Department of Commerce Information Technology Conference April 12-14, 2005 Acquisitions for the Department of Commerce Greg Crider Office of Acquisition Management and Financial Assistance “Business Brokers for Program Success”

2 Acquisitions for the Department of Commerce What Commerce Buys Acquisition Planning and Review Contracting Officer Representatives: Acquisition’s Partner Standards and Other Recent Items

3 What Commerce Buys $639 million $234 million$573 million $126 million $178 million FY04 Obligations Total: $1,750 million Source: Enterprise Acquisition Reporting System (EARS), Federal Procurement Data System NexGen

4 What Commerce Buys Product or Service FY 2004 Actions FY2004 Obligations Base + Exercised OptionsBase + All Options FY 2004 Percent Total Other Services 14,443$638,917,573$1,415,990,504$2,121,461, % IT Service 2,372$572,680,857$2,703,300,233$5,744,821, % Other Supplies 6,081$233,933,512$246,960,856$356,890, % IT Equipment 2786$126,143,277$135,260,630$178,723, % A&E 342$62,402,686$183,672,467$419,782, % R&D Services 557$38,716,159$2,947,664,712$3,300,589, % Construction 249$34,648,054$431,082,778$614,513, % Real Property 326$21,934,048$50,265,707$73,530, % Miscellaneous 1,642$20,185,436$10,728,881$10,950, % Total 28,798$1,749,561,601$8,124,926,768$12,821,262, % Source: Enterprise Acquisition Reporting System (EARS) Federal Procurement Data System NexGen

5 1. Contact procurement and inform them of your needs. 2. Conduct market analysis. 3. Define the technical requirement and $ est. 4. Obtain funds certification. 1. Solicit Offers. 2. Evaluate Offers. 3. Award. 1. Contract Surveillance. 2. Modifications. 3. Closeout Procurement Office Customer Procurement Office Customer Procurement Office The Acquisition Process Phases Distribution of Effort Presolicitation PhaseSolicitation Phase Post Award Admin. Phase The required level of effort shifts between each phase. AWARDAWARD AWARDAWARD

6 The New Acquisition Model Budget/ Strategic Plan RequirementsDefinition Strategic Sourcing/Acquisition Strategy PerformanceManagement Procurement/ Contract Award Where the Acquisition Community is currently engaged Acquisition Community engagement under the New Model

7 Department of Commerce Review Boards Commerce Information Technology Review Board (CITRB) IT systems meriting special attention due to their sensitivity, mission criticality, or risk potential; Department-wide IT systems; IT systems with life cycle costs over $25 million Commerce Acquisition Review Board Acquisitions over $10 million Interagency Agreements over $5 million (both incoming and outgoing funds)

8 Documentation for Commerce Review Boards Exhibit 300 – Capital Asset Plan and Business Case Attachment A, Additional Acquisition Planning Information Briefing Presentation Resumes Program Manager, if applicable Contracting Officer Contracting Officer’s Representative Same documentation for either CITRB or Acquisition Review Board one week prior to Board meeting

9 Acquisition Approvals Delegation of Procurement Authority (DPA) for IT Varies by Operating Unit or major component Acquisitions < $10 million – most operating unit or major component CIO’s Acquisitions >$10 million – Commerce CIO Acquisition Plan (i.e., Attachment A) signed by: Program Official Contracting Officer Attorney assigned to the acquisition Head of Contracting Office Bureau Senior Procurement Officer (over $5 million) Procurement Executive (over $10 million)

10 COR: Acquisition’s Partner Contracting Officer’s Representative (COR) is a Federal employee that ensures program success by partnering with the Contracting Officer (CO) and Contractors to achieve contract objective. delegated limited authority by the CO to monitor and perform contract management duties related to: Management and oversight Contractor’s performance and meeting the standards set forth in the contract Technical requirements are met by the delivery date at the price or costs in the contract Contract closeout

11 COR Certification Program: Major Changes COR Concept 4 Designations POC COTR Level 1 COTR Level 2 COTR Level 3 Competency Based Business/Industry General Management Project Management Procurement Knowledge Training Project Management Procurement Knowledge Performance Plan –COR functions are part of the employee’s plan

12 COR: Levels of Certification Point of Contact Simplified Acquisitions ($25,000 to $100,000) Level 1 Up to $1 million Level 2 $1million up to $10 million Level 3 $10 million and above

13 COR: Performance Plan If an individual spends more than 20% of their time working on contracts, the COR element must be included in their performance plan (Level 1 certification). All Level 2 and 3 COR must have the COR element in their performance plan. DOC policy since December New and current CORs have until December 31, 2005 to meet training requirements

14 Training Requirements: Project Management Knowledge and Performance

15 Training Requirements: Procurement Knowledge and Performance

16 COR: Nomination/Certification Program official nominates an individual to serve as a COR. Head of the Contracting Office (HCO) issues a “Certificate of Eligibility.” CO appoints an individual as a COR after he/she has completed the appropriate training and has a “Certificate of Eligibility.” Procurement Executive (PE) may waive the training requirements in special situations.

17 Standards & other Recent Items Internet Protocol Version 6 (IPv6) An emerging standard in the Department of Commerce Federated Enterprise Architecture A criterion for CITRB approval of all investments Directed in the OMB passback for FY06 Include IPv6 as required component in Operating Unit Standards profile Applies to acquisition of new technology and upgrade of existing capabilities Specify IPv6 compliance as a technical requirement in the statement of work or statement of objectives for contracts

18 Standards & other Recent Items Section 508 Extension of exception for micro-purchases (under $2500) expired April 1, 2005 All purchases must now comply. Primary impact on purchase card holders Earned Value Management System Proposed rule will apply Government-wide Federal Register April 8, 2005 Comments due June 7, 2005

19 Web Site Addresses Commerce Information Technology Review Board (CITRB) Acquisition Planning and Review Interagency Agreements Exhibit 300 – Capital Asset Plan and Business Case Attachment A, Additional Acquisition Planning Information COR Certification Program

20 Points of Contact Acquisition Review Board Greg Crider, CITRB Diana Hynek, COR Policy Curtina Smith, Virna Evans, Earned Value Management System Jerry Harper,