Space and Naval Warfare Systems Center Atlantic 1 Multiple Award Contracts Steve Harnig Contracts Division March 2010

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 2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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