Transcript Document

Beyond Myth Busting:
Effectively Communicating with Industry
Breakout Session #C02
Name: Mark E. Hogenmiller
Chief Operating Officer, Integrity Management Consulting
Date: July 30, 2012
Time: 4:00 PM – 5:15 PM
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Purpose & Objectives
 Purpose: To highlight practical applications and
lessons learned regarding vendor communications
 Learning Objectives:
 Suggest tools and techniques to effectively apply
Myth Busting concepts
 Improve vendor communications
 Achieve better engagement results – for Vendors
and the Government
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Outline
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Background
Information Exchanges
Communication Ground Rules
Best Practices and Lessons Learned
 Written Communications
 Industry Conferences and One-on-One
Meetings
3
Background
 Office of Federal Procurement Policy (OFPP) memo 2 FEB
2011: “Myth Busting: Addressing Misconceptions to Improve
Communication with Industry during the Acquisition Process”
 Identified and refuted common misconceptions about vendor
engagements; directed agencies to:
 Develop vendor communication plans
 Reduce unnecessary barriers
 Publicize communication opportunities
 Prioritize engagement opportunities on higher risk,
complex, and minimally competitive procurements
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Information Exchanges
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Information Exchanges - Intent
 Improve the understanding of Government requirements and
industry capabilities
 Allow potential offerors to judge if they can satisfy the
Government’s requirements
 Enhances the Government’s ability to
 Obtain quality supplies and services
 Reasonable prices
 Increase efficiency in solicitation preparation, proposal
evaluation, negotiation, and contract award
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Information Exchanges – Outcomes
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Enables vendors to better meet end-user requirements
A basis of effective acquisition planning & market research
Helpful for procurements of all types and dollar values
This presentation explores beyond the FAR and OFPP
memo, from acquisition planning to solicitation release:
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When to use exchanges
Proper amount of information required
Best practices
Benefits to government and industry
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Communication Ground Rules
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Communication Ground Rules
 Prior to solicitation release
 Program manager, users, or contracting officer – may
meet with potential offerors and
 Exchange general information and conduct market
research related to an acquisition.
 No requirement that meetings include all possible offerors
 No prohibition on one-on-one meetings
 Information that could directly affect proposal preparation
must be shared with all potential offerors
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Most Frequent Responses
 “ ……….“
 “We are in procurement planning at this time, so a meeting
on the follow-on strategy would not be appropriate.”
 “The acquisition strategy is still being worked. Thanks for
your interest.”
 “Unfortunately, I do not have any information at this time.”
Why are information exchanges limited?
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Overcoming Communication Challenges
 Educate program manager, users,
contracting, and small business advocates
 What are exchanges?
 Prior to solicitation
 After solicitation
 After receipt of proposals
 What can be discussed?
 What are the limits?
 Who to notify?
15.306(d)
Negotiations
After establishment of
be done with all offerors In
competitive range; expectation Must
√ Discussions
of receiving proposal revisions the competitive range
√ Bargaining
*On the bubble: Think of a level and the bubble is not quite centered. These are offerors whose placement in the
competitive range is uncertain
May not be used to revise
proposals. Only with offerors who
are on “the bubble” or have adverse
past performance information
15.306(b)
Communications
After receipt of proposals;
before establishment
of the competitive range
May not be used to revised
proposals
After receipt of proposals;
contemplating award without
discussions
Exchanges encouraged; contracting
officer focal point of all exchanges
SPECIAL LIMITATIONS
ACQUISITION PHASE
After release of solicitation;
before receipt of proposals
15.306(a)
1601 Pennsylvania Ave
Washington, DC 22012
Communications
Address:
15.201
I.M Contracting Officer
Acquisition Outreach
Phone: 202-555-1212
Email: [email protected]
Clarifications
Contact:
Acquisition Panning; before
release of solicitation
 Proprietary information, or
 Source selection information, or
 Advance procurement planning.
FAR
sound judgment will ensure that we maintain
the integrity of the procurement process and
avoid creating an unfair competitive
advantage by the improper disclosure of:
15.201
15.202
Conclusion: Exercising common sense and
Exchanges
Market Research
only in a competitive acquisition, only after
establishment of the competitive range, and
include bargaining. They should be tailored
to each offeror’s proposal and must be
conducted with each offeror in the competitive
range.
