Complex Use of Multiple Award Schedules by Experienced Customers – A Power Users Session

1. Complex Use of Multiple Award Schedules by Experienced Customers – A Power Users Session Jeffrey ManthosMark LeeSteve Sizemore June 10, 2009

2. Agenda • Complex Use of Multiple Award Schedules • Power User Benefits • Case Study-AMCOM EXPRESS

3. COMPLEX USE of MULTIPLE AWARD SCHEDULES

4. What are your options? • Other Government IDIQs- May not provide a total solution, limited scope of contractors • Open Market- Lengthy procurement process depending on dollar value • GSA Multiple Award Schedule contracts -Offers a broad range of services and products so a total solution can be ordered, easy to use, can obtain socio-economic goals through evaluation process, no maximum dollar values, latest technology, significant contractor capacity

5. How the MAS Program Can Help • Meet time frames for spending • Supports firm fixed-price awards • Specific reporting requirements can be included in scope • Supports socio-economic goals • Supports competitive procurements • Total solutions for complex requirements

6. Why you should care… • Easy way to buy even complex services. • Weapon systems development • Yes, this can be “rocket science” • Lets you focus on managing outcomes • Simplified acquisition method • Manage more contractors and less paper

7. Did You Know Schedules Can Be Use for…? • Recycling computer monitors (Environmental) • Food service for soldiers in Iraq (Logistics) • Agency reorganizations [even GSA’s] (MOBIS) • Aircraft electronic maintenance (Logistics) • Commercial activity (A-76) studies (MOBIS) • Translation of Osama bin Laden tapes (Language)

8. Flexible Schedule Tools • Blanket Purchase Agreements (BPAs) • Contractor Teaming Arrangements (CTAs)

9. Blanket Purchase Agreements • The basics: • Establish a BPA with any schedule contractor • Used to set up “accounts” to fill recurring requirements • Need not obligate money • Can last as long as the contract period • Review annually for “best value” • Contractors prefer GSA BPAs to agency IDIQs/MACs

10. Teaming Schedule contractors may team with each other to provide a total service solution for a customer (See FAR 9.6)

11. Subcontracting • Subcontractors: • Work for prime contractor • Prime uses MAS schedule contract labor categories/rates for its subcontractors • Subcontractors do not have a MAS schedule contract • Government has no direct involvement with subcontractors

12. Prime Contractor Sub Sub Prime/Subcontractor Relationship BPAs/Orders Only to Prime (Schedule Contractor)

13. Team Lead Team Member 1 Team Member 2 Sub (has Schedule) Sub Sub Sub MAS Teaming and Subcontracting Schedule Teaming Requires Teaming Agreement

14. CTAs and BPAs: Putting It All Together • Use single/ Consolidated Schedule • Task Award to a Single Contractor Aggregate Your Requirements • Use Several Schedules • Award BPAs • Contractors Team

15. Flexible Schedule Tools (summary) • Wide variety of service Schedules (and products too) • Using BPAs for recurring requirements: Multiple or Single BPAs • Subcontracting and teaming for multi-domain requirements • Agencies use BPAs and CTAs together to satisfy complex service requirements

16. POWER USER BENEFITS

17. GSA Professional Services Schedules • Professional Engineering Services (PES) • Environmental Services • Mission Oriented Business Integrated Services (MOBIS) • Logistics Worldwide (LOGWORLD) • Language Services • Consolidated Schedule • Advertising and Integrated Marketing Services (AIMS) • Financial and Business Solutions (FABS) • Information Technology Services

18. Success Stories • Army Aviation and Missile Command (AMCOM) • Marine Corps Systems Command (MARSYSCOM) • Aeronautical Systems Center, (WPAFB) Many Others…

19. Procurement Objectives To fulfill mission needs, agencies require contract vehicles that provide: • Flexibility to fulfill the requirement • Speed to ensure the need is met in a timely manner • Overall value to acquisition and end user organizations • Oversight and control of procurement dollars • Achievement of small business procurement goals • Comply with Competition Requirements

20. Procurement Contracting Solutions • “Using Blanket Purchase Agreements (BPAs), combined with Contractor Teaming Arrangements and Subcontractors against GSA schedules has resulted in a balance of flexibility, speed and value for AMCOM, while ensuring proper oversight and control of acquisition dollars, and fostering small business procurement goals….”

