BD - 100:The Federal Procurement Process Revealed

Insight 2011

Presented by Brian Haney, Senior Vice President, Deltek

Project Manufacturing

Human Resources

Project Management

Financial Management

Enabling Success

04/18/20232 ©2011 Deltek, Inc. All Rights Reserved

Winning More Business

Reducing the Cost of Compliance

Increasing Project Visibility

Improving Cash Flow

CRM and Capture ManagementTeaming Solutions

Market Intelligence

Business Performance Management

Know More

Win More

Do More

Project Manufacturing

Human Resources

Project Management

Financial Management

Win More

04/18/20233 ©2011 Deltek, Inc. All Rights Reserved

CRM and Capture ManagementTeaming Solutions

Market IntelligenceWin More

Do More

Opportunity Identification

Customer & Pipeline Mgmt

TeamingProposal

Development

Business Performance Management

Know More

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Budget Formulation to EnactmentFiscal Year 2011 Budget Cycle

The Agency Role

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The Exhibit 53• Agency request for IT funding at program level

• Submitted to OMB for preparation of President’s Budget

• Captures “steady state” and new development/modernization/enhancement (DME) funding

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The Exhibit 300 (Business Case) Produced by the Program Office for specific, major IT initiatives Contains:

Technical scope and program POCs Planned spending levels and anticipated ROI Program goals and management metrics Compliance with EA and information security guidance

Used by OMB to assess program effectiveness Required for the appropriation of program funding

The OMB Role

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OMB and Budgetary Authority• Guides/assists in President’s budget preparation• Supervises federal budget administration in Executive Branch• Assesses and sets priority for competing funding demands

among agencies• Evaluates the effectiveness of agency programs, policies, and

procedures, including Recovery Act spending• Enforces rules & regulations and sets policy consistent with

• Legislation

• Regulations

• Administrative Agenda

The Congressional Role

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Budget and Appropriations Committees

Appropriations Bills Conference reports• Adopt conference reports and send to President for signature

Appropriations Bills Conference reports• Adopt conference reports and send to President for signature

The White House• President’s Budget

The White House• President’s Budget

House & Senate Appropriations CommitteesViews & Estimates

• Full Committees make 302(b) sub allocations to their respective subcommittees

House & Senate Appropriations CommitteesViews & Estimates

• Full Committees make 302(b) sub allocations to their respective subcommittees

Separate House & Senate Appropriations BillsAgriculture & Rural Development District of ColumbiaCommerce, Justice & Science Energy and WaterMilitary Construction & Vet Aff. Homeland Security State & Foreign Operations InteriorTransportation, Treasury & Judiciary Labor, HHS, EducationHousing & Urban Development Legislative branchDefense

Separate House & Senate Appropriations BillsAgriculture & Rural Development District of ColumbiaCommerce, Justice & Science Energy and WaterMilitary Construction & Vet Aff. Homeland Security State & Foreign Operations InteriorTransportation, Treasury & Judiciary Labor, HHS, EducationHousing & Urban Development Legislative branchDefense

House & Senate Appropriations Subcommittees• Hold Hearings

House & Senate Appropriations Subcommittees• Hold Hearings

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The Effect of Continuing Resolutions• Appropriate “steady state” or O&M funding at prior year levels with minimal or no

growth

• Tend to stall launch of new major initiatives

• Yield more piece-meal spending

• Result in the need for agencies to be creative in re-allocating funding

After Appropriation

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Spending the Funds• Appropriation – provides agency or program with a specified amount of budget

authority.

• Conducted annually for the coming fiscal year• Funds must be obligated during the fiscal year

• Budget Authority -- legal authority to incur financial obligations that will result in immediate or future outlays

• Obligations -- commitments to make payments, immediately or in the future.

• Represents the best indicator of actual spending.• Outlays – payments, typically by a Treasury check

Contract Formulation

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SolicitationCapture

Submit Proposal/

QuoteProduction

Summary – The Government Buying and Vendor Selling Process

Solicitation

Resources ThemesCapture Strategy Risks/Financials Teaming

Evaluate OpportunityEvaluate Customer Evaluate CompetitionQualify Opportunity

Go Forward?

