Complex Use of Multiple Award Schedules by Experienced Customers: A Power User Session

2. Complex Use of Multiple Award Schedules by Experienced Customers:A Power User Session Breakout Session #714 Jeff Manthos GSA, Management Services Center July 21, 2010 10:00 Session 1

3. 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

4. Learning Objectives Review scope of Schedules program (w/ examples) Explain BPAs and CTAs as Schedule tools Describe the content and use of Multiple-Award and Single-Award BPAs Understand use of teaming (and subcontracting) Review teaming agreement for desired elements Understand examples of agencies successfully using BPAs and CTAs for complex service requirements

5. Did You Know Schedules Can Be Used For…? Recycling computer monitors (Environmental) Food service for soldiers in Iraq (Logistics) Agency reorganizations [even GSA’s] (MOBIS) Aircraft electronic maintenance (Logistics) Acquisition Support Services (MOBIS) Translation of Osama bin Laden tapes (Language)

6. In-Scope or Out-of-Scope? • Out-of-Scope • Non-Commercial • Construction/A&E • Cost-type contracts GSA Schedule Scope • Out-of-Scope • Terms & Conditions conflicting • with Contract (or Schedule) • Services outside the scope ofthe Contract (or Schedule) GSA Contract Scope Task Order Scope • Out-of-Scope • Degree of Scope Changes • Type of Scope Change • Amount of price or period • of performance change Modification Scope

7. Some Limitations Broad Acquisition Limitations Commercial Services (FAR 2.101) Personal Services (FAR 37.104) Inherently Governmental Functions (FAR 7.503) Schedules Program Limitations Architect/Engineer Contracts (FAR 36.601-4) Cost-Reimbursement Type (FAR 16.3) Construction (FAR 2.101) Services Limited by the SIN Description

8. Scope Determination Pitfalls Failure of Ordering Officer to Show Schedule and SINs on RFQ “Whatever GSA Schedule You Have” (the chosen contractor) “Labor Category Shopping” rather than determining the SINs required to accomplish the PWS. “Schedule A or Schedule B” (treating Schedule scopes as interchangeable) “Wrong Schedule” Order is Protestable by “Right Schedule” Contractor

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

10. Blanket Purchase Agreements

11. Why Establish an MAS BPA? Opportunity to negotiate better discounts Satisfy recurring requirements Reduce administrative burden Leveraging buying power through volume Support field offices/other contracting offices Quicker order turn-around Can incorporate non-conflicting terms & conditions Can include contractor teaming No funding required to establish BPA No synopsis, no competition outside Schedules to establish or use BPA

12. Simplified Acquisition Method • Anticipated Repetitive Needs • Qualified Source(s) • Single or Multiple Award Blanket Purchase Agreements • Contractor’s Perspective • Recurring source of orders • Volume • Quick turn on orders • Expectation of price discounting • Govt’s Perspective • Flexibility • Efficiencies • Expectation of best pricing for eachTask Order

13. What’s in a BPA? • Scope • Estimated value/level of effort (not a ceiling) • Duration • GSA Schedule(s) & Contract(s) • Participating offices/agencies • Invoicing/billing procedures • Ordering procedures (if multi-award) • Terms & conditions • Discount terms • Types of orders to be placed • BPA Termination

14. BPA Decision PWS GSA Schedules Determine In-Scope Multiple-Award BPA Yes Broad Requirement? Recurring Tasks? Issue RFQ/Task Order Yes No No Order Single-Award BPA Quotes

15. Single Award BPA Issue BPA, RFQ, (PWS) Receive and Evaluate BPA Quotes Establish one BPA Then for each recurring task: Issue Task Order RFQ (PWS) to sole BPA-holder Evaluate the Quote Award Task Order One Best Value “Competition”: Who Gets the BPA?

16. Multiple-Award BPA Issue BPA RFQ (PWS) Receive & Evaluate BPA Quotes Best-Value Source Selection Establish Multiple BPAs For each Recurring Task: Develop Task Order Evaluation Criteria Issue Task Order RFQ (PWS) to “an appropriate number” of BPA-holders (FAR 8.402-3(b)(2))* Evaluate the Multiple Quotes: Best-Value Source Selection Award Task Order Two Best Value “Competitions”: Who Gets the BPA? Who Gets the Task Order? * To “all BPA holders” if DoD (DFARS PGI)

17. Contractor Teaming Arrangements

18. Two Ways to Satisfy Multi-Domain (Schedule/SIN) Requirements One GSA Contractor holds all needed domains, so teaming not required: As separate single-Schedule contracts, and/or On the Consolidated Schedule OR GSA Schedule holders team across domains

19. Consolidated Schedule Only for contractors with two or more Schedules (e.g., PES and MOBIS) One GSA contract, so just one Task Order for agency to award/administer Contractor can offer their entire business line on a single contract Includes most service Schedules and some related product Schedules (including IT)

20. Subcontracting vs “Teaming” Each Team Member must have a Schedule contract Each Team Member has privity of contract (and can interface) with Government Ordered and invoiced at each Team Member’s Schedule rate (less discount) Total Schedule solutions possible Each member can be responsible for duties in a teaming agreement • Only Prime must have a Schedule contract • Only Prime has privity of contract (and interface) with Government • Ordered and invoiced at Prime’s Schedule rate (less discount) • Limited to SINs and labor categories on a single Schedule contract • Prime can’t “delegate” responsibility

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

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

23. MAS CTAs Team Leads & Members must have GSA Schedule and use their Schedule rates Contractor Teams are issued one BPA Could include subcontractor effort, as long as mapped to their Prime’s Schedule labor category If Multi-Award BPA, Teams compete for Task Orders Task Orders can be issued to Team Lead or directly to Team Member

24. MAS CTAs Not a separate legal entity but acts like joint venture Include Teaming Agreement with quote for agency review Government incorporates CTA into BPAs/Orders Can reduce the need for open market items! Best Practice: Make sure the contract number(s) for each team member contributing to a task order is/are cited on that order.

