Complex Use of Multiple Award Schedules by Experienced Customers A Power User Session

1. Complex Use of Multiple Award Schedules by Experienced CustomersA Power User Session Name: Dan Briest Title: Contracting Officer Agency: Management Services Center Date: TBD in case Expo Schedule Changes

2. Why you should care… • Easy way to buy even complex services. • Weapon systems development • Yes, this can be “rocket science” • Lets you focus on managing outcomes • Simplified acquisition method • Manage more contractors and less paper

3. Learning Objectives • Review scope of Schedules program (w/ examples) • Explain BPAs and CTAs as Schedule tools • Describe the content and use of Multiple-Award and Single-Award BPAs • Understand use of teaming (and subcontracting) • Review teaming agreement for desired elements • Understand examples of agencies successfully using BPAs and CTAs for complex service requirements

4. Did You Know Schedules Can Be Use for…? • Recycling computer monitors (Environmental) • Food service for soldiers in Iraq (Logistics) • Agency reorganizations [even GSA’s] (MOBIS) • Aircraft electronic maintenance (Logistics) • Commercial activity (A-76) studies (MOBIS) • Translation of Osama bin Laden tapes (Language)

5. Out-of-Scope • Non-Commercial • Construction/A&E • Cost-type contracts In-Scope or Out-of-Scope? GSA Schedule Scope • Out-of-Scope • Terms & Conditions conflicting • with Contract (or Schedule) • Services outside the scope ofthe Contract (or Schedule) GSA Contract Scope Task Order Scope • Out-of-Scope • Degree of Scope Changes • Type of Scope Change • Amount of price or period • of performance change Modification Scope

6. Some Limitations • Broad Acquisition Limitations • Commercial Services (FAR 2.101) • Personal Services (FAR 37.104) • Inherently Governmental Functions (FAR 7.503) • Schedules Program Limitations • Architect/Engineer Contracts (FAR 36.601-4) • Cost-Reimbursement Type (FAR 16.3) • Construction (FAR 2.101) • Services Limited by the SIN Description

7. Scope Determination Pitfalls “Wrong Schedule” Order is Protestable by “Right Schedule” Contractor • Failure of Ordering Officer to Show Schedule and SINs on RFQ • “Whatever GSA Schedule You Have” (the chosen contractor) • “Labor Category Shopping” rather than determining the SINs required to accomplish the PWS. • “Schedule A or Schedule B” (treating Schedule scopes as interchangeable)

8. Flexible Schedule Tools • Blanket Purchase Agreements (BPAs) • Contractor Teaming Arrangements (CTAs)

9. Blanket Purchase Agreements

10. Opportunity to negotiate better discounts Satisfy recurring requirements Reduce administrative burden Leveraging buying power through volume Support field offices/other contracting offices Quicker order turn-around Can incorporate non-conflicting terms & conditions Can include contractor teaming No funding required to establish BPA No synopsis, no competition outside Schedules to establish or use BPA Why Establish MAS BPA?

11. Blanket Purchase Agreements • Simplified Acquisition Method • Anticipated Repetitive Needs • Qualified Source(s) • Single or Multiple Award • Contractor’s Perspective • Recurring source of orders • Volume • Quick turn on orders • Expectation of price discounting • Govt’s Perspective • Flexibility • Efficiencies • Expectation of best pricing for eachTask Order

12. What’s in a BPA? • Scope • Estimated value/level of effort (not a ceiling) • Duration • GSA Schedule(s) & Contract(s) • Participating offices/agencies • Invoicing/billing procedures • Ordering procedures (if multi-award) • Terms & conditions • Discount terms • Types of orders to be placed • BPA Termination

13. PWS BPA Decision GSA Schedules Determine In-Scope Multiple-Award BPA Yes Broad Requirement? Recurring Tasks? Issue RFQ/Task Order Yes No No Quotes Order Single-Award BPA

14. Single Award BPA • Issue BPA, RFQ, (PWS) • Receive and Evaluate BPA Quotes • Establish one BPA • Then for each recurring task: • Issue Task Order RFQ (PWS) to sole BPA-holder • Evaluate the Quote • Award Task Order One Best Value “Competition”: Who Gets the BPA?