Post Submission

Orals BAFO Down-select

AWARDDECISION

RFP RFQ/TO

ApproachLegal/Risks Pricing

Key Players Determine Funding

Buying Approach/MechanismResearch

Answer Questions Industry Days/Site Visits

Debriefs

ProcurementStrategy

Vision & Need

Response

KeyGovernmentIndustry

Regulations

Requirement Drivers

Requirements and the Acquisition Lifecycle

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Program Office (Customer)

Ex 53 (for IT)Ex 300

OMBPresident’s Budget

Congressional Approval

Program Office (Customer)

Contracting Office (Buyer)

How Program Requirements Make It Into the Federal Budget

Remember! The Contracting Office is the Buyer FOR the Program Office. The Contracting Office is rarely the

customer and it rarely has the requirement being fulfilled.

Determining an Acquisition Strategy – Market Research Before solicitation release Contracting Offices must conduct

market research Why? It’s the law – Federal Acquisition Regulations (FAR) Part 10 states

market research must be conducted “to arrive at the most suitable approach for acquiring, distributing, and supporting supplies and services.”

Results determine which products, technologies, and services are available Results used to assess market competitiveness - can a requirement be set-

aside or will it need to be sole sourced or competed on unrestricted basis? Contracting Offices will utilize one of the following methods

Request for Information (RFI) Sources Sought Notice Market Survey Direct Contact with Vendors (INPUT can assist with this!)

Determining an Acquisition Strategy and Selecting a Contracting Method GSA Schedule Contracts

Maintained and Managed by General Services Administration (GSA) Oversees procurement of $66B/yr

Think of the GSA Schedule as a Catalog listing your best price offer Selling Goods and Services

6.8M supplies; 8600+ suppliers Goods and services must be commercially available on the open market

These are Evergreen Contracts You can apply to get on schedules at any time

Sample Contracts Schedule 70 – IT Schedule MOBIS - Mission Oriented Business Information Services PES - Professional Engineering Service

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Government Wide Acquisition Contracts (GWAC) Only 4 agencies authorized to issue GWACs: GSA, NASA, NIH, and Commerce May offer IT Goods & Services that are not commercially available GWACs can be enterprise-wide (e.g., Alliant) and/or set aside for small business (e.g.,

8(a) Stars) Open Market competition is used to create the GWAC

Accepted vendors are given both a “Good Housekeeping Seal” of approval as well as a “license to hunt” Requirements on GWACS are competed as Task Orders / Delivery Orders

Multiple Award Indefinite Delivery / Indefinite Quantity Contracts (MA IDIQ) Competed by only one agency Used to save on fees associated with other acquisition methods (e.g., GSA Schedules

and GWACs) MA IDIQs set up acquisition environments hidden from public view Program Office can order up to ceiling value of the contract

Determining an Acquisition Strategy and Selecting a Contracting Method

Multi-Agency Contracts (MACs) Definition - A task order acquisition vehicle established by one or more agencies for

use by multiple Government agencies to obtain supplies and services Benefit - Groups of Agencies procure in a block to share contract action fees

Non MAC initiating agencies can use, but they’ll pay a higher usage fee than the managing agencies

Permission must be granted for other agencies to use

MACs are not GWACs – Any agency can initiate a MAC. No special authority from OMB is necessary for a MAC competition

Sole Source Contracts Sole sourcing based on Small Business Preference Programs (e.g., 8(a), Alaskan

Native, SDVOSB, HUB zone, etc.) Preference programs are established by the SBA

Sole source awards have a maximum ceiling value Full and Open

Credit Cards (Micro-purchases and commodities only)

Determining an Acquisition Strategy and Selecting a Contracting Method

Government Acquisition Trends

Purchases on GSA Schedules have been declining due to fees.

Purchases on IDIQs have been rising due to lower fees and simpler acquisition.

Solicitation Development and Release

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Requirements & Document Development – Who Does What? Program Office

Assembles Technical Requirements Consults with CO concerning preferred

solutions Prepares the Statement of Work

Contracting Office Conducts market research Secures legal approvals Prepares the non-requirement sections

of the Solicitation (i.e. Insertion of FAR clauses)

Determines Solicitation type Assembles and releases the final

document

Determining a Competition Type

Competition Type Determination Decision based on Market Research results Based on Needs / Wishes of Program Office Based on Scope of Requirements (local office

or multiple locations?)

