Solicitation: Incentivizing Performance - the Good, the Bad ...


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  • Slide 2 What does the FAR Say? The FAR gives us some guidance on pre-proposal conferences and site visits. Two kinds of situations : Government owned facilities Non-government owned facilities Best Practices : I will share some best practices that we have used that can help you plan and prepare for effective and meaningful pre-proposal conferences and site visits.
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  • Slide 4 The FAR says that a pre-proposal conference may be held to brief prospective offerors but the decision to hold a pre-proposal conference is up to the contracting officer. Usually it’s a good idea to hold a pre-proposal conference when you have a complex negotiated acquisition (like an A-76 acquisition). This gives you the opportunity to explain or clarify complicated requirements and in the case of A76, to explain how the process works. You also give prospective offerors a chance to ask questions. When do you hold a pre-proposal conference? After a solicitation has been issued and before offers are submitted. It is important to give all prospective offerors adequate notice of the time, place, and scope of the conference. We include a provision in our solicitations that gives notice of the pre-proposal conference and explains the purpose of the conference. We state: “The purpose of the conference is to provide the Government an opportunity to present solicitation terms and conditions, explain and provide clarity to the Agency’s expectation in performance, and respond to questions from prospective offerors.” We direct offerors to register for the conference and give a cut-off date for registration.
  • Slide 5 Request questions in advance If time allows, request questions in writing from prospective offerors in advance of the pre-proposal conference. Furnish all offerors identical information – make a complete record of the conference and furnish a copy to offerors
  • Slide 6 The key word here is SHALL . So, if the acquisition if for services to be performed on a Government installation, then a site visit must be conducted.
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  • Slide 10 Schedule Allow government personnel at host facility to actively participate in setting schedule and making preparations. Date should be after issue to give offerors enough time to get familiar with the requirements. Date should be before closing to give offerors enough time to see facilities and to prepare offer. Schedule site visit during off-duty hours. Registration Pre-registration Registration/sign in on day of site visit Name badges Directions/installation map route Directions to site Map showing route for site visit. Have planographs to pass out before visit. Security Issues Finalize list of attendees and forward to Security on site. Have picture ID for security check point.
  • Slide 11 Parking at site Assure ample visitor parking is available. If visitor parking is off-site, provide adequate busing from parking area to registration point. Transportation on the installation Provide adequate busing (air conditioned/heated) to transport attendees on site visit. Accommodating needs of attendees Rest room break areas along the tour. Water Weather – appropriate dress – comfortable shoes Hotel – Contractor attendees Hotel – Government attendees Government preparation of facilities Remove performance charts. Remove phone lists/name plates. Turn off computers. Safe guard sensitive materials.
  • Slide 12 The site visit is usually done in the morning before the pre-proposal conference. During Non-Duty Hours For example, the site-visit for contractors has been held on Sunday at 0800. Separate Site Visit for Source Selection officials Source selection officials may include members of the Source Selection Evaluation Board, Source Selection Advisory Council, Performance Risk Assessment Group. Gives government personnel opportunity to ask in depth questions about operations.
  • Slide 13 The pre-proposal conference is held after the site visit on the same day in the afternoon or on the next day in the morning. Pre-Proposal Conference - Purpose – present solicitation terms and conditions; to explain and provide clarity regarding the Government’s expectation in performance; and to respond to questions from prospective offerors. Process Overview Discuss key features of A-76. Discuss steps in the process (process flow). Discuss appeals, protests, acquisition issues, key features of a service contract. Overview of schedule. Review Entire RFP Cover each line item in Section B. Cover all the sections of the Performance Work Statement (Section C). Cover Sections E thru M of the solicitation. Automated Information System (AIS) Overview on Tape - About a 25 minute tape. Proposal Tips What to avoid (a proposal loaded with marketing and promotional materials / avoid a proposal that duplicates the solicitation / avoid generalities). Tips on oral presentation (not necessary to bring a lot of people – important to bring the right people / be specific – address “How”). Pre-Proposal Information posted on the Internet All briefing charts and a list of contractor attendees is posted on our WEB site after the conference. Questions and answers are formalized in an amendment.
