1. Identify Commercial Activities Programs
U.S. ARMY SOLDIER SUPPORT INSTITUTE
NONCOMMISSIONED OFFICER ACADEMY
Show Slide #1: Identify Commercial Activities Programs
Title: Identify Commercial Activities Programs
References:
FM 1-06, Financial Management Operations, 04/15/2014
AR 5-20 Competitive Sourcing Program, 06/27/2008
PAM 5-20, Commercial Activities Study Guide, 06/27/2008
OMB CIR A-76, Performance of Commercial Activities, 05/01/2003
Section I. Administrative Data
Academic Hours/Methods
00 hrs. / 10 mins. ELM – Concrete Experience
03 hrs. / 15 mins. DSL (large or small group discussion)
01 hrs. / 00 mins. PE (practical exercise (Hands On)
00 hrs. / 00 mins. Test
00 hrs. / 00 mins. Test Review
04 hrs. / 25 mins. Total Hours
Section II. Introduction:
Method of Instruction: CE- ELM Concrete Experience
Facilitator to Learner Ratio: 1:16
Time of Instruction: 00 hrs. / 10 min.
Media: PowerPoint Presentation
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and a summary sheet containing the above noted references.
Learners Material: Learners should possess all required printed reference material, course handouts, a summary sheet containing the above noted references and standard classroom supplies.
Note: All required printed reference material, and technical manuals will be provided by the Schoolhouse.
Method of Instruction: DSL - Discussion (large or small group)
Learning Domain - Level: Cognitive / Applying
Motivator: Starts on next slide, concrete experience dealing getting the learners to think if DOD should continue with the Commercial Activities Program. 1

2. (Concrete Experience)
DOD Vs. CAP (?)
(Concrete Experience)
Discussion:
With the current budget restraints, do you think the DOD should continue with the Commercial Activities Program (hiring civilians to do governmental functions) or should those function be manned by DOD personnel?
Show Slide #2: DOD Vs. CAP (?) (Concrete Experience)
Facilitator’s Note: Facilitate discussion base on the questions posted on the screen.
Notes: Inform Learner’s
There is no right/wrong answer to the question proposed above.
The question is designed to get learners to think about the topic amongst their group and with the class.
Some of the advantages and disadvantages are listed on below and on slides 22 and 23.
Break up into groups and discuss the question above and make an argument for or against the Civilian Activities Program.
Allow several minutes to discuss and propose an argument.
Afterwards, groups will present their argument to the class.
Commercial Activity Advantages:
Contractor employees do not count against the Army's manpower authorizations or end strength levels.
The CA process helps us realize dollar savings at certain management levels.
By conducting both a cost and management study, we are effectively ensuring the installation is using the most effective and economic resources to provide a certain product or service.
Morale.
Commercial Activity Disadvantages:
There is a perception that the CA Program is implemented at the installation, while the benefits are realized at the HQDA level.
Another problem with the CA process has to do with the OMA appropriation. The impact of this problem varies with the activity concerned. The installation now has a problem with managing a relatively constant or stable contractual obligation with an unstable appropriation.
From the commander's perspective, the little "extras" (the nice to have but not mission essential goods and services) are not available, unless written into the formal and binding contract, based on a detailed PWS.

3. Terminal Learning Objective
Action: Identify Commercial Activities Programs
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Define commercial activities goals, criteria, and policy
Describe personnel, agencies and roles in the commercial activities program.
Identify the performance work statement and cost study process identifying advantages and disadvantages.
Show Slide #3: Terminal Learning Objective
Action: Identify Commercial Activities Programs
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Define commercial activities goals, criteria, and policy
Describe personnel, agencies and roles in the commercial activities program
Identify the performance work statement and cost study process identifying advantages and disadvantages
Instructional Guidance: Throughout this lesson, solicit from learners the challenges they experienced in the current operational environment (OE) and what they did to resolve them. Encourage learners to apply at least 1 of the 8 critical variables: physical environment, political stability of the state, sociological demographics, infrastructure, military capabilities, information, time, and economics.
Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low.
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to ATP Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation: Learners will take the Fund the Force exam. Learners must score 80% or higher.
Instructional Lead-in. (Publish and Process): Have learners write questions or topics in regards to the lesson from their advance sheet study requirements on an Index card or a piece of paper to a common area within the classroom. You may allow learners to post questions throughout the lesson. At the end of the lesson, the questions will be reviewed.

