2. 1 1 CMBOK Body of Knowledge Acquisition Planning/Strategy and Post-Award Competencies Breakout Session # B17 Name: Dr. Mike Criss Date: July 30, 2012 Time:2:30 – 3:45 PM

3. 2.0 Acquisition Planning/Strategy

4. Acquisition Planning The process by which efforts are coordinated and integrated through a comprehensive plan for fulfilling the buyer’s need timely and at reasonable cost. Developing the overall strategy

5. Acquisition Planning It includes the activities required for buyers and sellers to prepare for, negotiate, and form a binding contractual arrangement

6. Acquisition Planning As it relates to the contracting profession, Acquisition Planning in general and acquisition planning in particular was a function that was often thought to begin at the point where a customer expressed a need for goods or services, or delivered a requirement to the contracting office.

7. Market Research Internal Market Research External Market Research

8. Acquisition Methodology The Acquisition Plan Requirements Statement of Work (SOW) –Design SOWs, Performance SOWs, Functional SOWs Objective Scope Description of Work Required Performance Standards and Reporting Requirements Staffing Requirements Resources to be Provided Appropriate Reference Documents

9. Acquisition Methodology Contract Type and Method Terms and Conditions Evaluation Procedures Instructions for Preparing and Submitting Proposals Publicizing –Publicizing - Government Agencies

10. Proposal Preparation Clearly Written –Win strategy will not be understood Well Organized –Important information will not be found Concisely written –Confusing Supported with credible statements –Not believed

11. Negotiation Preparation The Negotiation Team Negotiation Objectives Negotiation Guidelines Strategies and Tactics –the cooperative mode, –competitive mode, –time restrictions, –deadlock The Negotiation Agreement

12. Source Selection Source Selection or Proposal Evaluation Plan Typical Evaluation Considerations –Price –Technical Considerations –Management Considerations –Past Performance –Relative Significance of Evaluation Factors

13. Typical Evaluation Techniques Evaluate Technical Aspects Separately Compliance Matrix Independent Evaluation Uniform Rating Scale –Numeric Scales –Color Scales –Adjectival Scales Compare Results and Reach Consensus –Identify and document proposal uncertainties –Identify and document proposal strengths, weaknesses, risks Assign ratings for non-cost evaluation factors Prepare a summary evaluation report.

14. Award (Figure 14) Preparing the Contract Contract File Post-award Conference Notification

15. Award Practices Unique to Federal Contracting Pre-Award Notification Post-Award Notification Pre-Award Debriefing Post-Award Debriefing

16. Protests Typical Post-Award Protest Issues: –Unfair Evaluation Criteria. –Failure to Evaluate as Advertised. –Unreasonable Best Value Analysis. –Unequal Treatment. –Failure to Conduct Meaningful Discussions

17. Post Award Competencies Contract Administration Contract Performance and Quality Assurance Subcontract Management Contract Changes and Modifications Property Administration Transportation Disputes Organizational Conflict of Interest Contract Closeout Contract Termination

18. Contract Administration The range and extent of contract administration activities will vary –complexity, –dollar value, and –organizational significance of the contract. Contract administration is a shared buyer and seller responsibility Through oversight CA ensures that contractual promises are kept. In small organizations contract administration can be straightforward As CA gets more complex as the size of the organization grows. –multiple contracts, –assistance and –ongoing input from their internal customers,

19. Contract Performance and Quality Assurance Effective communication Post-Award Kick-off Meeting Periodic Status Review Meetings Written Status Reports Observation Documentation

20. Subcontract Management A word of caution: A buyer has no privity of contract with the seller’s subcontractors. Buyers should be careful in the communicating with subcontractors. Communications go through the prime contractor The subcontractor should not bring issues with the seller to the buyer for resolution. Buyers should not meet with the subcontractor without the seller present.

21. Subcontract Management In some government contracts –Consent to subcontract maybe required, or –The seller’s purchasing system is reviewed and approved In both these cases, the primary intent of the oversight is to ensure that government funds provided to the prime are used appropriately.

22. Subcontract Management It is prudent for a buyer to be aware of the relationships between sellers and their subcontractors. Sellers performance is linked to subcontractor performance Consider including subcontractors in the communication loop when appropriate

23. Contract Changes and Modifications Constructive change –A change resulting from the buyer's actions that impact the cost or schedule for performance that is construed to have the same effect as a formal change order. –A constructive change can occur when the buyer implies or orders the seller to perform work not in the contract. –In government contracting, equitable adjustment is granted for constructive changes only if the change caused injury or liability to the seller.

24. Contract Changes and Modifications Cardinal changes –Changes that are beyond the scope of the contract and materially alter the nature of the contract that the parties entered into. A cardinal change could be considered as breach of contract.

25. Contract Changesand Modifications Prompt Notification of Apparent Noncompliance Early Identification of Potential Changes Authorized Individuals Agreement on Estimating Processes Providing Written Concurrence

26. Property Administration Ownership Accountability Competitive Advantage Property Administration

27. Transportation Ownership Accountability Competitive Advantage Property Administration Required Receipt Dates Mode of Transportation Transportation Related Services Responsibility for Transportation Charges

28. Disputes Notwithstanding the advantages of adopting a collaborative and cooperative approach towards contract management, sometimes issues arise in contract performance that are difficult to resolve.

29. Disputes As a general rule, we should always seek to resolve differences in the least formal and most collaborative manner possible. Formal legal action is always a possibility, buyers and sellers should be hesitant to pursue resolution through legal proceedings for many reasons, including time, expense, uncertainty of outcome and the effect on the business relationship.

30. Disputes Dispute Process Negotiation Alternative Dispute Resolution (ADR) Resolution through Available Legal Means

31. Organizational Conflict of Interest Given the number of mergers, acquisitions, and consolidations that have taken place in recent years, contractors face being told they are ineligible to compete for a contract because they—or their predecessors— have an unfair competitive advantage over other firms.

32. Organizational Conflict of Interest Buyers should identify and evaluate potential organizational conflicts of interest (OCI) as early in the acquisition process as possible and to avoid, neutralize, or mitigate potential significant conflicts of interest before contract award.

33. Organizational Conflict of Interest It is essential that a potential OCI be identified during the initial phase of an acquisition process, so steps can be taken to avoid, mitigate, or neutralize the OCI. Early identification of a potential OCI will reduce the possibility of delays and disruptions during the acquisition process.

34. Organizational Conflict of Interest Most OCI mitigation plans tend to be made up of similar elements discussed below: –Disclosure of Relevant Information –Firewalls –Confidentiality Agreements –Separation of Personnel –Divestiture of a Company –Removal of Conflict –Work-Switch

35. Contract Closeout Contract closeout consists of completing a number of procedural and administrative tasks. These required tasks normally include: –Verifying goods or services were received and accepted. –Verifying that all invoices have been received and paid. –Return or dispose any buyer-furnished property. –Close subcontracts –Agreeing that no claims, issues or unresolved matters exist. –Signing a formal notice of contract completion –Deobligating excess funds remaining on the contract

36. Contract Termination In some cases it becomes necessary to end performance on a contract before the contractual period of performance ends. This premature ending of a contract is referred to as a termination, and usually takes one of two forms, Termination for Convenience and Termination for Default.

37. Termination for Default Failure to Perform Failure to Adhere to Schedule Failure to Comply with Terms and Conditions Repudiation

38. Other Terminations Termination for Convenience Termination by Mutual Consent No-Cost Cancellation