  • Amendments are follow-on to the original RFP/Solicitation Initial issuance portrays the government’s specific needs for items and/or services The objective of these A-76 competitions is to identify the most efficient and effective manner to performance such services. The responsibilities that lies on the Contracting Officer shoulders are …
  • Normally, an initial amendment will be issues after the Pre-Proposal Conference where we invite industry at large to view the facilities where the requirements will be performed. Inevitably questions are generated
  • Post-closing amendments are the results of …..
  • Solicitation: Incentivizing Performance - the Good, the Bad ...

    1. 1. The Solicitation Presented by: DLA A-76 Contracting Support Office Deborah Raita June 9, 2004
    2. 2. The Solicitation <ul><li>Contents </li></ul><ul><li>Incentivizing performance – the good, the bad, and the ugly </li></ul><ul><li>Pre-proposal conferences </li></ul><ul><li>Amendments </li></ul><ul><li>CTTO (BVO) vs. LPTA </li></ul><ul><li>Proposals and proposal revisions </li></ul>
    3. 3. Requests for Proposals <ul><li>Used in negotiated acquisitions </li></ul><ul><li>Communicate requirements to prospective offerors and solicit offers – describe the </li></ul><ul><ul><li>Government’s requirements </li></ul></ul><ul><ul><li>Terms and conditions that apply to the contract </li></ul></ul><ul><ul><li>Proposal contents </li></ul></ul><ul><ul><li>Factors used in evaluating proposals </li></ul></ul>
    4. 4. Contents - UCF <ul><li>Part I – The Schedule </li></ul><ul><ul><li>A – Solicitation/Contract Form </li></ul></ul><ul><ul><li>B – Supplies or Services and Prices/Costs </li></ul></ul><ul><ul><li>C – Performance Work Statement </li></ul></ul><ul><ul><li>D – Packaging and Marking </li></ul></ul><ul><ul><li>E – Inspection and Acceptance </li></ul></ul><ul><ul><li>F – Deliveries or Performance </li></ul></ul><ul><ul><li>G – Contract Administration Data </li></ul></ul><ul><ul><li>H – Special Contract Requirements </li></ul></ul>
    5. 5. Contents – UCF (cont’d.) <ul><li>Part II – Contract Clauses </li></ul><ul><ul><li>I – Contract Clauses </li></ul></ul><ul><li>Part III – List of Documents, Exhibits, and Other Attachments </li></ul><ul><ul><li>J – List of Attachments </li></ul></ul><ul><li>Part IV – Representations and Instructions </li></ul><ul><ul><li>K – Representations, Certifications & Other Statements </li></ul></ul><ul><ul><li>L – Instructions, Conditions, and Notices to Offerors </li></ul></ul><ul><ul><li>M – Evaluation Factors for Award </li></ul></ul>
    6. 6. Incentivizing Performance – the good, the bad, and the ugly
    7. 7. Performance-Based <ul><li>Outcomes </li></ul><ul><li>Acceptable performance levels (APLs) </li></ul><ul><ul><li>Timeliness </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><li>Performance measures </li></ul><ul><ul><li>Discrete </li></ul></ul><ul><ul><li>Quantifiable </li></ul></ul><ul><ul><li>Measurable </li></ul></ul>“ You get what you measure”
    8. 8. Incentive Contracts <ul><li>Establish reasonable and attainable targets that are clearly communicated to the offerors </li></ul><ul><li>Include appropriate incentive arrangements designed to: </li></ul><ul><ul><li>Motivate efforts that might not otherwise be emphasized </li></ul></ul><ul><ul><li>Discourage inefficiency and waste </li></ul></ul><ul><li>Incentives may apply to: </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Delivery </li></ul></ul>“ You emphasize what you reward”
    9. 9. Application of Incentives <ul><li>Cost – motivate the contractor to effectively manage costs; cost-type contracts </li></ul><ul><li>Performance – relate to results achieved by the contractor </li></ul><ul><ul><li>“ To the maximum extent practicable, positive and negative performance incentives shall be considered in connection with service contracts for performance of objectively measurable tasks when quality of performance is critical and incentives are likely to motivate the contractor.” [FAR 16.402-2(b)] </li></ul></ul><ul><li>Delivery – improvement from delivery schedule </li></ul>
