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Learn. Perform. Succeed. COR 222: Lesson 4 How Am I Involved in Awarding the Contract?

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Presentation on theme: "Learn. Perform. Succeed. COR 222: Lesson 4 How Am I Involved in Awarding the Contract?"— Presentation transcript:

1 Learn. Perform. Succeed. COR 222: Lesson 4 How Am I Involved in Awarding the Contract?

2 2 COR 222: LESSON 4 Acquisition … Many Things to Consider Contract Types Acquisition Approach Schedule for Contract Award Contract Management Cost Source Selection Plan Period of Performance LogisticsSecurity Product/ Service Description Test & Evaluation Systems Engineering Exit Criteria Acquisition Oversight Quality Assurance Surveillance Plan Budget/ Funding Earned Value Award Fee Plan Risk Management Integrated Master Schedule/ Plan Integration with Other Programs Program Management Approach Program Structure Performance Measurement Business Strategy Milestone Decision Points Acquisition Phases Mission/ Business Needs …

3 3 COR 222: LESSON 4 Potential COR Roles & Responsibilities in the Contracting Process The Contracting Process Acquisition Planning Acquisition Planning  Market Research  Requirement Definition  Written Acquisition Plan Contract Formation Contract Formation  Evaluation Criteria  Source Selection Team Contract Administration  Performance Monitoring  Guidance & Direction  Inspection, Acceptance, Payment  Closeout  Document, Document, Document

4 4 COR 222: LESSON 4 Pre-Award Contracting Process Begin Proposals Proposal Updates (Final Proposal Revisions) Proposal Updates (Final Proposal Revisions) Evaluate Revised Proposals Compare Proposal Ratings Decisions/ Documentation Contract Award Debrief Lessons Learned Tradeoff Analysis  Market Research  Customer Needs Plan the Approach  Source Selection Plan & Evaluation Factors  Bidders Conference  Requirements & Criteria Plan the Approach  Source Selection Plan & Evaluation Factors  Bidders Conference  Requirements & Criteria Evaluate  Determine Competitive Range Evaluate  Determine Competitive Range

5 5 COR 222: LESSON 4 Contracting’s Role Contracting is responsible for:  Sources of Supply – Order of Precedence  Competition  Socio-Economic Programs  Methods of Acquisition  Solicitation and Contract Development  Source Selection and Award They assist with all other aspects of the procurement

6 6 COR 222: LESSON 4 Supplies 1.Any special law from Congress 2.Agency Inventories 3.Excess from other agencies 4.Federal Prison Industries – UNICOR – DoD: Market Share and product and price compatibility 5.Blind and Severely Handicapped (Ability One) 6.Supply Schedules: (GSA/VA FSS) – no DoD mandatory) 7.Commercial Sources Services 1.Blind and Severely Handicapped 2.Supply Schedules (DoD not mandatory) 3.Prison Industries (DoD only if equal in price) 4.Commercial Sources Order of Preference

7 7 COR 222: LESSON 4 Competition In Contracting Act (CICA) – 1984  Full and Open Competition  Full and Open Competition after Exclusion of Sources  Other than Full and Open Competition ‒ Approval and Documentation Requirements (J&A)  Only one Responsible Source  Urgent and Compelling  Industrial Mobilization  International Agreement  Authorized/Required by Statute  National Security  Public Interest May I Request a Particular Contractor? FAR Part 6

8 8 COR 222: LESSON 4 FYI: Socio Economic Considerations Full and Open “after exclusion of sources” includes Set-Aside Programs  Small Business  8(a) Program – Socially and Economically Disadvantaged  Economically Disadvantaged Women Owned Small Business (EDWOSB)  Women Owned Small Businesses (WOSB)  Service Disabled Veteran Owned Small Business (SDVOSB)  Historically under utilized Zone Small Business (HUBZone)  Local Firms – Disaster or Emergency (Stafford Act)  Socio-Economic programs - powerful influence on U.S. economy  Set-Aside Programs established by public law, executive order or other legislation  Agencies develop socio-economic goals per fiscal year  Set-Aside program “order of preference” at KO discretion

