Subcontracting 101

1. David Dobry Director, L-3 Communications Command and Control Systems & Software, Charleston C4ISR Engineering Services Branch Board of Directors, Charleston Defense Contractor�s Association (CDCA) Chairman, CDCA Subcommittee on Small Business Webmaster, CDCA Website (charlestondca.org); Charleston Small Business Portal (charlestonsb.org) Office: 843-824-2227 Mobile: 843-818-9976 david.dobry@l-3com.com Subcontracting �101�

2. To Bid, or not to Bid? If the RFP is out, it�s too late. Identify opportunities as early as possible Active contracts listings Award Announcements (defenselink.mil, SEAPORT-e) Assess competition Build or join �Dream Team� Who does the end customer want? Bottom Line: Get as close to the opportunity as you can, as early as possible

3. Common Impacts of Mergers and Acquisitions �Collection of Small Companies� mindset No common processes for business development Inability to effectively leverage combined strength of new company Redundant, uncoordinated marketing Blurred brand image in the marketplace Management attention becomes internally focused Cost of business development increases

4. What Other Companies Have Done Formed integrated project teams to assess best business development practices across legacy companies Created new unified business development processes�incorporating the �best of the best� Implemented unified business development processes to achieve CMMI Level 3 - 5 maturity Trained capture and proposal professionals in new unified business development processes

5. General Dynamics Conducted assessment of business development processes Formed IPT to identify best practices and develop common processes Created Business Development Process Handbook supported by LiveLink? Training business developers

6. Northrop Grumman Conducted assessment of ISS Sector Formed cross-sector IPT to identify best practices and tailorable common process Created process guide�A Shared Framework for Winning Business Implemented intranet website Trained executive staff Training business developers

7. Lockheed Martin LM Information Systems and LM Mission Systems developed standardized business development processes LM-MS process guide (Capturing New Business) received ISO 9001 certification

8. Raytheon IPT created Capture/Proposal Process Guide Included supporting tools on CD ROM Training based on Discussion Manual Training augmented with business school Case Study Manual Have trained for over 800 Capture Managers

9. Rosetta Stone Chart

11. Common Processes for Opportunities NDA Capture Team Selection Process Added Value to Customer Capabilities Matrix Capabilities/Past Performance Statement (Why me?) Based on Specific Opportunity TA Corporate Experience (for significant subs) Cost bogey Proposal & Review Team Support

12. Basic SSC bid requirements for SB Corporate Experience $3M Value 3 � 5 year currency 3 � 5 submissions, 5 � 10 pages Past Performance CPARS, PPIRS, or Questionnaire Personnel Resumes 2 Pages ea. Cost DCAA approved rates

13. Pipelines � Essential Tools Build a pipeline outlining future opportunities from 1 � 5 years out SSC e-commerce SEAPORT-E �For Fee� bidders lists (Last choice) Execute capture activities to your pipeline Build a capture plan Capture plan becomes gate review packages Opportunity �Notebook�

14. Assessing Your Capabilities Who are you and why are you? What the customer will get: products, configurations, capabilities, resources, services, effort, accomplishments/results, deliverables How it will benefit them How you manage delivery/fulfillment How long it takes Risks and what you do to mitigate them Who works on what project Who manages what project Your company's experience with similar projects References/testimonials How you ensure quality and customer satisfaction How you know/measure success What will the customer will have to do or supply Options they can select from Future considerations Other relevant capabilities, resources of your company

15. Knowing your Competition Bidder�s Lists Utilize local bidder�s lists (SSC e-Commerce) �For Fee� bidder�s lists often inaccurate Industry Day Rosters Usually published online Membership Rosters CDCA, AFCEA, etc.