EXCHANGES AND VENDOR COMMUNICATIONS
Discussions: Negotiations that take place
TERMINOLOGY
the competitive range. They can be used in
competitive and sole source acquisitions, and
may include bargaining, which can apply to
price, schedule, technical requirements, type
of contract, or other proposed contract terms.
Exchanges encouraged
Negotiations: Occur after establishment of
GUIDE
TO
EXCHANGES
AND
VENDOR
COMMUNICATIONS
US Government Agency
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Best Practice – Desktop Trifold
15.306(d)
Negotiations
After establishment of
be done with all offerors In
competitive range; expectation Must
√ Discussions
of receiving proposal revisions the competitive range
√ Bargaining
*On the bubble: Think of a level and the bubble is not quite centered. These are offerors whose placement in the
competitive range is uncertain
May not be used to revise
proposals. Only with offerors who
are on “the bubble” or have adverse
past performance information
After receipt of proposals;
before establishment
of the competitive range
May not be used to revised
proposals
Exchanges encouraged; contracting
officer focal point of all exchanges
After release of solicitation;
before receipt of proposals
ACQUISITION PHASE
After receipt of proposals;
contemplating award without
discussions
15.306(a)
15.201
15.306(b)
Communications
1601 Pennsylvania Ave
Washington, DC 22012
Communications
Address:
I.M Contracting Officer
Acquisition Outreach
Phone: 202-555-1212
Email: [email protected]
Clarifications
Contact:
Acquisition Panning; before
release of solicitation
 Proprietary information, or
 Source selection information, or
 Advance procurement planning.
FAR
sound judgment will ensure that we maintain
the integrity of the procurement process and
avoid creating an unfair competitive
advantage by the improper disclosure of:
15.201
15.202
Conclusion: Exercising common sense and
Exchanges
Market Research
only in a competitive acquisition, only after
establishment of the competitive range, and
include bargaining. They should be tailored
to each offeror’s proposal and must be
conducted with each offeror in the competitive
range.
TERMINOLOGY
Discussions: Negotiations that take place
SPECIAL LIMITATIONS
Acquisition Regulation (FAR) Part 15, Contracting
by Negotiation, made some significant changes to
the federal acquisition process, including the
concept of exchanges and communications. This
guide provides an overview of the scope and limits
on exchanges with industry, primarily for program
offices and others involved in acquisitions.
Exchanges encouraged
Introduction: The 1997 revision of Federal
the competitive range. They can be used in
competitive and sole source acquisitions, and
may include bargaining, which can apply to
price, schedule, technical requirements, type
of contract, or other proposed contract terms.
EXCHANGES AND VENDOR COMMUNICATIONS
Negotiations: Occur after establishment of
GUIDE
TO
EXCHANGES
AND
VENDOR
COMMUNICATIONS
US Government Agency
Exchanges: The umbrella term used to
encompass communications, clarifications,
negotiations, discussions, and bargaining with
offerors and prospective offerors during the
acquisition cycle. Each term has a unique
definition and role in specific phases of the
acquisition.
General information about an acquisition may be
disclosed at any time. While program officials may
meet with industry to discuss the market or a
company’s products and services, they are also
encouraged to consult Procurement early in the
acquisition process. And if potential contract terms
or conditions, such as proposal instructions or
evaluation criteria, will be discussed, a contracting
officer (CO) must be present. Discussions that
could be perceived as negotiations or contractual
commitments should never occur in such
meetings.
The purpose of exchanging information is to
improve the mutual understanding of Government
requirements and industry capabilities.
Procurement can serve as a business advisor to
facilitate exchanges with industry. Early
exchanges, coupled with Procurement’s expertise,
can improve the quality of proposals and source
selections and enhance the Government’s ability
to obtain quality supplies and services at
reasonable prices.
Exchanges prior to issuance of a
solicitation: Agencies are encouraged to
promote early exchanges of information about
future acquisitions. These exchanges may occur
among all interested parties, including potential
users, Government acquisition personnel, program
officials, procurement personnel, and others
involved in the conduct or outcome of the
acquisition.
