SARA, SECTION 1423 ACQUISITION ADVISORY PANEL UPDATE NCMA Aerospace and Defense

1. SARA, SECTION 1423ACQUISITION ADVISORY PANEL UPDATE NCMA Aerospace and Defense Contract Management Conference July 28, 2005 Marcia G. MadsenChairAcquisition Advisory Panel

2. Statutory Authority Section 1423, Services Acquisition Reform Act of 2003 Review “all” Laws, Regulations and Government Policies Use of Commercial Practices Performance-Based Contracting Performance of Acquisition Functions Across Agency Lines of Responsibility Use of Governmentwide Contracts Submit Report to OFPP & Congress within 1 Year of Panel Establishment OMB Established AAP Feb 1, 2005

3. Panel Membership • Government • James “Ty” Hughes, Deputy General Counsel for Acquisition Policy, Air Force • Dee Lee, Director, Defense Procurement & Acquisition Policy • Tom Luedtke, Assistant Administrator for Procurement, NASA • David Javdan, General Counsel, Small Business Administration • Roger Waldron, Director, Acquisition Management Center, GSA • David Drabkin, Associate Administrator for Acquisition Policy, GSA • Industry • Marcia Madsen, Partner, Mayer, Brown, Rowe & Maw (Panel Chair) • Louis Addeo, President, AT&T Solutions • Allan Burman, President, Jefferson Solutions • Carl DeMaio, President, The Performance Institute • Marshall Doke, Jr., Partner, Gardere, Wynne, Sewell • Jonathan Etherton, Vice President, Legislative Affairs, Aerospace Industries • Academia • Joshua Schwartz, Professor/Co-Director Govt Law Program, GWU • Frank Anderson, President, Defense Acquisition University

4. Public Meetings Operating Procedures – IAW “4 Pillars” of Openness in Govt Statutes Federal Advisory Committee Act (FACA) (1972)) Freedom of Information Act (FOIA) (1976) Government in the Sunshine Act (1977) Public Records Act Public Meetings – Minimum of 1 Per Month Feb 9 - White House Conference Center Feb 28 - Department of Interior, DC Mar 30 – GSA, DC Apr 19 - FDIC, DC May 17 - FDIC, DC May 23 - Ft. Worth, TX Jun 14 – FDIC, DC Jul 12 – FDIC, DC Jul 27 – Long Beach, CA

5. Public Meetings Future Public Meetings Aug 18 – FDIC, DC Sept – Jan - TBD Near Term Schedule Goals: June 14 - Working Groups Have Scoped Issues (Done) End of July: Report Framework Established End of September: First Draft Very short time for completion

6. Working Groups Performance-Based Contracting Governmentwide Contracts and Interagency Vehicles Commercial Practices Federal Acquisition Workforce – cross cutting Small Business – cross cutting Inherently Governmental Functions/Personal Services (New)

7. Working Groups and Their Scope Performance-Based Contracting Definition? Who is using? How? Why? Expand on 7 Steps (flesh out) Broaden expectations on the project team Concept of solutions development (not “my mess for less”) Requirements Development Managing relationships - what is the value proposition for all parties? Focus on risk management Pricing Data – what should we be collecting? Hear from practitioners – ongoing Coming Soon: A straw man of the proposed process will be on the web site for comment.

8. Working Groups and Their Scope Government-wide Contracts & Interagency Contract Vehicles What are they? Schedules, GWACs, multi-agency contracts, Interagency contracting offices (franchise funds), related instruments (BPAs under schedules) Stakeholders Issue: Oversight and management of the landscape Why do agencies use them? Incentives and benefits from each stakeholder’s perspective, including industry (ease, economy, flexibility) Faster – Avoids oversight Issue: Do actual and perceived incentives translate into benefits for taxpayer? How do agencies use them? Acquisition strategies of contracts and order from each stakeholders’ perspective Private sector experience Issue: Securing taxpayer benefits through more effective planning, management and accountability