16. Comparing the Competition

17. Strategic Partnerships �Strategic Partners� Other Companies Other Customers Teammates Customers Strategic Partnering brings work to your customers New work = New Business �A critical SSC-Charleston objective is the development of strong strategic partnerships with other Federal agencies and organizations that are integral to the Enterprise initiatives across the Navy, DoD, and Federal/Homeland Defense.�

18. To Bid, or not to Bid? If the RFP is out, it�s too late. Identify opportunities as early as possible Active contracts listings Award Announcements (defenselink.mil, SEAPORT-e) Assess competition Build or join �Dream Team� Who does the end customer want? Bottom Line: Get as close to the opportunity as you can, as early as possible

19. Local Websites https://e-commerce.spawar.navy.mil http://www.charlestondca.org http://charlestonsb.org

20. Charlestonsb.org

21. Datasheet Library

22. Page At a Glance

23. Outlines capabilities, contracts, subcontracts, customers Use format of example � marketing slicks won�t work. Submit to webmaster@charlestondca.org Once published, we�ll request username and password from you. Send any updates to webmaster

24. Backup Slides Types of Gov�t Contracts Pre-Solicitation Activities Understanding a RFP RFP Sections Proposal Basics Essential Proposal Development Activities

25. Types of Gov�t Contracts Time and Materials (T&M). Payments are based on hourly rates and costs of materials used, up to a not-to-exceed amount. Cost-Reimbursement. Reimburses the Contractor for incurred costs. This pricing arrangement enables contractors to take on financial risk, but it provides little incentive to control costs. Cost-Plus-Fixed-Fee (CPFF). Reimburses the Contractor for costs and adds a negotiated fee (i.e., fixed dollar amount or percentage). Cost-Plus-Incentive-Fee (CPIF). Reimburses the Contractor for costs and adds a negotiated fee, which is adjusted by a formula based on target costs, providing an incentive to keep costs low. Note: This type of contract may also include fee adjustment as an incentive for the Contractor to meet or surpass negotiated performance targets. Cost-Plus-Award-Fee (CPAF). Consists of a base fee (which may be zero) and an award fee, determined at periodic milestones set forth in the Contract. Firm-Fixed Price (FFP). The price is set and fixed by unit of product or measure. FFP contracts impose the maximum risk on the Contractor and minimum administrative burden on the customer. Fixed-Price Contract with Escalation (FPE). Establishes a fixed contract price, but provides for adjustment based on specified contingencies, such as an economic price adjustment. Fixed-Price Incentive (FPI). A fixed-price contract that provides for adjusting profit and establishing the final contract price by application of a formula based on the total target cost.

26. Pre-Solicitation Activities Being prepared ahead of RFP release means more than having had a meeting with the client and anticipating when the RFP will come out. Here is a list of information that you can collect in advance. If you have all of this on the day of RFP release you will be much better prepared to write the winning proposal. Features/Benefits, discriminators, and key points. What will be the key features of your approach? Be sure to include the corresponding benefits to the customer for each. Highlight things that will discriminate you from your competitors. Competitive Issues. List all known competitors, by name or category. Include their strengths and weaknesses. Address how to ghost their weaknesses. Identify which are potential teaming partners. Risk Mitigation. Identify key sources of risk (both in bidding and in performance) and your approach to mitigate each. Address how risk can potentially impact performance, cost, and schedule and what you will do to prevent it. Relevant Corporate Experience. List any projects that are relevant to this one. Include as many details as possible. Highlight sound bites that can be incorporated into the proposal response. Past performance. Survey your clients yourself so that you are aware of how they will respond to a past performance inquiry. Make sure the contact data you have is current. Identify Graphics/Illustrations. Prepare a list of graphics, illustrations, or photographs that will go into your response. Key processes, relationships, structures, and diagrams should all be on the list. Components of the Solution/Approach. Identify the key aspects of the solution or approach to be proposed. If specific products or technologies are involved, identify them. If a project is to be followed, identify the steps. Client data. Client organization charts, mission statements, budgets, strategic plans, relevant standards that must be complied with, sources of internal and external pressure, client preferences, and your best guesses regard who will participate in the evaluation.

