in our logistics system. We must enable
the Coast Guard's Chief Financial Officer to disclose organizational financial performance by
providing transparent, traceable financial information from our logistics system and interfacing
effectively with our core accounting system.
Our current logistics systems are not consistently aligned with the Department of Homeland
Security (DHS) enterprise architecture. This investment is an opportunity to rectify this situation
by endorsing that architecture and potentially serve as a model logistics system for the DHS
enterprise.
Our legacy logistics systems are closely tied to their asset-specific business processes. Those
processes are changing as the Coast Guard transforms the organization and support structure.
The existing information systems cannot be economically changed to support new processes or
scaled to meet the enterprise requirements.
The Coast Guard must invest in a centrally-managed, integrated, enterprise wide logistics
information management system that leverages government and industry standards and best
practices. B y implementing a logistics system capable of supporting improved business
processes and organizational structures, we will optimize operational support, reduce costs
across the organization, provide real time financial data, and align with DHS enterprise
architecture. CG-LIMS is necessary for the Coast Guard to continue to accomplish the mission
and capably manage increasing roles in homeland security.

5. SECTION 1. MISSIONS AND CAPABILITIES
1.1 Required Missions and Needs
The Coast Guard defines logistics as all support activities associated with developing, acquiring,
testing, and sustaining the mission effectiveness of operating systems throughout their service
lives.' The overall objective of logistics is to provide our people and customers the right
material, in the right condition, at the right time, with the right quantity, at the right place and at
the right cost.
Until recently, the Coast Guard placed insufficient emphasis on integrating logistics across asset
types throughout their lifecycle. For the most part, logistics was synonymous with supply. We
did not have a vision outlining what an integrated logistics system would look like. The various
components of capability were managed within "stovepipes" which led to decisions about one
component without consideration of its impact upon other components. As a result, we are
saddled with narrow and inefficient business processes and are unable to optimize the
effectiveness of our assets. I t is evident that we need to integrate our logistics system or risk
Coast Guard units not being able to perform their missions.
2
The Coast Guard's role in supporting the Department of Homeland Security (DHS) mission of
securing America is grounded in its ability to provide capable, prepared operating forces. The
ongoing Deepwater acquisition program highlights the Coast Guard's need to support new,
complex assets within improved Coast Guard business processes that provide visibility of parts
and assets throughout the organization. The Coast Guard's current logistics support capability,
which is tied to stressed, organically-designed Information Technology (IT) systems and
disparate business processes, is not prepared to adequately handle the new assets, much less
provide the needed visibility and integrate the business processes supporting them.
Recent efforts to comply with the CFO Act and FTMIA illustrate the need for improved logistics
within the Coast Guard. To adequately measure financial performance, provide transparency to
our financial history and obligations, and execute effective budgeting and financial planning, the
Coast Guard needs centrally-managed logistics capable of tracking purchases and expenditures
throughout their lifecycle and properly integrating with the Coast Guard's Core Accounting
System.
Improved logistics business processes will support both Asset Management and Supply Chain
Management, as defined in the Coast Guard Enterprise Architecture (CGEA), and the Federal
Enterprise Architecture (FEA) Business Reference Model (BRM). These processes must
interface with multiple information objects and align with the CGEA Information Inventory, as
well as DHS Information Architecture. A technical solution has not yet been defined, but the
Coast Guard IT Products and Standards Inventory, DHS EA Transition Strategy, DHS Technical
Reference Model (TRM) and FEA TRM will be used to assist in the identification of an
appropriate solution that meets the Coast Guard's logistics management requirements.
1COMDTINST M4000.2, Coast Guard Logistics Handbook
2 COMDTINST 4000.5A, Coast Guard Logistics Doctrine