Types of information that may be disclosed
include:
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Acquisition strategy
Proposed contract type
Proposed contract terms and conditions
Acquisition planning schedules
Feasibility of performance requirements
Suitability of evaluation methodology
Approach for assessing past performance
Techniques to promote productive exchanges of
information include:
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Market research
One-on-one meetings
Requests for Information (RFI)
Requests for Comments (RFC)
Draft Requests for Proposals (RFP)
Pre-solicitation / pre-proposal conferences
Site visits
Limits on exchanges: Any exchange of
information, at any stage of the acquisition, must
be consistent with the Procurement Integrity Act
and the Freedom of Information Act. Government
personnel must ensure that an unfair competitive
advantage is not created for one offeror over
another, and must avoid actions that:
 Favor one offeror over another,
 Reveal an offeror’s technical solution,
 Reveal an offeror’s price without that
offeror’s permission,
 Reveal the names of individuals providing
past performance information about an
offeror, or
 Knowingly furnish source selection
information in violation of procurement
integrity provisions.
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Exchanges after release of solicitation
until receipt of proposals: Once a solicitation
is issued, the CO becomes the focal point for all
exchanges. It is NCSD policy that the CO must be
present whenever it is expected that issues such
as solicitation terms and conditions, evaluation
criteria, or contract requirements will be discussed
with potential offerors. The CO will amend the
solicitation to document any changes in
Government requirements or terms and
conditions.
Exchanges with offerors after receipt of
proposals: Can take many forms, including
clarifications, communications, negotiations,
bargaining, and discussions. While program
officials and technical evaluation team members
have a role in exchanges after receipt of proposals
and during negotiations and discussions, the CO
always controls exchanges after receipt of
proposals.
Clarifications: Very limited exchanges that may
occur when award without discussions is
contemplated. They may be used to resolve minor
or clerical errors and to respond to adverse past
performance information, but may not be used to
make significant changes to proposals.
Communications: Occur after receipt of
proposals and end with the establishment of the
competitive range. Communications are limited to:
 Offerors whose inclusion in the
competitive range is uncertain, or
 Offerors whose past performance
information is the determining factor
precluding inclusion in the competitive
range, or
 Offerors who have not had an opportunity
to respond to past performance
information.
Best Practices and
Lessons Learned
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Announcements of Long-Range Acquisitions
Estimates / Synopses of Proposed Contracts
 Strategy – Use the procurement forecast to generate
interest and publicize those opportunities available to small
businesses. Most Common Answers:
 “……….”
 “We are in procurement planning at this time, so a meeting on
the follow-on strategy would not be appropriate.”
 “The acquisition strategy is still being worked. Thanks for your
interest.
 “Unfortunately, I do not have any information at this time.”
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Best Practices:
Announcements of Long-Range Acquisitions Estimates
 Ensure the points of contact on the forecast are aware of the
content and timing of the release of the document so they
can address any inquiries
• Agency trained POC
• POC is not the Program Manager/End User
• Inquiries are screened and acknowledged
• Vendors required to provide or have on file a
capabilities outline
• Inquiries are forwarded to appropriate PM or End
User
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Pre- Solicitation Notices
The XXXX Agency intends to issue a solicitation on or about
April 5, 2012, for professional and technical support services
to meet a variety of requirements for the National Defense
University in Washington, DC. The required services fall
under the following NAICS codes: 541512, 541611, 541612,
541712 and 928110. The Government intends to award three
or more fixed price, indefinite delivery, indefinite quantity
contracts. A partial set-aside for small business concerns
applies to this acquisition. Services will be acquired under
individual orders placed under the resultant contracts.
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Best Practices:
Synopses of Proposed Contracts and Requests for Information
 Provide general information on requirement:
 Performance Work Statements (PWS) are nice but
not necessary
 Save for Draft PWS/Request For Comments
 Skills required/personnel requirements
 Security
 Location(s)
 Capability
 Experience
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Best Practices:
Synopses of Proposed Contracts and Requests for Information
 Contract vehicles/teaming arrangements
 Size and business type
 Other relevant information
 Cost accounting system
 Unique Payment Terms
 Bound the size and length of the response – if you give it
they will take it
 More than a marketing pitch/Less than a proposal
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Advisory Multi-Step Process (FAR 15.202)
STEP ONE:
 Publish a pre-solicitation notice
 General description of the scope or purpose
 Identify the information that must be submitted and the
criteria that will be used in making the initial evaluation
 May be limited to a statement of qualifications and other
appropriate information
 Provide sufficient information to permit a potential offeror to
make an informed decision about whether to participate
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Advisory Multi-Step Process (FAR 15.202)
STEP TWO:
 Evaluate all responses
 Advise each respondent in writing either
Invited to propose OR
Unlikely to be a viable competitor.