4. What is a Commercial Activity?
Is a recurring service performed by the private sector.
Funded and controlled through a contract.
May be found within or throughout governmental agencies or organizations.
Show Slide #4: What is a Commercial Activity?
1. Learning Step Activity #1. Define the commercial activities program and criteria
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 01 hrs. / 00 mins.
Media: PowerPoint Presentation, Handout
21st Century Soldier Competencies: The 21st Century Soldier Competencies are essential to ensure Soldiers and leaders are fully prepared to prevail in complex, uncertain environments. Throughout the lesson discussions, seek opportunities to link the competencies with the lesson content through the Learner’s experiences.
Facilitator's Note: Before facilitating this lesson, ask the Learners which of the 21st Century Soldier Competency do they think pertain to this lesson. Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the Learners still believe their choice are the same.
Note: For this lesson, these competencies should be talked about.
#4. Lifelong learner (includes digital literacy)
#5. Teamwork and collaboration
#6. Communication and engagement (oral, written, and negotiation)
#7. Critical thinking and problem solving
Facilitator’s Note: Refer learners to AR 5-20, Glossary for the complete definition of commercial activity.
Is a recurring service performed by the private sector
Funded and controlled through a contract.
May be found within or throughout governmental agencies or organizations.

5. Commercial Activity Goals
Rely on private sector, when cost effective
Implement national policy
Cost effective CA by competition
Show Slide #5: Commercial Activity Goals
Facilitator’s Note: Facilitator read and facilitate discussion on commercial activity goals.
The Army's Commercial Activity (CA) goals are to:
Rely on the private sector for products and services when cost effective and consistent with the Army's national defense requirements.
Implement national policy defined in OMB Circular A76. Related to the first bullet, it refers to maximizing taxpayer dollars when CA’s are cost efficient and direct the use of competition when implementing the CA program.
Obtain the most cost effective commercial activity through fair and open competition.

6. Commercial Activity Criteria
A CA must meet the following tests:
Operated and managed by a federal agency.
Obtainable from private sector.
Separable from other functions and suitable for performance in house or by contract.
Needed recurring service.
Show Slide #6: Commercial Activity Criteria
Facilitator’s Note: Facilitator read and facilitate discussion on the criteria for commercial activity.
A commercial activity is a Government activity, function that must meet the following:
Operated and managed by a federal agency.
Obtainable from private sector.
Separable from other functions, suitable for performance in house or by contract.
Provides regularly needed, recurring services, are not related to the support of a particular project, and have a total life span of two years or more.

7. Commercial Activity Policy
The Army will not perform a CA unless:
Review and approved by the ASA (I&E).
Cost comparison shows Army’s performance less costly than a contractor.
Government products or services are preferred.
Show Slide #7: Commercial Activity Policy
Facilitator’s Note: Facilitate discussion on areas below using the slide for commercial activity policy.
The Army's CA Policy will not rely on commercial sources for products and services.
The Army will not start, expand, or carry on any CA if commercial sources are more cost effective, unless it is in the best interests of the Army.
The army will not perform a CA unless:
CA has been reviewed and approved by the Assistant Secretary of the Army (Installations and Environment) (ASA (I&E)).
Cost comparison shows Army’s performance less costly than a contractor.
The use of products or services available from other Government agencies is preferred over those available through the private sector or creating new in-house CAs.
While it might seem that everything falls under a commercial activity, this is not the case. Be sure to note those activities excluded in some of the paragraphs.
Examples include:
Care of remains of deceased personnel.
Commissary store operation (excludes procurement of goods for issue or resale) shelf stocking, check out, meat processing, and troop subsistence issue point operation.
Clothing sales store operation (ordering, receiving, storing, stocking, and retailing).
Stores operated by the Army and Air Force Exchange Service (AAFES) are excluded from the CA Program.
Morale, welfare, and recreation activities are primarily for the off duty use of military personnel and their dependents, including both appropriated and partially Non-appropriated Fund (NAF) activities (excludes Chaplain-related activities).
Armament, aeronautical support equipment.
Director of Personnel and Community Activities (DPCA) (excluding functions performed solely by Non-appropriated Funds (NAF) civilian personnel), Director of Industrial Operations (DIO), Director of Public Works (DPW) and Director of Information Management (DOIM).
debt collection;
advertising and public relations;
National resource services;
custodial services;
laundry and dry cleaning services;
installation bus services;
food services,
refuse collection and disposal services;
pest management;
pastry kitchens, and central meat processing facilities reported under a different code,
excluding operation of central bakeries,
initial issue points and central issue facilities,
military clothing (ordering, receiving, storing, issuing, and alteration of personal clothing,
motor vehicle maintenance,
(excludes repair of organizational clothing reported under code J515).
Guard service (physical security operations that protect installation).
Security and in transit protection of military property from loss or damage;
confinement and correction of military prisoners;
security of chemical weapons in Government-Owned, Government-Operated (GOGO) facilities;
security of nuclear weapons;
Police working dog program;
military police desk operations, absentee and deserter apprehension;
provost marshal, security officer and staff, and law enforcement patrol;
crime prevention;
physical security evaluation and inspection;
civil liaison;
crisis intervention and investigations.

