Best Practices for Source Selection Planning

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2 Best Practices for Source Selection Planning Breakout Session # D02 Debra W. Scheider, Director Office of Contracts, CPCM, Fellow, NRO Stephen Spoutz, Director Acquisition Center of Excellence, NRO Date July 29, 2014 Time 11:15 12:30

3 Source Selection Process Acquisition Strategy Pre - solicitation Preparing for Evaluation Proposal Evaluation Award Analysis, Recommendation & Decision Notification & Debriefing Protest No Contract Award Discussions Yes Final Proposal Revision Competitive Range and Discussions Protest Process 2

4 Legal Requirements of Best Value Source Selection (BVSS) FAR Part 15 Contracting by Negotiation Agency supplements Case law GAO tracks protest issues for evaluations and source selections each year In 2013, 2,429 cases filed, 17% sustained, 43% effectiveness rate where form of relief granted 3

5 Pre-Acquisition Process 4

6 Best Practices Small core teams of competent officers with positive attitudes it is stressful Start with a realistic schedule Use Just in Time team training for step of the process Source selection should be the full time job of evaluators during evaluation SSA appointment letter with expectations Decision support software to document results Dedicated offsite facilities for source selection SSA training Follow your written source selection plan Focus on discriminators for criteria Fewer criteria is better 5

7 Acquisition Strategy Strategy provides a roadmap to improve acquisition success. 6

8 Market Research FAR Part 10 describes as research to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and services Performed before finalizing the requirements or acquisition strategy Can foster competition, use of commercial products, or result in a sole source determination COR and CO use to collect data and analyze the marketplace use to determine the best technical and business approach to meet the requirement 7

9 Initiating Market Research Determine the top level requirements, including essential performance and functional characteristics Form the core acquisition team with professionals from functional disciplines Ensure no PCI or OCI Tailor research to the requirement, urgency, estimated value, past experience Check commerciality, applicable law & regulation, size and status of potential sources 8

10 Market Research Sources Request for Information (RFI) No required format, FAR Best practices include a page limit, address non government advisors Capability matrix specify as a prime or sub Solicit feedback on the technical, schedule and business aspects Contract type, incentives, payment plan Industry will begin to form team based on RFI Contact other government agencies Obtain sources, terms & conditions, performance, pricing Review prior program actuals, terms, deliverables 9

11 Communication with Industry Industry Day (ID) overview of the program objectives and requirements Meet one-on-one after ID briefing schedule times in advance limit number of attendees limit to primes in capability matrix if too large Do not shut down communication until final RFP 10

12 Technical Baseline Finalize after acquisition strategy and market research Contains: Objective Scope Technical requirements/ work required Performance standards and reporting GFP Reference documents Statement of Work (SOW)- state what tasks are to be performed Statement of Objectivesdescribes overall purpose and top level objectives, allows flexible solutions Performance Work Statement (PWS)-describes work in terms of results, includes measurable performance standards 11

13 Acquisition Plan Tactical approach for meeting acquisition objectives and awarding contracts for each program phase Plan establishes specific milestones for implementing the program through contract award FAR Par describes content of written acquisition plans 12

14 Best Practice to Achieve RFP Consistency Consistency improves when the same people follow an organized process 13

15 Evaluation Criteria Structure Areas Items Factors Criteria Lowest level of evaluation hierarchy is the factor level Tailor criteria to the specific goals of the program Focus on the discriminators you must perform consensus for each factor Keep the number of factors to the minimum necessary to discriminate between proposals 14

16 Source Selection Methodology Used to guide source selection activity Decisions to consider Source Selection membership, roles, responsibilities Basis for award and evaluation criteria Cost evaluation process-audit timeline Use of oral presentations Facility requirements-dedicated recommended Government communication with contractors Schedule IT requirements stand alone system? Protection of proprietary information 15

17 Source Selection Plan (SSP) Contains the ground rules for the source selection process Method and framework for proposal evaluation Basis of award and evaluation criteria Criteria must match RFP Section M Source Selection Organization (SSO) structure, membership, roles and responsibilities Order of events Schedule of significant events Prepared by SSET Chair and CO Approved/signed by Source Selection Authority (SSA) Write an SSP 16 and follow it!

18 What should RFP include based on SSP? Importance of cost to non cost factors Significantly more important than cost or price Approximately equal to, or significantly less important All factors and significant subfactors and their relative importance Technical Management Past performance OCI Proposal risk Cost or Price Award with or without discussions Schedule for delivery of proposals may be staggered Proposal preparation instructions written for complex technical or management proposals 17

19 Evaluation Schedule Establish a realistic schedule early Build time into schedule for discussions Factor in SSA review and approval Prepare your debriefing charts based on the award recommendation to the SSA 18

20 Source Selection Evaluation Team (SSET) Structure Optional: Source Selection Integration Team SSET chair, CO and panel chairs Keep evaluations teams small with an odd number of evaluators 19

21 Planning for Evaluation SSA appoints each evaluator in writing, and meets with entire evaluation team to set expectations, review the role of each team, communication between teams and industry, and time commitment Evaluators should read the entire RFP before proposals arrive Evaluation is the #1 job of evaluators Stagger proposal delivery past performance, tech/mgmt, cost Factor rating scales Numerical scale may give false sense of precision Colors or adjectives may provide better groupings Plan for discussions-but reserve the right to award without them (FAR ) Do not add phantom criteria Be careful with required personnel qualifications Use standardized past performance questionnaires Keep evaluation teams small with an odd number of evaluators You must follow the Source Selection Plan so try to ensure it reflects the priorities of the acquisition and includes a realistic schedule Evaluations Must Be 20 Fair and Consistent

