US Army Corps of Engineers BUILDING STRONG ® CONSTRUCTION CONTRACTING Presenter Name John Moore Chief Contracting Division Savannah District 20 May 2010

BUILDING STRONG ® AGENDA  ACQUISITION PROCESS ► ACQUISITION PLANNING ► ACQUISITION DECISIONS  BEST VALUE ► BEST VALUE CONTINUUM ► TRADE OFFS ► SOURCE SELECTION CRITERIA ► SOURCE SELECTION DECISION  SOCIO-ECONOMIC CONSIDERATIONS  IDIQ CONTRACTS ► MATOC COMPETITION PROCESS ► BENEFIT OF MATOCS/SATOCS

BUILDING STRONG ® RFP Process

BUILDING STRONG ® Considerations in Acquisition Planning Project Size and Budget Scope Complexity Urgency Customer/Politics Funding Stream Market Conditions Socio-Economic Programs Availability of Current Contract Vehicles In-House Staff Capacity/Capability

BUILDING STRONG ® Acquisition Decisions In-House vs. Contract Solicitation – IFB or RFP Contract Type – Fixed Price or Cost Small Business or Unrestricted Design-Bid-Build or Design-Build Existing Contract or New Acquisition Sole Source or Competitive Acquisition Planning is Risk Management !

BUILDING STRONG ® The Best Value Continuum CONTRACTOR Least Control Assumes Greatest Risk/ Control Assumes Greatest Risk/Control Invitation for Bid – Sealed Bid Low Price Technically Acceptable Price-Performance Trade-off One Step Design-Build Two Step Design-Build GOVERNMENT

BUILDING STRONG ® THE BEST VALUE CONTINUUM INVITATION FOR BID PROs: u Relatively fast acquisition phase u Less Resources needed during acquisition CONs: u Government assumes most risks u No quality control over Contractor selection u No negotiations! u Long lead time for design

BUILDING STRONG ® Request for Proposal PROs: u Contractor selection based on pre-established evaluation criteria u Performance evaluated with price u Ability to negotiate CONs: u More resource intensive u Acquisition Time is Longer THE BEST VALUE CONTINUUM

BUILDING STRONG ® BEST VALUE TRADE-OFFS PROJECT REQUIREMENTS SIZESIZE COMPLEXITYCOMPLEXITY FUNDING STREAMFUNDING STREAM RESTRICTIONSRESTRICTIONS COSTCOST SCHEDULESCHEDULE QUALITYQUALITY SCOPESCOPE PASTPAST PERFORMANCE PERFORMANCE RISK

BUILDING STRONG ® SOURCE SELECTION CRITERIA True discriminators have the following characteristics:  A reasonable expectation of variance among offerors  An assessable variance (quantitative or qualitative measurement)  The requirement(s) warrant a comparative evaluation of that Factor (worthy of a Price/Cost Premium) Do Criteria Focus on Issues of Substance? Is there time to evaluate the selected criteria? ID of skilled evaluators to assess the criteria?

BUILDING STRONG ® THE SOURCE SELECTION DECISION Represents the Source Selection Authority’s rational and independent judgment; Is based on a comparative analysis of the proposals; Must be consistent with solicitation evaluation factors and subfactors. Must Reflect Why Discriminators among Offerors (e.g. Lower Risk, Better Past Performance, Strengths and Weaknesses) are: Worth of any Price Premium, or Not Worth of a Price Premium

BUILDING STRONG ® Socio-economic Considerations : Unrestricted Small Business 8(a ) SDVOSB HubZone

BUILDING STRONG ® SOCIO-ECONOMIC TARGETS Small Businesses32.0% Small Disadvantaged Businesses18.0% Women-Owned Small Businesses 5.8% HUBZone Small Businesses10.0% Service Disabled Veteran-Owned Small Bus. 3.0% HBCU/MI 13.0%

BUILDING STRONG ® IDIQ Contracts Single Award (SATOC) One contractor (no competition for task orders) Examples –8(a) < $3 Million –A-E –O&M Construction Multiple Award (MATOC) Multiple contractors (compete for task orders) Examples –GSA –COS etc

BUILDING STRONG ® MATOC COMPETITION PROCESS RFP Letter & SOW Evaluation Criteria Identified in RFP Letter Technical Board for Design Build T.O.s Importance of Price vs Technical Source Selection Decision

BUILDING STRONG ® THE BENEFIT OF MATOCS/SATOCS Time Advantage - No 30 day Synopsis Ability to manage workload/manpower Limited Number of Offerors Less Cost to Issue/Award a T.O. Can Involve Contractors During Design Development More Balanced use of MATOCs and Stand Alone Contracts as Workload Draws Down

BUILDING STRONG ® Questions?