9 9 COR 222: LESSON 4 TOPR FAR 16.5 Proposal & Evaluation Issue or Award Market Research MAS/FSS RRQ FAR 8.4 Quote & Evaluation Award SAP RFQ FAR 13 Quote & Evaluation Issue Sealed Bidding IFB FAR 14 Bid & Evaluation Award Contracting by Negotiation RFP FAR 15 Proposal & Evaluation Award IDIQ/GWAC Acquisition Planning PR Package Preparation Acquisition Methods SAP=Simplified Acquisition Procedures

10 10 COR 222: LESSON 4 Acquisition Lead Time TYPICAL/AVERAGE PALT’s Procurement Acquisition Lead Time (PALT) is the amount of time to get an action “on contract” from receipt of a completed requirements package. There is no one standard or prescribed metrics; it is established and monitored at the organizational level. ActionDollar ValueTimeline (days) Simplified Acquisition Procedures (SAP) ≤ $25K > $25K 10 – 25 15 – 45 GSA/FSS Orders ≤ $150K > $150K 10 – 25 60 – 90 Sealed Bid > $150K > $5M 60 – 90 90 – 120 Competitive Proposals ≤ $5M > $5M 60 – 90 90 – 180 TO/DO - IDIQ One source Fair Opportunity 15 – 60 30 – 90

11 11 COR 222: LESSON 4 Existing Contracts  Indefinite delivery contracts may be set up for recurring needs, products or services ‒ Commonly called ID/IQ contracts  If multiple awards, requirements may need to be competed among contract holders ‒ This is called “Fair Opportunity” ‒ Proposal and evaluation complexity depends on dollar value Other Contract Options  Federal Supply Schedules (FSS)  Government-wide Acquisition Contracts – Normally IT related  Interagency Acquisition - Economy Act Rules Using Existing Contracts

12 12 COR 222: LESSON 4 Cost vs. Fixed Price Contract Types – Two Families

13 13 COR 222: LESSON 4 Fixed Price Firm Fixed Price  Fixed Price w/ Economic Price Adjustments Fixed Price Incentive  Fixed Price w/ Prospective Price Redetermination  Fixed Ceiling Price  Firm Fixed Price Level of Effort Fixed Price Firm Fixed Price  Fixed Price w/ Economic Price Adjustments Fixed Price Incentive  Fixed Price w/ Prospective Price Redetermination  Fixed Ceiling Price  Firm Fixed Price Level of Effort Cost Reimbursement  Cost  Cost Sharing  Cost Plus Incentive Fee  Cost Plus Award Fee  Cost Plus Fixed Fee  Time & Material (T&M) ‒ Labor Hour ‒ Letter Cost Reimbursement  Cost  Cost Sharing  Cost Plus Incentive Fee  Cost Plus Award Fee  Cost Plus Fixed Fee  Time & Material (T&M) ‒ Labor Hour ‒ Letter Contract Families Could be FP or CR  Indefinite Delivery/Indefinite Quantity  Definite Quantity  Requirements Could be FP or CR  Indefinite Delivery/Indefinite Quantity  Definite Quantity  Requirements Selecting Contract Type is a function of “Risk” Allocation

14 14 COR 222: LESSON 4 Cost ReimbursableFixed Price Contractor PromiseBest EffortShall Deliver Contractor Cost RiskLowHigh Government Cost RiskHighLow Cash FlowAs incurredUpon Delivery Performance PaymentOnly if incentivesMilestone Met Gov’t Surveillance effort MaximumMinimum Fee ProfitFee LimitsNo Limits Contract Type Characteristics and Policy Objective: negotiate contract type and price (or estimated cost and fee) resulting in reasonable contractor risk and provide greatest incentive for efficient and economical performance  Seek appropriate risk allocation  Promote Government’s interest and motivate contractor to achieve objectives  No Cost-Plus-Percentage-of-Cost contracts  Approval for Fixed Price Development Contracts

15 15 COR 222: LESSON 4 Factors in Selecting Contract Types Affects how a COR monitors the contract/contractor Some types require more surveillance than others Shared responsibility Length of contracting period Contractor’s accounting system Cost, schedule, performance, other incentives may be added, such as award fee Degree of uncertainty Complexity of requirement Fair and realistic prices under competition Risk of performance