15. Issue BPA RFQ (PWS Receive & Evaluate BPA Quotes Best-Value Source Selection Establish Multiple BPAs For each Recurring Task: Develop Task Order Evaluation Criteria Issue Task Order RFQ (PWS) to “an appropriate number” of BPA-holders (FAR 8.402-3(b)(2))* Evaluate the Multiple Quotes: Best-Value Source Selection Award Task Order Multiple-Award BPA Two Best Value “Competitions”: Who Gets the BPA? Who Gets the Task Order? * To “all BPA holders” if DoD (DFARS PGI)

16. Contractor Teaming Arrangements

17. Two Ways to Satisfy Multi-Domain (Schedule/SIN) Requirements • One GSA Contractor holds all needed domains, so teaming not required: • As separate single-Schedule contracts, and/or • On the Consolidated Schedule OR • GSA Schedule holders team across domains

18. Top Ten (FY 10 Sales) GSA Contractors

19. Consolidated Schedule • Only for contractors with two or more Schedules (e.g., PES and MOBIS) • One GSA contract, so just one Task Order for agency to award/administer • Contractor can offer their entire business line on a single contract • Includes most service Schedules and some related product Schedules (including IT)

20. Subcontracting vs. “Teaming” • Only Prime must have a Schedule contract • Only Prime has privity of contract (and interface) with Government • Ordered and invoiced at Prime’s Schedule rate (less discount) • Limited to SINs and labor categories on a single Schedule contract • Prime can’t “delegate” responsibility • Each Team Member must have a Schedule contract • Each Team Member has privity of contract (and can interface) with Government • Ordered and invoiced at each Team Member’s Schedule rate (less discount) • Total Schedule solutions possible • Each member can be responsible for duties in a teaming agreement

21. Prime Contractor Sub Sub Prime/Subcontractor Relationship BPAs/Orders Only to Prime (Schedule Contractor)

22. Team Lead Team Member 1 Team Member 2 Sub (has Schedule) Sub Sub Sub MAS Teaming and Subcontracting Schedule Teaming Requires Teaming Agreement

23. MAS CTAs • Team Leads & Members must have GSA Schedule and use their Schedule rates • Contractor Teams are issued one BPA • Could include subcontractor effort, as long as mapped to their Prime’s Schedule labor category • If Multi-Award BPA, Teams compete for Task Orders • Task Orders can be issued to Team Lead or directly to Team Member

24. MAS CTAs • Not a separate legal entity but acts like joint venture • Include Teaming Agreement with quote for agency review • Government incorporates CTA into BPAs/Orders • Can reduce the need for open market items! Best Practice: Make sure the contract number(s) for each team member contributing to a task order is/are cited on that order.

25. How Do You Know WHAT It Is? • Is there an Agreement? (But it may be a Subcontracting Agreement called “Teaming”) • Who is Paying the Industrial Funding Fee to GSA for that Task Order? • What Does the Task Order look like? • How many Schedule contract numbers are there? • Whose labor categories appear on the Task Order?

26. Teaming Agreement Highlights Agreement is solely between the Members- can’t conflict with the Schedule • Identify Parties (Members and Lead) • Teaming Activities (w/ responsibilities) • Type & Duration of Agreement • CTA Terms • Ordering Procedures • Team Lead & Team Member Duties • Pricing, Invoicing, and Payment • Performance Responsibility/Evaluation • Reporting Sales to GSA • Warranty • Confidential Information

27. Use single/ Consolidated Schedule • Task Award to a Single Contractor Aggregate Your Requirements • Use Several Schedules • Award BPAs • Contractors Team CTAs and BPAs: Putting It All Together

28. Creating “Domains” • Resource Management • Schedule 874 - MOBIS • Schedule 520 - Financial & Business • Schedule 738 X - Human Resource Services • Schedule 70 – Information Technology Services Step 1 Analyze Your Requirement • Logistics & Engineering • Schedule 874 V - LOGWORLD • Schedule 871 - Professional Engineering Services • Schedule 899 – Environmental Services Step 2 Identify Service Categories Align Schedules or SIN’s Under Service Categories

29. Performance Based SOW Extract Primary Requirements

30. Engineering/Scientific Requirements

31. 871 Engineering 874 MOBIS 899 Environmental 70 IT Multiple-Schedule Solution Engineering & Scientific What Schedule (or Schedules) meet those Requirements?

