ginny wydler, senior associate, booz allen hamilton
DESCRIPTION
TRANSCRIPT
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Ginny Wydler, Senior Associate, Booz Allen Hamilton
Paul Tetrault, Senior Associate, Booz Allen Hamilton
Doug Zwiselsberger, Senior Associate, Booz Allen Hamilton
Acquisition Strategy: Bridging the Gap Between Requirements and
Source Selection#302
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Agenda
• Introductions• Current Acquisition Environment/Challenges• Case Studies
– #1: International Acquisition – Abu Dhabi– #2: Commercial Client – IT Outsourcing– #3: Federal Acquisition – DoD Military System
• Summation and Best Practices• Questions
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Overview: Acquisition Strategies
• Acquisition Environment– Major systems acquisitions have been struggling with strategies
that ensure programs meet contracting goals and performance results
– Key activities and events happen between the time that the requirement is defined, and the time of contract award to industry
– Many organizations have structured procurement processes and products in place, but the acquisition and contracting strategy can still be difficult to develop and implement
– Often there is a gap between what the books say should be done and the actual practice. This presentation will concentrate on innovative approaches that can close that gap, and it will offer some solutions to improve the acquisition strategy and contracting process and practice
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Overview: Acquisition Strategies – “Ideal World”
• Many factors play into a successful acquisition– Achieving milestone approvals, with a critical eye toward program
health metrics and setting realistic contracting schedules– Developing a contracting strategy that identifies dependencies on a
critical path and engages industry to foster partnerships– Ensuring the capabilities requirements, alternatives analysis,
independent cost estimates and market research are reflected in the contracting strategy and the resulting source selection
– Implementing Program Management Office (PMO) governance to ensure stakeholder involvement, and effective use of integrated product and process teams and collaboration of acquisition activities
– Balancing risk and reward through Risk Management Strategies that recognize the use of executable contracting methods
– Quantitative Tools that can support performance management
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Overview: Acquisition Strategies - Issues
• Cost overruns• Requirements creep• Performance Based
acquisitions• Outside pressures• Teaming• Risk Management
Government spending for services has increased from $235B in 2001 to $415B in 2006 and continues to climb, according to GAOThe Pentagon faces a potential implosion with a $650-750B/yr appetite and but only $500B/yr in funding
New weapons programs have doubled in cost and time to deliver
Department of Homeland Security faces Spiraling War on Terror costs
Systems, such as US-VISIT, have seen extensive delays and cost overruns
Hostile budgetary climate is created among the Federal Agencies of Social Security, Medicare and DHS GWOT
Economic Recession has hit hard with Defense manufacturing, causing costs to go up
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The cost of major acquisitions has explodedLCS Cumulative Procurement Cost-Growth
(FY2008-2016)
0
5000
10000
15000
20000
25000
2008 2010 2012 2014 2016
Fiscal Year
Co
st
(mil
lio
ns
of
2008
US
D)
Original cost-estimate
Revised cost-estimate
The Navy’s Littoral Combat Ship ProgramThe Navy’s Littoral Combat Ship Program
The Air Force F-22 programThe Air Force F-22 program
Army’s Future Combat Systems (FCS) ProgramArmy’s Future Combat Systems (FCS) Program
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Program/Contract Strategy and Planning• Program/Project Lifecycle Planning and Management
• Earned Value Management Strategies
• Cost/Schedule Baseline Development
• Risk Management Planning
A CB
Materiel Solution Analysis
Technology Development
Production and Deployment
Engineering & Manufacturing Development
Operations and Support
• Stakeholder Relationship Management
• Contract Strategy Development
• Source Selection Support
• Policy/Legislative Analysis
• Implementation of Performance Based Contracting
ExecutionInitiation Planning Close out
DoDModel
Civilian Agency Model
Commercial Procurement
Model
Planning
Solicitation
Evaluation
Award Post Award
Contract Formation Contract Management
The Acquisition Process is complicated
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The most recent 2009 Defense Acquisition Reform Bill focuses on problems with requirements through delivery
“Report after report has indicated that the key to successful acquisition programs is getting things right from the start with sound systems engineering, cost-estimating, and developmental testing early in the program cycle. Over the last twenty years, however, DOD has eliminated acquisition organizations and cut the workforce responsible for taking these actions, and has tried to “reform” the acquisition process by taking shortcuts around early program phases in which these actions should be taken. The result has been excessive cost growth in weapon systems and excessive delays in fielding those systems.” - Senator Levin’s office, Feb 24, 2009