16 16 COR 222: LESSON 4  Architect and Engineering  Construction  Research and Development  Supplies  Services ‒ Advisory and Assistance Services  Utilities  Information Technology The Subject Matter of the Contract

17 17 COR 222: LESSON 4 T&M/Labor-Hour Contracts  Used when not possible to estimate extent, duration and cost of the work to any reasonable degree of confidence  Fixed hourly labor rate (fully loaded) ‒ Overhead, G&A, Profit  Materials at cost or catalog price ‒ Includes all material indirect costs  Requires surveillance ‒ No positive cost control or labor efficiency incentives Bottom-line:  Used only when no other contract type possible ‒ Contract must include a ceiling price that contractor exceeds at its own risk FYI: T&M / Labor-Hour Contracts

18 18 COR 222: LESSON 4 Source Selection refers to the process used for competitive, negotiated contracts to obtain the best value for the Government Source Selection

19 19 COR 222: LESSON 4 Contracting by Negotiation MICRO SAP FSS ≤ SAT FSS ≤ SAT FSS > SAT FSS > SAT IDIQ’s (GWACs) Sealed Bids LPTA Trade Off Selecting a Source - Spectrum Customer Knowledge Rotate Sources Example: Gov’t Purchase Card buy No Defined Factors or Relative Importance Min Documentation Example: Purchase Order Factors 52.212-1 Relative Importance No Ranking Required Fair Opportunity Requirements Only price and price related factors Two-Step Sealed Bidding -Tech -Price Two Formal Factors Sub Factors are Optional Ranking done by price of those technically acceptable Strict Factors and sub factors Ratings and Rankings Req’d MICRO – Micro Purchase Threshold SAP – Simplified Acquisition Procedures SAT – Simplified Acquisition Threshold FSS – Federal Supply Schedule Solicitation Requirements Evaluation Criteria and Proposal Requirements GeneralSpecific Non Complex Complex Formal

20 20 COR 222: LESSON 4 Best Value Continuum  Lowest Price Technically Acceptable ‒ Best Values is expected to result from selection of the technically acceptable proposal with the lowest evaluated price  Tradeoff Process ‒ Appropriate when it in Government’s best interest to consider award to other than lowest priced or highest technically rated offeror ‒ Trades better quality, technical All source selections shall evaluate cost or price, and the quality of the product or services ability or performance for price Formal Source Selection Techniques

21 21 COR 222: LESSON 4 Source Selection Procedures  Standardized methodology and uniform guidance to conduct Source Selections  Effective 1 July 2011  Directs use of standardized rating criteria  Required use of descriptions for “Technical” and “Past Performance” evaluation factors Where to find the SS Procedures Guide ‒ acc.dau.mil/Contracting DoD Source Selection Procedures

22 22 COR 222: LESSON 4 When conducting market research and acquisition planning in preparation for a source selection or defining the requirement … it is encouraged to petition Industry Feedback Best Practices Techniques Pre-Solicitation Notices One-on-One Meetings Draft RFP or Specifications Public Hearings Pre-Solicitation Conference Industry Conferences

23 23 COR 222: LESSON 4 Source Selection Plan RFP to Industry Proposals from Industry Evaluation of Proposals Discussions (if necessary) Final Proposal Revisions Select the “Best Value” Contract Award Source Selection Process

24 24 COR 222: LESSON 4 Source Selection Authority Price/Cost Analysis Past Performance Evaluation Business Management Evaluation Technical Evaluation Source Selection Advisory Council Source Selection Evaluation Board National Source Selection Organization As a COR – You May be a Member of One of these Teams

25 25 COR 222: LESSON 4  The SOW, PWS, Specifications, etc. are near complete after the acquisition planning and market research process  It is time to develop the Evaluation Factors  Why should COR be concerned evaluation factors and selecting the contractor? ‒ Evaluation factors define how (and ultimately who) the awardee will be selected ‒ Who is selected influences probability of successful contract performance Solicitation - Evaluation Factors

26 26 COR 222: LESSON 4 Non-price evaluation factors should be:  Clear  Relevant  Ultimately, Differentiate between proposals Avoid  Too many factors and/or sub factors  Factors which unfairly limit competition ‒ Tailor the factors to the individual procurement Proposals will be evaluated against the evaluation factors in the solicitation Technical evaluation team responsible for evaluating technical proposals:  Rating them in order of merit  Make recommendations to KO on clarifications needed and deficiencies identified  Reviewing revised offers  Assist KO during negotiations  Participating in unsuccessful offeror debriefings Evaluation Criteria and Proposal Evaluation