22 Cost or Price Analysis Competition establishes price reasonableness, normally cost analysis need not be performed Cost realism what should the govt expect to pay for the work? Includes offerors understanding of the work and ability to perform Should cost or government estimate provides a basis for comparison based on market research Cost reasonableness and completeness includes analysis of cost elements Most probable cost is government s estimate of the cost based on offeror s approach Align cost volume WBS to tech/management volume WBS to facilitate recommendations To facilitate review of labor hours and materials by Tech/Mgmt evaluators request the Basis of Estimate and Bill of Materials in separate volume(s) without cost or price information Integration of cost with non cost factors occurs after non cost factor evaluation is complete 21

23 Draft RFP Provides industry an opportunity to influence the final RFP, clarify issues or requirements Aids proposal preparation activities Enables teaming decisions Post bidders library at the same time Two weeks is normally enough time to review Industry will work to shape the RFP to their capabilities and solutions 22

24 Pre-Solicitation Conference Improves final RFP and enhances industry understanding of your needs Gives potential offerors the opportunity to provide comments and concerns Draft RFP may be distributed before or at the conference Recommend 3-4 days in advance Provide notice of conference days in advance Limit the number of attendees (2) One on one sessions after briefing yield significantly more useful data to USG (30 min each) 23

25 Wrapping up the Pre-solicitation Phase Congratulations! You have formed an acquisition core team that completed: The Acquisition Strategy Technical requirements SOW & Spec The Acquisition Plan A cover letter & model contract, including Sections L&M Performed an Independent Review of your RFP The Source Selection Plan The selection of your evaluators Issued a draft RFP and adjudicated questions Posted a bidders library of reference material Hosted an Industry Day and met with industry to gather input Performed an Independent Review Finalized the Request for Proposal and issued the Final RFP 24

26 Preparing for Evaluation The Final RFP is issued Identify facilities, obtain IT equipment Evaluators receive team training Confirm no OCI or PCI Non disclosure agreements are in place Read the RFP and source selection plan Prepare any necessary amendments Costly to industry and may delay schedule Take leave or travel 25

27 Proposal Receipt Contracting officer plans the logistics Late proposals will not be considered for award (FAR ) CO inventories the proposals against packing list Ensures proposals are compliant with required formats and page limits Soft copies must match hard copy exactly Specify what will be the record copy in the RFP 26

28 Preparing for Evaluation SSA kickoff with entire team Ground rules, expectations, schedule Appointment letter Participant roles, commitment, conduct Full and complete understanding of the evaluation process, criteria, and rating scales Agreed to definition of clarification with general counsel All communication through the contracting officer 27

29 Write Your Plan and Follow It Caddell Construction Co. v. U.S., 111 Fed Cl. 49 (2013) protest sustained where source selection decision contained no discussion or other record of the decision except a check mark. SRA Int l Inc., B , B , Nov. 25, 2013, Protest sustained where the record failed to demonstrate the basis for several findings by the Agency. NOVA Corp., B , B , June 4, 2013, SSA must perform tradeoffs and document the result. Nexant, Inc., B , B , Jan. 30, 2013, Record included numerous unreasonable conclusions and did not include any explanation as to how evaluators assigned their scores. Logistics 2020, Inc, B408543, Nov 6, 2013 Protest sustained where Agency abandoned the solicitation s evaluation scheme. Where solicitation provides for best value basis, as opposed to LPTA, proposal evaluation cannot be limited to determining if proposal was technically acceptable. Coburn Contractors LLC, B , Sept 30, 2013, Protest that an agency used unstated evaluation criteria was sustained. Agency found a weakness in protestor s proposal when it did not submit a list of subcontractors, but this was not required in the solicitation. Triad International Maintenance Corp., B , Sept 5, 2013, Agency unreasonably considered bidder s fixed price too low when solicitation did not include price realism. 28

30 Communication + Integration + Teamwork = Excellence 29

31 Acquisition Strategy: Documenting the Results Describe the background Team members Program description, essential characteristics, alternative capabilities, tradeoff analysis Schedule for delivery Methodology used for compiling supplier list, number contacted, list of suppliers contacted Strength of industrial base Information obtained from suppliers and qualification assessment Customary terms and conditions Range of prices explain variations Industry trends impacting price, performance, or delivery Availability of commercial items Recommended contract type and incentives 30

32 Contents of Acquisition Plan Statement of Need Applicable conditions Cost goals including should cost Performance/capability Delivery requirements Trade offs Risks Streamlining- involving industry early Sources Competitive plan- system, components, subcontracts Source selection procedures Schedule Evaluation factors Contract type Inherently governmental functions Make or buy Testing & logistics Govt furnished property Data rights Environmental issues Security considerations Plan Provides a Roadmap for the Contract 31

33 SSP Content Background/purpose Source Selection Organization (table) SSET member responsibilities Basis for award Evaluation methodology & procedures Process flow chart Instructions for performing evaluations Steps to integrate results & group consensus procedures Instructions for determining the competitive range The specific evaluation criteria, standards Strengths, weaknesses, deficiencies, risks Factor rating scale colors, adjectives, numbers Guideline for documenting evaluations Each panel s evaluation and consensus process SSP is approved before draft RFP release 32