    10. 10. Performance Incentives <ul><li>Time </li></ul><ul><ul><li>Positive: longer-term relationship with the Gov’t. </li></ul></ul><ul><ul><ul><li>Option periods </li></ul></ul></ul><ul><ul><ul><li>Award term periods </li></ul></ul></ul><ul><ul><li>Negative: shorter-term relationship with the Gov’t. </li></ul></ul><ul><ul><ul><li>Option periods </li></ul></ul></ul><ul><ul><ul><li>Termination for default (T4D) or convenience (T4C) </li></ul></ul></ul>
    11. 11. Performance Incentives <ul><li>Money – incentive on performance requirements that provide a reasonable opportunity for the incentives to have a meaningful impact on the contractor’s management of the work </li></ul><ul><ul><li>Positive: “bonus” for performance that exceeds stated requirements </li></ul></ul><ul><ul><li>Negative: “price reduction” for performance that falls below stated requirements </li></ul></ul>
    12. 12. Pre-Proposal Conferences & Site Visits Presented by: Doug Dapo Contract Specialist June 9, 2004
    13. 13. Pre-Proposal Conferences & Site Visits <ul><li>What does the FAR say? </li></ul><ul><li>Two kinds of situations </li></ul><ul><li>Best practices </li></ul>
    14. 14. Pre-Proposal Conferences & Site Visits <ul><li>What does the FAR say? </li></ul>
    15. 15. Pre-Proposal Conferences FAR 15.409 <ul><li>Not mandatory – decision of contracting officer </li></ul><ul><li>Used in complex negotiated acquisitions to explain or clarify requirements </li></ul><ul><li>Brief prospective offerors after solicitation issued but before offers submitted </li></ul><ul><li>Give all prospective offerors who received solicitation adequate notice of pre-proposal conference </li></ul>
    16. 16. Pre-Proposal Conferences FAR 15.409 <ul><li>Request questions in advance </li></ul><ul><li>Furnish all prospective offerors identical information </li></ul><ul><li>Make a complete record of the conference and furnish a copy to all prospective offerors </li></ul><ul><li>Remarks and explanations at conference do not qualify the terms of the solicitation </li></ul>
    17. 17. Site Visits FAR 37.110 (a), 52.237-1 <ul><li>FAR 37.110 (a): The contracting officer shall insert the provision at 52.237-1, Site Visit, in solicitations for services to be performed on Government installations, unless the solicitation is for construction. </li></ul>
    18. 18. Site Visits FAR 37.110 (a), 52.237-1 <ul><li>FAR 52.237-1: Offerors or quoters are urged and expected to inspect the site where services are to be performed and to satisfy themselves regarding all general and local conditions that may affect the cost of contract performance, to the extent that the information is reasonably obtainable. In no event shall failure to inspect the site constitute grounds for a claim after contract award. </li></ul>
    19. 19. Two Kinds of Situations <ul><li>Government owned facilities </li></ul><ul><ul><li>Site visit </li></ul></ul><ul><ul><li>Pre-proposal conference </li></ul></ul><ul><ul><li>More pre-planning required </li></ul></ul><ul><li>Non-government owned facilities </li></ul><ul><ul><li>No site visit </li></ul></ul><ul><ul><li>Pre-proposal conference </li></ul></ul><ul><ul><li>Less pre-planning required </li></ul></ul>
    20. 20. Site Visit at Government Owned Facilities <ul><ul><li>Pre-Planning is the key! </li></ul></ul>
    21. 21. Site Visit at Government Owned Facilities <ul><li>Site Visit Pre-planning </li></ul><ul><ul><li>Schedule </li></ul></ul><ul><ul><li>Registration </li></ul></ul><ul><ul><li>Directions/installation map route </li></ul></ul><ul><ul><li>Security issues </li></ul></ul>
