1. Acquisition of Services DAU Acquisition Community Conference April 17, 2007

2. FY 2006 Total DoD Spend: $295 Billion FY 2006 DoD Services: $152.8 Billion Why Focus on Services? Other $142.2 Billion 48% Services $152.8 Billion 52%

3. Other $46.8 30% RDT&E $39.4 26% Professional, Admin, & Mgmt Support $32.2 21% ADP & Telecom Svcs $10.5 7% Construction of Structures & Facilities $12.4 8% Maintenance, Repair, & Rebuilding of Equipment $11.5 8% Total DoD Spend: $295 Billion DoD Services Spend: $152.8 Billion FY 2006 DoD Spending on Services

4. SPECIAL STUDIES & ANALYSES - NOT R&D ARCHITECT & ENGINEERING SERVICES PURCHASE OF STRUCTURES & FACILITIES NATURAL RESOURCES & CONSERVATION SERVICES SOCIAL SERVICES QUALITY CONTROL, TESTING, & INSPECTION SVCS MODIFICATION OF EQUIPMENT TECHNICAL REPRESENTATIVE SERVICES OPERATION OF GOVERNMENT- OWNED FACILITIES INSTALLATION OF EQUIPMENT “Other” Services SALVAGE SERVICES MEDICAL SERVICES UTILITIES & HOUSEKEEPING SERVICES PHOTOGRAPHIC, MAPPING, PRINTING & PUB SERVICES EDUCATIONAL AND TRAINING SERVICES TRANSPORTATION, TRAVEL, & RELOCATION SERVICES LEASE OR RENTAL OF EQUIPMENT LEASE OR RENTAL OF FACILITIES MAINT, REPAIR, OR ALTERATION OF REAL PROPERTY

5. Acquisition of Services Potential for Significant Savings Initiate Acquisition for Services Task Completion or Deliverable Management Consistent with FY 06 NDAA Section 812 Develop clearly stated & actionable requirements packages Procurement Request to Local PCO Contract / Award 1

6. Links and Templates http://www.dau.mil/performance_support/pbsa.asp DAU Performance Based Services Acquisition links and templates) Links to Guides and Training Materials Links to Templates for Various Type Services Administrative; Base/Installation; Education & Training; Information Technology; RDT&E; Social Services; Other; Maintenance; Services. http://www.afcesa.af.mil/ceb/cebc/contractsupport/cebc_temp.asp Civil Engineer competitive sourcing templates and examples are available to assist base organizations: Service Contract Templates : Over 35 typical CE service activity templates developed in accordance with AFI 63-124. Most services have templates for Market Research, Statement of Work (SOW), Quality Assurance Surveillance (QASP), Government Estimate, and Bid Schedule. Select services also have Award Fee Plans or Quality Assurance Checklists. Service Contract Templates A-76 Cost Comparison Templates : Contains A-76 checklists, flowcharts, squadron and flight templates (SOWs, QASPs, Technical Performance Plans and Evaluation Criteria, Publication Review), and Transition Plans. A-76 Cost Comparison Templates Example Contracts : Actual SOWs and QASPs included in solicitations by various bases through the Federal Business Opportunities (FedBis) website. Example Contracts https://portal.navfac.navy.mil/portal/page?_pageid=181,4844358,1 81_4844374&_dad=portal&_schema=PORTAL https://portal.navfac.navy.mil/portal/page?_pageid=181,4844358,1 81_4844374&_dad=portal&_schema=PORTAL NAVFAC templates for Facility Support Contracts

7. Acquisition of Services Potential for Significant Savings Task Completion or Deliverable Management Consistent with FY 06 NDAA Section 812 Procurement Request to Local PCO Contract / Award Initiate Acquisition for Services Local PCO uses appropriate strategic contracting tool 2

8. Research and Development Support Engineering, System Engineering and Process Engineering support Modeling, Simulation, Stimulation, and Analysis Support Prototyping, Pre-Production, Model- Making, and Fabric Support System Design Documentation and Technical Data Support Software Engineering, Development, Programming, and Network Support Reliability, Maintainability, and Availability (RM&A) Support Human Factors, Performance, and Usability Engineering Support System Safety Engineering Support Configuration Management (CM) Support Quality Assurance (QA) Support Information System (IS) Development, Information Assurance (IA), and Information Technology (IT) Support Ship Inactivation and Disposal Support Interoperability, Test and Evaluation, Trials Support Measurement Facilities, Range, and Instrumentation Support Acquisition Logistics Support Supply and Provisioning Support Training Support In-Service Engineering, Fleet Introduction, Installation and Checkout Support Program Support Functional and Administrative Support Public Affairs and Multimedia Support Navy SeaPort 22 Functional Areas

9. Acquisition of Services Potential for Significant Savings Initiate Acquisition for Services Task Completion or Deliverable Management Consistent with FY 06 NDAA Section 812 Procurement Request to Local PCO Contract / Award Enhanced Contract Administration/ Performance Management 3

10. Acquisition of Services Potential for Significant Savings Initiate Acquisition for Services Task Completion or Deliverable Management Consistent with FY 06 NDAA Section 812 Procurement Request to Local PCO Contract / Award Enhanced Contract Administration/ Performance Management 3 Local PCO uses appropriate strategic contracting tool 2 Develop clearly stated & actionable requirements package 1

11. Acquisition of Services Potential for Significant Savings Initiate Acquisition Task Completion or Deliverable Management Consistent with FY 06 NDAA Section 812 Requirement for contracted services Refined & actionable requirements package Procurement Request to Local PCO Local PCO uses appropriate strategic contracting tool Contract / Award Strategic Contracting Tools “Best Practices” Coordinated DoD-wide approach Maximize competition 3-5 year performance periods Emphasize small business participation and opportunities Tools Army Navy USAF Others, ie; GSA Multi-functional Support Cadre Apply Best Practices State requirements clearly Draft SOO Quality/Surveillance Plan Identify appropriate performance measures Performance-based approach used as appropriate Incentive Fee Structure with metrics tied to expected outcomes as appropriate New Contract Administration/ Performance Management Enhanced Functions provided by Military Departments consistent with DoD Architecture New 04-06-2007

12. We need to improve - - Clearly state our requirements. Maximize competition. Use performance-based techniques when appropriate. Identify up-front appropriate performance metrics. Maximize small business participation. Use appropriate incentives tied to desired outcomes. Apply best practices in a coordinated DoD approach. Improve post-award contract performance management. Acquisition of Services