1. 1 PREPARING AND NEGOTIATING AN 8(a) SOLE-SOURCE Melissa L. Moore GSFC – Code 210.M July 11, 2007 PIP l

2. 2 Purpose Provide a helpful reference document for working with 8(a) Set Asides—Specifically; “Information you need to consider for preparing and negotiating an 8(a) Sole-Source Contract.” --no formal competition involved with contractor selection

3. 3 Overview 8(a) Program Award Process Regulations Prenegotiation Negotiation Lessons Learned

4. 4 8(a) & the Law FAR 6.204 (a) To fulfill statutory requirements relating to section 8(a) of the Small Business Act, as amended by Pub. L. 100-656, contracting officers may limit competition to eligible 8(a) contractors (see Subpart 19.8). (b) No separate justification or determination and findings is required under this part to limit competition to eligible 8(a) contractors.Subpart 19.8 NASA FAR SUPPLEMENT(NFS) 1819.7002(a) Contracting officers must seek out as potential sources small disadvantaged business concerns, women-owned small business concerns, historically black colleges or universities, and minority institutions, and give full consideration to these entities to satisfy NASA requirements.

5. 5 Ways to Award a Contract to an 8(a) Business Concern Sole-Source [8(a) pre-selected or informal competition] Competitive Set-Aside GWAC i.e. GSA—8(a) STARS According to the SBA—The selection of an 8(a) STARS company earns 8(a) socioeconomic credit, but also credit for all the other socioeconomic attributes a firm has. ( http://www.gsa.gov/Portal/gsa/ep/contentView.do?programId=11162&channelId=- 15625&ooid=15749&contentId=22858&pageTypeId=8199&contentType=GSA_BASIC&programPage=%2Fep%2Fprogram%2FgsaBasic.jsp&P=6FG11 ) http://www.gsa.gov/Portal/gsa/ep/contentView.do?programId=11162&channelId=- 15625&ooid=15749&contentId=22858&pageTypeId=8199&contentType=GSA_BASIC&programPage=%2Fep%2Fprogram%2FgsaBasic.jsp&P=6FG11 8 (a) SOLE-SOURCE

6. 6 General 8(a) Tips SBA administers the 8(a) program and determines the eligibility of the participants Memorandum of Understanding between NASA and SBA allows for NASA to Award directly to the 8(a) business JOFOC and Synopsis are not required for 8(a) Sole-Sources under $3.5M (threshold set by FAR 19.805-1) for Services ($5.5 M for Supplies) Authorization for Exceptions found in 6.302-5 (b) (4); FAR 5.202 (a) (4); 8(a) is a quick way to award a sole source stand-alone contract Get to know your 8(a) business concern early on in the process Be mindful that the business does not have the “body shop” mentality (i.e. a firm that is more concerned about quantity of contracts instead of quality) Understand their business processes

7. 7 Common Misconception Stereo-type: Larger acquisitions require more time and effort than smaller acquisitions. Reality: When working with less experienced companies such as 8(a) companies more time and effort may be involved due to guidance required by an 8(a) company.

8. 8 Award Process (1 of 2) All Documents shall be submitted through the review and approval process as stated in GSFC Circular 98-2 “Review and Approval of Procurement Documents and Related Actions” Meeting with Customer to discuss “Non-Competitive Purchase Requisition Package” requirements. Doc found on O:\Drive under O:\210.M\CODE210.3\Regulations and Policies Receive “Acquisition Package” from Customer Submit Package to Industry Assistance For informal competition, can post “Sources Sought” synopsis, evaluate capability statements, conduct interviews/presentations, and select desired firm. Prepare Request For Proposal (RFP) then send through review and approval Submit RFP to 8(a) Concern with detailed instructions Submission of Proposal by 8(a) Concern

9. 9 Award Process (2 of 2) Evaluate Proposal Submit Proposal to COTR for Technical Evaluation Cost/Price Evaluation Complete Prenegotiation Position Memorandum and send through for review and approval Negotiations Price Negotiation Memorandum Signed and Approved Submit Contract for Review and Approval Submit Contract to 8(a) Concern for Signature Contracting Officer Signs the Contract

10. 10 Past Performance Tips Past Performance Database (PPDB) https://prod.nais.nasa.gov/cgi-bin/nais/login_account.cgi?check=ok Contact other Contract Specialists that have experience with this company Ask for references and make reference checks i.e. Other Government Agencies Occasionally, because this is an 8(a) Concern they may not have any corporate Past Performance available—but individuals within the company always have past performance you can evaluate

11. 11 NAICS Code Tips North American Industry Classification System (NAICS) NAICS is used for the collection, analysis, and publication of economic statistics. Determines the Size Standard of a business, in $ amounts or employee quantity The NAICS Code in the RFP should match the Company’s NAICS Code for 8(a) status. If the two do not match the company must be able to prove that they are qualified to perform the work under the NAICS Code listed in the solicitation (SBA may approve additional NAICS codes for the company)

