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

How Am I Involved in Awarding
the Contract?
COR 222: Lesson 4
Learn. Perform. Succeed.
Acquisition … Many Things to Consider
COR 222: LESSON 4
Contract
Types
Acquisition
Approach
Schedule for
Contract
Award
Contract
Management
Cost
Source
Selection Plan
Period of
Performance
Logistics
Security
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
…
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The Contracting Process
 Requirement
Definition
 Written
Acquisition Plan
 Evaluation
Criteria
 Source Selection
Team
Contract
Administration
 Market Research
Contract
Formation
Acquisition
Planning
Potential COR Roles & Responsibilities in the
Contracting Process
 Performance
Monitoring
 Guidance &
Direction
 Inspection,
Acceptance,
Payment
 Closeout
 Document,
Document,
Document
COR 222: LESSON 4
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Pre-Award Contracting Process
Begin
Lessons
Learned
Plan the Approach
Tradeoff
Analysis
 Market Research
 Customer Needs
 Source Selection Plan &
Evaluation Factors
 Bidders Conference
 Requirements & Criteria
Debrief
Proposals
Evaluate
Contract
Award
 Determine
Competitive Range
Proposal Updates
Decisions/
Documentation
(Final Proposal
Revisions)
Compare
Proposal
Ratings
COR 222: LESSON 4
Evaluate
Revised
Proposals
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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
COR 222: LESSON 4
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Order of Preference
Supplies
Services
1. Any special law from Congress
1. Blind and Severely Handicapped
2. Agency Inventories
3. Excess from other agencies
2. Supply Schedules (DoD not
mandatory)
4. Federal Prison Industries –
UNICOR – DoD: Market Share and
product and price compatibility
4. Commercial Sources
3. Prison Industries (DoD only if equal
in price)
5. Blind and Severely Handicapped
(Ability One)
6. Supply Schedules:
(GSA/VA FSS) –
no DoD mandatory)
7. Commercial Sources
COR 222: LESSON 4
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May I Request a Particular Contractor?
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)
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Only one Responsible Source
Urgent and Compelling
Industrial Mobilization
International Agreement
Authorized/Required by Statute
National Security
Public Interest
FAR Part 6
COR 222: LESSON 4
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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)
 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
 Service Disabled
Veteran Owned Small
Business (SDVOSB)
 Historically under
utilized Zone Small
Business (HUBZone)
 Local Firms – Disaster
or Emergency
(Stafford Act)
COR 222: LESSON 4
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Acquisition Methods
SAP=Simplified Acquisition Procedures
Market
Research
Acquisition
Planning
MAS/FSS
COR 222: LESSON 4
SAP
PR Package
Preparation
Sealed
Bidding
Contracting
by Negotiation
IDIQ/GWAC
RRQ
FAR 8.4
RFQ
FAR 13
IFB
FAR 14
RFP
FAR 15
TOPR
FAR 16.5
Quote &
Evaluation
Quote &
Evaluation
Bid &
Evaluation
Proposal &
Evaluation
Proposal &
Evaluation
Award
Issue
Award
Award
Issue or
Award
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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.
COR 222: LESSON 4
Action
Dollar Value
Timeline (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
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Using Existing Contracts
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
Other Contract Options
 Federal Supply Schedules (FSS)
 Government-wide Acquisition
Contracts – Normally IT related
 Interagency Acquisition - Economy
Act Rules
‒ This is called “Fair Opportunity”
‒ Proposal and evaluation complexity
depends on dollar value
COR 222: LESSON 4
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Contract Types – Two Families
Cost vs. Fixed Price
COR 222: LESSON 4
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Contract Families
Fixed Price
Cost Reimbursement
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
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Cost
Cost
Cost
Cost
Cost
Sharing
Plus Incentive Fee
Plus Award Fee
Plus Fixed Fee
 Time & Material (T&M)
‒ Labor Hour
‒ Letter
Could be FP or CR
 Indefinite Delivery/Indefinite
Quantity
 Definite Quantity
 Requirements
Selecting Contract Type is a function of “Risk” Allocation
COR 222: LESSON 4
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Contract Type Characteristics and Policy
Cost Reimbursable
Fixed Price
Contractor Promise
Best Effort
Shall Deliver
Contractor Cost Risk
Low
High
Government Cost Risk
High
Low
Cash Flow
As incurred
Upon Delivery
Performance Payment
Only if incentives
Milestone Met
Gov’t Surveillance
effort
Maximum
Minimum
Fee Profit
Fee Limits
No Limits
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
COR 222: LESSON 4
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Factors in Selecting Contract Types
Factors in Selecting Contract Types
Affects how a COR monitors the contract/contractor
Some types require more surveillance than others
COR 222: LESSON 4
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The Subject Matter of the Contract
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COR 222: LESSON 4
Architect and Engineering
Construction
Research and Development
Supplies
 Services
‒ Advisory and Assistance Services
 Utilities
 Information Technology
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FYI: T&M / Labor-Hour Contracts
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
COR 222: LESSON 4
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Source Selection
Source Selection refers to the process used for
competitive, negotiated contracts to obtain the best
value for the Government
COR 222: LESSON 4
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Selecting a Source - Spectrum
MICRO
SAP
FSS
≤
SAT
FSS
>
SAT
IDIQ’s
(GWACs)
Sealed
Bids
LPTA
Contracting by Negotiation
Solicitation Requirements
General
Customer
Knowledge
Rotate
Sources
Example:
Gov’t
Purchase
Card buy
Trade Off
Specific
No Defined
Factors or
Relative
Importance
Min
Documentation
Factors 52.212-1
Relative Importance
No Ranking Required
Fair
Opportunity
Requirements
Two-Step
Sealed Bidding
- Tech
- Price
Example:
Purchase Order
Non Complex
Only price and
price related
factors
Evaluation Criteria and Proposal Requirements
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
Complex
Formal
MICRO – Micro Purchase Threshold
SAP – Simplified Acquisition Procedures
SAT – Simplified Acquisition Threshold
FSS – Federal Supply Schedule
COR 222: LESSON 4
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Formal Source Selection Techniques
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
COR 222: LESSON 4
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DoD Source Selection Procedures
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
Table 1. Combined Technical Risk Ratings
COR 222: LESSON 4
Color
Rating
Description
Blue
Outstanding
Proposal meets requirements and indicates an exceptional approach and understanding of the
requirements. Strengths far outweigh any weaknesses. Risk of unsuccessful performance is
very low.