“Report after report has indicated that the key to successful acquisition programs is getting things right from the start with sound systems engineering, cost-estimating, and developmental testing early in the program cycle. Over the last twenty years, however, DOD has eliminated acquisition organizations and cut the workforce responsible for taking these actions, and has tried to “reform” the acquisition process by taking shortcuts around early program phases in which these actions should be taken. The result has been excessive cost growth in weapon systems and excessive delays in fielding those systems.” - Senator Levin’s office, Feb 24, 2009
Section 204. Nunn-McCurdy Breaches. Since the beginning of 2006, nearly half of DOD’s 95 Major Defense Acquisition Programs (MDAPs) have experienced critical cost growth, as defined in the Nunn-McCurdy provision, as amended. Overall, these 95 MDAPs have exceeded their research and development budgets by an average of 40 percent, seen their acquisition costs grow by an average of 26percent, and experienced an average schedule delay of almost two years.
Section 204. Nunn-McCurdy Breaches. Since the beginning of 2006, nearly half of DOD’s 95 Major Defense Acquisition Programs (MDAPs) have experienced critical cost growth, as defined in the Nunn-McCurdy provision, as amended. Overall, these 95 MDAPs have exceeded their research and development budgets by an average of 40 percent, seen their acquisition costs grow by an average of 26percent, and experienced an average schedule delay of almost two years.
Section 201. Trade-offs of Cost, Schedule and Performance. The January 2006 report of the Defense Acquisition Performance Assessment Project (DAPA) concluded that “the budget, acquisition and requirements processes [of the Department of Defense] are not connected organizationally at any levelbelow the Deputy Secretary of Defense.”
Section 201. Trade-offs of Cost, Schedule and Performance. The January 2006 report of the Defense Acquisition Performance Assessment Project (DAPA) concluded that “the budget, acquisition and requirements processes [of the Department of Defense] are not connected organizationally at any levelbelow the Deputy Secretary of Defense.”
Section 101. Systems Engineering Capabilities. The Defense Science Board Task Force on Developmental Test and Evaluation reported in May 2008 that “the single most important step necessary” to address high rates of failure on defense acquisition programs is “a viable systems engineering strategy from the beginning.”
Section 101. Systems Engineering Capabilities. The Defense Science Board Task Force on Developmental Test and Evaluation reported in May 2008 that “the single most important step necessary” to address high rates of failure on defense acquisition programs is “a viable systems engineering strategy from the beginning.”
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Case Study #1 - Abu Dhabi Public Gardens Outsourcing Review
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Background
• Abu Dhabi spends upwards of $300M per year in maintaining and improving its public garden infrastructure including parks, forests and roadside plantings with underlying water distribution.
• Work was outsourced in 2006• 20,000 workers were affected• 28 new contracts were
awarded• 5 oversight contracts used• We assessed this
arrangement
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The outsourcing met its a goal of transferring Public Garden O&M from the Government to private companies
but fell short in a number of other objectives
Outsourcing GoalsOutsourcing Goals
Reduce Municipal headcount through a partnership with the private sector
Beautify Abu Dhabi through increased professional expertise
Save money
Strengthen management focus
Prevent service interruption and corresponding quality deterioration
Reduce Municipal headcount through a partnership with the private sector
Beautify Abu Dhabi through increased professional expertise
Save money
Strengthen management focus
Prevent service interruption and corresponding quality deterioration
Results AchievedResults Achieved
Municipal headcount reduced to target
After 2 years, no tangible quality improvements
Saving not clearly realized
Municipality transition to oversight and management role in progress
O&M function transferred from public to private sector without interruption of service or deterioration of quality
Municipal headcount reduced to target
After 2 years, no tangible quality improvements
Saving not clearly realized
Municipality transition to oversight and management role in progress
O&M function transferred from public to private sector without interruption of service or deterioration of quality
Outsourcing Goals and Early Results
13Confidential
We reviewed a number of key issues as part of our assessment
Scope of contract reviewScope of contract review
Interview stakeholders (contractors, consultants, municipality officials and managers)
Review contractor and consultant contracts
Analyze costs
Compare current contractual arrangements to international best practice outsourcing contractual arrangements
Recommend improvements
Interview stakeholders (contractors, consultants, municipality officials and managers)
Review contractor and consultant contracts
Analyze costs
Compare current contractual arrangements to international best practice outsourcing contractual arrangements
Recommend improvements
Key issuesKey issues
Is the Municipality paying a fair price?
