Procurement Tenets

1. Procurement Tenets • The procurement tenets are ancillary to the other Federal and Agency procurement policies and apply to the development of strategies for NASA procurements • Purpose of the Procurement Tenets is to establish a set of guidelines for a NASA way of doing business • Each guideline shall be addressed by HQ, Program, Project and Contract Managers in their acquisition and procurement strategies, processes and procedures

2. Procurement Strategy Tenets • Maximize Competition • Early market research and continual communication with industry • Focus on getting industry’s best solution, commitment and lower cost • Use Performance as factor in exercising options • Plan re-competes; shorter term contracts; component breakouts; have the right data and data rights • Competition process thorough but not complicated • Develop Integrated Acquisition/Procurement Strategies • Involve all functional (Legal, Resource, Contracts, Small Business, technical) Reps early and throughout the planning process • Establish an Integrated Product Team environment • Inform and seek industry input throughout the acquisition • Serves as Road Map for Program Execution and success

3. Procurement Strategy Tenets • Zero-based approach in developing Requirements • Requirements Need to Earn Their Way into Contracts: # of Data Deliverables, Reviews and only applicable requirements • Get Industry’s Input as requirements are developed! • Focus on Performance Outcomes and allow Industry to determine Best Way to Achieve Desired Outcome • Use Commercial When it’s Available and Better • Look at Commonality: technical requirements and reporting • Streamline but do not compromise on safety, good business decisions and successful completion • Allow use of Commercial Processes • Get rid of non-value added steps and Requirements • Seek Industry Input on non-value processes and requirements • Seek process improvements and effiencies

4. Procurement Strategy Tenets • Create Reward Performance Incentives • Milestone Based • Specific level of performance: metrics and standards • Successful Outcomes: technical performance, cost and schedule performance, small business • Shared Savings, Cost Management and Lower Life Cycle Cost • Merge NASA’s and Industry’s Core Expertise • Mix of NASA and Industry Design, Development and Integration • Requires a Tight NASA and Industry Team with appropriate “arms length” relationship • Common NASA Contracts and Strategies • Common face to Industry • NASA Contract: Not a Center or Mission Directorate Contract • Not “zip code” dependent

5. Procurement Strategy Tenets • Reducing Cost and Cost Risk for procurements • Move towards firm fixed price contracts after development, service contracts • Perform work load analysis • Reduce “pass through” contracts • Turn Contract Upside-Down • Insight of Prime contractors supply chain management • Aggressive Pursuit of Socio-Economic Goals with Prime Contractors that are realistic, efficient and effective • Personnel, teams, subcontractors and suppliers share in objectives and rewards Maximize Return on Investment (ROI) for Industry and NASA!