Contracting Competency Development Effort

1. Contracting Competency Development Effort Pricing

2. Outline • Competency Development and the Human Capital Strategic Plan • Contracting Competency Development Effort • Background • Subject Matter Expert (SME) Participation • Methodology • Anecdotal Analysis for Pricing Analysts • Next Steps

3. Competency Development and the Human Capital Strategic Plan

4. Contracting Competency Development Effort Competency Definition: “ …. an observable, measurable pattern of skills, knowledge, abilities, behaviors & other characteristics that an individual needs to perform work roles or occupational functions successfully.” Knowledge Skills & Abilities COMPETENCY Demonstrated by Behaviors Individual Characteristics Results in Superior Performance

5. Contracting Competency Development EffortBackground • Utilized existing Government-wide contracting competencies as the baseline • Utilized an expert panel from the military departments, defense agencies, DAU, OSD and FAI to develop initial contracting framework • Obtained input from high performers/Subject Matter Experts (SMEs) in the Components and Civilian agencies

6. Contracting Competency Development EffortSubject Matter Experts Subject Matter Experts (SME) Participation: Army ~ 90 Navy ~ 73 USMC ~ 15 AF ~ 89 DCMA ~ 39 DISA ~ 8 DLA ~ 17 MDA ~ 7 Nat’l Guard ~ 10 ODAs ~ 9 Civilian Agencies ~ 14 Total ~ 371 • Entry Level ~ 64 • Journey ~ 103 • Expert ~ 160 • Procurement Analyst ~ 33 • ACO/TCO ~ 47 • Price Analysts ~ 28 • Contract Specialist/ ~ 223 • Contract Buyer/ • PCO/Negotiator

7. Contracting Competency Development EffortMethodology • Step 1 – Importance/Frequency of Work Functions • Rate predefined work functions required for your job • Importance – impact on job performance • Frequency – how often used in performing work • Level first used – when FIRST needed to perform job • Step 2 – Key Situation Interview • Describe situation that resulted in effective outcome • Categorize situation into a work function • Rate distinguishing value of professional skills for each situation • Step 3 – Tasks, Tools and Knowledge • Review work functions and tasks, tools, and knowledge used with each function • Add or remove work functions and/or tasks, tools or knowledge as appropriate

8. Contracting Competency Development EffortAnecdotal Analysis for Pricing Analysts Preliminary analysis based on sample size of 20. • Technical competencies rated most important and most frequent • Assists the Contracting Officer in evaluating the reasonableness of the contractor's proposed price • Prepare for Negotiations / Discussions or Award • Evaluate proposals and quotes against price and non-price factors (source selection criteria) • Advises or supports the contracting officer in price negotiations and on contract terms and conditions • Supports other pricing related analysis. • Negotiate terms and conditions (including price) • Perform price analysis

9. Contracting Competency Development EffortAnecdotal Analysis for Pricing Analysts Preliminary analysis based on sample size of 20. • Technical competencies rated most important but not frequent • Advises on procurement matters • Determine whether to hold discussions • Develops procurement policy and procedures • Issue final decisions • Determine contractor responsibility • Develop terms and conditions • Performs oversight • Analyze Requirements and Provide Business Advice • Respond to pre-award inquiries/ protests • Conduct pre-bid/quote/proposal conference • Process protests • No technical competencies were rated frequent but not important

10. Contracting Competency Development EffortAnecdotal Analysis for Pricing Analysts Preliminary analysis based on sample size of 20. Sample Key Situation Related to Unit of Competence/Specialty Area - Price Analyst: Situation/Task: Cost/price factor lead for major system source selection. Reviewed the cost volume and noted separate employee incentive pool proposed as part of the estimated costs (vice fee). Actions: Noted finding and discussed during discussions. Offeror was asked to provide rationale and language that could be used to implement this incentive. Reasoning: This was an unusual approach because it had the impact of increasing fee by 1-2% points. It would also require a special contract provision to implement. Results: The contractor could not defend or explain the mechanics of how the incentive would work. As a result of discussions, the offeror withdrew the proposed $20 million incentive pool.

11. Contracting Competency Development EffortAnecdotal Analysis for Pricing Analysts Preliminary analysis based on sample size of 20. Sample Key Situation Related to Unit of Competence Specialty Area - Procurement Analyst: Situation/Task: Department lead for reviewing and approving request for indemnification by a contractor. In this role, represented the department coordination prior to the Director review. Actions: Using the internet, researched applicable statutory and regulatory requirements to gain a thorough understanding of the intent of the laws and rules. Teamed with program and technical persons to gain further insight on the qualitative aspects of the contractor’s request. Reasoning: Being unfamiliar with the topic, I felt the need to understand the why and the intent. Teaming with others to take advantage of their perspective and insight help produced a quality product. Results: The actions helped get the request through coordination a lot faster, 60% reduction overall.

12. Contracting Competency Development EffortAnecdotal Analysis for Pricing Analysts Preliminary analysis based on sample size of 20. • CNA conducted a qualitative analysis on key situations to reveal the following themes. Themes often related to professional skills (Executive Core Qualifications) and are noted. • Utilizing Knowledge and Expertise • Technical Credibility • Catching Overlooked Details • Accountability • Conducting Negotiations and Communications • Influencing and Negotiating • Oral Communications • Ultimately, the pricing analysts’ actions listed in the key situations led to better quality product, improved efficiency, and financial savings to the government.

13. Next Steps • January 2007: Complete analysis of results • Factor analysis of technical and professional competencies • Professional competencies needed most by Contracting Professionals • Correlation of individual responses • Stratification by focus areas • Level in career when first needed • February 2007: Conduct Senior Leader/Sponsor Review (to be followed by Deliverable – Competency Report) • March 2007: Initiate Competency Assessment for Contracting Workforce • Identify current and future workforce gaps and adjust human capital strategies to address them