Has service quality improved?
Are the contractual arrangements working and producing the desired outcomes?
Can the contractual arrangements be improved?
Should the Municipality exercise the option years of the current contracts (e.g., extend the contracts with current contractors)?
Are there areas where additional cost savings can be realized?
Are there opportunities to better align incentives to improve performance?
Is the Municipality paying a fair price?
Has service quality improved?
Are the contractual arrangements working and producing the desired outcomes?
Can the contractual arrangements be improved?
Should the Municipality exercise the option years of the current contracts (e.g., extend the contracts with current contractors)?
Are there areas where additional cost savings can be realized?
Are there opportunities to better align incentives to improve performance?
Key Issues and Assignment Scope
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An “Ideal" Outsourcing Contract should be specific, accurate, clear, and solve the customers needs
Key Criteria
Detailed Description of Required ServicesDetailed Description of Required Services
Defined Roles and ResponsibilitiesDefined Roles and Responsibilities
Open CommunicationsOpen Communications
Effective Performance and ReportingEffective Performance and Reporting
Fair Prices and PaymentsFair Prices and Payments
Appropriate Performance IncentivesAppropriate Performance Incentives
Flexibility to Adapt to Changing ConditionsFlexibility to Adapt to Changing Conditions
Special Provisions for Unique RequirementsSpecial Provisions for Unique Requirements
Clear Exit StrategyClear Exit Strategy
Confidential
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We found the new O&M contracts were awarded without first defining the requirements accurately,
leading to later performance issues
Findings on Contracting ProcessFindings on Contracting Process
Emphasis was on meeting prescribed award dates (6 month period) RFPs were prepared and process run by 5 separate consultant
firms Little standardization of RFPs across 5 consultants Inadequate time to define actual requirements for O&M, condition
of assets and limited site surveys were employed RFPs from 4 consultants lacked adequate detail on size and scope
of required maintenance Contractors had to bid FFP, little allowance for correction of scope
issues
Emphasis was on meeting prescribed award dates (6 month period) RFPs were prepared and process run by 5 separate consultant
firms Little standardization of RFPs across 5 consultants Inadequate time to define actual requirements for O&M, condition
of assets and limited site surveys were employed RFPs from 4 consultants lacked adequate detail on size and scope
of required maintenance Contractors had to bid FFP, little allowance for correction of scope
issues
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Unit prices varied widely across the contracts with no clear justification
Contract #
Dispersion in Annual Maintenance Costs
By Consultant Zone – Hedges (m)(In AED)
101
102
104
206
203
201
205
202
204
Contractor A Contractor B
9.35
9.35
16.3
8
4.9
7.7
11.5
17.3
3
22
19.2
Large Cost Components
Access Roads6%
Provisional Sums
3%
Irrigation6%
Landscape64%
Stormwater3%
Other19%
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Assessing consultant performance was difficult because there are no relevant scopes of work or
performance metrics in the contracts
Current Performance ManagementCurrent Performance Management
Work is not specifically defined or tied to specific requirements
Payments are made for labor hours expended in performing general tasks
No up-to-date contract or statement of work
No performance metrics
No clear municipality oversight role for consultant contracts
No centralized management information is maintained for consultant performance
Work is not specifically defined or tied to specific requirements
Payments are made for labor hours expended in performing general tasks
No up-to-date contract or statement of work
No performance metrics
No clear municipality oversight role for consultant contracts
No centralized management information is maintained for consultant performance
Future Performance ManagementFuture Performance Management
Efforts aligned to specific statement of work and performance metrics
Fixed pricing utilized
Tied to incentives (positive and negative) for performance against relevant key performance indicators of quality and end results
Clearly assigned Municipality oversight role and resources for managing the consultant contracts
Efforts aligned to specific statement of work and performance metrics
Fixed pricing utilized
Tied to incentives (positive and negative) for performance against relevant key performance indicators of quality and end results
Clearly assigned Municipality oversight role and resources for managing the consultant contracts
