SPAWAR Contracting Operations and Policy Focus …

1 SPAWARC ontracting Operations andContracting Operations andPolicy Focus AreasSept 16, 2015 Presented by:Nancy J. GundersonSPAWAR to:NCMA, San Diego ChapterStatement A: Approved for public release, distribution is unlimited (14 SEPTEMBER 2015) // SPAWAR security and Policy review tracking number SR-2015-334 Agenda Who we are and what we do Structure Strategic Framework Funds Flow Initiatives and Perspectives Improve the MAC Environment Evaluate, Understand and Measure what Drives Acquisition LeadTimes Communication with Industry LPTA vs. Best Value2 SPAWAR Supporting & SupportedCommand Structure3 Strategic Framework4 Funds Flow5 Notes: Source: Navy-ERP FY2014 (without carryover) SSC LANT includes Norfolk and NOLA; SSC PAC includes PAC General Fund (formally NCTSI) Delta between SSC Inflow and Outflow to industry is primarily associated w/ NCWF Labor CostsMeasuresMeasures of Performance(progress indicator):Ease of use / level of task order award dispersion withinBackground / universe of MACs across SPAWARI mproving the Multiple Award Contract (MAC)EnvironmentProblemThe emphasis on preference for multiple- vs.

2 Single-award ID/IQs resulted in newchallenges for both government staff and industry. Open, two-way dialogue wasneeded to share observations and generate workable ideas for of use / level of task order award dispersion withinMACsMeasures of Effectiveness(long term end-stateoutcomes):Increased customer and industry satisfactionProposed Approach to Obtain Measures:Award Data: Compare FY14, vs. FY15, vs FY16, Data: Conduct PMW Customer Survey and Industry Survey Reconvene meeting w/ Govt. and Industry Membersof the MAC Working Group to universe of MACs across industry input and and agreed upon Problem Statements Forecasting (of task order needs) PALT (for the task orders) RFPs (for the basic award) Key and agreed upon Proposed Recommendations W/G White-paperMAC Working GroupProblems and RecommendationsProblemRecommendationFore casting:Government does not receive the benefit ofgood competition on short notice TOs and MAC Holdersare challenged to (1) Evaluate and assemble best team,and (2) Recruit specific and appropriately priced people forthe Develop an approach to consistently provide detailed advancednotification for planned TOs to the MAC At MAC post-award conference and on a pre-determined recurringbasis.

3 Provide MAC holders with estimated forecast/pipeline ofprojected Task :RFIs do not always address all final RFPrequirements, Key Personnel, Orals, ProcurementStrategy, Government should include as much of acquisition strategy intoRFI as possible or should materially represent information in a should materially represent information in a solicitation. If this is not possible and when time permits, consider reissuingor amending the RFI when information becomes :Excessive lead times drive administrative costs,staff retention issues, and schedule issues for Governmentand Use actual procurement timelines and lessons learned fromprevious similar procurements to create realistic schedules andimprove accountability of both internal and external :Exceptionally long periods between proposalsubmittal and award are impacting the ability of contractorsto provide the proposed Establish a basic TO procurement schedule reflecting standardevents for that Publish the basic schedule or maintain it systemically as in theexample of the Seaport-e Track performance against that schedule and report schedulemetrics to senior Government Share schedule metrics , when feasible, with industry in the courseof improving forecast of ID/IQ and task order Working GroupProblems and RecommendationsProblemRecommendationPALT .

4 Late award of task orders or option exercisesimpacts the intended procurement lead time and resourceplanning timeframes, increases administrative andprocurement costs, and injects risk into Government should adhere to the award/option exercise scheduleset forth in RFP/contract. If schedule slippage occurs during the procurement process,the Government should review/revise thedelivery/performance period to ensure minimal impact to bothinternal and external Contractor should submit timely post-award change proposals(Cost/Performance) reflecting RFP schedule slips which impactdelivery :Inadequate planning results in exceptionally shortRFP response times during task order competition and,potentially, a shortened evaluation period. Too short of atime period for non-incumbents to prepare a Establish standard Task Order RFP response times based oncomplexity of requirement and/or estimated dollar amount of Working GroupProblems and RecommendationsProblemRecommendationsRFP :Minimum dollar thresholds for contracts to qualify asPast Performance (PP) citations in a proposal mayinadvertently limit Carefully consider the size of the average task order expected onthe contract and establish the threshold Clearly define how the dollars are to be counted to meet thethreshold Ceiling/Invoiced; Task Order/Contract for MACs.

5 Seaport-e MAC same as GSA Schedule or SSC Consider if the threshold should be relative to the contract ceilingor the anticipated average size of the task Clearly define how to account for the various types of Governmentcontracts and whether the thresholds apply at the contract level or9contracts and whether the thresholds apply at the contract level ortask order Include minimum dollar thresholds to industry as early in theprocess as possible, including in the RFI when Personnel:In a MAC (contract level), listing KeyPersonnel names under the Key Personnel clause results inan unrealistic award Discourage the practice of requiring contractors to identify KeyPersonnel at the basic contract level. The Key Personnel individuals should be identified at the taskorder level, rather than under the basic contract.