8. Review Exceptions Sensitive weapons Law enforcement Confinement.
MTO&E positions
RDT&E
Mandatory/exempted.
Show Slide #8: Review Exceptions
Facilitator’s Note: Facilitator read and facilitate discussion on review exceptions.
The inventory, review, and cost study of activities applies to all CAs performed by or for the Army EXCEPT for the following:
Security of sensitive weapons at GOGO (Government owned/Government operated) confinement/correction facilities
Law Enforcement
Confinement
Modified, Table of Organization and Equipment (MTO&E)
Research, Development, Test, and Evaluation (RDT&E).
Mandatory/exempted (federally directed).

9. LSA #1 Check on Learning
Q1: True or False, one of the Army's commercial activity (CA) goals are to.
Q2: The army will not perform a CA unless:
a. CA has been reviewed and approved by the Assistant Secretary of the Army (Installations and Environment) (ASA (I&E)).
b. Cost comparison shows Army’s performance less costly than a contractor.
c. The use of products or services available from other Government agencies is preferred over those available through the private sector or creating new in-house CAs.
d. All of the above
e. Only A and C
Show Slide #9: LSA #1 Check on Learning
Facilitator’s Note: Ask the following question and facilitate discussion on answer given.
Note: Animated slide, click enter to reveal answers.
Q1: True or False, one of the Army's commercial activity (CA) goals are to.
Q2: The army will not perform a CA unless:
a. CA has been reviewed and approved by the Assistant Secretary of the Army (Installations and Environment) (ASA (I&E)).
b. Cost comparison shows Army’s performance less costly than a contractor.
c. The use of products or services available from other Government agencies is preferred over those available through the private sector or creating new in-house CAs.
d. All of the above
e. Only A and C

10. LSA #1 Summary
During the first part of this lesson, we had discussions on the goals, criteria’s, policies and exceptions dealing with the commercial activity program.
Show Slide #10: LSA #1 Summary
Facilitator's Note: During the first part of this lesson, we had discussions on the goals, criteria’s, policies and exceptions dealing with the commercial activity program.

11. Key Personnel and Responsibilities
ASA (I&E) and ASA (M&RA)
ACSIM
Commanders
DRM
CPO
Contract ADMIN personnel
Show Slide #11: Key Personnel and Responsibilities
2. Learning Step Activity #2. Describe personnel, agencies and roles in the commercial activities program
Method of Instruction: DSL – Discussion (Small or Large Group)
Media: Power Point Presentation, Handout
Time of Instruction: 01 hrs. / 20 mins.
Facilitator to Learner Ratio: 1:16
Facilitator’s Note: Facilitator transition now to facilitate discussions on describing personnel, agencies and roles in the commercial activities program.
Commercial Activities Responsibilities: You were introduced to the different levels and the key players. Now we highlight the key players involved in the Commercial Activities Program:
The Assistant Secretary of the Army (Installations and Environment) (ASA(I&E) representative for the CA Program, along with the Office of the Secretary of Defense (OSD), the other Services, Office of Management and Budget (OMB), and Congress. The ASA (I&E) is the approval authority for CA policies and exceptions to policies, except as delegated.
The Assistant Secretary of the Army for Manpower and Reserve Affairs (ASA(M&RA)) provides civilian personnel and manpower management expertise and reviews the uses of anticipated and actual civilian space savings resulting from CA Program implementation.
Specific responsibilities are discharged through the Assistant Chief of Staff for Information Management (ACSIM). This person serves as the single point of contact for HQDA on issues affecting the CA Program. The ACSIM, develops, coordinates, and publishes the policies and procedures for implementing the CA Program.
Commanders (ACOMS, Operating Agencies (OAs), Installations) have the following responsibilities:
Appoint an official to manage the implementation of the CA Program.
Select commercial activities for study and conduct cost competitions following the procedures outlined in AR 520.
Certify that the CA is organized in the most cost-effective and efficient manner.
Certify that the CA or contract activity is operating in the most cost-effective and efficient manner at least annually after the cost competition.
Provide a comprehensive job placement program for employees displaced by the CA study process.
Appoint a command staff level steering committee to oversee the preparation of each CA cost competition under the commander's direct authority.
Consult with effected employees and the labor organizations representing affected employees at least monthly, during the development of the Performance Work Statement (PWS) and the Most Efficient Organization (MEO). Ensure all installation actions with CA implications are coordinated with the CA Program Manager.
ACOM commanders specifically must ensure all in-house CAs under their control are reviewed at least once every 5 years and cost studies are conducted when required.
Installation commanders specifically must designate responsibilities for the management study, the PWS, and the request for Bids/Proposals. Normally, the Director, Resource Management will be responsible for the management study, the director of the function for the PWS, and the Director of Contracting for the Request for the before Bids/Proposals.
The Director of Resource Management (DRM) is the Army's Program Manager. The DRM serves as the main point of contact (POC) on all CA matters and coordinates CA program actions between the steering committee, installation staff, and high headquarters at all stages of the study.
Civilian Personnel Office (CPO) participates as a team member in the CA management study by:
Providing position management advisory services, monitoring implementation of the position structure improvements in the MEO, informing the commander of noncompliance, and verifying accurate job classifications.
Developing position descriptions.
Properly evaluating and classifying positions in activities under study.
Scheduling biennial position classifications.
Participating in the in-house cost estimate.
(Planning and executing Reductions in Force (RIF):
Right of first refusal.
Hiring freezes.
Reduce turbulence.
Contract Administration Personnel:
Review contractor performance and compliance with all terms and conditions of the contract.
Process contract payments.
Negotiate change orders and contract modifications.
Monitor the closeout of contract operations.
Inspection, acceptance, and processing deviations

