Better Buying Through Interagency Acquisitions

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2 Better Buying Through Interagency Acquisitions Breakout Session # Name: Mimi Bruce & Steve Sizemore Date: July 22, 2013 Time: 2:30 P.M. 1

3 Agenda Introduction to Interagency Acquisitions Interagency Contracts Defined Benefits of Using Interagency Contracts Federal Strategic Sourcing Initiative Example Comparison of GSA GWACs and Schedule 70 2

4 Introduction to Interagency Acquisitions An efficient tool to meet agency requirements 3

5 Interagency Acquisitions June 2008 OFPP Memorandum - Improving the Management and Use of Interagency Acquisitions Established the framework for preparing interagency acquisitions Defined terms such as: o Interagency Acquisition o Types of Interagency Acquisitions 4

6 Interagency Acquisitions June 2008 OFPP Memorandum - Improving the Management and Use of Interagency Acquisitions Established o A presumption that direct acquisitions are in the best interest of the government o o Best Interest Determination (aka Determination of Best Procurement approach ) Roles and responsibilities between the servicing agency and the requesting agency 5

7 What Is an Interagency Acquisition? FAR Definition: Interagency acquisition means a procedure by which an agency needing supplies or services (the requesting agency) obtains them from another agency (the servicing agency), by an assisted acquisition or a direct acquisition. The term includes- Acquisitions under the Economy Act (31U.S.C. 1535) Non-Economy Act acquisitions completed under other statutory authorities such as: o Federal Supply Schedules in FAR Subpart 8.4 o Governmentwide Acquisition Contracts (GWACs) 6

8 Direct Acquisition Assisted Acquisition Agency Requirement Requiring Agency Performs Acquisition Activities Servicing Agency Performs Acquisition Activities Contract Vehicle 7

9 Interagency Acquisitions Types of Interagency Acquisitions Direct Acquisition The agency with the requirement places an order directly against the servicing agency s Indefinite Delivery Vehicle (IDV) Assisted Acquisition The servicing agency and requesting agency enter into an interagency agreement pursuant to which the servicing agency performs acquisition activities on the requesting agency s behalf, such as awarding a contract, task order, or delivery order 8

10 Interagency Acquisitions FAR Basics FAR 17.5 Interagency Acquisitions Applies to all interagency acquisitions except o Federal Supply Schedule orders <$500,000 Agencies shall not use Interagency Acquisition to circumvent conditions and limitations on the use of funds Requires Determination of Best Procurement Approach 9

11 Interagency Acquisitions FAR Basics Direct Acquisitions Determination of Best Procurement Approach Obtain concurrence of requesting agency s contracting office IAW internal agency procedures Minimum requirements for best procurement approach: I. Suitability of the contract vehicle 10

12 Interagency Acquisitions FAR Basics Direct Acquisitions (cont) Determination of Best Procurement Approach II. Value of using the contract vehicle, including: a. Administrative cost savings from using an existing contract. b. Lower prices, greater number of vendors, and reasonable vehicle access fees. 11

13 Interagency Acquisitions FAR Basics Direct Acquisitions (cont) Determination of Best Procurement Approach III. Expertise of the requesting agency to place orders and administer them against the selected contract vehicle throughout the acquisition lifecycle. No written agreement required on roles and responsibilities 12

14 Interagency Acquisitions FAR Basics Assisted Acquisitions Determination of Best Procurement Approach Obtain concurrence of requesting agency s contracting office IAW internal agency procedures Minimum requirements for best procurement approach when using servicing agency: I. Satisfies the requesting agency s schedule, performance and delivery requirements 13

15 Interagency Acquisitions FAR Basics Assisted Acquisitions (cont) Determination of Best Procurement Approach (cont) II. Is cost effective (including consideration of fees) III. Results in proper use of funds IAW laws and policies 14

16 Interagency Acquisitions FAR Basics Assisted Acquisitions (cont) Written agreement Prior to solicitation - must sign a written agreement identifying roles and responsibilities Written agreement - Establishes general terms and conditions governing the relationship between the parties including roles and responsibilities for o acquisition planning o contract execution o administration and management of contract/order 15

17 Interagency Acquisitions FAR Basics Assisted Acquisitions (cont) Written Agreement (cont) Requesting agency shall provide unique terms and conditions and agency-specific statutes, regulations, etc. If no unique requirements - requesting agency informs in writing 16

18 Interagency Acquisitions FAR Basics Direct Ordering Determination of Best Procurement Approach Follow ordering procedures in 16.5 or 8.4 and contract Internal approvals may be necessary Must ensure proper use of funds Assisted Acquisition Determination of Best Procurement Approach Written Agreement (Assisting agency follows ordering procedures in 16.5 or 8.4 and contract) Internal approvals may be necessary Must ensure proper use of funds 17