Management of “Contract Manager” Contracts
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We proposed a migration to an active contract management to create the foundation for success…
Minimal ManagementMinimal Management Basic ManagementBasic Management Best Practice ManagementBest Practice Management
Service levels (KPIs) not defined
No performance tracking
Service provider handling processes are ad hoc, with obscure variations and multiple touch points
Service provider interaction and integration inconsistent
Contract terms viewed as fixed
Relationship not defined
Service levels (KPIs) not defined
No performance tracking
Service provider handling processes are ad hoc, with obscure variations and multiple touch points
Service provider interaction and integration inconsistent
Contract terms viewed as fixed
Relationship not defined
Transactional service levels defined by limited sources
Limited performance target monitoring
Some standard processes defined
Some contract terms tied to targets
Service provider points of contact defined
Service provider relationships defined
Transactional service levels defined by limited sources
Limited performance target monitoring
Some standard processes defined
Some contract terms tied to targets
Service provider points of contact defined
Service provider relationships defined
Meaningful service levels defined by stakeholders
Performance actively monitored against results and benchmarks
Central service provider management group standardizes processes and policies, & manage contracts
Contracts structured to coordinate behavior amongst service providers; payment terms tied to integrated service delivery
Differentiated relationships defined contractually for long-term strategic partners and preferred service providers
Meaningful service levels defined by stakeholders
Performance actively monitored against results and benchmarks
Central service provider management group standardizes processes and policies, & manage contracts
Contracts structured to coordinate behavior amongst service providers; payment terms tied to integrated service delivery
Differentiated relationships defined contractually for long-term strategic partners and preferred service providers
Service Provider Management Capability Levels
Should Have Best to HaveMust Have
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Contracts should be actively managed, with transparency and alignment to end results
Solution Levers
Smooth contract and service operations — fewer issues and faster resolution
Clearly defined roles and points of contact
Reduced management complexity
Open communication between service provider and the client
Smooth contract and service operations — fewer issues and faster resolution
Clearly defined roles and points of contact
Reduced management complexity
Open communication between service provider and the client
Incentive for continuous price and quality improvement
Trusting partner relationships
Satisfied customers
Incentive for continuous price and quality improvement
Trusting partner relationships
Satisfied customers
Outsourcing Impacts
Key Performance Indicators (KPIs) enforced; problems caught and corrected early
Management has visibility into duplicate services, gaps, etc… — can optimize service provider operating model
Key Performance Indicators (KPIs) enforced; problems caught and corrected early
Management has visibility into duplicate services, gaps, etc… — can optimize service provider operating model
Management ProcessesManagement Processes Establish robust set of processes, beyond
just contract administration — Including: – Service provider relationship
management– Performance management and reporting– Communications
Establish robust set of processes, beyond just contract administration — Including: – Service provider relationship
management– Performance management and reporting– Communications
Management ToolsManagement Tools
Tools support active service provider management – Performance monitoring and reporting– Contract management– Project management
Tools support active service provider management – Performance monitoring and reporting– Contract management– Project management
Incentives & AccountabilityIncentives & Accountability
Structure / restructure contract metrics and incentives with mutually beneficial terms
Define KPIs that directly support business priorities
Structure / restructure contract metrics and incentives with mutually beneficial terms
Define KPIs that directly support business priorities
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Public Gardens outsourcing effectiveness can be improved by focusing on consultants, contractors and governance
Summary RecommendationsConsultants/Contract
Managers
Consultants/Contract
Managers O&M ContractorsO&M Contractors
Define and standardize the Statement of Work and performance metrics
