Ongoing Initiatives & Contracting Impacts 17 September 2009 Ms. Joy White Director of Contracting Space and Missile Systems Center

2 Outline  Opening Remarks  MIRTs & Peer Reviews  Incentives  Organizational Conflict of Interest (OCI)  Questions This Briefing Is Unclassified

3 Opening Remarks

4 Multi-Functional Independent Review Team (MIRT) Charter  Provide CAA feedback on quality of clearance action  Required for competitive awards >$50M Team Composition  Technical  Legal  Contracting  Others as applicable Review Occurrences  Pre ASP/AP  Pre RFP  Pre ENs or Competitive Range  Pre FPR  Pre Award Focus Areas for Critical Decision Points  Consistency  Clarity  Reasonableness

5 Peer Reviews Policy Objectives  Ensure COs implement policy & regulations consistent & appropriate manner  Continue to improve quality of contracting process  Facilitate cross-sharing of best practices & lessons learned Team Composition  Senior DOD contracting leaders & members of the Office of General Counsel Review Occurrences  Competitive - Prior to issuance of solicitation, final proposal revisions, & contract award  Sole source - At pre and post business clearance phases Applicability  Contracts $1B or more

6 Incentives  Moving away from Award Fee contracts  Moving toward all objective incentives  Use of negative incentives is on the rise – holding contractors accountable for acquisition outcomes  If an award fee contract is utilized - encouraged to use base fee  Looking at prohibiting rollover of award fee & provisional payments

7 OCI  We are seeing very restrictive interpretations that go beyond existing regulatory language  Concern regarding ability to have effective competition  Awaiting regulatory language that clarifies ability to mitigate  Currently using an OCI Panel, corporate wide-plans and open communication to minimize potential impacts

8 QUESTIONS???