12. Commercial Activity Inventory
Lists all commercial activities.
Updated annually.
Includes description of each commercial activity.
Show Slide #12: Commercial Activity Inventory
Facilitator’s Note: Facilitate discussion on areas below using the slide.
The Army Commercial Activities Inventory:
This is a listing of all CAs performed by or for the Army at installation, ACOM, or HQDA levels. It provides information on the location of the CAs, the functions they perform, and the resources spent to perform them. All CAs will be entered in the inventory. CAs exempted from cost study, after review, will not be deleted from the inventory. The inventory provides the information necessary for annual reports to the Congress, as required by law.
The inventory will include an entry for each in-house CA that uses least one civilian or military a year. The inventory will also include an entry for each CA that is wholly performed by contract when the total contract payments are over $100,000 a year.
Records will be maintained at the agency, activity, or installation for all CAs in the inventory. CA records will be identified, maintained, and disposed of.
Each agency shall first evaluate all agency activities and functions to determine which are Governmental functions and which are commercial activities.
Each agency shall then complete an inventory of all Government commercial activities, including known expansions and new requirements, which it operates, listing separately, activities of 10 Full Time Employees (FTEs) or less, and activities of more than 10 FTEs.
Each agency shall update its commercial activity inventory annually.
Inventories shall be made available to other agencies and the public upon request. A review of an existing or proposed in-house activity will determine if compelling non-cost reasons exist for an in-house
For each activity, the inventory shall describe, as a minimum, the number of FTEs, the nature and location, the date of the last review, the date of the next review, reason for justifying continued in-house performance, and the date of the next scheduled review.

13. Commercial Activity Tools
Commercial Activities Inventory.
Army Commercial Activities Management Information System (ACAMIS).
Commercial Activities Proposed Action Summary (CPAS).
Show Slide #13: Commercial Activity Tools
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
The following tools help implement the CA program:
Army Commercial Activities Management Information System (ACAMIS):
Provides effective management of data needed to operate the Army CA program through use of a database.
An entry is made in the database for each separable in-house CA that is not excluded from the CA program, and each contract, if the annual contract is over $100K.
Entries are identified by a sequential number, cost study number, Government Funded Activity (GFA) code, Army Command (ACOM), location and various projected costs.
Inventory reports are submitted to Congress and the Department of Defense (DoD) CA inventory.
Commercial Activities Bulletin (CAB): Published quarterly by ACSIM with updated information, educational opportunities, and CA lessons learned.
The Commercial Activities Proposed Action Summary (CPAS):
Gives the information required for HQDA assessment of the feasibility of contract performance of an in-house activity.
The CPAS will be coordinated with the installation CA Program Manager, the functional managers, the contracting officer, the manpower manager, the small and disadvantaged business utilization specialist, the installation security manager, and the legal counsel.
The CPAS will be prepared in letter format and will be submitted any time a function is identified for a cost study.
CPAS will include Part 11 of the current approved Tables of Distribution and Allowances (TDA) in which the commercial activity work centers are located.
Positions will be marked according to the type of civilian position (permanent, temporary, intermittent, etc.); whether the position is filled or vacant and if military personnel are involved, whether they are assigned or borrowed.
Other information related to Management Decision Packages (MDEPS) and manpower authorizations are included as necessary.