Purple
Good
Proposal meets requirements and indicates a thorough approach and understanding of the
requirements. Proposal contains strengths which outweigh any weaknesses. Risk of
unsuccessful performance is low.
Green
Acceptable
Proposal meets requirements and indicates a adequate approach and understanding of the
requirements. Strengths and weaknesses are offsetting or will have little or no impact on
contract performance. Risk of unsuccessful performance is no worse than moderate
Yellow
Marginal
Proposal does not clearly meet requirements and has not demonstrated an adequate
approach and understanding of the requirements. The proposal has one or more weaknesses
which are not offset by strengths. Risk of unsuccessful performance is high.
Red
Unacceptable
Proposal does not meet requirements and contains one or more deficiencies. Proposal is
unawardable.
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Best Practices
When conducting market
research and acquisition
planning in preparation for a
source selection or defining
the requirement …
it is encouraged
to petition
Industry
Industry Feedback
Conferences
Pre-Solicitation
Notices
One-on-One
Meetings
Techniques
Pre-Solicitation
Conference
Draft RFP or
Specifications
Public
Hearings
COR 222: LESSON 4
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Source Selection Process
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
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National Source Selection Organization
Source
Selection
Authority
Source
Selection
Advisory Council
Price/Cost
Analysis
Past
Performance
Evaluation
Source
Selection
Evaluation
Board
Business
Management
Evaluation
Technical
Evaluation
As a COR – You May be a Member of One of these Teams
COR 222: LESSON 4
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Solicitation - Evaluation Factors
 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
Two Categories of Evaluation
Factors
COR 222: LESSON 4
Cost or Price
Quality of Product
or Service
Responsibility
Technical
Certs and Reps
Past Performance
Responsive
Small business
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Evaluation Criteria and Proposal Evaluation
Non-price evaluation factors
should be:
Proposals will be evaluated
against the evaluation factors
in the solicitation
Avoid
 Too many factors and/or sub factors
 Factors which unfairly limit
competition
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
 Clear
 Relevant
 Ultimately, Differentiate between
proposals
‒ Tailor the factors to the individual
procurement
COR 222: LESSON 4
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Evaluation Process
Initial Evaluation
Evaluation Factors
Evaluation
Offeror
Proposals
Discussions
 Strengths
 Deficiencies
 Weaknesses
 Ratings
Competitive
Range
Determination
Initial
Evaluation
Briefing
Discussions
Award w/o
Discussions
Final Proposal
Final Evaluation
Revise
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Strengths
Deficiencies
Weaknesses
Ratings
Final Evaluation
Briefing
 Best Value Decision
Debrief
Award
COR 222: LESSON 4
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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.
COR 222: LESSON 4
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Protests Continued
 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
COR 222: LESSON 4
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Exercise: Finding Base Support
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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?
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Summary
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
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COR 222: LESSON 4
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
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Title here
Back-up
COR 222: LESSON 4
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How Can My Organization Buy Quickly?
 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)
®
COR 222: LESSON 4
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Set-Aside Decision Process
COR 222: LESSON 4
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“
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.
”
Daniel J. Boorstin discussing the
building of the Acropolis in the mid 5th
century BC. The ancient Greeks.
*Daniel J. Boorstin – From the book “The Creators”
Note: the Greeks were so advanced, the Acropolis…. “cable ready”!!! Joke
COR 222: LESSON 4
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After Receipt of Proposals
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 SSA
SSA Decision
Contract Award
(Distribution)
(Not Discussions)
COR 222: LESSON 4
RFP Release
Receipt of
Proposals/
Presentations
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Acquisition Processes
COR 222: LESSON 4
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