Develop new contracting strategy and bidding documents to re-compete Abu Dhabi Municipality (target award October 2008)
Develop new contracting strategy and bidding documents to re-compete Western Region (target award March 2009)
Execute strategies and award new contracts for AD and WR
Define and standardize the Statement of Work and performance metrics
Develop new contracting strategy and bidding documents to re-compete Abu Dhabi Municipality (target award October 2008)
Develop new contracting strategy and bidding documents to re-compete Western Region (target award March 2009)
Execute strategies and award new contracts for AD and WR
Improve current contracts (e.g., rationalize/remove minimum resource requirements)
Finalize KPIs (establish, link to incentives and incorporate in contracts)
Develop new contracting strategy and bidding documents including draft performance-based contract
Execute strategy and award new contracts
Improve current contracts (e.g., rationalize/remove minimum resource requirements)
Finalize KPIs (establish, link to incentives and incorporate in contracts)
Develop new contracting strategy and bidding documents including draft performance-based contract
Execute strategy and award new contracts
GovernanceGovernance
Define the roles, responsibilities and authorities of the Municipality staff to reduce ambiguity and overlap vis a vis Consultants/Contract Managers
Provide project and contract management training and coaching for Municipality managers
Improve priority business processes (e.g., payment, work orders, prioritization of new works and new beautification investments)
Strengthen conflict of interest rules and enforcement mechanisms
Define the roles, responsibilities and authorities of the Municipality staff to reduce ambiguity and overlap vis a vis Consultants/Contract Managers
Provide project and contract management training and coaching for Municipality managers
Improve priority business processes (e.g., payment, work orders, prioritization of new works and new beautification investments)
Strengthen conflict of interest rules and enforcement mechanisms
Confidential
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Summary
Confidential
• Recommendations were made last summer
• The Municipality has taken action to re- compete the first consultant contract and embarked on a project to improve its contract management process
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Case Study #2 – Global Multi-Industry Manufacturing Company
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Case Study #2 - Global Multi-Industry Manufacturing Company Overview
• After 10 years obtaining information technology support from the same vendor, the client faced the several challenges:– Costs associated with each component of their IT infrastructure
were not available or enmeshed with other costs
– An inventory or IT assets was not available to support the RFP/Bid process
– Software license information and data rights were not available to ensure license transfer or re-procurement
– A complete set of contracts or service agreements was not available to enable an understanding of what needed to be outsourced
The client had an annual IT expenditure valued at exceeding $3.0 billion per year…
The client had an annual IT expenditure valued at exceeding $3.0 billion per year…
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Case Study #2: Approach
• To execute this project several workstreams were stood up to execute a unique aspect of this project:– Request for Information (RFI)
– RFP Segmentation
– Purchasing Transaction Re-sourcing
– RFP Bid Management
– RFP Data Collection
– Collect Current Costs
– Supplier Education
– Software Access Rights
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Case Study #2: Approach (cont’d)
• Request for Information (RFI): – Developed a high-level RFI to capture their thoughts and comments
on pending competition
• RFP Segmentation: – This workstream analyzed the clients IT requirements and categorize
them into logical segments that can be packaged into individual request for proposals
• Purchasing Transaction Re-sourcing: – This workstream isolated items that are routinely purchased in more
of a commodity manner and examine mechanisms to standardize the process
• RFP Bid Management: – Oversaw the acquisition process, developing processes for releasing
RFPs, evaluating RFPs, awarding contracts and managing contracts.
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Case Study #2: Approach (cont’d)
• RFP Data Collection: – Responsible for identifying the data and information required for
each RFP to ensure that potential vendors had the information they needed to develop competitive proposals.
• Collect Current Costs: – Responsible for capturing and segmenting IT expenditures
• Supplier Education: – Responsible for educating the potential vendors about the
outsourcing process and timelines.