27. Understanding a RFP What is an RFP? RFP is an acronym for Request for Proposal. RFPs describe a task or project that must be completed (the contract), establish competition and evaluation guidelines, and ask all qualified contractors to submit a proposal (a bid) to complete the work. RFPs are legally binding documents. They are not contracts, but they are considered (under the law) to be the foundation of a contract between two parties. Any information contained in an RFP should be reviewed for factual and technical accuracy before it is released to the public. RFPs are often used to encourage open public bidding for contract work. In this case, RFP creation, publication, and distribution is part of a legal bidding process that must be fair and impartial. Similarly, the contract evaluation and award process must be fair and free from bias, misrepresentation, or corruption.

28. RFP Structure � Section A Section A�Solicitation/Contract Form Standard Form (SF) 33 is used to solicit offers, make an offer, and award a contract. The SF 33 should be the first page of the RFP. It has three parts, preceded by information on the top of the form identifying the issuing contracting officer (Block 7), telling where and when to submit proposals (Blocks 8 and 9), and whom to contact for more information (Block 10). The first major part (Block 11) is a table of contents for the RFP that indicates how many pages there are in each section. The second part (Blocks 12 through 18) is to be filled out by offerors and signed by a person with signature authority (i.e., is authorized to enter into contracts on behalf of the company). The form provides a space for the offeror to specify any discounts for prompt payment and a space to indicate the acceptance period during which the proposal is valid. It also provides a place for the offeror to acknowledge RFP amendments; offerors usually must either acknowledge receipt of all amendments on the SF 33, or sign and return a copy of each amendment with the proposal. Failure to comply will result in the bid being declared non-responsive. The third part of the form is for the contracting officer to sign if he chooses to accept the proposal; his signature creates a binding contract.

29. RFP Structure Section B�Supplies or Services and Prices/Costs Section B lists contract deliverables and is where the offeror enters prices. Section C�Description/Specifications/Work Statement The meat of the contract, the technical requirement, is stated here. It should be an elaboration of the descriptions of deliverables in Section B. It may reference specifications, standards, drawings, technical data packages, etc. By regulation this section can state no more than the Government�s minimum need. Section D�Packaging and Marking This section has no specified content. The agency will describe whatever packing, packaging, and marking requirements are necessary to ensure that deliverables arrive at their destination in good condition. Government specifications may be referenced. Section E�Inspection and Acceptance This section contains inspection and acceptance instructions and location. It may also contain one of three levels of quality assurance clauses prescribed by the FAR. The levels ranges from reliance on the contractor�s commercial practices, to detailed specifications for a contractor quality assurance program.

30. RFP Structure Section F�Deliveries or Performance This section contains the date(s), term(s), and place(s) of delivery or services performance. It also contains any clauses regarding liquidated damages, variations in quantity, stop work orders, suspension of work, Government delays of work, or instructions about the defense priorities and allocations system. Section G�Contract Administration Data Section G has no specific content requirements except the citation of the appropriation account code for contract funds. Some agencies put information in G that others put in H, such as invoicing procedures and instructions or identity and limits of authority of contracting officer�s technical representatives.

31. RFP Structure Section H�Special Contract Requirements This section contains all the customized provisions that apply to the procurement�for example, terms for options, provisions for multi-year contracting, and any applicable Service Contract Act wage determination, economic price adjustment provisions, or other provision that governs the contract and does not fit into any of the other sections. FAR instructions are unclear as to what is to be included in this section. Any clauses placed here deserve careful analysis by the core team and contracts administrator. These clauses are usually unique to the agency or contract and may reflect bad experiences under similar contracts in the past. They may not be well written and could be ambiguous. However, the agency may be suspicious of an offeror�s motives in trying to negotiate removal of any of them. Section I�Contract Clauses These clauses are required by law or regulation. They are usually boilerplate and are incorporated by reference to the FAR or FAR supplements. Most boilerplate clauses are well written and have been the subject of litigation, so judicial interpretation of their meanings has been established.

32. RFP Structure Section J�List of Attachments This is a list of all the documents that are too long to be conveniently inserted into the RFP in full text. When you receive the RFP, make sure you check Section J to ensure that you have all of the attachments. Some agencies include the Section C statement of work (SOW) as an attachment. Section K�Representations, Certifications, and Other Statements of Offerors This section contains certifications that offerors must make to establish eligibility for a contract and to provide the Government with statistical data. An error in preparation of such data could result in determination of ineligibility or in an investigation (because false certification is a crime).