19 18 Interagency Contracts Defined

20 Interagency contract vehicles include: Governmentwide Acquisition Contracts (GWACs) Multi-Agency Contracts (MACs) Multiple-Award Schedules (MAS) FSS Blanket Purchase Agreements (BPAs) 19

21 A Governmentwide Acquisition Contract (GWAC) is defined as a task or delivery order contract for information technology Authority: Section 5112(e) of the Clinger-Cohen Act (40 USC 1412[e]) Office of Management and Budget designates one or more "executive agents" for government-wide acquisitions of information technology Current Executive Agents: What is a GWAC? ogeneral Services Administration onasa onational Institutes of Health Orders are not subject to the Economy Act 20

22 What is a MAC? Multi-agency contract (MAC) is a task-order or deliveryorder contract established by one agency for use by Government agencies to obtain supplies and services MAC contracts include contracts for information technology established pursuant to 40 U.S.C (a)(2) MAC contracts can be for other than information technology Subject to the Economy Act 21

23 What is a Multiple Award Schedule (MAS)? Governmentwide contract vehicle for commercial products, services, and solutions Also known as Federal Supply Schedule (FSS), GSA Schedules VA Schedule or MAS Standing solicitations posted on FedBizOpps Awarded using FAR Part 12 procedures Ordering procedures in FAR

24 What is an FSS BPA? BPAs awarded against Federal Supply Schedules All Schedule terms and conditions apply May be multi-agency FAR governs awarding and ordering from FSS BPAs 23

25 Interagency Contract Directory (ICD) Central repository of Indefinite Delivery Contracts Including: Governmentwide Acquisition contracts (GWACs) Multi-Agency Contact (MACs) Federal Supply Schedules (FSS) Basic Ordering Agreements (BOA ) and Blanket Purchase Agreements (BPAs) 24

26 Major Interagency Vehicles VA NASA NIH Schedules SEWP 4 CIOSP3 CIOSP3 SB ECSIII Alliant Alliant SB 8a STARS II GSA VETS Schedules FSSI BPAs 25

27 Benefits of Using Interagency Contracts 26

28 Using Interagency Contracts Simplifies the Acquisition Process Orders Placed against Interagency Contracts are streamlined, which create faster, easier, more efficient orders and help ordering activities achieve socioeconomic goals. 27

29 Using Interagency Contracts Simplifies the Acquisition Process Faster - Offers administrative and time savings over establishing a new contract Contracts are pre-competed Full and Open requirements met Terms and Conditions already in place Ordering activity may add non-conflicting terms and conditions Orders do not require: o Publication on FedBizOpps o Sub-contracting plans o Representations and certifications o Responsibility determination 28

30 Using Interagency Contracts Simplifies the Acquisition Process Easier Streamlined ordering process GWACs/MACs use methods described in FAR o The contracting officer may exercise broad discretion in developing appropriate order placement procedures Federal Supply Schedules use methods described in FAR 8.4 FAR 15.3 procedures (including terminology) should not be used 29

31 Using Interagency Contracts Simplifies the Acquisition Process Efficient Ordering GWACs / MACs generally allow all order types (see specific contract vehicle) Schedules allow firm-fixed-price, T&M, and labor hour Ordering Activity determines timelines for: o Submission o Evaluation o Award 30

32 Using Interagency Contracts Simplifies the Acquisition Process Efficient - Pricing Schedules o Fair and reasonable prices have already been negotiated o Discounts may be realized at order level (Government must seek a discount when exceeding the SAT and may seek a discount below the SAT) GWACs / MACs o See specific GWAC for pricing -- Generally use the policies and methods in FAR

33 Using Interagency Contracts Simplifies the Acquisition Process Efficient Transparency GWAC prices on individual website New for GWACs - Prices Paid Analysis o Baseline T&M/LH actual rates (low, mid, high) for each labor category under the contract 32

34 Using Interagency Contracts Simplifies the Acquisition Process Efficient Transparency (cont) Schedules prices published on Advantage / elibrary ebuy Request for Quote System helps to achieve consistency and transparency 33

35 Using Interagency Contracts Simplifies the Acquisition Process Socioeconomic Goals Small Business strongly supported through Interagency vehicles: o Ordering activity receives socioeconomic credit for orders placed o SBA is on the new Strategic Sourcing Leadership Council 34

36 Using Interagency Contracts Simplifies the Acquisition Process Socioeconomic Goals (cont) GWAC set-aside contract vehicles: o GSA Alliant Small Business o GSA 8(a) STARS II o GSA VETS o NIH CIOSP3 Ordering activity may conduct discretionary set asides within GWAC pool Federal Supply Schedules ordering activity may conduct discretionary set-asides 35