14. Commercial Activity Reviews
Existing in-house
Expansions
Existing contracts
New requirements
Direct Conversions or Streamlined Cost Studies
Show Slide #14: Commercial Activity Reviews
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Existing In-House Commercial Activities;
Agencies shall schedule reviews of the commercial activities listed in their inventories.
The review should first include a determination of whether the activity must be retained in-house for reasons other than lower cost.
If these criteria do not apply, then the agency must justify in-house performance on the basis of lower cost, unless a waiver is appropriate.
Expanding In-House Activities;
An expansion is the modernization, replacement, upgrading or the enlargement of an in-house commercial activity or capability.
If the expansion involves a 30-percent increase in the operating cost of the activity, a 30-percent increase in the total capital investment to perform the activity, or an increase of 65 civilian FTEs or more, a cost competition study of the entire activity is required prior to authorizing in- house performance of the expanded workload.
A consolidation of two or more existing commercial activities is not an expansion unless the total operating cost is 30 percent greater than the total of the individual components or it requires an increase of 65 civilian FTEs or more.
A DA Form 7375-R will be submitted to the ACOM for approval before beginning the cost competition study.
Existing Contracts;
Existing Intra-governmental Support (IGS) may be continued or renewed without cost competition study.
New Requirements;
A new requirement will be obtained by a competitively awarded contract.
Direct Conversions;
A Full or streamlined Cost Competition Study is required unless the function meets one of the following conditions:
Ten or fewer in-house civilian employees
Small contracts
Installations scheduled to close within 180 days
Preferential Procurement Programs
Eleven to forty-five civilian employees
IGS
Functions designated for termination on a specified date
Research and Development (R&D)
Patient Care
National Defense or Intelligence Security
CAs staff solely with military personnel, regardless of size, may be converted to contract without a cost competition study when the contracting officer determines that offers will provide required levels of service quality at fair and reasonable prices
Streamlined Cost Studies;
Streamlined Cost Competition study procedures (DA Pam 5-20, paragraph 5- 22) may be used to convert in-house activities to contract or IGS performance when all of the following criteria are met:
The commander or designee certifies the existing in-house organization as the MEO;
The activity is staffed with 65 or fewer civilian FTEs and any number of military personnel (and the study has been announced to Congress IAW paragraph 4-5e(1) below if the activity is being performed by more than 45 civilian employees);
The activity is commonly contracted by the government and/or private sector; for example, there are not less than four comparable Defense contracts of the same general type and scope and the range of the existing service contract costs are reasonably grouped.
The activity will not require significant capital asset purchases or all equipment requirements will be government furnished/contractor operated; and
The activity is one that competes largely on a labor and material cost basis such as, but not limited to, custodial, grounds, refuse, pest control, warehousing, and maintenance services;

15. Check on Learning (Midway) (Sit – Stand)
One of the Dept of the Army’s CA Program goals is to rely on government personnel to fulfill governmental functions, even if it is cost effective.
In regards to CA criteria, operated and managed by a federal agency is not a criteria of a CA.
The ASA(I&E) is the approval authority for CA Program policies.
Existing contracts may be continued without a cost study.
Show Slide #15: Check on Learning (Midway) (Sit – Stand Questions)
Facilitator’s Note: This exercise is designed to be an interactive True or False COL.
Note: Animated slide, click enter to reveal answers.
Facilitator’s Note: This is a form of True/False. Begin by having the students standing. Read off a statement, and if the statement is true, the students will stand; if it is False, they will sit. Poll the students to see why they chose their answer, to ensure they have an understanding of the material. Below are some sample questions to ask; Instructor may choose to ask different questions or additional questions.
One of the Dept. of the Army’s CA Program goals is to rely on government personnel to fulfill governmental functions, even if it is cost effective.
In regards to CA criteria, operated and managed by a federal agency is not a criteria of a CA.
The ASA(I&E) is the approval authority for CA Program policies.
Existing contracts may be continued without a cost study.

16. Performance Work Statement (PWS)
Function of work.
Location of work.
Quantity of work.
Quality and timeliness of work.
Quality Surveillance Assurance Plan (QSAP).
PWS/QSAP
Show Slide #16: Performance Work Statement (PWS)
Facilitator’s Note: Facilitator read and facilitate discussion.
Performance Work Statement (PWS):
The PWS describes all functional and performance characteristics of the work, the location of the work, the units of work, the quantity of work units and the quality and timeliness of the work unit.
It is the basis for soliciting, all contract bids and in-house cost estimates.
Considerations for the PWS are thus:
Function of work.
Location of work.
Quantity of work.
Quality and timeliness of work.
Quality Surveillance Assurance Plan (QSAP).