33. RFP Structure Section L�Instructions, Conditions, and Notices to Offerors This section includes a mixture of boilerplate provisions and specially written proposal preparation instructions that must be followed to the letter. Unfortunately, proposal preparation instructions are often poorly written and make proposal preparation more difficult than it should be. If there is any doubt about the requirements, questions should be submitted to the Proposal Manager or Capture Manager to get clarification from the agency. Section L is the most important to Proposal Coordinators because they are responsible for ensuring the proposal meets the specifications and requirements in that section. Typically, Section L contains the following information: Delivery date, time, and place Required number of copies Required number of volumes and their names (sometimes tabs are specified) Page limits, if any Type size and font requirements Proposal �layout� instructions (i.e., Section 1 � Technical Approach, Section 2 � Management Approach, etc.)

34. RFP Structure Section M�Evaluation Factors for Award Section M usually contains the significant criteria and a statement of their relative importance that will be used by the Government to evaluate responses to the RFP. This delineates the methods that will be used to evaluate and determine the successful offeror. If the RFP is well prepared, Sections C, L, and M will be clearly coordinated and the required physical organization of the proposal will also be clear. The Government is not permitted to evaluate bids using any factors other than those specified in this section. This section should describe the technical, financial, and management factors that will be weighed along with cost. Department of Defense (DoD) agencies also have a standardized method of structuring the contract deliverables or line items in attached documents known as the Contract Data Requirements List (CDRL) and Data Item Descriptions (DIDs). Some civil agencies use the DOD method; others do not. During the proposal effort, the Government may amend the RFP to make clarifications or corrections. Each amendment should be incorporated into the master RFP copy in the proposal library. The older version can remain in place but should be marked so it will not be confused with the new requirements. Each amendment should also be distributed to the full acquisition team.

35. Proposal Basics What is a proposal? In RFP terminology, a proposal is a document, created by an individual contractor or a contracting agency that is written in response to an RFP. In other words, it describes your bid to do the work outlined in the RFP. In a proposal, contractors must explain how they plan to carry out and complete the work described in the RFP. In doing so, they must address all terms, conditions, or concerns listed in the RFP. For example, a section if the RFP might note that all work must be completed "on site". This would be considered a condition or term of work. To satisfy the requirements of the RFP, the contractor must agree (or propose) to complete all work on site. If a proposal does not meet all of the requirements listed in an RFP, the contractor's proposal (bid) may be disqualified from the competition. What is the structure of a proposal? Your proposal should follow the proposal structure identified in the RFP. If the RFP does not identify a proposal structure, follow the structure of the RFP itself when you create your proposal.

36. Essential Proposal Development Activities Capture Plan: This plan addresses organization, assets, time/schedules, program understanding, public relations, political/government affairs, self analysis, competitive analysis, customer interaction and analysis, people, past performance, offering, price, believability, and risk exposure and management Outlining: There must be a commitment and intention to develop, review, and baseline a compliant outline of the proposal, to include meaningful themes, discriminators, hot buttons, and ghosts, before writing begins. Schedule: There is a detailed schedule that is the basis for all proposal related activities and is refined as proposal development progresses. Organization: There must be a defined core team with specific roles and responsibilities assigned to each member with a published organization chart. Compliance: A �requirements driven outline� must be established. A cross reference index from the RFP to the proposal should be developed, maintained, and included in the proposal. Benefits Table(s): Benefits Tables must be developed that illustrate the value of the proposal to the customer. The Benefits Tables will provide discipline to the proposal writing activity and may be suitable for inclusion in the proposal. Page Budget: Establish page budgets and mock-ups/outlines for all writing assignments before writing begins. Reviews: Assure that consistent leadership and qualified reviewers have been identified for all reviews (Readiness, Blue, Red, Green). The reviews are structured against specific anticipated evaluation criteria that the Business Development and Capture managers believe are identical or similar to those that will be used by the customer�s evaluators in scoring the proposals.