1. GEORGE C. MARSHALL SPACE FLIGHT CENTER (MSFC) Michoud Assembly Facility Manufacturing Support and Facility Operations Contract Assessing Contracting Plans April 22, 2008

2. 2 Established Subcontracting Percentage Goals Targets% Goals Small Businesses30.3% Small Disadvantaged Businesses 8.2% Women-Owned Small Businesses 6.8% Historically Under-Utilized Business Zone 4.3% Small Businesses Veteran-Owned Small Businesses 2.8% Service-Disabled Veteran-Owned Small Businesses 2.8% Historically Black Colleges & Universities / Minority.6% Institutions

3. 3 Counting Subcontracting Matrix AwardeeSBSDBWOSBHZVOSBSDVOHBCU/MI SB X SDB XX SDWB XXX SB/HZ XX HBCU /MI XXX WOSB/HZ XXX SDWB/HZ/ SDVO XXXXXX SB/SDVO XXX

4. 4 Small Business Utilization Subfactor Assessment Focus  Plan Elements  Proposed Subcontracting Percentage Goals  Other

5. 5 Subcontract Plan Elements -To earn the available points in this area, proposers must address each plan element in their subcontracting plan.

6. 6 FAR 19.704 – Subcontracting Plan Elements -Establishment of separate percentage goals for SB, HUBZone SB, SDB, WOSB, VOSB, and SDVO concerns. Goals should be expressed against both contract and subcontract values. -Statement of total dollars planned to be subcontracted, and statement of the total dollars planned for subcontracting with SB, HubZone SB, SDB, WOSB, VOSB, and SDVO concerns. - Description of the principle types of products and services to be subcontracted, and identification of those areas planned for subcontracting with SB, HUBZone SB, SDB, WOSB, VOSB, and SDVO concerns. -Description of the methods used to identify potential sources for solicitation purposes.

7. 7 FAR 19.704 – Subcontracting Plan Elements (Cont.) –Description of the methods used to develop the subcontracting goals. –Statement as to whether indirect costs were used in establishment of subcontracting goals, and a description of the method used to determine the appropriate share of indirect costs to be incurred with SB, HUBZone SB, SDB, WOSB, VOSB, and SDVO concerns. –Name of individual who will administer the contractor’s subcontracting program, and the duties of that individual. –Description of the efforts the contractor will make to ensure that SB, HUB Zone SB, SDB, WOSB, VOSB, and SDVO concerns have an equitable opportunity to compete for subcontracting opportunities.

8. 8 FAR 19.704 – Subcontracting Plan Elements (Cont.) -Assurance that the contractor will include the clause at 52.219-8 (Utilization of SB concerns) in all subcontracts that offer further subcontracting opportunities, and that all subcontractors accept SB concerns that receive subcontracts in excess of $500K, or $1M for construction be required to adopt a plan that complies with the requirements of the clause at 52.219-9. -Assurance that the contractor will cooperate in any studies that may be required, submit periodic reports so that the Government can determine the extent of compliance by the contractor with the plan, submit periodic ISR & SSR reports, and ensure that its subcontractors also agree to submit ISR & SSR reports. -Description of the type records maintained concerning procedures adopted to comply with the requirements and goals of the plan, including establishment of source lists, and description of the contractor’s efforts to locate SB, HubZone SB, SDB, WOSB, VOSB, and SDVO concerns.

9. 9 Assessment of Proposed Subcontracting Percentage Goals  The following will be utilized as a basis for assessing proposed subcontracting percentage goals:  Meets  Exceeds  Significantly Exceeds

10. 10 Assessment of Proposed Subcontracting Percentage Goals – Earning Points  To earn a “Meets,” all established subcontracting percentage goals must be met.  To earn an “Exceeds,” as a minimum, at least 3 of the established subcontracting percentage goals must be exceeded by a combined total of between 7 and 14 percentage points.  To earn a “Significantly Exceeds,” as a minimum, at least 3 of the established subcontracting percentage goals must be exceeded by a combined total of greater than 14 percentage points

11. 11 Proposed Subcontracting Percentage Goals Template Categories$ Proposed% Proposed (SV) *% Goals% Proposed% Exceeds Value $ Sub. $ SB $30.3% SDB $ 8.2% WOSB $ 6.8% HUBZone SB $ 4.3% VOSB $ 2.8% SDVO SB $ 2.8% HBCU/MI $.6% * Established subcontracting percentage goals apply to proposal value including fee.

