Complex Use of Multiple Award Schedules by Experienced Customers:

A Power User Session

Breakout Session #714

Jeff Manthos GSA, Management Services Center July 21, 2010 10:00 Session

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Why you should care…

• Easy way to buy even complex services.

– Weapon systems development – Yes, this can be “rocket science” • Lets you focus on managing

outcomes

– Simplified acquisition method – Manage more contractors and less paper

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Learning Objectives

• Review scope of Schedules program (w/ examples) • Explain BPAs and CTAs as Schedule tools • Describe the content and use of Multiple-Award and Single-Award BPAs • Understand use of teaming (and subcontracting) • Review teaming agreement for desired elements • Understand examples of agencies successfully using BPAs and CTAs for complex service requirements

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Did You Know Schedules Can Be Used For…?

• Recycling computer monitors (Environmental) • Food service for soldiers in Iraq (Logistics) • Agency reorganizations [even GSA’s] (MOBIS) • Aircraft electronic maintenance (Logistics) • Acquisition Support Services (MOBIS) • Translation of Osama bin Laden tapes (Language)

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In-Scope or Out-of-Scope?

GSA Contract Scope GSA Schedule Scope Task Order Scope Modification Scope Out-of-Scope •Non-Commercial •Construction/A&E •Cost-type contracts Out-of-Scope •Terms & Conditions conflicting with Contract (or Schedule) •Services outside the scope of the Contract (or Schedule) Out-of-Scope •Degree of Scope Changes •Type of Scope Change •Amount of price or period of performance change

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Some Limitations

• Broad Acquisition Limitations  Commercial Services (FAR 2.101)  Personal Services (FAR 37.104)  Inherently Governmental Functions (FAR 7.503) • Schedules Program Limitations  Architect/Engineer Contracts (FAR 36.601-4)  Cost-Reimbursement Type (FAR 16.3)  Construction (FAR 2.101)  Services Limited by the SIN Description

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Scope Determination Pitfalls

• Failure of Ordering Officer to Show Schedule and SINs on RFQ • “Whatever GSA Schedule You Have” (the chosen contractor) • “Labor Category Shopping” rather than determining the SINs required to accomplish the PWS.

• “Schedule A or Schedule B” (treating Schedule scopes as interchangeable)

“Wrong Schedule” Order is Protestable by “Right Schedule” Contractor 7

Flexible Schedule Tools

• Blanket Purchase Agreements (BPAs) • Contractor Teaming Arrangements (CTAs)

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Blanket Purchase Agreements

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Why Establish an MAS BPA?

• Opportunity to negotiate better discounts • Satisfy recurring requirements • Reduce administrative burden • Leveraging buying power through volume • Support field offices/other contracting offices • Quicker order turn-around • Can incorporate non-conflicting terms & conditions • Can include contractor teaming • No funding required to establish BPA • No synopsis, no competition outside Schedules to establish or use BPA

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Blanket Purchase Agreements

    Simplified Acquisition Method Anticipated Repetitive Needs Qualified Source(s) Single or Multiple Award  Contractor’s Perspective • • • • Recurring source of orders Volume Quick turn on orders Expectation of price discounting  Govt’s Perspective • Flexibility • • Efficiencies Expectation of best pricing for each Task Order

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What’s in a BPA?

• • • • • • • • • • • Scope Estimated value/level of effort (not a ceiling) Duration GSA Schedule(s) & Contract(s) Participating offices/agencies Invoicing/billing procedures Ordering procedures (if multi-award) Terms & conditions Discount terms Types of orders to be placed BPA Termination

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BPA Decision

PWS GSA Schedules Determine In-Scope Issue RFQ/Task Order No Order

Multiple-Award BPA

Yes Recurring Tasks?

Yes Broad Requirement?

No

Single-Award BPA

Quotes

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Single Award BPA

• Issue BPA, RFQ, (PWS) • Receive and Evaluate BPA Quotes • Establish one BPA • Then for each recurring task: – Issue Task Order RFQ (PWS) to sole BPA-holder – Evaluate the Quote – Award Task Order

One Best Value “Competition”: Who Gets the BPA?

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Multiple-Award BPA

• • • Issue BPA RFQ (PWS) • Receive & Evaluate BPA Quotes

Best-Value Source Selection

Establish Multiple BPAs

Two Best Value “Competitions”: Who Gets the BPA? Who Gets the Task Order?

