the contract holder model darlene coen al marshall l.
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The Contract Holder Model Darlene Coen / Al Marshall. SEWP Contract Structure. 5 Groups of contracts 4 Competed Groups (Groups A through D): 38 Companies => referred to as Contract Holders 21 Small businesses; 7 SDVOSB’s; 6 8(a)s Limit of $5.6 Billion per contract

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The Contract Holder Model Darlene Coen / Al Marshall

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sewp contract structure
SEWP Contract Structure

5 Groups of contracts

  • 4 Competed Groups (Groups A through D):
    • 38 Companies => referred to as Contract Holders
    • 21 Small businesses; 7 SDVOSB’s; 6 8(a)s
    • Limit of $5.6 Billion per contract
    • Grouping is based on initial contract competition and selection
      • Set-aside vs. Full and Open
      • Minimum mandatory requirements
  • 1 Non-Competed 8(a) set-aside contracts (Group E)
    • 4 Contract Holders
    • Limit of $3.5 to $4 Million per contract
groups a through d
Groups A through D
  • Group A: OEMs and Value Added Resellers (VARs)
    • 9 Contract Holders
    • Award based on Full and Open Competition focused on computer systems
  • Group B: SDVOSB VARs
    • 6 Contract Holders
    • Award based on Service Disabled Veteran Owned Small Business Set-aside focused on Supporting Technology
  • Group C: Small Business VARs
    • 12 Contract Holders
    • Award based on Small Business Set-aside focused on Supporting Technology
  • Group D: VARs
    • 15 Contract Holders
    • Award based on Full and Open Competition focused on Supporting Technology
significance of groups scope
Significance of Groups - Scope
  • Scope of Groups A through D
    • Products and product based services
    • No Group level scope distinction. From the SEWP SOW:

“Regardless of the mandatory items defined, proposed and provided by each class, the scope of all contracts is the same”

  • Scope of Group E
    • Fixed price support services along with product solutions
    • Limited by contract ceiling
significance of groups fair opportunity
Significance of GroupsFair Opportunity
  • Groups A through D – FAR Part 16.505(b)
    • Fair Opportunity MUST BE provided within at least one Group
    • Opportunity may be provided across multiple Groups
  • Group E – non-competed 8(a) set-asides
    • Fair Opportunity requirements do not apply
    • However it is strongly recommended that all Group E Contract Holders be solicited
fair opportunity and notices
Fair Opportunity and Notices
  • All contract holders in at least one Group must be solicited unless:
    • Order is under $3000
    • Follow-on to a previous process in which Fair Opportunity was performed and documented
    • National Emergency
    • Conflict of Interest
  • Posting Notices to all Four Groups
    • Brand Name Requirement - Justification and Approval document must be posted to all 4 Groups
    • New FAR Requirement – Notice must be posted for any order over $25,000
      • SEWP Quote Request tool will provide mechanism to post notices
small businesses and fair opportunity
Small Businesses and Fair Opportunity
  • Groups B and C can be solicited separately or together
    • If inadequate responses, re-open RFQ to other Groups
  • Groups A & D can be included in solicitation:
    • Selection is based on Best Value as determined by the issuing agency
    • Recommendation for small business usage: Utilize business size preferences in selection process
  • Group E
    • Particularly for support service requirements
    • Check the current cap limit
quote request tool
Quote Request Tool

The SEWP Quote Request tool is the only recommended method to apply Fair Opportunity and solicit quotes.

sewp fee
  • Fee is based on a non-profit budget
    • Goal is to provide the best service at the lowest possible cost
    • Average fee charged is 0.37% (due to cap)
fee payment and quotes
Fee: Payment and Quotes
  • Fee paid by the Contract Holder after Issuing Agency pays the invoice for the order including the fee
  • Fee may be quoted as separate line item or included in product price
  • Issuing Agency is responsible for listing the fee as quoted
    • If fee quoted separately, order should list the fee separately
    • If fee is not listed on the quote (and the quote is a SEWP quote) do not include the fee as a separate line item
  • During order processing, Government Customer and Contract Holder are notified of the calculated fee associated with the order
  • Contract Holder cannot increase invoice if fee was mis-quoted
applying the fee
Applying the Fee
  • Fee is applied on the original order and any subsequent mods including exercising options
    • For example an order with a base total of $2 Million and 2 options of $1 Million each will have a fee of $18,000 inclusive of all options
  • If an order is canceled, no fee is applied
  • If the amount of an order is decreased, the fee is also decreased
  • If the amount of an order is increased, the fee is increased
we work for you
We Work For You
  • Pre-Award Assistance
    • Scope Questions
    • Assist with Getting RFQ Responses
    • CLIN Management
  • Orders
    • Data Validation
    • Delivery Tracking
  • Post Award Issues
    • Assistance with Issue Resolution
    • Debriefs
    • Protests
    • Program Performance
pricing catalog price
Pricing – Catalog Price