    22. 22. Site Visit at Government- Owned Facilities <ul><li>Site Visit Pre-planning – (continued) </li></ul><ul><ul><li>Parking at site </li></ul></ul><ul><ul><li>Transportation on the installation </li></ul></ul><ul><ul><li>Accommodating needs of attendees </li></ul></ul><ul><ul><li>Government preparation of facilities </li></ul></ul>
    23. 23. Best Practices <ul><li>Combining the site visit with the pre-proposal conference </li></ul><ul><li>Site Visit </li></ul><ul><ul><li>During off-duty days/hours </li></ul></ul><ul><ul><li>Move together as a group </li></ul></ul><ul><ul><li>Take note of any questions and answers </li></ul></ul><ul><ul><li>A separate site tour for source selection officials </li></ul></ul>
    24. 24. Best Practices <ul><li>Combining the site visit with the pre-proposal conference </li></ul><ul><li>Pre-proposal conference </li></ul><ul><ul><li>Process overview followed by Q & A </li></ul></ul><ul><ul><li>Review entire RFP followed by Q & A </li></ul></ul><ul><ul><li>AIS overview (as applicable) on tape followed by Q & A </li></ul></ul><ul><ul><li>Proposal tips followed by Q & A </li></ul></ul><ul><ul><li>Pre-proposal information posted on the Internet </li></ul></ul>
    25. 25. Amendments Presented by: Pauline Bradley, Contract Specialist DLA A-76 Contracting Support Office June 9, 2004
    26. 26. What Comes First <ul><li>Request for Proposal (RFP)/Solicitation </li></ul><ul><ul><li>Agency needs are established </li></ul></ul><ul><ul><li>A-76 goal is to obtain the most efficient and effective manner to accomplish the requirements </li></ul></ul><ul><li>The Contracting Officer shall ensure that the criteria/requirements in the solicitation </li></ul><ul><ul><li>Reflect the minimum needs of the agency </li></ul></ul><ul><ul><li>Include the description of the requirement to satisfy agency needs – Performance Work Statement </li></ul></ul><ul><ul><li>Are contractible </li></ul></ul>
    27. 27. Amendments <ul><li>IAW FAR 15.206, when the Government changes its requirements or terms and conditions, the contracting officer shall amend the solicitation. </li></ul><ul><li>Standard Form 30 (SF30) – Amendment of Solicitation/ Modification of Contract </li></ul><ul><li>Communications between the requiring activity and the contracting office. </li></ul>
    28. 28. Amendments <ul><li>Formal communications between industry and the contracting office are addressed in the RFP </li></ul><ul><li>IAW Section L of the RFP: </li></ul><ul><ul><li>Communications prior to proposal submission may occur for the purpose of clarifying elements of the solicitation. </li></ul></ul><ul><ul><li>Requests for clarification and/or information concerning a solicitation shall be submitted in writing either by mail, fax, or electronic mail </li></ul></ul><ul><ul><li>Provided to all potential offerors </li></ul></ul>
    29. 29. Contents <ul><li>At a minimum, the following information is included in each amendment as described on the SF30: </li></ul><ul><ul><li>Name and address of issuing activity </li></ul></ul><ul><ul><li>Solicitation number and date </li></ul></ul><ul><ul><li>Amendment number and date </li></ul></ul><ul><ul><li>Number of pages </li></ul></ul><ul><ul><li>Description of the change being made </li></ul></ul><ul><ul><li>Government point of contact and phone number (and electronic or facsimile address, if appropriate) </li></ul></ul><ul><ul><li>Revision to solicitation closing date, if applicable </li></ul></ul>
    30. 30. Reasons to Amend <ul><li>Answer questions </li></ul><ul><li>Change (amend) the requirements </li></ul><ul><ul><li>Revisions </li></ul></ul><ul><ul><li>New requirements </li></ul></ul><ul><li>Update the RFP </li></ul><ul><ul><li>Clauses </li></ul></ul><ul><ul><li>Provisions </li></ul></ul><ul><ul><li>RFP data </li></ul></ul><ul><ul><li>Wage Determinations </li></ul></ul>
