Welcome to the Johnson Space Center JSC Pricing Forum

1. Welcome to the Johnson Space Center (JSC) Pricing Forum

3. 2 General Information Office of Procurement External Web Page URL: http://procurement.jsc.nasa.gov/procpub.htm

4. 3 Agenda The Past – Where we were. The Present – Where we are. SEB pricing process Cost realism probable cost adjustments Offerors proposals: Observations Technical Resources Efficiencies Independent Government Estimate (IGE) The Future – Where we want to be. Process Improvements and Streamlining where warrantedProcess Improvements and Streamlining where warranted

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6. 5 The Past It was a “Less Complicated” World Generally had single Contract Type Proposals LOE was common Fewer SEBs Technical Resources were included in the Cost Volume Did not facilitate technical analysis very well Supporting BOE narrative not traceable to resource templates Weaknesses were not disclosed to offerors

7. 6 The Present Complexity Multiple Contracting Methods in each Solicitation High Volume of SEBs/SECs and competitors Shift from LOE contracting to Performance Base Contracting requiring more analysis Need for speed, accuracy, and consistent treatment Weaknesses disclosed to offerors in the competitive range Discriminators imperative in very competitive procurements Volume of competitors includes Primes and Subs Volume of competitors includes Primes and Subs

8. 7 Benefits of Standardization Speed Government starts evaluation on day one Offerors know what to expect Offerors have more time to work on substance (objective requirements) Accuracy – Standardized templates designed to only receive pertinent data Electronic Pricing Models designed to produce accurate, error-free, estimates Offerors can estimate cost early to perform internal assessments and to be prepared for final proposal submittal Consistency Standardization leads to an apples to apples cost comparison Ensures no offeror omits cost that may be required Allows for standard presentation to the Source Selection Authority

9. 8 The SEB Pricing Process What is done with your cost/price proposal once it is submitted: Request DCAA (Defense Contract Audit Agency) audit Read cost proposal Validate each offeror’s pricing model Integrate and automate Team pricing models Test model for errors to ensure consistency with approach Make probable cost adjustments Develop pricing presentation charts for SSA

10. 9 Cost Realism Probable Cost Adjustments Errors and reconciliations Labor Incumbent labor rates/salary assumptions, if proposed Escalation Productive factor Uncompensated/compensated overtime DOL wage determination compliance DCAA input Non-technical in-house analysis (indirect cost, DOL WD fringe compliance, etc) Technical analysis (FTE quantity, skill mix, non-labor resources)

11. 10 Offerors Proposals: Observations Offerors not bidding to the solicitation: Ensure that their proposal reconciles to the new solicitation, not the current work Don’t make assumptions if differences exist, ask questions Proposals with omissions: All offerors may consider working to a checklist If the Government is requiring information you may not be able to provide, ask questions

12. 11 Offerors Proposals: Observations Proposals with references to old or other Agency solicitations Lack of adequate supporting rationale in narrative form: The basis of any estimate needs to be explained. Be specific and objective Lack of reconciliation between different areas of the proposal The technical and management approach should be consistent with each other and the staffing and respective cost should reflect those approaches

13. 12 Prior to Technical Part 2

14. 13 Technical Part 2

15. 14 Proposed Efficiencies Goal: Efficiencies proposed are realistic, adequately supported and reconcilable to the technical & management approach. Ensure that the benefit is explained with words and numbers Explain the timeframe of the efficiency’s benefit

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17. 16 Independent Government Estimate (IGE)

18. 17 Independent Government Estimate (IGE) IGE represents the government’s best estimate to satisfy the requirements Does not necessarily represent current or historical experience. The IGE does not represent a ceiling or a baseline. If you believe an area of the WBS requires additional FTE over the IGE, don’t simply lower other areas to compensate. IGE FTE and skill mix represent total estimated personnel (direct & indirect) to satisfy requirements. Even if the IGE is proposed, all proposed FTE levels should adequately support the proposed technical & management approach.

19. 18 The Future Questions? Are we asking for information in the most effective manner? Are we using the best practices? Answers Internal Pricing Team sweep of templates and practices Benchmarking JSC practices Government-Contractor working group discussion Forums

20. 19 Results of Pricing Sweep Standardized the names of all JSC Pricing Templates Discovered we had multiple names for some Templates Standardized the format of workbooks Technical Workbook and the Pricing Workbooks IDIQ and LOE workbooks will use same set of templates Templates will still be customized to reflect the individual specifications of each contract. Goal: Standardize all templates to be consistent and only ask for relevant and pertinent data for each procurement. This means customizing specific templates for specific procurements; however, general format of templates and instructions to remain constant.Goal: Standardize all templates to be consistent and only ask for relevant and pertinent data for each procurement. This means customizing specific templates for specific procurements; however, general format of templates and instructions to remain constant.

21. 20 Benchmarking Currently collecting and analyzing the templates and instructions of other NASA Centers Looking for things similar and different and investigating why other centers have adopted their processes Looking for things we do that others do not do and ensuring that additional JSC requirements add value

22. 21 Future Dialogue Forums Audience: Contract Personnel involved in preparing competitive proposals Format: Smaller working group to discuss specific pricing issues Topics: Technical Resources Part 2 Pricing Templates Evaluation Methodology and Cost Adjustments

23. 22 Contact Information Deputy Manager Procurement Policy & Systems Office José Garcia 281-483-4117 Price Analyst David Wilson 281-483-3385