Deltek Insight 2011: The Federal Procurement Process Revealed

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  • Task / Delivery Order = A document or other action which initiates a delivery of goods, services, or construction authorized by a contracting officer or authorized government official, under an existing contract which establishes terms, price and source of supply.
  • More information on the SBA 8(a) program - http://www.sba.gov/aboutsba/sbaprograms/8abd/index.html
  • In the performance-based approach, an agency says what problem needs to be solved and allows contractors to make bids detailing their proposed solutions. The agency is charged with developing clear ways to measure the result as well as the contractors' performance over the course of the contract.Federal Acquisition Regulation (FAR)The FAR codifies acquisition of supplies and services by executive agencies. Defense Federal Acquisition Regulation Supplement Additional Regulation Supplements and Resources
  • Deltek Insight 2011: The Federal Procurement Process Revealed

    1. 1. BD - 100:The Federal ProcurementProcess RevealedInsight 2011Presented by Brian Haney, Senior Vice President, Deltek
    2. 2. Enabling Success Project Human Financial Project Manufacturing Resources Management Management Do More Teaming Win More Market Intelligence Solutions CRM and Capture Management Know More Business Performance Management Winning More Increasing Project Improving Cash Reducing the Cost Business Visibility Flow of Compliance2 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    3. 3. Win More Project Human Financial Project Manufacturing Resources Management Management Do More Teaming Win More Market Intelligence Solutions CRM and Capture Management Know More Business Performance Management Opportunity Proposal Customer & Teaming Identification Development Pipeline Mgmt3 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    4. 4. Budget Formulation to EnactmentFiscal Year 2011 Budget Cycle 4
    5. 5. The Agency Role 5
    6. 6. 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 6
    7. 7. 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 7
    8. 8. The OMB Role 8
    9. 9. 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 9
    10. 10. The Congressional Role 10
    11. 11. Budget and Appropriations Committees The White House • President’s Budget House & Senate Appropriations Committees Views & Estimates • Full Committees make 302(b) sub allocations to their respective subcommittees Separate House & Senate Appropriations Bills Agriculture & Rural Development District of Columbia Commerce, Justice & Science Energy and Water Military Construction & Vet Aff. Homeland Security State & Foreign Operations Interior Transportation, Treasury & Judiciary Labor, HHS, Education Housing & Urban Development Legislative branch Defense House & Senate Appropriations Subcommittees • Hold Hearings Appropriations Bills Conference reports • Adopt conference reports and send to President for signature 11
    12. 12. 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 12
    13. 13. After Appropriation 13
    14. 14. 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 14
    15. 15. Contract Formulation 15
    16. 16. Summary – The Government Buying and Vendor Selling ProcessVision & Key Players Requirement Drivers Determine FundingNeed Go Forward?Qualify Evaluate Customer Evaluate Opportunity Evaluate CompetitionOpportunityProcurementStrategy Research Regulations Buying Approach/Mechanism SolicitationCapture CaptureStrategy Resources Themes Risks/Financials TeamingSolicitation Answer Questions Industry Days/Site Visits Submit RFP Proposal/ RFQ/TO QuoteResponse Legal/Risks Approach Pricing Production KeyPost Orals BAFO Down- Debriefs AWARD GovernmentSubmission Industry select DECISION
    17. 17. Requirements and the Acquisition Lifecycle 17
    18. 18. How Program Requirements Make It Into theFederal Budget Program Ex 53 (for IT) Office OMB (Customer) Ex 300 Program Congressional President’s Office Approval Budget (Customer) Remember! The Contracting Office is the Buyer FOR the Program Office. The Contracting Office is rarely the Contracting customer and it rarely has the Office (Buyer) requirement being fulfilled.
    19. 19. 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!)
    20. 20. Determining an Acquisition Strategy andSelecting 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
    21. 21. Determining an Acquisition Strategy andSelecting a Contracting Method 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 21
    22. 22. 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)
    23. 23. Government Acquisition Trends Purchases on IDIQs have been rising due Purchases on GSA to lower fees and Schedules have been simpler acquisition. declining due to fees.
    24. 24. Solicitation Development and Release 24
    25. 25. 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
    26. 26. 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?)
    27. 27. Avenues for Releasing Pre-SolicitationNotices 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
    28. 28. 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.
    29. 29. 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
    30. 30. Award and Contract Administration 30
    31. 31. 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
    32. 32. 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
    33. 33. 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).
    34. 34. 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)
    35. 35. Don’t Forget!Exclusive Events at Insightfor Business Development Attendees:Tuesday, May 17, 2011•Federal Teaming Expo from 6:00pm to 7:30pm in the Expo HallAll teaming expo attendees will be entered in a drawing to win an iPad. Winners will beannounced at the BD reception (must be present to win).•Business Development Reception from 7:30pm to 9:30pm in the MagnoliaBallroom Winners of iPad drawing will be announced at 8:00 pm and 8:30 pm at the BD Reception (must be present to win). 35
    36. 36. Q&A www.twitter.com/deltek www.facebook.com/deltekinc www.linkedin.com/company/163414 www.youtube.com/user/deltekinc36 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved

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