6 This will ensure that the Government receives contractorsupport commensurate with what is proposed for that specifictask Rather than utilizing Key Personnel during orals under a basiccontract, restrict involvement of the orals team to individuals undera written employment agreement to the and Understand AcquisitionMilestonesMeasures of Performance(progress indicator):RDA Focus :MeasuresBackground / DetailsProblem Contracting takes too long .. For a myriad of (mainly good) of Performance(progress indicator):Measure the average duration and standard deviationacross SPAWAR for the various, key steps/phases of theacquisition process (Planning, Solicitation,Evaluation/Negotiation, Award) for commonly usedacquisition strategies (Competitive Contracts, Sole-Source Contracts, Competitive Task Orders, CompetitiveSeaPort-e Task Orders)Measures of Effectiveness(long term end-stateoutcomes):Reduced Standard Deviation in the time taken thevarious acquisition steps/phases and typesRDA Focus : February and May ASN RDA meetings w/ s focused on Acquisition lead times and drivers.

7 Collaborated to present the end to end process,choke points, and opportunities to alleviate some of theburden that adds to the schedule. Findings: We re all similar in terms of the steps andprocesses, but different in how we capture,manage, and measure HQ Efforts: Building understanding within on the purpose anduse of Scheduling Tools and Metrics Identifying Branch-unique needs for PHASES tartIdentify CORS ervicesincluded inAP?Adv. PlanningConferenceSAMP ProcessorAcq. PlanMOPASYESNOC ontract specialistrequests audit/rateinfo(>$700K) Auditorsubmits report tocontract specialistCost teamcompletes costevaluationTech teamcompletes techevaluationGov t requests FinalProposal RevisionsOfferors submitFinal ProposalRevisionsBFM submits financialacct'g data toComptroller(>$650K) Submit finalsubcontracting planfor reviewPCO approves finalsubcontracting planContract specialistsubmits BCM toapproving authoritiesComptroller releasesfinancial acct'g data tocontract specialistOPTIONAL:Offeror/Gov t.

8 Conductdiscussions1stCostEvaluation/TERP L egal Review1stCostSSAC / SSA review &generaterecommendationreportsProgram officesubmits finalDD254 to securitySecurity reviewsDD254PM internal PRReadiness ReviewPR ReadinessReview AllStakeholdersLoad Funding inERP/Submit Final SPSPR to SYSCOM 02PR accepted bybranch headPR assigned tocontract specialistCost teamcompletes 2ndcost evaluationTech teamcompletes 2ndtech evaluationDEVELOPMENT PHASEEVALUATION PHASENEGOTIATION PHASEAWARD PHASEPre-FPR peer reviewCompetitive ProcessLEGENDS tartENDL egalProgramofficeDoNLeadershipContractsD irectorateOfferorsDCAA/DCMAD ecisionSSAC/SSAS ecurityAcq. PlanProcessorAcq. StrategyProcessMOPASP rocessMDA, HCA, DASN AP,ASN RDA LeadershipApprovalsProcurementRequest GenerationPre-BCM approvedSSA selects sourceapproving authoritiesfor approvalBCM approvedContracting officerawards contractENDD eveloprequirements /SOW1stCostEvaluation/TERP LegalReview CompletedContract specialistsubmits Pre-BCM toapprovingauthoritiesPrepare De-BriefPackage2ndCostEvaluation/TERPL egal Review2ndCostEvaluation/TERP LegalReview CompletedSSAC / SSA review &generaterecommendationreportsContract specialistdrafts pre-BCMN otification(s)/Press-Release(>$10K) PRsubmitted to smallbusiness specialistfor concurrence(>$10K)

9 Smallbusinessspecialistconcurs withDD2579 Contract specialistsynopsizesProcurementRFP LegalReviewSSA approvesSSPC ontract specialistissues RFPO fferors submitproposalsYESNO cost evaluationtech evaluationPre-RFP releasepeer reviewPre-contract awardpeer reviewAcquisition Milestone MetricsAcquisitions in ProcessBaselineExecution Index12 Execution IndexMeasures the number of tasksactually completed as a percentageof those tasks that should havebeen completed (according to thecurrent baseline)- Drilling down explains Communication Communication with Industry is critical to SPAWAR s abilityto: Keep abreast of technology and product developments; Conduct market research in support of specific supply or serviceneeds; Facilitateindustry s understanding of Government requirements; Facilitateindustry s understanding of Government requirements; Respond to questions and comments regarding a solicitation; Execute the source selection and contract award process; and Maintain a positive, ongoing contractual relationship13 Myths vs.

10 Facts Abundance of Misconceptions about Industry CommunicationsMythsFacts1. We can't meet one-on-one with apotential officials can generallymeet one-on-one with potentialofferors as long as no vendorreceives preferential Since communication withcontractors is like communicationwith registered lobbyists, and sincecontact with lobbyist must beDisclosure is required only in certaincircumstances, such as for meetingswith registered lobbyists. Manycontractors do not fall into this OMB: Myth-Busting : AddressingMisconceptions to ImproveCommunication with Industry during theAcquisition Process, Feb 2, 2011contact with lobbyist must bedisclosed, additional communicationwith contractors will involve asubstantial additional disclosureburden, so we should avoid do not fall into thiscategory, and even when disclosureis required, it is normally a minimalburden that should not prevent auseful meeting from taking A protest is something to beavoided at all costs - even if it meansthe government limits conversationwith communication won'tprevent a protest.