The Contract Holder Model Darlene Coen / Al Marshall

2 Conference ‘11 SEWP Contract Structure 5 Groups of contracts  4 Competed Groups (Groups A through D): 38 Companies => referred to as Contract Holders 21 Small businesses; 7 SDVOSB’s; 6 8(a)s Limit of $5.6 Billion per contract Grouping is based on initial contract competition and selection -Set-aside vs. Full and Open -Minimum mandatory requirements  1 Non-Competed 8(a) set-aside contracts (Group E) 4 Contract Holders Limit of $3.5 to $4 Million per contract

3 Conference ‘11 Groups A through D  Group A: OEMs and Value Added Resellers (VARs) 9 Contract Holders Award based on Full and Open Competition focused on computer systems  Group B: SDVOSB VARs 6 Contract Holders Award based on Service Disabled Veteran Owned Small Business Set-aside focused on Supporting Technology  Group C: Small Business VARs 12 Contract Holders Award based on Small Business Set-aside focused on Supporting Technology  Group D: VARs 15 Contract Holders Award based on Full and Open Competition focused on Supporting Technology

4 Conference ‘11 Significance of Groups - Scope  Scope of Groups A through D Products and product based services No Group level scope distinction. From the SEWP SOW: “Regardless of the mandatory items defined, proposed and provided by each class, the scope of all contracts is the same”  Scope of Group E Fixed price support services along with product solutions Limited by contract ceiling

5 Conference ‘11 Significance of Groups Fair Opportunity  Groups A through D – FAR Part (b) Fair Opportunity MUST BE provided within at least one Group Opportunity may be provided across multiple Groups  Group E – non-competed 8(a) set-asides Fair Opportunity requirements do not apply However it is strongly recommended that all Group E Contract Holders be solicited

6 Conference ‘11 Fair Opportunity and Notices  All contract holders in at least one Group must be solicited unless: Order is under $3000 Follow-on to a previous process in which Fair Opportunity was performed and documented National Emergency Conflict of Interest  Posting Notices to all Four Groups Brand Name Requirement - Justification and Approval document must be posted to all 4 Groups New FAR Requirement – Notice must be posted for any order over $25,000 -SEWP Quote Request tool will provide mechanism to post notices

7 Conference ‘11 Small Businesses and Fair Opportunity  Groups B and C can be solicited separately or together If inadequate responses, re-open RFQ to other Groups  Groups A & D can be included in solicitation: Selection is based on Best Value as determined by the issuing agency Recommendation for small business usage: Utilize business size preferences in selection process  Group E Particularly for support service requirements Check the current cap limit

8 Conference ‘11 Quote Request Tool The SEWP Quote Request tool is the only recommended method to apply Fair Opportunity and solicit quotes.

9 Conference ‘11 SEWP Fee  Fee is based on a non-profit budget Goal is to provide the best service at the lowest possible cost Average fee charged is 0.37% (due to cap) Surcharge Order AmountFee Percentage $0 to $2,222, % $ 2,222,222 and upCapped at $10,000

10 Conference ‘11 Fee: Payment and Quotes  Fee paid by the Contract Holder after Issuing Agency pays the invoice for the order including the fee  Fee may be quoted as separate line item or included in product price  Issuing Agency is responsible for listing the fee as quoted If fee quoted separately, order should list the fee separately If fee is not listed on the quote (and the quote is a SEWP quote) do not include the fee as a separate line item  During order processing, Government Customer and Contract Holder are notified of the calculated fee associated with the order  Contract Holder cannot increase invoice if fee was mis-quoted

11 Conference ‘11 Applying the Fee  Fee is applied on the original order and any subsequent mods including exercising options For example an order with a base total of $2 Million and 2 options of $1 Million each will have a fee of $18,000 inclusive of all options  If an order is canceled, no fee is applied  If the amount of an order is decreased, the fee is also decreased  If the amount of an order is increased, the fee is increased

12 Conference ‘11 We Work For You  Pre-Award Assistance Scope Questions Assist with Getting RFQ Responses CLIN Management  Orders Data Validation Delivery Tracking  Post Award Issues Assistance with Issue Resolution Debriefs Protests Program Performance

13 Conference ‘11 Pricing – Catalog Price SEWP catalog price is fair and reasonable based on:  Contract Discount Structure Based on a set discount off of list price Discount structure tied to initial competition and award  Pricing compared against other contract prices Other contracts do not necessarily compare against other contracts If pricing is not comparable, justification is required -“I cannot sell at that price” is not a justification -“The warranty is for 2 years instead of 1” is a justification  Price must be lower than Contract Holder’s GSA price (lower fee)  Variable priced CLINs not allowed