27 27 COR 222: LESSON 4 Evaluation Process Initial Evaluation Discussions Competitive Range Determination Discussions Final Proposal Final Evaluation Award Debrief Final Evaluation Briefing  Best Value Decision Revise  Strengths  Deficiencies  Weaknesses  Ratings Evaluation Award w/o Discussions Initial Evaluation Briefing  Strengths  Deficiencies  Weaknesses  Ratings Evaluation Factors Offeror Proposals

28 28 COR 222: LESSON 4 What is a Protest? Protest means a written objection by an interested party to any of the following:  A solicitation or other request by an agency for offers for a contract for the procurement of property or services  The cancellation of a solicitation  An award or proposed award of the contract  A termination or cancellation of an award of a contract ‒ “Interested party”… means an actual or prospective offeror whose direct economic interest would be affected by the award of a contract or by the failure to award a contract.

29 29 COR 222: LESSON 4  Primary Impact: delay award and performance of the contract  Technical experts, source selection evaluators, and KO may be called upon to testify before the judge or through sworn deposition  Filing Details: No later than 10-days after the basis of protest is known or should have been known of “adverse action” ‒ Debriefs are critical ‒ Protests can occur before award decision ‒ Competitive Range If source selection team deviates from solicitation evaluation criteria and award basis; protest likely to be Sustained Protests Continued

30 30 COR 222: LESSON 4  What category would you be using?  What method of acquisition would you be using?  Are there small business considerations?  What contract type would we consider using?  Is it commercial or non-commercial?  What evaluation criteria would you recommend? Exercise: Finding Base Support

31 31 COR 222: LESSON 4 This lesson covered the following topics:  Sources of Supply  Competition  Socio-Economic  Contract Types  Methods of Acquisition  Solicitation and Contract Development  Source Selection and Award Now that we know how a contract or order is put in place; Next we’ll learn and understand:  How to read contracts and their various formats Summary

32 32 COR 222: LESSON 4 Back-up Title here

33 33 COR 222: LESSON 4  Government Commercial Purchase Card (GCPC)  Purchase Order (PO)  Blanket Purchase Agreements (BPA)  Federal Supply Schedule (FSS)  Government Wide Agency Contract (GWAC)  Small Disadvantaged Minority Business (8a) Contracts  Contracts with Businesses in Historically Under Utilized Business Zones (HUB) How Can My Organization Buy Quickly? ®

34 34 COR 222: LESSON 4 Set-Aside Decision Process

35 35 COR 222: LESSON 4 Daniel J. Boorstin discussing the building of the Acropolis in the mid 5 th century BC. The ancient Greeks. *Daniel J. Boorstin – From the book “The Creators” Note: the Greeks were so advanced, the Acropolis…. “cable ready”!!! Joke “ ” The cost of a public building was met by appropriations from the treasury or through public subscription. The… seemed to have made a fetish of keeping the public informed of the progress and cost of public works. When the architect and the building commission had agreed on the design, a herald in the marketplace invited bids for parts of the work. The architect was expected to draw up specifications for each part and contracts were awarded to the lowest bidders, each backed by a guarantor. Since there is no sign of profit for the guarantors, they were probably performing a civic service. Instructions to contractors were probably posted on a wooden bulletin boards… they included requests for tenders, specifications for materials and workmanship, the length of the working day, fines for overruns, and procedures for the resulting lawsuits. Citizens were no less eager than now to know what became of the taxpayers money.

36 36 COR 222: LESSON 4 After Receipt of Proposals RFP Release Receipt of Proposals/ Presentations Initial Evaluation Clarifications Limited Communications Competitive Range Determination Prepare for discussions with Remaining Offerors Receive & Analyze Field Surveys (if requested) Face-to-Face Discussions/ Negotiations Request Final Proposal Revision Brief SSAC Brief SSASSA Decision Contract Award (Distribution) (Not Discussions)

37 37 COR 222: LESSON 4 Acquisition Processes


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