Breakout Session # 310

2. Applying Government Best Practices in Sourcing to the Commercial Marketplace Breakout Session # 310 Doug Zwiselsberger, Associate, Booz Allen HamiltonJeff Barlow, Associate, Booz Allen Hamilton Date: April 27, 2005 Time: 2:25 p.m. – 3:25 p.m. NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. Agenda • Who are we? • Overview/Background • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. Agenda • Who are we? • Overview/Background • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Who are we? • Doug Zwiselsberger • 7 years experience • Acquisition SME • Information Technology • Service Contracting • Healthcare Contracting • Jeff Barlow • 8 years experience • Acquisition SME • Service Contracting • Commercial Contracting NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. Hypothesis: USG acquisition best practices are applicable in the commercial marketplace Purpose: Highlight three USG acquisition best practices to support hypothesis Takeaways: Reduce contract administration costs Rationalize vendor base Improve relationships with vendors Enhance the organization’s understanding of the acquisition process Overview NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Government Best Practice #1 Use of Multiple Award Contracts NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

10. Government Best Practice (GBP) #1:Use of Multiple Award Contracts • Overview: • A multiple award contracts awards the same contract to several vendors • Basic contract has a minimum contract value and ceiling value • No tasking assigned to basic contract • Individuals orders are written off the multiple award contract through a fair opportunity competition • Benefits of a multiple award contract include: • Pre-negotiated terms and conditions • Pre-negotiated labor categories, fees and rates • Pre-qualified vendor pool • Maintains competition • Reduced time to award NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. GBP #1:Use of Multiple Award Contracts (cont’d) • Implementation Approach: • Identify recurring task or delivery requirements • Develop/Release Request for Proposal • Award contracts to multiple vendors • The number of awardees should be proportional to the amount of work expected under the contract • Identify specific task/delivery requirements • Compete task/delivery order among contract holders • Award task/delivery order to single contract holder NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. Full and Open Competition Awarded Contracts GBP #1:Use of Multiple Award Contracts (cont’d) Only vendors with an Awarded Contract can bid Overarching Requirement All vendors allowed to bid Contract has minimal Value Delivery/Task Order Project Requirement Fair Opportunity Competition Example: 456 Int’l ABC Co. Project Management Support for Project “World Congress” 123 Inc. Project Management Support Full/Open 123 Inc. Fair Opp XYZ Corp NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. Government Best Practice #2 Implementation of Enterprise Conflict of Interest Clauses NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

15. GBP #2:Implementation of Enterprise Conflict of Interest Clauses • Overview: • A conflict of interest plan is designed to protect the buyer from unfair competitive practices that would hinder their ability to procure items and services. • Benefits: • Ensures that one company does not have an unfair competitive advantage over another company. • Maintains competitive pricing • Encourages vendors to maintain high performance standards • Eliminates the real or perceived implication of a conflict of interest • Puts all vendors on a level playing field NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. GBP #2: Implementation of Enterprise Conflict of Interest Clauses (cont’d) • Implementation Approach: • Develop a conflict of interest clause to segment types of work into non-conflicting categories (OCI categories) • Implement clause in all contracts, and have vendors certify that they do not have a conflict • If a conflict does exist - A mitigation plan must be developed and agreed to by the buyer and the vendor • Align OCI categories to contract vehicles NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. GBP #2: Implementation of Enterprise Conflict of Interest Clauses (cont’d) Sample OCI framework Category 1: “Inside the Box” – Access to sensitive information on all contracts, precluded from Category 2 and 3 work Category 2: Program/Project Management – Support the organization in planning and managing its operations Category 3: Program Execution – Execute (Design/Develop) the mission NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

19. Government Best Practice #3 Development of Acquisition Plans for Individual Procurements NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

20. GBP #3: Development of Acquisition Plans for Individual Procurements • Overview: • Defining an Acquisition Plan • Developing the Acquisition Plan • Benefits: • Tangible • Concise and Cogent Scope • Projected Contract Award Schedule • Desired Contract Type • Pool of Qualified Vendors • Intangible • Promotes Accountability and Responsibility • Enhances Understanding across Stakeholders • Confirms Procurements Strategic Alignment with Organization NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

21. Document Planning Tool Form of Communication GBP #3: Development of Acquisition Plans for Individual Procurements (cont’d) - Overview • What is an Acquisition Plan? It is many things. • What can it do? • Enables organizations to perform upstream analysis and activities to better understand and define procurement characteristics with the intent of realizing downstream benefits NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

22. GBP #3: Development of Acquisition Plans for Individual Procurements (cont’d) - Implementation of Acquisition Plan • No Cookie Cutter Mold • Typical Phases • Common Elements Development Refinement Approval Execution • Brainstorming sessions • Working group sessions • Primary/secondary Research • Communication checkpoints Objective Award Schedule Cost Analysis Vendor Analysis Contract Type Desired Deliverables Risk Analysis NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

23. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

24. Summary • GBP #1 – “Use of Multiple Award Contracts” • Front loaded effort to achieve multiple award contract, empowers buyer for future turnkey procurements • GBP #2 – “Implementation of Enterprise Conflict of Interest Clauses” • Extension of traditional ‘checks and balances’ philosophy to eliminate any COI • GBP #3 – “Development of Acquisition Plans for Individual Procurements” • Development of plan results in tangible and intangible benefits NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

25. Agenda • Who are we? • Overview • Best Practice #1: • Use of Multiple Award Contracts • Best Practice #2: • Implementation of Enterprise Conflict of Interest Clauses • Best Practice #3: • Development of Acquisition Plans for Individual Procurements • Summary • Questions NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

26. Questions • Contact Information • Doug Zwiselsberger, (703) 824-3783, zwiselsberger_douglas@bah.com • Jeff Barlow, (703) 824-3865, barlow_jeffrey@bah.com NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”