17. Management Plan Most Efficient Organization (MEO).
In-house cost estimate (IHCE).
Technical Performance Plan (TPP).
Show Slide #17: Management Plan
Facilitator’s Note: Facilitator read and facilitate discussion.
Management:
The management plan will identify the most efficient in-house organization and position structure to perform the work.
The management plan, ideally, is a team effort, which uses the talents of individuals with expertise in management analysis, staffing, position classification, work measurement, value engineering, industrial engineering, cost analysis, and technical aspects of the functional area under study.
The Management Analysis Division under the DRM/DCSRM should be the study leader.
Common problems identified in the management study are: layering supervision, work bottlenecks, complex systems, overstated quality levels, backlogs, misuse of Overtime and excessive administrative positions.
The primary product of the management plan is the Most Efficient Organization (MEO).
Considerations for the Management Plan are thus:
Most Efficient Organization (MEO).
In-house Cost Estimate (IHCE).
Technical Performance Plan (TPP).

18. Most Efficient Organization
Optimum in-house.
Must match PWS
Becomes Government’s bid (IHCE).
Must be able to implement.
Show Slide #18: Most Efficient Organization
Facilitator’s Note: Facilitator read and facilitate discussion.
Most Efficient Organization (MEO):
The MEO describes the staffing and position structure to perform the work.
The MEO is the basis for the in-house cost estimate.
The technical performance plan reflects the MEO and equate to an achievable level of performance that corresponds to the quantity and quality of the work described in the PWS.
The MEO will be implemented upon the commander's approval.
In carrying out CA cost and management studies, the confidentiality of both in-house cost estimates and the contract price will be maintained to ensure complete independence.
Considerations for the MEO are thus:
In-house.
Match PWS.
Becomes government’s bid.
Must be able to implement.

19. LSA #2 Check on Learning True of False
Q1: In the Army Commercial Activities inventory, each agency shall update its commercial activity inventory annually
Q2: The Army Commercial Activities Management Information System (ACAMIS) is a tool to help implement the MEO.
Show Slide #19: LSA #2 Check on Learning
Facilitator’s Note: Ask the following questions and facilitate discussion on answers given.
Note: Animated slide, click enter to reveal answers.
True or False:
Q1: In the Army Commercial Activities inventory, each agency shall update its commercial activity inventory annually
Q2: The Army Commercial Activities Management Information System (ACAMIS) is a tool to help implement the MEO.

20. LSA #2 Summary
During the second part of the lesson, we further went into describing the commercial activities program different key personnel, its agencies roles. Went over the activities inventory, tools, and the activity review process. Studied the performance work statement (PWS), the management plan and the most efficient organization (MEO) to perform work.
Show Slide #20: LSA #2 Summary
Facilitator's Note: During the second part of the lesson, we further went into describing the commercial activities program different key personnel, its agencies roles. Went over the activities inventory, tools, and the activity review process. Studied the performance work statement (PWS), the management plan and the most efficient organization (MEO) to perform work.

21. Cost Study Process
Analyze whether the review is mandatory; can it be done for a lesser cost?
Develop CPAS and notify Congress.
Form study teams; begin cost and management studies.
Study Team develops PWS, management study verifies and develops MEO.
Bids are solicited based on PWS; MEO completed and implemented.
Army Audit Agency (AAA) or the ACOM/Internal Review and Compliance (IRAC) conducts independent review.
Cost comparison between contractor bids and MEO.
Low bid wins.
Activity plans for the transition phase.
Follow-up and implementation.
PWS/QSAP
Show Slide #21: Cost Study Process
3. Learning Step Activity #3. Identify the cost study process identifying advantages and disadvantages.
Time of Instruction: 00 hrs. / 40 mins.
Facilitator to Learner Ratio: 1:16
Method of Instruction: DSL – Discussion (Small or Large Group)
Media: Power Point Presentation
Facilitator’s Note: Facilitator transition to LSA 3 reading and facilitating discussion on the cost study process.
Cost Study:
The process that establishes relative cost of in-house and contract performance of existing or proposed CAs is known as the cost study.
Cost studies will not begin, or be announced publicly, until information in the Commercial Activities Proposed Action Summary (CPAS) is provided to Congress.
Cost studies are required when conversion of in-house performance to contractor performance is proposed, review of in-house performance determines no compelling non-cost reason, review of contract indicates in-house performance less costly and proposed expansion of in-house reveals no compelling non-cost.
A product of the cost study is the Performance Work Statement (PWS).
Considerations in a cost study are thus:
Commercial Activities Proposed Action Summary (CPAS).
Composition.
Direct Conversion.
Equipment.
Performance Work Statement (PWS).
Conduct of Studies.
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Note: Refer learners to the VG flow chart, the actual process begins at the current organization and is followed by the following steps:
Analyzing whether the review is mandatory or if the commander thinks a contractor can accomplish the mission at a lesser cost.
Develop CPAS and notify Congress.
Form study teams, begin coordinated cost and management studies.
Study Team develops PWS, which management study verifies and then develops the MEO to accomplish it.
Bids are solicited from contractors based on PWS; MEO completed and implemented.
Army Audit Agency (AAA) or the ACOM/Internal Review and Compliance (IRAC) will conduct an independent review.
Cost comparison conducted between contractor bids and MEO.
Low bid wins; award contract or implement and document MEO.
The activity plans for the transition phase.
Follow-up and implementation of a solid Quality Assurance Program.