• Software Access Rights: – Responsible for working to ensure access to all of its mission
critical software remained available to the client
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Case Study #2: Outcomes
• Upon completion of this assignment the following outcomes had been achieved:– Executed the RFP process in a phased manner to allow for
maximum competition
– Implemented a new standardization process the required vendors to adhere to a common set of standards
– Terms and Conditions that were advantageous to both parties – “made whole”
– Reduced overall IT costs by hundreds of millions of dollars
– Effectively transitioned from a single vendor environment to a multi-vendor environment
– Improved performance against agreed to Service Level Agreements
– Instituted a process for managing multiple vendors in a competitive environment
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Cast Study #2: Lessons Learned
• Start early• Leverage outsourcing best practices and lessons learned• Communicate early and often (transparency) and educate the
vendor base• Use of rigorous “stage gate” or milestones keeps the program
specific to the mission and on schedule• Define stated outcomes and align RFP process to achieving
those outcomes• Develop RFPs that you can manage from a performance,
oversight, funding and execution perspective• Never lose control over data, licenses and equipment that is
central to your business
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Case Study #3 – Military System Acquisition
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Acquisition Strategies – Case Studies #3 Military System Acquisition
• A Military Department has a requirement to field a major IT System– Major Acquisition, $Multi-Million Value
– Major Milestone Decision for Production
– Proven Technology, with integration challenges
– “Traditional” Source Selection Process
– Competitive environment for Turnkey hardware, software, sustainment services
– DoD 5000 Process with Source Selection Authority
– Best Value analysis with technical and cost trade offs
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The Acquisition involved a Complex Set of Factors for Source Selection Decision Making
• Market Analysis to Determine Competitive Landscape
• Determining Requirements Over the Life Cycle• Understanding Requirements for Integration
with other Equipment/Systems• Understanding the stability of Cost Over Time• Understanding the Total Value of Proposed
Procurement (or Program) with AoA and IGCE• Determining Incentives for the Contractor• Identifying Existing Contract Vehicles available• Other factors, including National Security,
Maintenance of Alternate Production Lines, etc
Balancing multiple factors to develop
a strategy that maximizes success
factors and minimizes risk
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Awarding a large, complex contract presented challenges to the Program and Contracts Office
• Critical Success Factors:– Successful Milestone Decision Reviews– Timely Contract Award– Award without protest– Adequate competition– Receipt of reasonable price proposals– Integration of Performance Based
Contracting techniques– Compliance with regulations, legislation,
and mandates– Positive findings when subjected to
scrutiny of oversight organizations (GAO, IG, OMB, etc…)
Capability for success:• Use experienced professionals to
develop and implement strategies
• Use proven processes
• Apply best practices
• Apply proven tools
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The acquisition had to comply with major systems processes and documents
Final Proposals Evals)
Program and Contract Transition
Requirements Synopsis
Operational CapabilityCost Benefit Analysis
Acquisition StrategyClinger Cohen Compliance
Risk Management PlanAcquisition PlanPerformance Work Statement
Performance Assessment PlanSource Selection Plan
Request for Proposals
Pre-Proposal Industry DaysProposal Evaluations)
Negotiations with Industry
Contract Awards
•Acquisition approach•Best Practices•Business Considerations•Capability needs•Environment, Safety, Health•Human Systems Integration•Information Assurance•Information Technology•Integrated Test and Evaluation•Open Systems•Product Support•Program Structure•Relief, Exemption and waiver•Research and technology Protection•Resource Management•Risk Management•Systems Engineering
Strategy Considerations:
Acquisitions have requirements documents•Analysis of Alternatives (AoA)•Independent Government Cost Estimate (IGCE)•Life Cycle Cost Estimates (LCCE)•Statement of Work (SOW)•Metrics for Service Level Agreements (SLAs)•Acquisition Plan (AP)•Source Selection Plan (SSP)•CLIN List•Evaluation Criteria (L&M)•Technical Evaluation Panel documentation•Pricing Negotiation Memos
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The Acquisition was embedded into the PMO Structure during execution of the acquisition
PROJECT OPERATIONS
ACQUISITION FUNCTIONAL TECHNICALCHANGE
MANAGEMENT
• Cost Management
• Schedule Management