21. Customer Specific Benefits • GSA Manages the Master Contracts • Additional Discounts at the BPA and/or Task Order level • Dynamic Teaming Arrangements • Achievement of Small Business Procurement Goals • Additional Supplier Flexibility via “Open Seasons” • Can add Clauses that do not Conflict with Schedule Contract • Robust Competition Limited to Schedule and/or BPA holders

22. Advanced Applications-Best Practices • Performance Based to Performance Driven Acquisition • Program Management Thru Key Acquisition Metrics • Harvest Power of Continual Competition • Create on-going Opportunities for Small Business throughout life of program • Continually Refresh Supplier Base • Flexible Strategy to Respond to Unknowns • Smooth Transition

23. Power of Continual Competition Power Users: • Have “on-ramps and off-ramps” • Have sophisticated metrics to evaluate performance • Allocate work based on performance • Award top performers larger shares • Performers with low performance move to “off-ramp” • Add Additional Requirements • Marshal Resources to Focus on Administration and Oversight

24. Power of Continual Competition • Power Users Optimize Use of Performance Metrics • Contract Specific as Well as Program Specific • Customer Satisfaction • Cycle Time-Requirements Definition to Award • Response (Bid) Rate • Socioeconomic Support • Technical Performance and Outcomes Based on QASP • Administrative Costs Per Task Order

25. Small Business Optimization • Benefits To Small Businesses • “On ramps” allow access to new contractors • Prevents being excluded from opportunities for multiple years until new contract awarded • Preference given to small business during evaluations • Socio-economic credit for small business team leads

26. Benefits of On-Ramps Thru BPAs • Reduce Transition Risk No Mega Scale Program Change-over • Continual Opportunity for Small Business Not Locked Out for Five Years or More As Small Businesses Grow-Bring in New Vendors • Continual Performance Driven • Unique Benefit of Schedules

27. Policy & Regulatory Compliance • Economy Act • Mandatory Sources • Market Research • Soliciting Competition • Proper Use of Non-DoD Contracts • Directed or “Assisted” acquisitions (MIPR’s) • Small Business Opportunities! • DoD or agency-unique regulations

28. Coalition Building • Program Managers • Acquisition Workforce (C/Os, C/Ss) • Customers/End Users • Industry • Small Business Advocates

29. Transition Sequence-Timeline • Acquisition Planning • Policy Vetting • Buy-in • Community Outreach • Competition • Award • Post Award • Mission Support • Delivery

30. GSA Life Cycle Support • Transition Strategy • Schedules Policy Guidance • Training • Best Practices • Industry Outreach • E-Tools

31. AMCOM EXPRESS • EXpedited • Professional and • Engineering • Support • Services

32. WHAT IS THE PURPOSE OF EXPRESS EXPRESS is AMCOM’s Contractual Solution Providing ADVISORY AND ASSISTANCE SERVICES For the AMCOM Life cycle Management Command

33. BACKGROUND Planning and Execution 2004 Awarded February 2005

34. Market and Customer Research • One on One Meetings with Industry • Visited with 02K Primes • Analyzed Other Agencies Multiple Awards • One on One with Customers

35. Market and Customer Research Feedback on 02K (IDIQ)….. • Cumbersome • Internal Paperwork • Long Lead times • Rigid Evaluations • Adding Subs Difficult • Customers Moving to GSA to Gain Flexibility • Limited Marketing • New Players Locked Out • Labor Rate Changes • Adding SMEs Difficult

36. What AMCOM Considered… • Improve Existing 02K Concept • Issue many small stand alone contracts for each customer • Team with GSA using AMCOM BPA’s • Three Options!

37. Successful GSA Models….. • Marine Corps Systems Command: • Quantico, VA • Commercial Enterprise Omnibus Support Services (CEOss) • US Air Force: • Eglin AFB, FL • Joint Test & Evaluation • US Air Force: ASC: • Wright Patterson AFB, OH • GSA Advisory & Assistance Services • Taking the Best and Improving It!