25. Teaming Agreement Highlights Identify Parties (Members and Lead) Teaming Activities (w/ responsibilities) Type & Duration of Agreement CTA Terms Ordering Procedures Team Lead & Team Member Duties Pricing, Invoicing, and Payment Performance Responsibility/Evaluation Reporting Sales to GSA Warranty Confidential Information Agreement is solely between the Members- can’t conflict with the Schedule

26. 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

27. Creating “Domains” Identify Service Categories Analyze Your Requirement • Resource Management • Schedule 874 - MOBIS • Schedule 520 - Financial & Business • Schedule 738 X - Human Resource Services • Schedule 70 – Information Technology Services Step 1 • Logistics & Engineering • Schedule 874 V - LOGWORLD • Schedule 871 - Professional Engineering Services • Schedule 899 – Environmental Services Step 2 Align Schedules or SIN’s Under Service Categories Step 3

28. Performance Based SOW Extract Primary Requirements

29. Engineering/Scientific Requirements

30. Multiple-Schedule Solution Engineering & Scientific What Schedule (or Schedules) meet those Requirements? • 871 Engineering • 874 MOBIS • 899 Environmental • 70 IT

31. Best Practices, Tips and Tricks

32. Electronic Ordering Systems Interface with requirements developers and contractors Create program metrics and reports

33. Use Templates

34. Ordering Guides/Handbooks

35. Other Best Practices Consider open seasons Refresh contractor pool, allow team realignments Conduct an “Industry Day” when setting up the program ODCs (especially material) is always an issue Part 51 Deviation Have a system to handle materials established up front Set rules to limit open market items Bring end users into the discussion early (buy in)

36. Even More Best Practices (Some thoughts directly from agencies using these techniques already) Partner with GSA early in the planning process For very large programs, consider mapping Schedule labor categories to standard categories on BPAs Consider using options to build in surge capacity on task orders Build growth into your program Once you’re up and running, others will want to use it

37. BPA & CTA Example: AMCOM Award Date: Jan/Apr 2005; 13 May 2009 BPA Period: Base Year with Unlimited Award Terms Task Order Performance - Base Period with Potential Options NTE 5 Years Performance Based Task Orders unless Approved IAW DFARS 237.170 Flexible Pricing Arrangements: Fixed Price (Level of Effort or Completion), Time and Materials, Labor Hour Discounting of GSA Rates Allowed at BPA and/or Task Order Level Annual Open Season for team restructuring

38. Task Order Performance – Most Important Criteria • (Based on Specific Task Order Metrics) • Quality of Service, Cost Effectiveness, Timeliness of • Performance, Business Relations, Customer Satisfaction • Responsiveness – Task Order RFQs, Effective Corrective Actions • Competitiveness – Submission of Viable Task Order Quotations • Actual Performance versus Proposed Goals for Direct SB Team • Member Awards and SB Subcontracting Goals Annual BPA Review and Award Term Decision

39. BPA Team Restructuring During Open Season • - Change Subcontractors to Team Members • - Change Team Members to Subcontractors • - Revise teaming arrangement(s) • - Add new Team Members/Subcontractors • Additions Outside of Open Season • - Rare instances • - Unforeseen/urgent • - Contracting Officer approval Updating Subcontractors/Team Members

40. Standardized Documentation • Performance Work Statement (PWS) • Task Order Request for Quotation (TORFQ) Letter • Evaluation Criteria • Quotation Contents • Evaluation Worksheets

41. Initiating Competitive Task Orders • NOT REQUIRED • Acquisition Plan • Evaluation Plan • Synopsis • Approval for Use of • Non-DOD Contract • DD254 if within BPA

43. Standard Task Order Evaluation Criteria • Discounting on Task • Orders Expected • GSA Rates Maximum Best Value Flexible Criteria Weighting Customer Makes Decision

44. Standard Selection Criteria for All Domains • Experience • Functional Approach • Socio-Economic Support • Price • Customer assigns criteria weighting prior to release of RFQ • Customer makes best value selection decision • Customers often pay a premium for more experience • and/or a better functional approach

45. Material/ODC Purchases • Material/ODCs must be in direct support of the task order PWS. • Contractors may provide GSA Schedule Items IAW task order • requirements. • Open Market/Non-Schedule Items will be separately identified on the • task order – separate CLIN/SLIN. • Over $3000, price reasonableness must have been determined by the • Contracting Officer IN ADVANCE. • Consider modifying schedule to include recurring Material/ODCs.

46. Internal Material/ODC Guidance • Consider primary purpose of task…EXPRESS is for advisory and • assistance services, not end items. • Must directly enter into the deliverables, or used/consumed directly in • connection with the furnishing of the deliverables • Over 10% of labor cost will require separate justification • Justification must clearly show that materials are required in order to provide services ordered. • Material/ODCs exceeding labor cost not allowed.

47. Program Statistics (As of 31 Dec 09) Domain Task Obligations Program Orders Percentage Business and Analytical 30 $162.4 M 4% Logistics 59 $455.4 M 12% Programmatic 69 $613.8 M 16% Technical 149 $ 2.5 B 68% Total Program 307 $ 3.8 B

48. Jeff Manthos jeffrey.manthos@gsa.gov Management Services Center(800) 241-RAIN (7246) www.gsa.gov/mgmtservices Services Ordering Solutions: Avoiding MAS Confusion http://blogs.gsa.gov/blogs/servicesordering.nsf Thank You