12. 12 Proposed Subcontracting Percentage Goals – Exceeds Example Categories$ Proposed% Proposed (SV)*% Goals% Proposed% Exceeds Value$100.0 Sub.$ 40.0 SB$ 30.375.8%30.3%.0% SDB$ 12.030.0% 8.2%12.0%3.8% WOSB$ 12.030.0% 6.8%12.0%5.2% HUBZone SB$ 5.112.8% 4.3% 5.1%.8% VOSB$ 2.8 7.0% 2.8%.0% SDVO SB$ 2.8 7.0% 2.8%.0% HBCU/MI$.6 1.5%.6%.0% Exceeds:9.8% (Dollars in millions)

13. 13 Proposed Subcontracting Percentage Goals– Significantly Exceeds Example Categories$ Proposed% Proposed (SV)*% Goals% Proposed% Exceeds Value$100.0 Sub.$ 40.0 SB$ 36.090.0%30.3%36.0% 5.7% SDB$ 8.220.5% 8.2%.0% WOSB$ 10.526.3% 6.8%10.5% 3.7% HUBZone SB$ 10.526.3% 4.3%10.5% 6.2% VOSB$ 2.8 7.0% 2.8%.0% SDVO SB$ 2.8 7.0% 2.8%.0% HBCU/MI$.6 1.5%.6%.0% Exceeds:15.6% (Dollars in millions)

14. 14 Other Assessment Criteria  Extent of commitment to use SBs as subcontractors in core work areas.  Approach for flowing down the socioeconomic subcontracting percentage goals to first tier large business subcontractors.  Proposed NASA Mentor Protégé Agreement.  Subcontracting with SBs located in economically distressed areas.  Utilization of innovative technologies evolving out of the Small Business Innovation Research (SBIR) Program (Phase II).

15. 15 Other Assessment Criteria (Cont.)  Initiation of special pre-solicitation outreach events designed to introduce SBs to decision makers and potential subcontracting requirements.  Extent of management’s commitment to the SB subcontracting program requirements.  Establishment of special processes, committees, teams, etc., designed to ensure that small businesses are afforded maximum consideration in future make or buy decisions.

16. 16 Other Assessment Criteria – Earning Points  Assessment will be based on the number of criteria selections adequately addressed in the subcontracting plan.  The criteria selections are not all inclusive, and proposers may identify other important areas for consideration that enhances their plan; however, if other areas are offered, proposers should make mention in their plan the specific offering.

17. 17 Assigning North American Industry Classification System (NAICS) Codes Proposers shall apply NAICS codes and corresponding size standards to each area to be subcontracted by:  Classifying the product or service being acquired in the industry whose definition, as found in the NAICS Manual, best describes the principal nature of the product or service being acquired;  Identifying the corresponding size standard SBA established for that industry; and  Then requiring each subcontractor to specify whether they are large or small against the size standard for the work in question.

18. 18 NAICS Codes Examples CodeDescriptionSize Standard 488310Port and Harbor Operations$23.5M 493110General Warehousing and Storage$23.5M 541350Building Inspection Services$ 6.5M 561210Facilities Support Services$32.5M 561622Locksmiths $ 6.5M 561710Exterminating and Pest $ 6.5M Control Services 561720Janitorial Services$15.0M

19. 19 NAICS Codes Examples (Cont.) CodeDescriptionSize Standard 561730Landscaping Services$ 6.5M 236210Industrial Building Construction$31.0M 238160Roofing Contractors$13.0M 238210Electrical Contractors and Other $13.0M Wiring Installation Contractors 238220Plumbing, Heating, and Air $13.0M Conditioning Contractors 238320Painting and Wall Coverings Contractors $13.0M 238910Site Preparation Contractors$13.0M

20. 20 Small Disadvantaged Business Participation – Contract Targets  The SDB target includes only those subcontracts with SDB concerns in those industries designated by the Department of Commerce as under represented areas by NAICS Industry Subsector.  The General Services Administration has posted this Department of Commerce determination at http://www.arnet.gov/References/sdbadjustments.htm. http://www.arnet.gov/References/sdbadjustments.htm  After completing an independent assessment of the opportunities available for subcontracting with small disadvantaged firms, Offerors shall propose a target for SDB participation expressed as a percent of Total Contract Value (basic and all options combined).

21. 21 SDB Subcontracting Template SDB Subcontractor(s) NAICS Subsector Subcontract Total % of Proposal Value

22. 22 Assessing Subcontracting Achievements Under Similar Type Contracts  Proposers will be asked to share several examples of their subcontracting performance against negotiated subcontracting percentage goals under similar type contracts.  Findings will be included as a part of the past past performance factor.

23. 23 Past Performance Template Categories $ Achieved% Negotiated% Achieved (SV)% Achieved (CV) Contract Value$ Total Sub.$ SB$ SDB$ WOSB$ HUBZone SB$ VOSB$ SDVO SB$ HBCU/MI$ Proposers should note by checking one of the boxes below whether or not negotiated subcontracting percentage goals are against contract or subcontract value. ( ) Contract Value ( ) Subcontract Value