22. Commercial Activity Advantages
End-strength vs. contractor.
Dollar savings.
Efficiency.
Show Slide #22: Commercial Activity Advantages
Facilitator’s Note: Facilitator read and facilitate discussion.
Commercial Activity Advantages:
Contractor employees do not count against the Army's manpower authorizations or end strength levels.
The CA process helps us realize dollar savings at certain management levels.
By conducting both a cost and management study, we are effectively ensuring the installation is using the most effective and economic resources to provide a certain product or service.

23. Commercial Activity Disadvantages
Savings at HQDA.
OMA appropriation.
“Extras” lost.
Morale.
Show Slide #23: Commercial Activity Disadvantages
Facilitator’s Note: Facilitator read and facilitate discussion.
Commercial Activity Disadvantages:
There is a perception that the CA Program is implemented at the installation, while the benefits are realized at the HQDA level.
Another problem with the CA process has to do with the OMA appropriation. The impact of this problem varies with the activity concerned. The installation now has a problem with managing a relatively constant or stable contractual obligation with an unstable appropriation.
From the commander's perspective, the little "extras" (the nice to have but not mission essential goods and services) are not available, unless written into the formal and binding contract, based on a detailed PWS.
Soldier’s morale may be affected, due to their jobs being lost to a civilian counterpart and create changes in their jobs and create new or additional demands.

24. Commercial Activity Results
Cost studies:
Position studies:
More cost effective–
In-house:
Contractor:
Positions - government to contractor:
468
25,000
247 (51%)
221 (49%)
14,900
Show Slide #24: Commercial Activity Results
Facilitator’s Note: Facilitator read and facilitate discussion.
Commercial Activity Results:
Cost Studies 468
Position Studies 25,000
More cost effective
In-house (51%)
Contractor (49%)
Positions - government to contractor: - 14,900

25. LSA #3 Check on Learning True of False
Q1: Contractor employees do not count against the Army's manpower authorizations or end strength levels
Q2: Soldier’s morale may be affected, due to their jobs being lost to a civilian counterpart is a disadvantage.
Show Slide #25: LSA #3 Check on Learning
Facilitator’s Note: Ask the following questions and facilitate discussion on answers given.
Note: Animated slide, click enter to reveal answers.
True or False:
Q1: Contractor employees do not count against the Army's manpower authorizations or end strength levels
Q2: Soldier’s morale may be affected, due to their jobs being lost to a civilian counterpart is a disadvantage.

26. LSA #3 Summary
During the final part of the lesson, we identified the cost study process that establishes relative cost of in-house, the conduct of the studies and contract performance and its considerations. Able to determine the commercial activity advantages and disadvantages, and the commercial activity results.
Show Slide #26: LSA #3 Summary
Facilitator's Note: During the final part of the lesson, we identified the cost study process that establishes relative cost of in-house, the conduct of the studies and contract performance and its considerations. Able to determine the commercial activity advantages and disadvantages, and the commercial activity results.