    31. 31. Amendments after Closing <ul><li>Reasons </li></ul><ul><ul><li>Change (amend) the requirements </li></ul></ul><ul><ul><li>Update the RFP </li></ul></ul><ul><li>Call for proposal revisions as a result of discussions/ negotiations; establish a common closing date for revisions </li></ul><ul><li>Address technical leveling issues (old Circular only) </li></ul>
    32. 32. Distribution <ul><li>Dissemination of amendments issued prior to RFP closing </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Issued to all parties receiving the solicitation. </li></ul></ul><ul><li>Dissemination of amendments issued after RFP closing </li></ul><ul><ul><li>Restricted to offerors in the competitive range </li></ul></ul>
    33. 33. Considerations for Amendments after Closing <ul><li>Risk to the requiring activity by not amending </li></ul><ul><li>Impact on contract enforceability </li></ul><ul><li>Impact on scope </li></ul><ul><li>Impact on the schedule </li></ul><ul><li>Amendment vs. modification </li></ul>
    34. 34. CTTO vs. LPTA Presented by: Deborah Raita DLA A-76 Contracting Support Office June 9, 2004
    35. 35. Best Value Continuum <ul><li>Lowest price technically acceptable (LPTA) </li></ul><ul><li>May include evaluation of past performance </li></ul><ul><li>Tradeoffs are not permitted </li></ul><ul><li>Proposals are evaluated but not ranked </li></ul><ul><li>Exchanges may occur </li></ul><ul><li>Cost/Technical Tradeoff (CTTO) </li></ul><ul><li>May award to other than lowest-price </li></ul><ul><li>Evaluation factors included in solicitation </li></ul><ul><li>State if price =, >, < other factors combined </li></ul><ul><li>Trade off cost/price for non-cost factor(s) </li></ul>
    36. 36. Policy <ul><li>“ Old” circular </li></ul><ul><ul><li>CTTO or LPTA </li></ul></ul><ul><ul><li>Final shoot-out between LP/BVO and MEO </li></ul></ul><ul><li>New circular </li></ul><ul><ul><li>CTTO, phased evaluation, LPTA </li></ul></ul><ul><ul><li>Commercial offers and MEO evaluated together </li></ul></ul>
    37. 37. CTTO <ul><li>Limited to information technology activities, commercial activities performed by a private sector source, new requirements, and segregable expansions </li></ul><ul><li>Agency may select other than lowest-priced offer or tender only if the decision is within the agency’s budget </li></ul><ul><li>Offerors may propose alternate performance standards that differ from the solicitation’s performance standards </li></ul><ul><li>Requires price analysis and cost realism </li></ul><ul><li>KO may conduct exchanges </li></ul>
    38. 38. Phased Evaluation <ul><li>Phase 1: technical capability; Phase 2: cost </li></ul><ul><li>Performance decision based on the lowest cost of all technically acceptable offers and tenders </li></ul><ul><li>Separate technical and cost proposals/estimates submitted by the solicitation closing date; may propose alternate performance standards </li></ul><ul><li>KO may conduct exchanges to determine the technical acceptability of each offer and tender </li></ul><ul><ul><li>KO amends solicitation performance standard(s) and requests resubmission of offers and tenders </li></ul></ul><ul><ul><li>Select LPTA offer </li></ul></ul>
    39. 39. LPTA <ul><li>KO evaluates all offers and tenders to determine technical acceptability </li></ul><ul><li>Performance decision based on the lowest cost of all offers and tenders determined to be technically acceptable </li></ul><ul><li>Requires price analysis and cost realism </li></ul><ul><li>KO may conduct exchanges </li></ul>
    40. 40. Proposals and Revisions
    41. 41. Section L <ul><li>Instructions, Conditions, and Notices to Offerors </li></ul><ul><li>Communications </li></ul><ul><ul><li>Questions </li></ul></ul><ul><ul><li>Pre-proposal conference and site tour </li></ul></ul><ul><ul><li>Proposal mailing/delivery </li></ul></ul><ul><li>Intention to award with/without discussions </li></ul><ul><li>Written proposal format; e.g., # of pages, organization, limitations, # of copies, etc. </li></ul><ul><li>Oral presentation format – who, what, where, when, how </li></ul>