38. Decision….GSA Partnership • BPAs using GSA Multiple Award Schedules • Dynamic Teaming • Electronic Commerce • Options • Customer Selections • Open Seasons • Evergreen • Team Members May Get Direct Pay from DFAS • Fixed Price Rate • More Labor Categories • No Problem to Add Subcontractors • AMCOM Listened to their Customers……..

39. Applicable GSA Schedules • Professional Engineering Services (PES) • Logistics Worldwide (LOGWORLD) • Mission Oriented Business Integrated Services (MOBIS) • Information Technology (IT) • Consolidated • No Schedule Required for Subcontractors • Primes Must Hold at Least One Applicable Schedule • Team Members May Hold Any Schedule

40. Initial Down Select Process…. • Prime Submits: • GSA Schedule Contract • Simplistic Capabilities Statement • Domain Preference • Government Evaluates: • Performance Capability • Pricing Structure • Socio-Economic Benefit

41. Time To Get On Schedules • AMCOM will provide at least 3 months • Subs do not have to get on schedules • GSA commitment for industry training • GSA promise to expedite processing Do all companies need schedules to participate? • Only at Team Leader/Member levels • Not required for subcontractors

42. Cost to get on GSA Schedules? • No Costs • Must take time to apply • GSA assistance and training Will this save money? • Anticipate rate discounts • Prime burdens elimination • Fixed rates • Less administration for industry results in greater efficiency, savings, competitive rates Will payment of vouchers be impacted? • Same as 02K: DFAS makes payment

43. EXPRESS Continued… • Deployment to Hazardous Duty Locations Provisions for deployment in BPA Methods for rate adjustments in BPAs • NAICS Codes • Are from GSA Schedule • GSA advised in workshops on proper classifications and • eliminated some existing confusion • Remittance to GSA (Industrial Funding Fee) • 0.75%

44. GSA and AMCOM…… • Win-Win Partnership • Streamlined Process • Enhance Small Business • Power of eCommerce

45. BPA Evaluation Considerations…. • Teaming/Business Arrangement • Performance Capability • Socio-Economic Benefits to Command • Past Performance • Pricing Structure

46. Task Ordering…. • Competition Between Domain BPA Holders • Best Value Criteria • Task Orders May Include Options • Firm Fixed Price and Time and Materials • Twenty (20) Days Target Timeline For Processing

47. BPA Holder - Prime Contractor Team Member Team Member Subcontractor Subcontractor EXPRESS • Prime Contractors and Team • Members must hold a GSA • Schedule • Team Members utilize their • own GSA schedule rates • Team Members sign BPA • Subcontractors not required • to hold GSA contract. Perform • to Prime’s GSA Schedule rates. Contractor Teaming Arrangement DIRECT AWARDS: Team Leader may propose that Task Orders be issued directly to a SB Team Member – AMCOM Receives SB Credit Based on Direct Awardees' Size

48. DOMAINS Logistics Maintenance Planning Supply Support Training and Training Devices Logistics Program Support Business & Analytical Strategic Planning Communication Support Process Improvement Support Financial Management Support Programmatic Resource Management Support Cost Estimating/Analysis Strategic Planning Analysis International Program Support Operations Research and Analysis Technical Aeromechanics Technology Systems Engineering Structures and Materials Systems Simulation and Modeling Software Engineering

49. EXPRESS Primary Customers (as of 30 Jun 08) 275 Task Orders Issued CUSTOMER %TOTAL TO AWARDS AMRDEC 30% PEO AVIATION 28% AMCOM 12% PEO MISSILES & SPACE 7% LOGSA 9% OTHER 13%

50. Distribution of Task Orders (As of 30 Jun 08) 67% of TO’s Awarded to SB’s Potential Program (including options) $17.06B DOMAIN % TO’S # TO’S # DIRECT OBLIGATED $ AWARDS TECHNICAL 46% 126 18 $1.521B PROGRAMMATIC 24% 67 6 $374.9M LOGISTICS 20% 54 5 $252.7M BUSINESS & ANALYTICAL 10% 28 2 $ 87.8M TOTALS 100% 275 31 $ 2.24B