14 Conference ‘11 Pricing – Quoted Price  SEWP catalog price is the highest price allowed Discounting at the quote level is highly encouraged  On average, quoted price is 27% lower than catalog price Strong internal competition Consolidation of requirements maximizes discounts Prices may be negotiated  If the quoted price seems questionable, notify Most common question: I found the same item on the web for half the price Upon further research most common reasons for price discrepancies: -Technically comparing apples to oranges (or Apples to PCs) -Item is end of life -The required solution requires customization

15 Conference ‘11 Contract Holder Relationship Manager 2 Full-time staff serve as CHRMs (Contract Holder Relationship Managers)  Liaison between SEWP Program Management Office (PMO), Contract Holders (CH), Industry, and Users Daily if not hourly interactions between CHRMs and Contract Holders Annual one-on-one meetings with each Contract Holder -Discuss past issues -Promote good communication Quarterly Program Manager Meetings  Assist Government Customers with Issue Resolution Provides mediation, research, recommendations, and/or a sympathetic ear Objective is to provide a balanced perspective

16 Conference ‘11 CHRMing Activities  Industry Events Semi-annual Industry Forums -Please encourage any company you work with who wants to know more about SEWP to attend one of these events (send to Sales Training -Sales forces at all Contract Holders are required to be trained on SEWP Contracts Manufacturer Training  Track Program Performance  Assist in review and approval of product catalog updates: Technology Refreshments (TR) Statement of Work and scope reviews  Oversight of Contract Holder Only Page (CHOP) Web site used to provide Contract Holders with a suite of tools  Manage the Contract Holder Reports

17 Conference ‘11 Contract Holder Reports SEWP provides Contract Holders with an array of periodical reports Contract Holder is fully informed of all SEWP-related activities, actions, and issues in a timely fashion  Agency and Contract Holder Total Usage – Monthly  Delivery Order and Quote Request Summary – Weekly  Pending Quote Requests – Daily  Orders With Upcoming or Overdue Delivery Times – Daily  Order Receipt and Order Summary Issue Report - Daily

18 Conference ‘11 SEWP Notification Recipients ReportCustomerSEWP PMO Contract Holder Approved Manufacturer Order Changes RFQ/RFI Order Quarantine Order Processed Delivery Date Change Order Acknowledgement by CH Delayed Acceptance of Order Order Shipped Order Overdue for Delivery Technology Refresh

19 Conference ‘11 Program Performance SEWP Program Office tracks the performance of each Contract Holder in the following categories:  Reports  Customer Satisfaction  Information Distribution  Contract Adherence  Delivery

20 Conference ‘11 Program Performance Ratings  Ratings are based on 4 levels Blue = Excellent Green = Very Good Yellow = Fair Red = Poor  In general, multiple problems in a given area within a 3 month window causes a downgrade  After a downgrade, 3 months without any issues results in an upgrade

21 Conference ‘11 Program Performance Page

22 Conference ‘11 Program Performance Categories (1 of 2)  Reporting Category Timeliness Accuracy Surcharge Payments  Customer Satisfaction Response to Customer Complaints Quality of Products and Services  Information Distribution Correct Information -Website -Marketing Materials -Quotes Follow Customer Contact Guidelines

23 Conference ‘11 Program Performance Categories (1 of 2)  Delivery Category Orders Delivered by Expected Delivery Date CH Follows SEWP Procedure for Delivery Delays -CHOP Used to Update Order Status -Customer Properly Notified  Contract Adherence Category Quote in Accordance with SEWP Rules -All Quoted Items on contract -All Quoted Items included in Verification File -Quote Submitted Through SEWP Quote Interface Attend Required Meetings Follow SEWP Delivery Order Policy Reporting Accuracy

24 Conference ‘11 Program Performance What it Means  Program Performance does not constitute the official Past Performance ratings based on FAR Part Customer SatisfactionFAR Part Annual past performance ratings may be obtained upon request  Goal is to have everyone rated Excellent Contract Holders were awarded a contract in part based on evaluation of program level capabilities Best use of the Program Performance ratings is to encourage Contract Holders to resolve issues quickly and with minimum delay SEWP Program Office would rather have a satisfied customer than a downgraded Contract Holder

25 Conference ‘11 Program Performance What a Low Rating Means If a rating is Good or Poor:  Check the category: Reporting and Information Distribution are unlikely to affect an individual order performance as these tend to be Program level issues; Contract Adherence issues may be Customer related – typically related to Quoting or Program level issues Delivery and Customer Satisfaction may indicate an issue with past order fulfillment  Contact the SEWP Program Office, especially for Poor Ratings in Delivery and/or Customer Satisfaction Program Office can provide more details on the meaning of the rating  Next version of the Quote tool will flag Contract Holders with low program performance ratings

26 Conference ‘11 Program Performance What You Can Do to Help  Send information about any Contract Holder issues to  CC on any correspondence with Contract Holder concerning an  If we do not know about the problem, we cannot assist  If we do not know about a problem, we cannot prevent it from happening again