• Resource Management
• Performance Measurement
• OMB Exhibit 300 Reporting
• Risk Management
• Requirements Management
• System Development Life-Cycle Management
• Knowledge Management
• Concept Development
• Acquisition Strategy
• Market Research
• Solicitation Development
• Source Selection and Award
• Protest support
• Contract Management
• Requirements Identification
• BPR Participation
• Functional Representation of Evaluation Criteria & Materials Development
• Requirements Identification
• Technical Representation of Evaluation Criteria & Materials Development
• IT Architecture
• Data Management
• Configuration Management
• Security
• Communications & Outreach
• End-Users Relations Management
• Business Process Reengineering
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Military System Acquisition – Lessons Learned
• Source Selection Training was vital – All on same page (rules and tools)
• All dependencies were clear– Milestone approvals to SSA were met
• SSA, SSET, Evaluators, Advisors all on task and motivated
– Leadership was strong, team understand the objectives and commitments
• Consensus of evaluation ratings critical (spirited dialog)
• Best Value Decision was quantified for requirements
– Differentiators supported trade off analysis for best value
• Follow the procedures! (Tanker)
Capability for success:• Use experienced professionals to
develop and implement strategies
• Use proven processes
• Apply best practices
• Apply proven tools
• Develop Source Selection training modules
• Develop Source Selection templates• Utilize proven tools
• Develop Source Selection training modules
• Develop Source Selection templates• Utilize proven tools
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Acquisition Strategies – Best Practices
• Methodologies that provide processes and products to support requirements determination through execution
• Tools and templates must be integrated and relevant• Best practices for strategy, planning, source selection
and performance measurement are critical throughout the life cycle
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Processes and products are needed across the acquisition life cycle framework
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Tools are available to support requirements analysis and source selection
• Risk tools• RISC-IQ• Active Risk Manager• Pertmaster – Risk Expert• Risk +• Risk Radar• @Risk• Risk Trak• RiskWatch• TopVue• Welcom Risk• Risky Project
• Project Management Tools – PMI’s OPM3– iCAM
• Risk tools• RISC-IQ• Active Risk Manager• Pertmaster – Risk Expert• Risk +• Risk Radar• @Risk• Risk Trak• RiskWatch• TopVue• Welcom Risk• Risky Project
• Project Management Tools – PMI’s OPM3– iCAM
Planning System
Scope DataSchedule Data
Performance Measurement Tools•Database
•MySQL •Enterprise Elements•Troux Architect
•Reports •MS Office•Crystal Reports
•Dashboards – COTS•Crystal Xcelsius•Cognos •Oracle •MS PerformancePoint•DataDrill
•Dashboards – Manual•MS Office•SharePoint
•Software Development•MS .Net Platform•Cold Fusion •Rational•Requisite Pro•JIRA•Plumtree •Adobe Flex•LCMP
•Statistical Analysis•SPSS•SAS
Performance Measurement Tools•Database
•MySQL •Enterprise Elements•Troux Architect
•Reports •MS Office•Crystal Reports
•Dashboards – COTS•Crystal Xcelsius•Cognos •Oracle •MS PerformancePoint•DataDrill
•Dashboards – Manual•MS Office•SharePoint
•Software Development•MS .Net Platform•Cold Fusion •Rational•Requisite Pro•JIRA•Plumtree •Adobe Flex•LCMP
•Statistical Analysis•SPSS•SAS
Planning and Scheduling tools•PERT Chart Expert•WBS Chart Pro•Kidasa Milestones•Primavera•MS Project•Prosight•Project Management Environment
Planning and Scheduling tools•PERT Chart Expert•WBS Chart Pro•Kidasa Milestones•Primavera•MS Project•Prosight•Project Management Environment
Acquisition tools •Performance Based Acquisitions Guidebook•Contract Type Decision Tool diagnostic•Contract Management Process Guide•A-76 Source Selection Guidebook•DoD Acquisition Desk guide•Award Tracking Software
Acquisition tools •Performance Based Acquisitions Guidebook•Contract Type Decision Tool diagnostic•Contract Management Process Guide•A-76 Source Selection Guidebook•DoD Acquisition Desk guide•Award Tracking Software
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Best practices in planning is required for success and to ensure requirements are met
Critical Success Factor Best Practices / Solutions
Engage stakeholder early in the cycle
• Conduct meetings with all stakeholders to help define functional and technical requirements
• For larger acquisitions, institute integrated product teams with contracts, PMs, finance, security, etc
• Have a feedback loop to keep communications open
Employ standard acquisition processes
and templates
• Standard, well-communicated processes and templates gains efficiency and allows for streamlining of the process since you know what to expect
• Provide user-friendly intranet website that provides access to templates, examples forms, regulations, etc.