32. Best Practices, Tips and Tricks

33. Electronic Ordering Systems Interface with requirements developers and contractors Create program metrics and reports

34. Use Templates

35. Ordering Guides/Handbooks

36. Other Best Practices • Consider open seasons • Refresh contractor pool, allow team realignments • Conduct an “Industry Day” when setting up the program • ODCs (especially material) is always an issue • Part 51 Deviation • Have a system to handle materials established up front • Set rules to limit open market items • Bring end users into the discussion early (buy in)

37. Even More Best Practices (Some thoughts directly from agencies using these techniques already) • Partner with GSA early in the planning process • For very large programs, consider mapping Schedule labor categories to standard categories on BPAs • Consider using options to build in surge capacity on task orders • Build growth into your program • Once you’re up and running, others will want to use it

38. BPA & CTA Example: AMCOM Award Date: Jan/Apr 2005; 13 May 2009 • BPA Period: Base Year with Unlimited Award Terms • Task Order Performance - Base Period with Potential Options NTE 5 Years • Performance Based Task Orders unless Approved IAW DFARS 237.170 • Flexible Pricing Arrangements: Fixed Price (Level of Effort or Completion), Time and Materials, Labor Hour • Discounting of GSA Rates Allowed at BPA and/or Task Order Level • Annual Open Season for team restructuring

39. Task Order Performance – Most Important Criteria • (Based on Specific Task Order Metrics) • Quality of Service, Cost Effectiveness, Timeliness of • Performance, Business Relations, Customer Satisfaction • Responsiveness – Task Order RFQs, Effective Corrective Actions • Competitiveness – Submission of Viable Task Order Quotations • Actual Performance versus Proposed Goals for Direct SB Team • Member Awards and SB Subcontracting Goals Annual BPA Review and Award Term Decision

40. Updating Subcontractors/Team Members • BPA Team Restructuring During Open Season • - Change Subcontractors to Team Members • - Change Team Members to Subcontractors • - Revise teaming arrangement(s) • - Add new Team Members/Subcontractors • Additions Outside of Open Season • - Rare instances • - Unforeseen/urgent • - Contracting Officer approval

41. Standardized Documentation • Performance Work Statement (PWS) • Task Order Request for Quotation (TORFQ) Letter • Evaluation Criteria • Quotation Contents • Evaluation Worksheets

42. Initiating Competitive Task Orders • NOT REQUIRED • Acquisition Plan • Evaluation Plan • Synopsis • Approval for Use of • Non-DOD Contract • DD254 if within BPA

44. Standard Task Order Evaluation Criteria • Discounting on Task • Orders Expected • GSA Rates Maximum Best Value Flexible Criteria Weighting Customer Makes Decision

45. Standard Selection Criteria for All Domains • Experience • Functional Approach • Socio-Economic Support • Price • Customer assigns criteria weighting prior to release of RFQ • Customer makes best value selection decision • Customers often pay a premium for more experience • and/or a better functional approach

46. Material/ODC Purchases • Material/ODCs must be in direct support of the task order PWS. • Contractors may provide GSA Schedule Items IAW task order requirements. • Open Market/Non-Schedule Items will be separately identified on the task order – separate CLIN/SLIN. • Over $3000, price reasonableness must have been determined by the Contracting Officer IN ADVANCE. • Consider modifying schedule to include recurring Material/ODCs.

47. Internal Material/ODC Guidance • Consider primary purpose of task…EXPRESS is for advisory and assistance services, not end items. • Must directly enter into the deliverables, or used/consumed directly in connection with the furnishing of the deliverables • Over 10% of labor cost will require separate justification • Justification must clearly show that materials are required in order to provide services ordered. • Material/ODCs exceeding labor cost not allowed.

48. Program Statistics (As of 31 Dec 10)

49. Dan Briest (253) 931-7553 daniel.briest@gsa.gov http://interact.gsa.gov/groups/services-ordering-solutions-avoiding-mas-confusion Management Services Center (800) 241-RAIN (7246) www.gsa.gov/mgmtservices Thank You