SOURCE SELECTION TRAINING ( ACQUISITION PLANNING) <acquisition title>

1. SOURCE SELECTION TRAINING (ACQUISITIONPLANNING) <acquisition title> <Trainer’s name> <Trainer’s Organization>

2. Introductions • Facilities Orientation • Ground Rules • Start/Stop Times • Blackberry’s/PDA’s – turned off • Encourage Interaction

3. Overview • Market Research • Acquisition Planning • 4 W’s • Requirements Documents • Risk Assessment • Acquisition Considerations • Contract Type Selection • Performance-Based Acquisition • Source Selection Planning • SS Plan and Content • SS Evaluation Approaches • Tradeoff • LPTA • Evaluation Criteria • SS Technique • Team Members R&R • SS Tools • Pre-Solicitation & RFP release • Governance/Oversight and Clearance • MIRT and PEER Reviews • Ethics • Summary

4. Objectives • Ensure Market Research is conducted throughout acquisition process • Recognize importance of Acquisition Planning for a successful Source Selection • Understand Key Elements of Source Selection Process • Know consequences of behaviors and actions as they relate to Ethics and Procurement Integrity

5. Objectives (cont.) Output: Evaluation criteria for inclusion in Source Selection Plan and RFP Section M (or equivalent commercial provision) • Prepare team to successfully develop and support Acquisition Strategy/Plan and Source Selection Plan • Recognize how Contracting Process relates to Acquisition Strategy and Planning Process

7. Source Selection Process Pre-RFP Release

8. MARKET RESEARCH Market Research Training Module Useful Market Research Sources GAO/COFC Protest Decisions: Lack of Competition and Market Research

9. Engaging with Industry… Article from “The Source”

10. Why Conduct Market Research? Improves Chances for Success • Identify commercial sources for gov’t requirements • Obtain business intelligence for informed decisions impacting: • Acquisition Strategy & Planning • Source Selection Planning • Contract Type Selection • Reduce business risks • Identify opportunities, industry trends, technological developments

11. Benefits of Market Research • Identifies: • Sellers & Buyers • Our leverage in the market • Industry trends • Technology changes/advancements • New commercial items • Business/financial arrangements • Factors influencing doing business with Government

12. Benefits of Market Research (cont.) • Reveals key information about sources: • Capability • Technological improvements • Alliances and joint ventures (relationships and type of agreements with their suppliers) • Business/contract type preferences (cost type, fixed price, etc.) • Financial strength and growth potential • Contractor incentives

13. Market Research Activities • Activities include: • Industry Days • Requests for Information • Survey of market-sector - Sources Sought Synopsis • Internet Search of commercial marketplace • Networking with trade associations in specific market sectors • One-on-one meetings with potential offerors • Draft Request For Proposals

14. Market Research Toolkit Synopsis Internet Search Virtual Networks Report Template Market Research Report Database Market Research Product/Service Training and References GSA Schedules, Yellow Pages, Catalogs, etc.

15. Document Your Actions GAO/COFC Decision Summaries Importance of Documentation in Source Selections If you have not documented it - you have not done it! Determine your documentation methodology during the planning phase Document contemporaneously – after the fact documentation is seldom accurate GAO and COFC place great emphasis on documentation at all phases of acquisition including

16. ACQUISITION PLANNING

17. Acquisition Planning – 4 W’s • Who • Acquisition team, led by program / requirements manager • What • Acquisition of commercial items or non-developmental items • Full and Open Competition • Formalize Acquisition Strategy Panel (ASP) • Why • Satisfy government needs in most effective, efficient, economical, and timely manner • When • As soon as requirement is identified

18. Contents of Acquisition Plans

19. Acquisition Planning Key Activities Statement of Need - Requirements Documents Tradeoffs Risks Source Selection ‘Procedures’ Planning Acquisition Considerations

20. Requirements Documents

21. Capability Production Document (CPD) Statement of Objectives (SOO) Statement of Work (SOW) Capability Development Document (CDD) Performance Work Statement (PWS) Specifications Requirements Documents Describe Agency Needs Work Specification (WS) Technical Requirements Document (TRD) Purchase Descriptions Initial Capabilities Document (ICD) Systems Requirements Document (SRD)

22. Requirements Documents Typical Content • Descriptions, specifications, and criteria that define minimum needs of agency for supplies or services • Requirements may be expressed as: • Minimum value or level of performance (threshold performance requirement) • Desired goal (objective performance requirement)

23. Requirements Documents Commonalities • Based on Market Research, describe Government needs in terms of: • Functions to be performed • Performance level required • Essential physical characteristics • These documents are basis for: • Risk assessment • Development of evaluation criteria • Preparation of solicitation and proposal • Contract type selection, formation and execution

24. Requirements Document Schedule of Prices or Costs Evaluation Criteria Independent Government Estimate Proposal Preparation Instructions Requirements Documents “Connecting the Links” Basis for Independent Government Estimate (IGE) Establish connection from Requirement Document to IGE, Schedule, Prices/Costs, Evaluation Criteria, Proposal Preparation Instructions

25. Risk Assessment Risk Assessment Briefing

26. Purpose of Risk Assessment • Identifies: • High-risk areas for both Government and contractors • Impact and probability • Discriminators for Source Selections • Incentive areas • Foundation for evaluation criteria

27. Risk Management Process

28. Conducting Risk Assessment • Link risks to requirements clearly • If high risk, ensure: • RFP requires offerors to address risk and provide mitigation strategies in proposal • Evaluation criteria includes evaluation of risks and mitigation strategies • Oversight of mitigation strategies in post award/incentives • Obtain Industry input on Risk Assessment