    42. 42. Section L (Cont’d.) <ul><li>Proposal contents </li></ul><ul><ul><li>Price – data, spreadsheets, Schedule B, explanation of costs </li></ul></ul><ul><ul><li>Past performance (commercial offerors only) </li></ul></ul><ul><ul><li>Technical </li></ul></ul><ul><ul><ul><li>Oral presentation </li></ul></ul></ul><ul><ul><ul><li>Written proposal </li></ul></ul></ul><ul><ul><li>Socioeconomic, Javits-Wagner-O’Day (JWOD) Act entity participation, DLA Mentoring Business Agreements (MBA) program participation (commercial offerors only) </li></ul></ul>
    43. 43. Proposal Requirements in A-76 <ul><li>Shall include: </li></ul><ul><ul><li>Phase-in plan </li></ul></ul><ul><ul><li>Quality control plan </li></ul></ul><ul><li>Agency tender shall not include: </li></ul><ul><ul><li>Labor strike plan </li></ul></ul><ul><ul><li>Small business strategy </li></ul></ul><ul><ul><li>Subcontracting plan goal </li></ul></ul><ul><ul><li>Participation of SDBs </li></ul></ul><ul><ul><li>Licensing or other certifications </li></ul></ul><ul><ul><li>Past performance information </li></ul></ul>
    44. 44. Section M <ul><li>Evaluation Factors for Award </li></ul><ul><li>Evaluation is the assessment of the proposal and the offeror’s ability to perform the contract successfully </li></ul><ul><li>Evaluation reports document relative strengths, deficiencies, significant weaknesses and risks </li></ul><ul><li>Sections L and M work together – proposal requirements must map to evaluation factors: price, past performance, technical, socioeconomic programs </li></ul>
    45. 45. Agency Tender Evaluation <ul><li>Price </li></ul><ul><ul><li>Circular requires the KO perform price analysis and cost realism (costs are realistic, reflect a clear understanding of the requirements, are consistent with the technical proposal) </li></ul></ul><ul><ul><li>KO responsible for ensuring the agency tender: </li></ul></ul><ul><ul><ul><li>Calculated costs IAW Attachment C </li></ul></ul></ul><ul><ul><ul><li>Bases costs on the standard cost factors in effect on the performance decision date </li></ul></ul></ul><ul><ul><ul><li>Uses the COMPARE version in effect on the performance decision date </li></ul></ul></ul>
    46. 46. Agency Tender Evaluation (Cont’d.) <ul><li>Technical </li></ul><ul><ul><li>Evaluation performed by the Source Selection Evaluation Board (SSEB) </li></ul></ul><ul><ul><li>All offers evaluated concurrently </li></ul></ul>
    47. 47. Changes to the Agency Tender <ul><li>Made in response to: </li></ul><ul><li>Solicitation amendment </li></ul><ul><li>Request for proposal revisions </li></ul><ul><li>Changes to the standard cost factors </li></ul><ul><li>Upgrade to COMPARE version </li></ul><ul><li>Resolution of a contest challenging the performance decision </li></ul>
    48. 48. Discussions <ul><li>Discussions (negotiations) are exchanges to allow the offeror to revise its proposal </li></ul><ul><li>Tailored to each offeror’s proposal </li></ul><ul><li>Conducted with each offeror in the competitive range </li></ul><ul><li>“ Evaluation notices (ENs)” identify proposal deficiencies, weaknesses, and other aspects of the proposal that could be altered or explained to improve the offeror’s potential for award </li></ul><ul><li>ENs are provided to the offeror one or more days prior to telephonic discussions </li></ul><ul><li>“ Speak now or forever hold your peace” </li></ul>
    49. 49. Revisions <ul><li>An amendment is issued concluding discussions and establishing a date for receipt of proposal revisions </li></ul><ul><li>Revisions must be submitted in accordance with the original RFP or as amended </li></ul><ul><li>Revisions are evaluated in the same manner as the original proposal </li></ul>
    50. 50. So, at the end of the day…