6. The current disparate IT systems in the Coast Guard do not adequately fill the gap of needed
integrated logistics, nor are they consistently aligned with the DHS enterprise architecture.
1.2 Authority
Titles 10 and 14 of the United States Code (USC) define the Coast Guard as both an armed force
of the United States and a federal law enforcement agency.
The Chief Financial Officers Act of 1990 (CFO Act) requires that federal agencies produce
accurate, detailed financial statements certified by independent auditors, on an annual basis.
The Homeland Security Act of 2002 established DHS and placed the Coast Guard in this new
Department.
1.3 Capability Gap
Over the years, the Coast Guard has developed multiple logistics systems and associated
business models to support its Air, Surface, Shore, and Deepwater lines of business: (1) Aviation
Logistics Management Information System (ALMIS) provides supply, inventory, operations, and
maintenance support for aircraft; (2) Vessel Logistics System (VLS) provides supply, inventory,
operations, and maintenance support for Coast Guard cutters, boats, and C48LIT; (3) Shore Asset
Management System (SAM) provides preventive maintenance schedule, work requests, work
orders, and inventory management support for facilities engineers; and (4) Logistics Information
Management System (LIMS) was developed to support Deepwater assets within the Deepwater
support processes.
The existence of multiple business models hinders the Coast Guard's ability to integrate these
communities and identify the best mix of various mission-critical operational assets and
associated logistics support requirements. In 2007, Coast Guard Business Intelligence (CGBI)
reported cutter availability at 58.8% (target is 70%). This is equivalent to the annual unplanned
loss of capability for several cutters, fleet wide. Similarly, the shore facility community reported
$596-million in deferred maintenance for FY07 (up from $489-million since FY04).
3
The current systems and supporting organization do not permit the Coast Guard to plan, source,
deliver and maintain its operational capabilities at an enterprise level. Total asset visibility,
including engineering configuration, cost-based and historical part tracking, inventory, and
maintenance history and scheduling, are not possible. The lack of integration and enterprise
visibility prevents the Coast Guard from quickly identifying where mission needs are not being
met.
None of the legacy systems are sufficiently complete or integrated to support a holistic view of
logistics for the assets managed. They represent the best solution available given the technology
and funding available when developed. For example, the IT tool used for configuration
management of aircraft was first delivered 20 years ago.
3Coast Guard FY07 Year-end Financial Statements.

7. Recent CFO Act and FFMIA compliance shortfalls have demonstrated how IT systems without
adequate transaction-level valuation capability perpetuate a manpower-intensive, non-cohesive
work-around culture for Coast Guard resource management. Meeting CFO and FFMIA
standards requires that the IT system conducting logistics transactions capture the data necessary
to make financial valuation determinations for transmission to the core accounting system.
Varying degrees of compliance exist among the Coast Guard's current disparate logistics
systems, highlighting the need for a common approach based on Coast Guard and industry best
practices. The future state of the Coast Guard financial system will include a single procurement
system and single, authoritative general ledger as two components of its broader Core
Accounting System. Coast Guard logistics must support this system by capturing and providing
adequate transaction level information.
DHS has identified target technologies towards which certain investments should be moving in
the fiscal years through 2014. For asset management related investments, such as CG-LIMS, the
target is Sunflower. While no technical solution has yet been defined for CG-LIMS, the
departmental target technology will be evaluated to determine whether it fulfills Coast Guard
logistics management requirements.
1.4 Resource Availability
Cost estimates, priorities, and affordability have not yet been evaluated and depend on the
requirements documented and alternatives selected to best meet the needs of the Coast Guard.
Because the Coast Guard modified the original Deepwater support model by assuming
sustainment responsibility for Deepwater assets, the logistics system being acquired within the
Deepwater Acquisition Program Baseline (APB) has shifted focus to provide a system that
supports Deepwater assets within the Coast Guard's emerging business model. Incorporating the
approach outlined in this Mission Need Statement (MNS) as a baseline for delivery, the staff and
resources previously committed to acquiring Deepwater TAMS in the Acquisition Directorate
will be used to acquire CG-LIMS. CG-6 has identified CG-LIMS as an enterprise C48LIT asset
and designated Coast Guard Operations Systems Center (OSC) as the CG-LIMS System
Development Agent for designing, developing, implementing and supporting CG-LIMS.
Additional funding required will be requested through the capital investment planning process.
SECTION 2. PROGRAM JUSTIFICATION
2.1 Linkage to Strategic Plan
Improved enterprise business processes will strengthen operational posture and optimize
operational force capability, directly supporting DHS Strategic Goals of Prevention, Protection,
Response, Recovery and Service. Highlighting this concept is an excerpt from Strategic
Objective 4.2— "We will provide integrated logistical support to ensure a rapid and effective
response."
The Strategic Goal of Organizational Excellence, however, is how a centrally-managed,
integrated logistics system links best to the Strategic Plan. Every objective indicates the need for

