Maintaining A Competitive Environment: Keeping Industry in the Game (room) Group 2 Jonathan Bruel, Kim Ross, Rob Burton, Brad King, Denny O’Brien 16 Nov 2004

11/16/04 2 Problems Compound Risk for Industry (relative to other strategic opportunities) – Uncertainties Delays in contract award or cancellation of studies Workload Potential for abuse of appeal process Potential for Congressional changes in rules – Not worth the $ for industry – Plenty of other strategic opportunities to pursue Stereotypes – Lack of innovation – Small bids, small numbers – civilian agencies – Malicious compliance by agencies

11/16/04 3 Problems (cont.) Challenges with Best Value – Not allowed to look at past performance or resumes for MEO

11/16/04 4 Good Examples FAA model – Define outcomes – Agency commitment to transformative – Free to innovate – Marketing (educ, inform, genuine invitation to participate) Social Security IRS

11/16/04 5 Overall Recommendations Broaden the debate Reframe in terms of mission objectives – break-through performance improvements (program performance/public services) and cost improvements – use meaningful metrics

11/16/04 6 Industry Educate Congressional members – Members re. constituents that benefit -- govt contractors in their district. – Authorizing committees re what’s possible and innovation, programmatic benefits – Appropriators re. significant savings opportunities Educate agencies about what’s possible re. strategic focus and innovation Expect fair play not fair share; explain problems and offer solutions Leverage constituent base

11/16/04 7 OMB Broaden engagement at OMB (beyond OFPP to also include Resource Mgmt Offices) to drive transformative improvements – Require agencies to clearly demonstrate performance improvements [using A-76 or whatever tools work] Attack numbers game Steer agencies toward more “valuable” strategic goal-focused competitions – Update and expand best practices manual – Combat the stereotypes and misinformation Require performance data for MEOs (after award)

11/16/04 8 Agencies Pursue transformational change focused on mission objectives Develop capability to use variety of tools for sourcing needs – and use the best tool for the need Convince industry you’re serious – Focus on outcomes – Industry days, draft RFP (90 vs 60 days), marketing

11/16/04 9 Agencies (cont.) Encourage innovation, freedom to innovate with the studies – Small business benefits – Industry will take opportunity seriously Performance and dollar targets instead of FTE targets

11/16/04 10 Unions Acknowledge and help with facts and data Engage in discussion about performance and transformation of government and identify successful ways of getting there

11/16/04 11 Congress Leave new Circular in place Appropriation Committees look to take advantage of savings Governmental Affairs and Reform Committees should require govt (MEOs) to recompete