• For each Recurring Task: – Develop Task Order Evaluation Criteria – Issue Task Order RFQ (PWS) to “an appropriate number” of BPA holders (FAR 8.402-3(b)(2))* – Evaluate the Multiple Quotes: Best-Value

Source Selection

–

Award Task Order

* To “all BPA holders” if DoD (DFARS PGI)

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Contractor Teaming Arrangements

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Two Ways to Satisfy Multi-Domain (Schedule/SIN) Requirements

• One GSA Contractor holds all needed domains, so teaming not required: • As separate single-Schedule contracts, and/or • On the Consolidated Schedule OR • GSA Schedule holders team across domains

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Consolidated Schedule

• Only for contractors with two or more Schedules (e.g., PES and MOBIS) • One GSA contract, so just one Task Order for agency to award/administer • Contractor can offer their entire business line on a single contract • Includes most service Schedules and some related product Schedules (including IT)

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Subcontracting vs “Teaming”

• Only Prime must have a Schedule contract • Only Prime has privity of contract (and interface) with Government • Ordered and invoiced at Prime’s Schedule rate (less discount) • Limited to SINs and labor categories on a single Schedule contract • Prime can’t “delegate” responsibility • Each Team Member must have a Schedule contract • Each Team Member has privity of contract (and can interface) with Government • Ordered and invoiced at each Team Member’s Schedule rate (less discount) • Total Schedule solutions possible • Each member can be responsible for duties in a teaming agreement

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Prime/Subcontractor Relationship

Prime Contractor Sub Sub

BPAs/Orders Only to Prime (Schedule Contractor)

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MAS Teaming and Subcontracting

Team Lead Team Member 1 Team Member 2 Sub Sub (has Schedule) Sub Sub

Schedule Teaming Requires Teaming Agreement

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MAS CTAs

• Team Leads & Members must have GSA Schedule and use their Schedule rates • Contractor Teams are issued one BPA • Could include subcontractor effort, as long as mapped to their Prime’s Schedule labor category • If Multi-Award BPA, Teams compete for Task Orders • Task Orders can be issued to Team Lead or directly to Team Member

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MAS CTAs

• Not a separate legal entity but acts

like

joint venture • Include Teaming Agreement with quote for agency review • Government incorporates CTA into BPAs/Orders • Can reduce the need for open market items!

Best Practice: Make sure the contract number(s) for

each team member

contributing to a task order is/are cited on that order.

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Teaming Agreement Highlights

• Identify Parties (Members and Lead) • Teaming Activities (w/ responsibilities) • Type & Duration of Agreement • CTA Terms • Ordering Procedures • Team Lead & Team Member Duties • Pricing, Invoicing, and Payment • Performance Responsibility/Evaluation • Reporting Sales to GSA • Warranty • Confidential Information Agreement is solely between the Members can’t conflict with the Schedule

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CTAs and BPAs: Putting It All Together

Aggregate   Use single/ Consolidated Schedule Task Award to a Single Contractor Your Requirements    Use Several Schedules Award BPAs Contractors Team

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Creating “Domains”

Resource Management •Schedule 874 - MOBIS •Schedule 520 - Financial & Business •Schedule 738 X - Human Resource Services •Schedule 70 – Information Technology Services Logistics & Engineering •Schedule 874 V - LOGWORLD •Schedule 871 - Professional Engineering Services •Schedule 899 – Environmental Services Align Schedules or SIN’s Under Service Categories Step 3

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Step 1 Analyze Your Requirement Step 2 Identify Service Categories

Performance Based SOW

Extract Primary Requirements

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Engineering/Scientific Requirements

Strategic Planning Technical Studies and Analysis Technology Assessments Risk Analysis and Recommendations Safety and Environmental Analysis Logistics Engineering Assessments Specification Development Acquisition Engineering Process Assessments Design Trade offs and Cost/Benefit Analysis Concept Development Requirements Analysis Integrated Project Team Support Engineering Support Modeling and Simulation Test and Evaluation Independent Engineering Assessments Integration of Systems/Subsystems Life Cycle Support and Analysis Training and Human Factors Support

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Multiple-Schedule Solution

Engineering & Scientific 871 Engineering 874 MOBIS 899 Environmental 70 IT

What Schedule (or Schedules) meet those Requirements?

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Best Practices, Tips and Tricks

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Electronic Ordering Systems

Interface with requirements developers and contractors Create program metrics and reports

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Use Templates

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Ordering Guides/Handbooks

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Other Best Practices

• Consider open seasons – Refresh contractor pool, allow team realignments • Conduct an “Industry Day” when setting up the program • ODCs (especially material) is always an issue – Part 51 Deviation – Have a system to handle materials established up front – Set rules to limit open market items • Bring end users into the discussion early (buy in)

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Even More Best Practices

(

Some thoughts directly from agencies using these techniques already)

• Partner with GSA early in the planning process • For very large programs, consider mapping Schedule labor categories to standard categories on BPAs • Consider using options to build in surge capacity on task orders • Build growth into your program – Once you’re up and running, others will want to use it