All respondents may participate in the resultant
acquisition.
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Why release a Draft PWS/ Request for
Comments?
 Receive input on alternative solutions
 Obtain input on Acceptable Quality Levels for
performance-based acquisitions
 Solicit effective industry performance incentives
 Identify commercial practices
 Identify applicable industry standards and federal, state,
and local standards
 Resolve confusing language in the PWS
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Why release a Draft Solicitation?
 Identify and eliminate unnecessary provisions and
clauses that slip in due to boiler plate
 Obtain feedback on potential cost drivers, e.g. restrictive
data rights, excess CDRLs and reports
 Obtain input on evaluation criteria
 Reduce multiple rounds of questions and amendments
 Contra Proferetem: “against he who proffers” – the Gov’t
is responsible for ambiguity in the solicitation (and
subsequent requests for equitable adjustments)
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Industry/Pre-solicitation/Pre-proposal
Conferences
4/16/2012 11:48 AM
 “2012 Small Business Outreach and Industry Brief will take
place on 08 May 2012 at the University Campus from 0800
to 1200.”
4/17/2012 8:28 AM
 “Registration Closed - Due to overwhelming response, the
registration period for the 2012 Small Business Outreach
and Industry Brief is closed. Fire Marshall restrictions limit
attendance, and capacity has been reached. Thank you for
your support and participation.”
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Best Practice:
Industry Conferences - Government
 Leverage electronic communications and virtual mediums
 More participation
 Fewer security, access, escort, facility needs
 Cost effective
 Can allow for ongoing dialogues
 Don’t wait for perfect information; industry knows things
change; identify sources of potential change:
 “If sequestration occurs, then …”
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Best Practice:
Industry Conferences - Industry
 Ask your questions in during the conference; don’t wait for
a one-on-one meeting or hallway exchange
 Your question may spark an important discussion
 Any significant one-on-one exchange WILL be
made public anyway
 For critical questions, follow up the conference with a
formal written request
 Even if answered in the conference
 Provides a record you can refer to later
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Best Practice:
One-on-One Meetings
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Pre-Industry Day?
Post-Industry Day?
Set ground rules up front
Keep general notes of the discussion
Consolidate and post only information that could directly
affect proposal preparation
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Communication in a Virtual Medium:
GSA Industry Community
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GSA Industry Communities
 Website is used to collaborate with GSA’s industry
partners and gain sufficient input and feedback
 Virtual Industry Day Presentation
 Other Presentations
 Questions from Industry
 Answers from Government
 Discussions/Blogs Posts
 May not be an effective feedback mechanism?
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GSA Industry One-on-One Meetings
 Established a series of questions for Industry to respond
to in writing along with ground rules for interaction, etc.
 Solicited Industry responses to these questions in “white
paper” form
 White papers treated as proprietary
 White paper required in order to participate in a oneon-one session
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GSA Industry One-on-One Meetings
 The intent of this exercise is to:
 Gather meaningful input from Industry
 Provide a mechanism for all Industry partners to
contribute to the creation of the vehicle
 Keep the burden low for all companies while still
allowing all to have meaningful input into the process
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GSA Industry One-on-One Meetings
 What this exercise is NOT:
 An avenue for marketing efforts
 Intent is to talk about issues affecting the
procurement contract, not go through company
capabilities
 Participation in this effort is voluntary
 Strongly desires input from Industry,
 Participation has ZERO bearing on companies
being awarded a contract
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Conclusion
 Level of communication and transparency is increasing
 Provide guidance and education to all levels, in when and
how to communicate
 Review which tools you’ll use during Acquisition Planning
 Establish a communication plan
 Early and frequent feedback will result in:
 Better requirements
 Clearer solicitations
 Fewer amendments
 Fewer REAs
 Better performance
 Easier contract admin
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