1. Alpha Contracting Sole Source Negotiations between Government and Industry (13 CFR124.503(c)(2))

2. 2 ALPHA CONTRACTING DEFINED An acquisition process adopted to reduce the acquisition cycle time by replacing a serial process with a concurrent one, through government and contractor teaming (e.g., overarching Integrated Process Team (IPT)) without compromising the standard of a fair and reasonable price. Used in sole source acquisitions, pre-award phase of Integrated Process and Product Development (IPPD) An approved Acquisition Plan and J&A is required before Alpha contracting discussions and negotiations begin on any program/project.

3. 3 ALPHA CONTRACTING PROCESS Joint Government/Industry IPT is established to develop the requirements, draft the contract, conduct the audit, and find the right price for the acquisition (requirements, contracting, audit, the user, and the contractor/principal subcontractors) There is no solicitation or proposal – the IPT develops the technical and cost detail that is the basis of the contract (a “model” contract (Ref. FAR 15.204-1, Sections A-J) developed early in the process prior to final pricing) IPT may identify the need to change the program base-line to improve performance, lower risk, or reduce cost Cost and technical data jointly developed to address concerns of Government pricing and audit personnel as the program costs are developed (fully supported contract price) “Model” contract revised and adjusted as technical and price details are resolved; model becomes the executed contract document

4. 4 ALPHA CONTRACTING ADVANTAGES - Reduction in time to award (up to 50%) - Enhanced understanding of contact (lower program risks) - Positive environment for execution - Greater customer satisfaction DISADVANTAGES - Up front labor-intense -Need for dedicated personnel - Trust doesn’t come easy

5. 5 WHAT IS ALPHA CONTRACTING? (MORE SPECIFICALLY) Government and Contractor Teaming Open communications early in the process Mutual understanding of the Statement of Work (SOW) requirements (Contractor & Government may co-write) Agreement on appropriate scope and hours/task prior to “model” contract submittal Contractor and government Team develop final “model” contract together (includes cost and pricing data)

6. 6 STATUTORY REQUIREMENTS Federal Acquisition Streamlining Act of 1994 (FASA) – reduce overall costs of the acquisition process FAR 5.101 enforces Synopsis requirements FAR 6.302 enforces CICA J&A requirements FAR 15.805-1 requires the PCO to assemble a team to perform an Independent Government Review FAR 15.808 requires preparation of Pre- and Post Clearances Technical Review Required Executive Order 12931, October 13, 1994

7. 7 OUTPUTS OF ALPHA CONTRACTING APPROACH As a team, the Government and Contractor develop the RFP and Statement of Work (SOW) Using this baseline RFP and SOW, Government/ Contractor Team development a “model” contract With this “model” contract, the program is priced out using tools such as CAIV “Model” contract is adjusted based on the pricing arrangements agreed upon by all Team members. (This becomes the contract document executed.) Develop the scope of work on a program, price that scope, and prepare the contract to execute that scope

8. 8 TRADITIONAL CONTRACT FORMATION ACQ PLAN RQMTS PACKAGE FORMAL RFP PROPOSAL REVIEW & AUDIT NEGOTIATE CONTRACT AWARD _______________________________________________________________ 0 Timeline (in days) 365 EXCLUSIVE SERIAL PROCESSING

9. 9 120 – 160 Days CONCURRENT CONTRACT FORMULATION (ALPHA CONTRACTING) ACQ PLAN RQMTS PACKAGE DRAFT RFP FORMAL RFP CR Proposal REVIEW & AUDIT CR NEGOTIATE CR CONTRACT AWARD CR

10. 10 WHAT TEAM MUST DO Focus on meeting established milestones Make sure all the right people attend team meetings (establish common location) Establish IPT and identify Team Leaders Define technical review process Establish a common spreadsheet (PMO/DCMC/DCAA/CONTRACTOR) Keep Top Management informed

11. 11 PRE-PROPOSAL RELEASE Clearly establish budgetary ROM Write sound Draft SOW and preliminary delivery schedule Answer the question “What do I think this effort should entail?” Develop mutual understanding of SOW content (discussions) Finalize strategy for unique contract provisions (e.g., WARRANTY, GFP)

12. 12 PROPOSAL SUBMISSION AND REVIEW Assemble technical review team on-site Achieve deeper understanding of SOW content (discussions) Assign one individual to each cost content summary sheet Identify who the other Evaluators are to Answer the Question “What information have I received that causes me to believe we have the right position?”

13. 13 NEGOTIATIONS Provide inputs to Team Leader for final review Team Leaders (only) authorized to discuss effort with Contractor All Team members available to resolve outstanding issues and fine tune requirements

14. 14 CONTRACT AWARD Consider award on adjusted “model” contract (from Alpha teaming process) with required pen and ink changes Maintain close contact with the budget officer for final funding release in a timely manner

15. 15 CONCLUSIONS Proven Approach for reducing acquisition cycle lead time (50% or more), reducing program costs (less risk), and improving both negotiated agreement and probability of program success Open, Honest, Cooperative approach reduced potential for litigation during program execution and opens door for other initiatives to reduce costs Improved customer satisfaction given better quality and performance and realized expectations given their involvement in the process Teaming process needs to continue beyond contract award. Overarching IPT should stay in place to assure communications and cooperative environment