29. Acquisition Considerations Contract Type Selection

30. Spectrum - Contract Type and Risk LOW HIGH POORLY DEFINED WELL DEFINED RESEARCH SUSTAINMENT

31. Selecting the “Right” Contract Type • Consider what Market Research indicates • Understand your potential offerors • Technical capability • Financial responsibility • Adequacy of accounting/business systems • Extent and nature of anticipated subcontracting • Discuss your Program • Type, complexity, urgency • Acquisition history – competitive/sole source • Period of performance/length of production run

32. Selecting “Right” Contract Type (cont.) • Consider political and fiscal environment in which you operate • May effect current program requirements, acquisition plan/strategy and overall business deal • Be aware of key stakeholders and possible impact(s) • SECDEF, AT&L, DPAP, AQ, PEO, CC, PM, etc. • Be cognizant of leadership’s current guidance & preferences • Policy & info memos/guidance issued by Agency or DoD

33. Acquisition Considerations (cont.) Performance-Based Acquisitions

34. Performance-Based Acquisitions DoD Directive 5000.01, para E.1.1.16 Performance-Based Acquisition Resource: Performance Based Payments – Guide Book and Analysis Tool • Use performance-based strategies & contractual language to: • Maximize competition, innovation, & interoperability • Enable flexibility • Reduce cost • Improve life-cycle support • Task contractor in clear and concise language

35. Performance-Based Services Acquisition • All service acquisitions > Simplified Acquisition Threshold (few exceptions) should be performance-based • Include identifiable and measurable cost, schedule, and performance outcomes • Consider customer requirements (ensure consistency) • Ensure adequate planning and management to achieve desired outcome • Performance Work Statement (PWS) • Conveys “what” we want -- not “how” to do it! • Cite required directives and standards by specific process/procedure ( paragraph or chapter vs. wholesale inclusion of AFI)

36. Source Selection Planning

37. Source Selection Plan (SSP) Required for all best-value, negotiated competitive acquisitions under FAR Part 15 (exceeding SAT - $150K) Name all individuals involved in source selection, and clearly define their roles in SSP Ensure SSP is approved by SSA prior to solicitation release Cover all required areas/topics

38. Source Selection Plan Contents • As a minimum include: • Background and Objectives • Acquisition Strategy • Source Selection Team (names and roles) • Communications • Evaluation Factors and Subfactors • Documentation • Schedule of Events • Non-governmental personnel (by name) • Source Selection materials management

39. SS Evaluation Approaches Tradeoff and Lowest Price Technically Acceptable (LPTA) GAO & COFC Summaries on Best Value Tradeoff Decision

40. Tradeoff • Tradeoff is normally used for more complex acquisitions • Evaluation process requires more in-depth review of proposals than LPTA • Level of detail depends on: • Complexity of acquisition • Degree of competition • Contract type

41. Tradeoff (cont.) • Used when in best interest of Gov’t to Award to: • Other than lowest-priced proposal • Other than highest technically rated proposal • Process is more flexible - permits: • Tradeoffs among cost/price and non-cost factors • Best combination of technically superior, low risk proposals that also have a history of favorable past performance • Best value decision is based on comparative assessment of proposals

42. Tradeoff Considerations • What are expected consequences of tradeoffs among following elements? • Cost/Price • Capability • Performance and Schedule • Does your Requirements Document reflect user’s expectations?

43. Lowest Price Technically Acceptable (LPTA) • LPTA process is used when: • “Best Value” is expected from lowest-priced, technically acceptable proposal • Procuring commercial, non-complex supplies or services • Requirements are firm, clear and definitive • No benefit is expected from proposals exceeding minimum technical or performance requirements Excellent Article on LPTA

44. LPTA (cont.) • When using LPTA: • Evaluate proposals against minimum technical requirements (Acceptable/Unacceptable) • Past Performance may be an evaluation factor (Acceptable/Unacceptable) • Tradeoffs are not permitted • Proposals cannot be ranked on non-cost/price factors • Exchanges may occur • Comparative Analysis is not required

45. LPTA (cont.) • Technical • Critical to define what constitutes “Acceptable” • Clearly state minimum requirements • Past Performance • May be waived by PCO • If evaluated, ‘Unknown’ rating is considered acceptable • “Acceptable” rating required in all non-price factors/subfactors

46. Evaluation Criteria Factors & Subfactors • Methodical process incorporates knowledge from: • Market Research • Acquisition planning activities • Evaluation factors: • Must be critical areas of importance and emphasis • Identify “key discriminators” • Provide meaningful comparison and discrimination between competing proposals • Factors must address: • Price/Cost • Quality of Product or Service • Non-cost factors

47. Developing Evaluation Criteria Factors & Subfactors BRAINSTORM ideas to develop your evaluation criteria • Assumptions: • Knowledge of market and requirements • Potential offerors • Discuss: • KEY discriminators • Your confidence in offerors’ ability to meet requirement • Uniqueness or clarity of specifications • Identify high or moderate risks • Small Business Participation

48. Determining Source Selection Approach/Technique Ratings • Determine factor rating methodology and relative importance based on brainstorming • Factor: Cost/Price • Factor: Past Performance (unless PCO waives) • Acceptable/Unacceptable • Performance Confidence Assessment • Factor: Technical • Subfactors • Acceptable/Unacceptable (no “tradeoff”) • Combined technical/risk or separate ratings (range of colors/adjectival ratings) • Combination (can vary by subfactor)

49. Source Selection Team

50. Source Selection Team – Example