Final Decision – To release Full and Open or as a Set-Aside

requirement

Avenues for Releasing Pre-Solicitation Notices Pre-Solicitation Notices announce imminent release of an RFP Can be accompanied by a Synopsis of the requirement Pre-Solicitation Notices typically appear 30-60 days before

Solicitation release FedBizOpps (FBO)

Single Government point-of-entry for Federal Government procurement opportunities over $25,000

Agency Procurement Sites Additional procurement information can sometimes be obtained from

individual agency maintained procurement websites Examples:

Navy Spawar e-commerce Air Force Herbb, Hanscom AFB Army Interactive Business Opportunities Page (IBOP) NASA Acquisition internet Service DHS Advance Acquisition Planning

Contract Types – Getting Paid Firm Fixed Price

Vendor proposes price for services/commodities to the Government Vendor carries the risk if price is exceeded Proposed price is based on total of Products, Other Direct Costs, and

Labor Hours Cost Plus

Government reimburses the vendor for incurred costs Government carries the risk if costs are exceeded Proposed price is based on Products, Other Direct Costs, and Labor

Hours Indefinite Delivery / Indefinite Quantity (IDIQ)

Used in combination with Fixed Price or Cost Allows purchase of contracted good / services in various quantities and

at various times within the contracted duration and ceiling value of contract.

Contract Durations Base Year

The only period of performance guaranteed at contract award Option Periods

Multiple time durations (usually months or years) priced at the time of award. Option periods will be exercised if: The need still exists Funding is available Contractor is performing to standards

Award Terms Additional contract durations (usually months or years) “awarded” as

performance incentives

Award and Contract Administration

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Government Proposal Evaluation Contracting Office and Program Office evaluate proposals

together on a Source Evaluation Board (SEB) Contracting Office evaluates proposal compliance with instructions Program Office evaluates solutions based on their applicability to

the requirement Experience of proposed personnel will be cross checked by PO Past Performance will be verified by CO

Information provided in proposal (due diligence) Information in Government Past Performance database

Competitive Negotiations Used at discretion of the CO and use must be announced in advance Used for large competitions to establish a “competitive range” of acceptable

proposals (weeding out process) Can be written or oral and COs will typically focus on perceived “deficiencies”

or “weaknesses” in proposals

Source Selection Oral Presentations

Optional (typically announced in advance) Best and Final Offer (BAFO)

Revised pricing based on negotiations Additional Questions &

Clarifications Follow-up on unclear aspects of proposal

Down-Selection Gradual elimination of weak proposals

Award Determination Made by decision maker upon

recommendation from the SEB

Award and Debriefings Contracting Office must notify unsuccessful vendors

ASAP if bidder is excluded from competitive range Before an award if Small Business Set-Aside procurement Within 3 days of Award for Full and Open procurements

Notifications can be oral or written Debriefing must be offered to all bidders

Number of proposals received Name of the firms that proposed Further explanation of contract award (or non-award) determination

Advice – Always take the debrief. It is a chance to get a leg up on competition next acquisition cycle, it shows the CO and PO you are engaged, and it can

help bidding strategies in the future (identify weaknesses).

Award Protests Protest Types

Pre-Award - Challenge to the terms of the Solicitation RFP is unduly restrictive or overstates agency’s needs Ambiguous requirements or terms Requirements unnecessarily favor one vendor

Post–Award - Challenge to Agency’s evaluation and award decision Deviation from stated evaluation criteria Relaxation of RFP requirements Lack of meaningful discussions / fair opportunity Arbitrary technical / price / past performance

evaluations Unequal treatment / bias Unjustified single source awards (including delivery /

task orders)

Don’t Forget!

Exclusive Events at Insightfor Business Development Attendees:

Tuesday, May 17, 2011

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• Federal Teaming Expo from 6:00pm to 7:30pm in the Expo Hall

All teaming expo attendees will be entered in a drawing to win an iPad. Winners will be announced at the BD reception (must be present to win).

• Business Development Reception from 7:30pm to 9:30pm in the Magnolia Ballroom

Winners of iPad drawing will be

announced at 8:00 pm and 8:30 pm at

the BD Reception (must be present to

win).

Q & A

04/18/202336 ©2011 Deltek, Inc. All Rights Reserved

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