• Develop a checklist to ensure all bases are covered
Establish performance-oriented contract
development approaches
• Employ performance-based methods for acquisitions of services
• Create templates for performance-based contract documentation
Understand prevailing best practices for
Performance Based Acquisition (PBA)
• Provide PBA training to all stakeholders
• Work with the PMs from the start to not only understand their requirement, but to facilitate performance standards that are measurable and achievable
• Create a repository of policy, guidance, and templates pertaining to PBA methods
Know the Market• Interview/access more internal stakeholders to get a more detailed, technical understanding of the requirements and
what services are available in the market – become the business advisor
Procurement Life Cycle – Acquisition Planning / Solicitation Best Practices
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Best Practices in source selection should support a well-structured process
Critical Success Factor Best Practices / Solutions
Issuance of a work statement that facilitates
quality goals and performance objectives
• Working early and often with the CO allows for better understanding of the PM’s needs, increased knowledge of contracting by the PM, facilitation of better communication throughout the acquisition process, and improved teamwork; interaction early and often has lead to the procurements that are awarded on time and less likely to be protested
Evaluation is conducted in accordance with the Source
Selection Plan (SSP) and Solicitation
• Providing adequate training to the Technical Evaluation Panel (TEP) is not only necessary but a requirement; ensure that TEP members fully understand the SSP and evaluate offers against the factors set forth in the SSP and solicitation
• Provide templates, and possibly, an evaluation tool, to capture weightings and narrative comments
• Have the CO or its representative facilitate the evaluation to ensure compliance with the SSP/solicitation and narrative that supports scoring
Ensure that the source selection is well
documented and the contract file complete
• Use FAR requirements to develop evaluation documentation
• Ensure that each TEP member returns evaluation materials
• Maintain the contract file as accurately as possible and store it where it can be accessed by other COs
Safeguard proprietary information from
unauthorized disclosure
• Establish standardized “rules of conduct” for use in all evaluations
• Develop end-of-day procedures for securing hard copy documentation and computer files; these procedures should be followed by all evaluation participants
Procurement Life Cycle – Evaluation of Offers and Source Selection Best Practices
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Best Practices in defined performance criteria and structured monitoring are critical to ensure delivery
Procurement Life Cycle – Contract Award, Administration, and Management Best Practices
Critical Success Factor Best Practices / Solutions
Improve the value received and quality achieved
• Invite the CO to participate in contract performance review meetings; provide insight into modifications needed, or, in instances of poor performance, what corrective actions are pursued
• Provide training to COTRs regarding performance measures and ways to incentivize the vendor to perform to the best of their abilities
• Ensure the CO receives and reviews monthly progress reports
• Provide Earned Value Management expertise and review reports to address variance in cost, schedule, and performance
• Use workload software for electronic contract files to management modifications, expenditures and deliverables; ensure that CO, COTR, and PM have access to software
Invoices are approved and processed within the
guidelines of the Prompt Pay Act
• Use an automated tickler system to track the process and approval of invoices
• Ensure that the vendor understands the format of and expectations for invoices
• Ensure that PMs understand their role in the review and approval of invoices through training and guidance
Closely monitor contractor performance to ensure
supplies/services are on time and budget
• Institute processes for formal, annual monitoring of technical performance, awareness of financial status, and mitigation of performance risks
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Points of Contact
Ginny Wydler703 377-5577
Ginny Wydler703 377-5577
Paul Tetrault703 917-2737
Paul Tetrault703 917-2737
Doug Zwiselsberger703-824-3783
Doug Zwiselsberger703-824-3783
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QUESTIONS?