9. Working Groups and Their Scope Government-wide Contracts & Interagency Contract Vehicles (cont) How should agencies use them? Develop recommendations for changes to laws, regulations, and policies to: Establish overarching goals/acquisition planning to balance competing mandates Address systemic issues identified in GAO, IG and other reports Foster possible restructuring/reorganization/consolidation of programs and vehicles. Import appropriate best practices from private sector experience Address acquisition workforce issues Establish reliable and meaningful data collection to allow for effective management and oversight Next Steps: Connect identified issues with applicable laws, regs, and policies Collect and review agency and private sector practices - ongoing

10. Working Groups and Their Scope Commercial Practices Defining commercial item – commercial services DoD IG “Everything is Commercial” Identifying obstacles to using commercial practices Pre-award audits – should we? What types (price or cost build-up)? Impediments to real competition Contract administration for services Requirements definition and informing the decision model Evaluation factors Minimum Need (better vs. good enough) Questions posted to http://www.acqnet.gov/aap - Questions for Government Buying Agencies - Questions for Contractors that Sell Commercial Goods or Services to the Government - Proposal for Public Comment - Questions for Commercial Organizations

11. Working Groups and Their Scope Federal Acquisition Workforce Critical path stumbling block - Cannot be successful without a numerically and qualitatively “right” workforce - Programs that would ensure workforce is “right” are not in place - Demand side – workforce not keeping pace (1102s declining) - Acquisition reform made lower dollar acquisitions less complex but higher dollar acquisitions more complex - Buying more services than goods (80% if you exclude weapons systems) - Resources skewed to award not administer - Commercial practice training is lagging

12. Working Groups and Their Scope Federal Acquisition Workforce (cont) Initial Tasks Definition – WHO is the acquisition workforce Private Sector Experience What roles do we ask them to play? Data on numbers Status of agency human cap. Planning Systems: Acquisition Career Management Information System (ACMIS) Ethics

13. Working Groups and Their Scope Small Business Recognition that some issues are beyond the scope of this group Three primary areas of focus Accountability – acquisition planning strategies that afford small business participation Adequate guidance particularly related to interagency contracting vehicles Contract unbundling – to what extent are agencies engaged in unnecessary bundling? Small Business Access – fair competition for awards Multi-agency contracts – impact of proliferation on small business opportunity Cascading procurements – impact on small business to compete Integrity of subcontracting awards to small businesses Subcontracting plans – are there adequate mechanisms in place to ensure large primes comply? Prompt payment – are there adequate mechanisms in place to ensure that large primes pay promptly?

14. Public Meeting Activity February 28 – Working Groups Established March 30 – Initial Working Group Presentations June 14 – Working Groups scope issues Presenters: Government Accountability Office (GAO) DoD Inspector General (DoD IG) GSA Inspector General (GSA IG) Project on Government Oversight (POGO) Proctor & Gamble (P&G) Everest Group Shaw Pittman Basell USA United Technologies (UT) Technology Partners International Office of Government Ethics (OGE) Contract Services Association (CSA) Defense Industry Initiative (DII) Army & Air Force Exchange Service (AAFES) Small Businesses (@ Ft. Worth Meeting)

15. Meeting Activity Presenters (cont): FEDSIM ESI/Smart Buy DHS Army Gov Works Treasury Franchise Fund Aerospace Industries Association/Boeing Raytheon/Miratek Ronne Rogin – (Acquisition Solutions) Barbara Kinosky (Centre Consulting) Coast Guard Customer Advocacy & Assistance Team NCMA Space & Naval Warfare Systems Command Oracle Corporation GSA Small Business Government-wide Acquisition Contracts Center Science Applications International Corp. Northrop Grumman Corp. Naval Air Warfare Center (China Lake) Hollis Eden Corp.

17. Items of Interest Substantial Activity at Working Group Level Questions for Industry Questions for Government Buyers Questions for Commercial Buyers Proposal for Comment – No special preferences for Government in litigation Data Issues Proposed Legislation: Acquisition System Improvement Act – Proposes 1 Year AAP Extension DoD Authorization Act 2006

18. Acquisition Advisory Panel Website - http://www.acqnet.gov/aap