37 Interagency Acquisition Hot Topics 36

38 Interagency Acquisition Hot Topics OMB establishes framework for addressing unjustified duplication among contracts Requires multi-agency contracts to be supported by a business case analysis before creating new GWACs, MACs, and BPAs (OMB Memorandum - September 29, 2011) Business Case must be approved by Agency Senior Procurement Executive for: o All GWACs regardless of value o Covered agency-specific contract or agency-specific BPA o FY14 - >$50 Million 37

39 Interagency Acquisition Hot Topics GAO removes interagency contracting from high risk list citing: Continued progress made by agencies in addressing identified deficiencies Establishment of additional management controls Creation of a policy framework for establishing new interagency contracts Steps taken to address the need for better data on interagency contracts 38

40 Interagency Acquisition Hot Topics DoD conducting Interagency Acquisition policy review (Memo dated January 2, 2013) Looking at all regulatory and policy memoranda on Interagency Acquisitions Recommendations due September 30 to DPAP 39

41 Interagency Acquisition Hot Topics Pending FAR Change (FAR Case ) Proposed Changes to FAR Required Sources of Supplies and Services Clarifies parity of non-mandatory sources May include language promoting use of existing contracts such as FSS, FSSI, MACs, GWACs As of April 16, 2013, Defense Acquisition Council approved (Awaiting concurrence from Civilian Agency Acquisition Council) 40

42 Federal Strategic Sourcing Initiative (FSSI) 41

43 Federal Strategic Sourcing Strategic Sourcing o Collaborative and structured process o Analyzing an organization s spending o Using this information to make business decisions about acquiring commodities and services more effectively and efficiently 42

44 Federal Strategic Sourcing Strategic Sourcing o Helps to optimize Performance Minimize price Increase achievement of socio-economic goals Evaluate total life-cycle management costs Improve vendor access to business opportunities Otherwise increase the value of each dollar spent 43

45 Federal Strategic Sourcing Strategic Sourcing ultimately is about implementing a more strategic approach to meeting the governments acquisition needs. It is about buying smarter. Buying Smarter (more than just price) o o o o Leveraging spend (economies of scale) Improving and standardizing terms and conditions Standardizing and streamlining acquisition practices Improving efficiency and reducing administrative costs for both government and industry Source: ASI April 2013 Advisory Strategic Sourcing Realizing the Vision of Buying Smarter 44

46 Federal Strategic Sourcing Our government is the largest purchaser in the world, but it buys as if it were 130 mid-sized businesses. We ve got to leverage our buying power. It is really what those two words say: it is being thoughtful in the way you acquire the goods and services your agency needs. To me that is what strategic sourcing is. Source: Joe Jordan OFPP Administrator April 2013 Interview, ASI Advisory, Realizing the Vision of Buying Smarter 45

47 Federal Strategic Sourcing Why Place so much Emphasis on Strategic Sourcing? Tightening budgets Opportune time to maximize value for every dollar spent Improve efficiency of our collective acquisition processes and approaches 46

48 Federal Strategic Sourcing Initiative FSSI (lead by GSA) was established in 2005 to address: Governmentwide opportunities to strategically source commonly purchased products and services Eliminate duplication of effort 47

49 Federal Strategic Sourcing Initiative FSSI Solution Key Features of Strategy Domestic Delivery Services Reduces visible shipment rates and hidden surcharges Lowest price to government Business intelligence reports and analysis increase agency visibility into Total Cost of Ownership Office Supplies Drove competitive pricing for the core items and reverse auction techniques Incorporated POS terms to reduce price variability and increase ease-of-use Solution balanced cost savings with socioeconomic and green considerations Wireless TEMS Allows agencies to identify optimal rate plans based on analysis of usage 48 Reduces inventory costs and billing errors

50 Federal Strategic Sourcing Initiative FSSI Solution Key Features of Strategy Print Management Lowers costs and increases environmental performance by utilizing the most efficient equipment and making green print options the default Optimizes equipment deployment and usage through sophisticated Managed Print Services and focuses on lowering total cost of operation. Wireless Plans & Devices Aggregation of volume to drive volume discounts and eliminate price variability Solution will be implemented with joint governance from CIOC 49

51 Strategic Sourcing Recent Changes December 5, OMB issued a memo, subject: Improving Acquisition through Strategic Sourcing Called on agencies to expand the use of strategic sourcing both within their agencies and governmentwide to: o o o reduce contract duplication consolidate spending recognize economies of scale by aggregating their returns Established a new Strategic Sourcing Leadership Council (SSLC) (replacing the Strategic Sourcing Working Group) Required Designation of Strategic Sourcing Accountable Official for the 24 agencies subject to the Chief Financial Officers Act 50