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BPA & CTA Example: AMCOM

• • • • • •

Award Date: Jan/Apr 2005; 13 May 2009

BPA Period Task Order Performance

NTE 5 Years : Base Year with Unlimited Award Terms - Base Period with Potential Options

Performance Based

237.170

Task Orders unless Approved IAW DFARS

Flexible Pricing Arrangements

: Fixed Price (Level of Effort or Completion), Time and Materials, Labor Hour

Discounting

Level of GSA Rates Allowed at BPA and/or Task Order

Annual Open Season

for team restructuring

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Annual BPA Review and Award Term Decision

•

Task Order Performance – Most Important Criteria

(Based on Specific Task Order Metrics) Quality of Service, Cost Effectiveness, Timeliness of Performance, Business Relations, Customer Satisfaction •

Responsiveness

– Task Order RFQs, Effective Corrective Actions •

Competitiveness

– Submission of Viable Task Order Quotations •

Actual Performance versus Proposed Goals

for Direct SB Team Member Awards and SB Subcontracting Goals

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Updating Subcontractors/Team Members

•

BPA Team Restructuring During Open Season

- Change Subcontractors to Team Members - Change Team Members to Subcontractors - Revise teaming arrangement(s) - Add new Team Members/Subcontractors •

Additions Outside of Open Season -

Rare instances

-

Unforeseen/urgent

-

Contracting Officer approval

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Standardized Documentation

• Performance Work Statement (PWS) • Task Order Request for Quotation (TORFQ) Letter • Evaluation Criteria • Quotation Contents • Evaluation Worksheets

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Initiating Competitive Task Orders

Initiate through EXPRESS-Net Secure Website Upload Performance Work Statement (PWS)

OR

Statement of Work And Approval for Non-Performance Based Acquisition (The requiring organization uploads the PWS into EXPRESS Net after all Contracting Officer and Legal revisions have been incorporated into the PWS.) Complete Task Order Data Requirements (DD 1423) (Select, download, and complete from approved CDRL List) Generate Task Order Independent Government Estimate Upload Certified or Planning Procurement Work Directive Identification of COR/TM & Evidence of Training/Qualifications Service Contract Approval Evaluator/SSA Listing Hard Copy of CASL Input (for AMCOM LCMC Reqmts)

NOT REQUIRED •Acquisition Plan •Evaluation Plan •Synopsis •Approval for Use of Non-DOD Contract •DD254 if within BPA

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Requirements Identification Statement of Work Cost Estimate Evaluation Criteria

5 day draft / 5 day response period

Draft RFQ Final RFQ Vendor Proposal Gov ’t Evaluation 5 Award 41 Legal 5

Requirements Definition Generate Draft Documents Vendor Q&A Revisions Post Final RFQ Evaluation & Source Selection Task Order Preparation, Review, & Award

Standard Task Order Evaluation Criteria

•

Discounting on Task Orders Expected

•

GSA Rates Maximum

Price Functional Approach Experience Socio Economic

Best Value Flexible Criteria Weighting Customer Makes Decision

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Standard Selection Criteria for All Domains  Experience  Functional Approach  Socio-Economic Support  Price • Customer assigns criteria weighting prior to release of RFQ • Customer makes best value selection decision • Customers often pay a premium for more experience and/or a better functional approach

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Material/ODC Purchases

•Material/ODCs must be in direct support of the task order PWS.

•Contractors may provide GSA Schedule Items IAW task order requirements.

•Open Market/Non-Schedule Items will be separately identified on the task order – separate CLIN/SLIN.

•Over $3000, price reasonableness must have been determined by the Contracting Officer

IN ADVANCE

. •Consider modifying schedule to include recurring Material/ODCs.

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Internal Material/ODC Guidance

•Consider primary purpose of task…EXPRESS is for advisory and assistance services, not end items.

•Must directly enter into the deliverables, or used/consumed directly in connection with the furnishing of the deliverables •Over 10% of labor cost will require separate justification •Justification must clearly show that materials are required in order to provide services ordered.

•Material/ODCs exceeding labor cost not allowed.

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Program Statistics (As of 31 Dec 09)

Domain

Business and Analytical Logistics Programmatic Technical

Total Program Task Obligations Orders Program Percentage

30 $162.4 M 4% 59 $455.4 M 12% 69 $613.8 M 16% 149 $ 2.5 B 68%

307 $ 3.8 B 46

Jeff Manthos [email protected]

Management Services Center (800) 241-RAIN (7246) www.gsa.gov/mgmtservices

Services Ordering Solutions: Avoiding MAS Confusion http://blogs.gsa.gov/blogs/servicesordering.nsf

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