8. an integrated, interoperable system that provides financial transparency to allow for evaluation
and mitigation of organizational costs. Replacing many existing, resource-intensive logistics
systems with one centrally-managed, integrated system provides the additional immediate
potential benefit of significant cost savings in the IT application alone.
2.2 Compelling Federal Government Interests
Following the terror attacks of September 1 i
homeland security as a top priority. The Government Accountability Office (GAO) has
th
performed 1 ,
, 2 0 0 several reviews t the Coast Guard's missions and has subsequently testified before
b o of h
Congress regarding the Coast Guard's implementation challenges in moving to the Department
t h e
of Homeland Security. GAO determined that the Coast Guard faces significant challenges in
P r e s i d e n t
every one of six key focus areas: strategic planning, communications and partnership building,
a n d
performance management, human capital strategy, information management and technology, and
C o n g r e s
acquisition management. According to GAO, the challenges are compounded because the Coast
s
Guard must also "substantially reinvent itself to meet the agency's new security role."
i d e n t i f i
4
e DHS Headquarters staff is developing requirements for logistics support needs across DHS
The d
components and has a vested interest in their having standardized, interoperable business
processes. Leveraging industry standards and best practices to implement a logistics system that
provides both optimized support and full visibility of the organization's assets and property will
open the possibilities for much greater integration across component lines. The Coast Guard will
work closely with DHS logistics committees to ensure the Coast Guard system is scalable and
flexible in order to integrate with and support any potential future DHS-wide logistics system.
The ability to fully trace financial obligations, asset valuations, and overall CFO Act and FFMIA
compliance is a high priority for the Coast Guard. An integrated, centrally-managed logistics
system, properly integrated with the Core Accounting System at the transaction level of detail,
will enable accountable tracking of financial transactions throughout the organization, in lieu of
the current stove-piped processes that make the task manpower-intensive and overwhelming
2.3 Efficiency and Effectiveness
Current legacy logistics IT investments in the Coast Guard will be targeted for consolidation and
replacement by CG-LIMS. Capability required for each stove-piped community will be fully
considered in the requirements phase of this investment. This investment will specifically
leverage lessons learned from the Logistics Transformation Program Integration Office (LTPIO)
while using ALMIS to pilot efforts to implement a single logistics business model across
multiple Coast Guard communities.
The Coast Guard's financial transformation and progress toward compliance with CFO Act and
FFMIA is enhanced by the transparency of logistics systems and ability to interface with relevant
information managed within them. Investing in a centrally-managed, integrated logistics system
4 Homeland Security: Challenges Facing the Coast Guard as it Transitions to the New Department. (GAO-03-467T, February
2003).
4

9. will enable the Coast Guard to provide timely and consistent data to the Coast Guard's Core
Accounting System.
Tightly integrating business processes and systems with mission needs, made possible in part by
organizational changes, will significantly reduce costs and improve the effectiveness of logistics
operations throughout the lifecycle of assets, including disposal. Appropriate stakeholders, such
as financial, property, workforce, operations, systems engineering, and information architecture
representatives will be involved with identifying needed capability of CG-LIMS and ensuring
integration requirements are captured.
DHS has described the Asset Management portfolio as including "all activities related to the
maintenance, administration and operation of office buildings, fleets, machinery and other capital
assets that are possessions of the federal government." The Coast Guard has identified this
portfolio as the correct one for all our logistics management and supply chain related systems, to
include CG-LIMS.
2 4 Acquisition Goals and Objectives
The Coast Guard must improve the segregated, inefficient logistics systems within the
organization. The objective of the acquired system will be to leverage industry standards and
best practices to increase enterprise efficiency, optimize effectiveness, and establish
organizational ownership and accountability of all its assets and resources. The Coast Guard
must employ a world-class logistics system to support a business model that enables planning,
sourcing, delivery, maintenance, and improved decision-making I t must provide visibility and
decision-making support for department and component leaders, as well as operational
commanders.
2.5 Impact of Disapproval
Maintaining the status quo with current IT logistics systems poses greater problems the longer
the Coast Guard maintains the current architecture. Because the key logistics processes of
planning, sourcing, delivery and maintenance are interconnected rather than isolated, changes to
one element are likely to affect the cost and performance of the other processes, which will have
a compounding effect as the Coast Guard takes delivery of new, more complex Deepwater
assets. Failure to account for each process can have negative repercussions across whole
business areas.
In addition to redundancies between communities, the interdependent relationships between
these business areas can easily create over-tasking or under-tasking within each area. This in
turn increases cost and ultimately degrades mission readiness. Establishing a common set of
logistics processes and supporting systems is critically important for effective and efficient
management of an organization of the Coast Guard's size and complexity.
The Coast Guard will never be CFO Act and FFMIA compliant using the current logistics
systems.
5

10. Finally, the Coast Guard's many diverse logistics systems make it difficult to integrate
effectively with DHS operational and administrative systems, a developing departmental
requirement.
6

11. U. S. DEPART MENT APPROVAL:
OF HOMELAND
SECURITY SIGNATURE:
U.S. CO AST GUARD
CG-4229 (Rev. 6-04) INFORMATION:
From: C '- 4 JU 1 2 2008
N
To: V C G
Thru: C G - 0 I
Re: C O A S T GUARD LOGISTICS INFORMATION MANAG EMENT SYSTEM (CG-LIMS)
MISSION NEED STATEMENT (MNS)
I. Attached is the CG-LIMS MNS for your approval.
2. T he MNS has achieved Concurrent Clearance from CG-094, CG-1, CG-2, CG-ACO, CG-5, CG-6, CG-7,
CG-8 and CG-9.
3. T he acquisition of CG-LIMS is necessary to modernize and consolidate our logistics IT systems so that we
may support the common business process being instituted by LTPIO with common, supportable, IT
capability.
4. Recommend approval.
End: Coast Guard Logistics Information System (CG-LIMS) Mission Need Statement
SIGNER'S COMMENTS