Multiple Award Contracts

1. 17 March 2010 Multiple Award Contracts Steve Harnig Contracts Division 2255

2. BACKGROUND • Sect. 843 of the National Defense Authorization Act FY08 • Enhanced competition requirements for task and delivery order contracts (IDIQs) • Prohibits award of single source IDIQs with limited exceptions • Approval thresholds – $10M and below require CCO approval • $10M to $100M require HCA approval • Greater than $100M require ASN approval • Increase speed to capability with quick response IDIQ vehicles

3. CURRENT MACS IN SPAWAR ATLANTIC PBX Routers and Switches (8(a) set-aside; 9 awardees) Program Management/Engineering Services (8(a) set-aside; 33 awardees) Network Centric Services (unrestricted; 2 awardees) Satellite Communications Equipment (SB set-aside; 8 awardees) Portable SATCOM Terminals (unrestricted; 7 awardees) Automated Fuel Handling (unrestricted; 3 awardees) Radio Telephone Equipment (8(a) set-aside; 4 awardees) 3

4. MACS IN PROGRESS AT SPAWAR ATLANTIC • N65236-06-R-0832 – Telephony • N65236-08-R-0016 – ISEA Support Services • N65236-08-R-0027 – Automated Fuel Handling Services • N65236-09-R-0012 – Joint Basing and Technology Transition Support • N65236-09-R-0019 – AV Hardware • N65236-10-R-0002 – C4ISR/IT Support for Multiple AORs • Command-Wide Supply MACs • N65236-08-R-0070 – Intelligence, Surveillance, and Reconnaissance (ISR) • N65236-08-R-0077 – Command and Control (C2) • N65236-08-R-0098 – Communications Equipment 4

5. LESSONS LEARNED/AREAS FOR IMPROVEMENT • Contracts Department conducted a Lean Six Sigma Event to address following areas identified on current MACs as possible improvements: • Use of Statement of Objectives (SOO) • Source Selection Plan and Evaluation Matrix • Exemption to Fair Opportunity and Brand Name Justification • Solicitation • Discussions and Clarifications • Business Clearance Memo and Source Selection Memo 5

6. LESSONS LEARNED/AREAS FOR IMPROVEMENT • Use of Statement of Objectives (SOO) • Goals = Standard Format, Improved Description of Objectives • Better SOOs will result in better competition on each MAC order • SOO should result in well written Performance Work Statement • Source Selection Plan and Evaluation Matrix • Goals = Standard Template for SSPs, Standard Method of Evaluation • Standardization will result in better competition and enhance understanding of how we evaluate proposals • Consistent use of SSPs and Evaluation methodology will ensure quality source selections 6

7. LESSONS LEARNED/AREAS FOR IMPROVEMENT • Exemption to Fair Opportunity and Brand Name Justification • Goals = Template for Exemption and Justification • Template will ensure that each exemption or justification is adequately documented • Standardization will enhance understanding of the process • Solicitation • Goals = Standard format for solicitations • Standardization will improve quality of proposals (consistent) 7

8. LESSONS LEARNED/AREAS FOR IMPROVEMENT • Discussions and Clarifications • Goals: Create a standard process for conducting discussions or clarifications • Standard process will improve quality of competition and ensure quality source selection decisions • Business Clearance Memo and Source Selection Memo • Goals: Templates for each memo • Standardization will improve the quality of each memo and ensure that business decision are properly documented 8

9. LESSONS LEARNED/AREAS FOR IMPROVEMENT • Each team has completed the initial improvement event • Goal is to roll out improvements this quarter • Continuous process improvement on all MACs • Growth area since this contract type is mandated 9

10. Best Practices from Current MACs • Industry Days on new, large MACs • Enhance understanding of requirements and improve competition • Periodic (Quarterly) Contract Reviews • Meet with each MAC holder • Discuss issues (what is working, what can be improved) • Open Communication • In addition to periodic reviews, government and industry partner to make the MAC mutually beneficial for each program • Share ideas for improvements, ensure optimum competition on orders • Definitive Contracts • Identify requirements that can be awarded on contracts other than IDIQs 10

11. Best Practices from Current MACs • Multiple Award Approach • RFPs may include language limiting anticipated number of awardees • Use E-Commerce for task order competitions • Contract Ceilings • Set ceilings on each MAC award in aggregate amount for all orders placed under the MAC • Example: $250M MAC award to 3 awardees. All 3 contract awards will reflect a ceiling of $250M; however, this amount is shared across all 3 awardees. Through task order competition, the total value of awards made under the MAC cannot exceed $250M. 11

12. Leading Contract Professionals • Challenges • High workload • Contracting is an art • Constant change in policy and procedures • Contracts are the end of the acquisition process • Contract award lacks sense of accomplishment 12

13. Leading Contract Professionals • High Workload • Despite Economic Conditions – DOD spending continues at a high pace • Due to lack of contracting knowledge in technical teams, work is difficult and requires flexibility • Balance of pre and post award actions • What can a leader do? • Develop leaders in the acquisition process • Empowered accountability 13

14. Leading Contract Professionals • Contracting is an art • The more complex the action, the less standardized the process • No acquisition is exactly the same as another • Acquisitions are done through teams, teams are made of individuals, individuals introduce variation • What can a leader do? • Create processes and train professionals to think within the process (not rely on the process completely) • Enhance training with real-life examples • Concentrate on unique issues experienced • Develop teaming skills/facilitation skills/leadership skills to work more effectively in team setting 14

15. Leading Contract Professionals • Constant change in policy and procedures • Maintain balance with policy changes and workload • Working in constant change may feel like chaos • What can a leader do? • Leverage strengths on team (some people are good with policy) • Monitor amount of change on your team • Learning zone versus chaos zone • Centralize concerns with policy • Leader needs to consolidate concerns and determine proper implementation of policy 15

16. Leading Contract Professionals • Contracts are the end of the acquisition process • Lead time has been used by the time it gets to Contracts • Pressure from customers • Deadlines are unrealistic • What can a leader do? • Support your team and your leaders • Establish where concerns are directed • Ensure your leaders know how to use you • Insist on realistic milestones in the acquisition process • Have to engage early and often • Manage expectations • Educate customers 16

17. Leading Contract Professionals • Contract award lacks sense of accomplishment • Workload forces professionals to move immediately to the next task • Contract is on paper (rarely a masterpiece) • What can a leader do? • Create the sense of accomplishment • Use goals (i.e., quarterly awards) • Celebrate accomplishments (publicly) • Educate employees on the larger goals and how they impact them • Success towards large goals 17