52 Strategic Sourcing Recent Changes December 5, OMB issued a memo, subject: Improving Acquisition through Strategic Sourcing GSA tasked with Implementing at least five new government wide strategic solutions in each of FY 2013 and 2014 Increasing transparency for prices paid Best practices for acquiring, using, and disposing of the commodities managed through FSSI 51

53 Strategic Sourcing FITARA On March 18, 2013 Congress introduced a new bill entitled FITARA Aimed at streamlining the way the Government buys IT Requires agencies to perform a business case analysis before issuing a solicitation for a duplicative contract vehicle Requires mandatory consideration of items available under FSSI and documentation of comparative value when FSSI is not used Exempts FSS, GWACs, or orders against existing contracts from having to develop a business case, and would allow the Office of Federal Procurement Policy (OFPP) to exercise administrative discretion to add other contracts as necessary 52

54 53 Key Takeaways

55 Key Takeaways Increased emphasis on Strategic Sourcing (GAO, OMB, GSA, DOD) Interagency Contracts have been removed from GAO s watch list citing significant improvements in policy framework, management controls, and improved data on these contracts Business Case Analysis required for all GWACs, MACs, and BPAs to prevent contract duplication 54

56 Key Takeaways DOD revisiting Interagency Contract Vehicles to ensure sound, consistent policy across DOD Order of Precedence FAR Part 8 will create parity among GWACs, Schedules, and MACs and may include consideration for Interagency vehicles before full and open FITARA IT legislation would require mandatory consideration of the items available under FSSI and documentation of comparative value when FSSI is not used 55

57 A comparison of two of the most popular interagency contract vehicles 56

58 GSA GWACs GSA Schedule 70 Statutory Authority: 5112(e) of the Clinger-Cohen Act, 40 U.S.C. 1412(e) Statutory Authority: Title III of the Federal Property and Administrative Services Act of 1949, 41 U.S.C. 251 Solicitation has a closing date Solicitation is continuously open Awarded under FAR 15, Contracting by Negotiation, and/or FAR 12, Commercial Items Comprehensive and/or Functional Area IT Scope (e.g., NAICS, IT tasks/verbiage, FEA/DODEA) BOTH Commercial and non-commercial IT services *Ancillary supplies must be integral and necessary to the IT services solution Single Prime for Total Solution 57 Awarded under FAR 12 Commercial Items Scope described using Special Item Numbers ONLY Commercial IT supplies and services. Multiple Primes (Teaming) for Total Solution

59 GSA GWACs GSA Schedule 70 Solutions Based allows ancillary supplies and services that are integral & necessary to the overall IT solution Items or Services must be priced on the schedule GSA establishes labor categories & contractor proposes loaded hourly labor rates Five-year base contract period Five-year option Orders may not exceed 10 years and may extend no more than five (5) years beyond the expiration of the Basic Contract Company proposes its established commercial labor categories & rates Five-year base contract period Three five-year options Order period of performance may begin before expiration date of contract options may not be exercised if contract has expired Ordering is governed by FAR Ordering governed by FAR 8.4 Fair Opportunity All contractors must be provided a Fair Opportunity to compete at the order level 58 or justify exception to fair opportunity Fair Opportunity Use ebuy Receives at least three quotes and make a best value determination Justify exception to fair opportunity

60 GSA GWACs GSA Schedule 70 Contracting Officers must have a Delegation of Procurement Authority Open to all warranted Federal Contracting Officers and purchase card holders GWACs are not authorized for use by state and local government entities State and local governments may purchase from Schedule 70 Orders under $10M limit protests to scope, period of performance and maximum dollar of the contracts Schedule Orders may be protested to the Contracting Officer or Government Accountability Office (GAO) BPAs are NOT permitted BPAs ARE permitted ALL contract types allowed including Cost Reimbursement (depends on GWAC; letter contracts not allowed) 59 ONLY Fixed Price and Time and Material/Labor Hour Allowed

61 60 References

62 Mimi Bruce Director, Client Support Enterprise GWAC Division Steve Sizemore Senior Program Analyst Office of Acquisition Mgmt Federal Acquisition Service

63 Important Interagency Acquisition Sites OMB Max Posting Business Cases OMB Interagency Contract Directory GSA s Governmentwide Federal Strategic Sourcing Initiative (FSSI) GSA Navigator site coming soon GSA GWAC Dashboard GSA Strategic Sources.gov New Prices Paid Analysis In process Defense Procurement Acquisition Policy (DPAP) Interagency 62

64 Webinars and Online Training Monthly Webinars sponsored by the MAS Program Office Weekly and Monthly webinars Delegation of Procurement Authority for GWACs, or for information Training Videos - Continuous Learning Modules Federal Acquisition Institute Defense Acquisition University Search for continuous learning modules with FAC prefix 63

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