12. 12 PRENEGOTIATION POSITION MEMORANDUM (GSFC Form 210-90) REQUIREMENTS Prenegotiation Position Memorandum (PPM) should fully explain the contractor and Government position in accordance with NFS 1815.406-170 The PPM will become the basis for negotiations For all actions under $50M (including 8(a) Sole-Source) To be successful! Take ownership of your PPM, make sure to verify the information you receive from both the Technical Evaluation and Resource Evaluations (Procurement Circular 02-01)

13. 13 Terminology OFFICIAL TITLE: Prenegotiation Position Memorandum (PPM) (Form 210-90) OUR TEMINOLOGY: Pre-Neg

14. 14 General Pre-Neg Tips Get written responses to fact-finding questions from the contractor—produces a written response for your file Begin with the end in mind—start writing the Price Negotiation Memorandum and Contract changes while preparing for negotiations In order to avoid inadvertent math errors use Excel spreadsheets with formulas – Check formulas

15. 15 Aspects of a Pre-Neg Stand Alone Document To include Chronology & Background Technical Evaluation – “Tech Eval” Cost/Price Analysis Additional items are addressed on the PPM

16. 16 Stand Alone Pre Neg Beginning with the first contact with Contracting Officers Technical Representative (COTR) or 8(a) company Document everything Create a chronological timeline of events Create a timeline of events from the beginning of the acquisition process Create the document containing all the background so that a first time reviewer can easily understand and have all the information

17. 17 Tech Eval Tips In most cases the COTR suggests an 8(a) Set-Aside COTR may need help developing technical evaluation. There are recently developed tools available Technical Evaluation Guidance is available on the 210 Web Page http://code210.gsfc.nasa.gov/library/ASCP63-1.pdf Form available on the O:Drive “O:\Tech Eval Support Docs” File Name NASA-C-266 (Cost Proposal Technical Analysis Request and Response) Make sure to review the Technical Proposal & Subsequent Evaluation. Ask questions and ensure consistency and coherence. You may catch something that the COTR missed.

18. 18 Cost/Pricing Tips (1 of 2) For Cost-Type Contracts make sure as soon as possible the Concern has a DCAA approved accounting system. DCAA Audits/Rate Verification Send request early as this is often what sets the pace in the schedule Request only the pricing support needed (i.e. rate verification & business system check) Provide a prepared standard Excel spreadsheet for pricing actions. (Helpful for conducting negotiations as well)—several formats available on the O drive (O:/210.S/210.7/Misc).

19. 19 Cost/Pricing Tips (2 of 2) Place burden of supporting back up documentation of price on the contractor (i.e. pay stubs, travel cost, materials, and other ODC’s) Price verification can be done by comparing similar items through other GSFC contracts, Internet, and Commercial Price Guides Be sure your cost analysis includes the price reasonableness determination required by (FAR 15.406-3(a)(11)) A thorough evaluation of ALL Costs is CRITICAL when working on an 8(a) Set-Aside.

20. 20 Negotiation Tips Make sure you do your HOMEWORK Research Companies negotiation history Industry standards (i.e. labor, overhead, etc.) Recent industry environment Send negotiation questions to the contractor ahead of time—this allows them to prepare—saving time at negotiations Conduct face-to-face negotiations only when the complexities of the negotiations warrant it—use phone and/or e-mail whenever possible Establish a written record of agreement

21. 21 Negotiation Goal Look for Win-Win Situations Fair & Reasonable outcome for both parties is good business It is not about one persons view/needs being right or wrong Look at the big picture of creating a viable business base for the Government Remember one party doesn’t have to lose for the other to win…BE CREATIVE!!! IT IS A MIND-SET!!!

22. 22 Tips That Make an (1 of 2) Exceptional Contract Specialist Regular Contact with the COTR and Contractor is VERY important. Helping the COTR to develop the PR Package and Market Research can speed up the process E-mail is generally good for yes or no answers, to document phone conversations, and any simple request for information Phone is the best way to communicate anything more complicated than a yes or no answer. This can save time and confusion in the long run.

23. 23 Tips That Make an (2 of 2) Exceptional Contract Specialist 8(a) Business Concerns can be new and may require a lot of hand holding. It is best to figure this out up front. If they are new make sure you provide them with detailed excel spreadsheets to submit their cost data with the RFP. Also, make sure you document all conversations with the Concern. Post Award Conferences Walk through the contract with them making sure that all of the terms are understood by both parties.

24. 24 Recommendations Use the Procurement Webpage for real-time communication between Procurement employees Allow work related blogs Online question and answer Use as a training tool Make PIP presentation Accessible to 210 Put on the O:\Drive E-mail to 210

25. 25 QUESTIONS