27. Identify Commercial Activities Programs PE
Show Slide #27: Identify Commercial Activities Programs PE
Practical Exercise: ALC Identify Commercial Activities Programs PE
Facilitator to Learner Ratio: 1:16
Method of Instruction: Practical Exercise
Media: Printed Reference Materials, Handouts
Time of Instruction: 01 hrs. / 00 min.
Special Instructions: Ensure Learners have access to PE for ALC Identify Commercial Activities Programs and all related material to complete the exercise.
Objectives: Have learner’s complete Advanced Leaders Course 36B PE Version 1.0 practical exercises in groups. Address any questions or areas of concern until learners can successfully complete the exercise that measure each learner’s ability to comprehend and retain facilitated material.
Facilitator’s Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise with answer key, handout and lesson created notes.
Learner’s Material: Learners should possess course handouts, practical exercises titled ALC Identify Commercial Activities Programs, advance sheet handout and standard classroom supplies. 
Materials Needed:
ALC Identify Commercial Activities Programs Vers A
ALC 36B Identify Commercial Activities Programs PE
*Blank Paper
*Pen Or Pencil
Note: (* Learner responsibility)
Procedures/Instructions:
This is a group activity where communication with other learners is required.
Do not write in this practical exercise booklet.
Read each question carefully and circle or write the best correct answer.
You will have 30 minutes (00 hrs. / 30 min.) for completion of the PE, with an additional 20 minutes for the review to follow.
You will complete this PE immediately following LSA #3, Identify the performance work statement and cost study process identifying advantages and disadvantages.
All situations have one correct answer.
Be prepared to go over the answers with discussions pertaining to each answer given.
General Information: This practical exercise (PE) is designed to test your knowledge as a group on policies, the inventory process, cost studies, PWS, and MEO. This is a multiple choice and true/false exercise. You will have time to complete this practical exercise, followed by a review at the completion.
Instructional Lead-in: You are to complete PE by answering all multiple choice and true/false exercise as a group. Answer the questions to determine your knowledge and ability to identify commercial activities programs. You will have 30 minutes to complete this practical exercise.
Feedback: An AAR will be conducted after the PE; along with a learners end of course critique will be conducted at the end of the course.
Facilitator’s Note: If you experience difficulties, ask the Facilitator’s or assistant Facilitator’s for immediate assistance or help.
Requirements:
Groups will need to answer all questions and prepared to be called on to give their explanations to the class.
Complete this practical exercise to the best of your ability.
Learners will have 30 minutes to complete the PEs.
Motivator:
Once again, we go back to the concrete experience / motivator discussion held at the beginning of the lesson, which led us to ask, “do you think the DOD should continue with the Commercial Activities Program (hiring civilians to do governmental functions) or should those function be manned by DOD personnel?". Let us continue to keep in mind as you are conducting the PE the Commercial Activity Advantages and Disadvantages.
Commercial Activity Advantages:
The CA process helps us realize dollar savings at certain management levels.
Contractor employees do not count against the Army's manpower authorizations or end strength levels.
Morale.
By conducting both a cost and management study, we are effectively ensuring the installation is using the most effective and economic resources to provide a certain product or service.
Commercial Activity Disadvantages:
There is a perception that the CA Program is implemented at the installation, while the benefits are realized at the HQDA level.
From the commander's perspective, the little "extras" (the nice to have but not mission essential goods and services) are not available, unless written into the formal and binding contract, based on a detailed PWS.
Another problem with the CA process has to do with the OMA appropriation. The impact of this problem varies with the activity concerned. The installation now has a problem with managing a relatively constant or stable contractual obligation with an unstable appropriation.
Evaluation: To obtain a "Go" in this PE, you must:
Solutions for PE Identify Commercial Activities Programs
Practical Exercise Answer Key:
B. operated and managed by a federal agency
D. Both a & c
C. Rely on commercials sources for products and services
True
C. Quality of Work
A. Army Commercial Activities Management Information System
False
A. Savings at HQDA
D. Morale
B. Establishes relative cost of in-house and contract performance
D. All the above
A. The location, functions, and resources expended
D. Obtainable from the private sector
B. Appoint an official to manage the implementation of the CA program
B. Commander’s
C. In-house Cost Estimates (IHCE)

28. TLO Check On Learning Top Two
Show Slide #28: TLO Check On Learning / Top Two
Note: Animated slide, click enter to proceed with the “Top Two Check On Learning” scenario.
Facilitator's Note: Review the questions/topics that learners had questions about. Poll the class, once you have read the questions to them to see if they are able to answer on another’s questions. Once all questions have been read, you may choose to review other topics within the lesson that were not covered by the learner’s questions.
“Or”
Facilitator's Note: Have the learners break up into pairs. Have each pair discuss the top two things that they learned today or the top two things that they still have questions about; should take several minutes. You may choose to have each pair break up and switch partners if needed. Afterwards, have each pair share with the class the top two things they learned in this lesson and two things that they still have questions about. You may choose to poll the classroom to see if another group/ are able to answer the question(s). Once all of the groups have finished, you may also talk about any topics not covered by the learners.
Top Two

29. TLO Summary Action: Identify Commercial Activities Programs
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Define commercial activities goals, criteria, and policy
Describe personnel, agencies and roles in the commercial activities program
Identify the performance work statement and cost study process identifying advantages and disadvantages
Show Slide #29: TLO Summary
Action: Identify Commercial Activities Programs
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Define commercial activities goals, criteria, and policy
Describe personnel, agencies and roles in the commercial activities program
Identify the performance work statement and cost study process identifying advantages and disadvantages
“Or”
Facilitator’s Notes: During the first part of this lesson, we had discussions on the goals, criteria’s, policies and exceptions. We then jumped into describing the different key personnel, its agencies roles. Going over the activities inventory, tools, and the activity review process. We studied the performance work statement (PWS), the management plan and the most efficient organization (MEO) to perform work. We then went into the final LSA with identifying the cost study process, determining the commercial activity advantages and disadvantages, and the commercial activity results. Concluded with a QA practical exercise on identify commercial activities programs.
Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.