SEWP catalog price is fair and reasonable based on:

  • Contract Discount Structure
    • Based on a set discount off of list price
    • Discount structure tied to initial competition and award
  • Pricing compared against other contract prices
    • Other contracts do not necessarily compare against other contracts
    • If pricing is not comparable, justification is required
      • “I cannot sell at that price” is not a justification
      • “The warranty is for 2 years instead of 1” is a justification
  • Price must be lower than Contract Holder’s GSA price (lower fee)
  • Variable priced CLINs not allowed
pricing quoted price
Pricing – Quoted Price
  • SEWP catalog price is the highest price allowed
    • Discounting at the quote level is highly encouraged
  • On average, quoted price is 27% lower than catalog price
    • Strong internal competition
    • Consolidation of requirements maximizes discounts
    • Prices may be negotiated
  • If the quoted price seems questionable, notify
    • Most common question: I found the same item on the web for half the price
    • Upon further research most common reasons for price discrepancies:
      • Technically comparing apples to oranges (or Apples to PCs)
      • Item is end of life
      • The required solution requires customization
contract holder relationship manager
Contract Holder Relationship Manager

2 Full-time staff serve as CHRMs (Contract Holder Relationship Managers)

  • Liaison between SEWP Program Management Office (PMO), Contract Holders (CH), Industry, and Users
    • Daily if not hourly interactions between CHRMs and Contract Holders
    • Annual one-on-one meetings with each Contract Holder
      • Discuss past issues
      • Promote good communication
    • Quarterly Program Manager Meetings
  • Assist Government Customers with Issue Resolution
    • Provides mediation, research, recommendations, and/or a sympathetic ear
    • Objective is to provide a balanced perspective
chrming activities
CHRMing Activities
  • Industry Events
    • Semi-annual Industry Forums
      • Please encourage any company you work with who wants to know more about SEWP to attend one of these events (send email to
    • Sales Training
      • Sales forces at all Contract Holders are required to be trained on SEWP Contracts
    • Manufacturer Training
  • Track Program Performance
  • Assist in review and approval of product catalog updates:
    • Technology Refreshments (TR)
    • Statement of Work and scope reviews
  • Oversight of Contract Holder Only Page (CHOP)
    • Web site used to provide Contract Holders with a suite of tools
  • Manage the Contract Holder Reports
contract holder reports
Contract Holder Reports

SEWP provides Contract Holders with an array of periodical reports

Contract Holder is fully informed of all SEWP-related activities, actions, and issues in a timely fashion

  • Agency and Contract Holder Total Usage – Monthly
  • Delivery Order and Quote Request Summary – Weekly
  • Pending Quote Requests – Daily
  • Orders With Upcoming or Overdue Delivery Times – Daily
  • Order Receipt and Order Summary Issue Report - Daily
program performance
Program Performance

SEWP Program Office tracks the performance of each Contract Holder in the following categories:

  • Reports
  • Customer Satisfaction
  • Information Distribution
  • Contract Adherence
  • Delivery
program performance ratings
Program Performance Ratings
  • Ratings are based on 4 levels
    • Blue = Excellent
    • Green = Very Good
    • Yellow = Fair
    • Red = Poor
  • In general, multiple problems in a given area within a 3 month window causes a downgrade
  • After a downgrade, 3 months without any issues results in an upgrade
program performance categories 1 of 2
Program Performance Categories (1 of 2)
  • Reporting Category
    • Timeliness
    • Accuracy
    • Surcharge Payments
  • Customer Satisfaction
    • Response to Customer Complaints
    • Quality of Products and Services
  • Information Distribution
    • Correct Information
      • Website
      • Marketing Materials
      • Quotes
    • Follow Customer Contact Guidelines
program performance categories 1 of 223
Program Performance Categories (1 of 2)
  • Delivery Category
    • Orders Delivered by Expected Delivery Date
    • CH Follows SEWP Procedure for Delivery Delays
      • CHOP Used to Update Order Status
      • Customer Properly Notified
  • Contract Adherence Category
    • Quote in Accordance with SEWP Rules
      • All Quoted Items on contract
      • All Quoted Items included in Verification File
      • Quote Submitted Through SEWP Quote Interface
    • Attend Required Meetings
    • Follow SEWP Delivery Order Policy
    • Reporting Accuracy
program performance what it means
Program PerformanceWhat it Means
  • Program Performance does not constitute the official Past Performance ratings based on FAR Part 42.15. Customer Satisfaction
    • Annual past performance ratings may be obtained upon request
  • Goal is to have everyone rated Excellent
    • Contract Holders were awarded a contract in part based on evaluation of program level capabilities
    • Best use of the Program Performance ratings is to encourage Contract Holders to resolve issues quickly and with minimum delay
    • SEWP Program Office would rather have a satisfied customer than a downgraded Contract Holder
program performance what a low rating means
Program PerformanceWhat a Low Rating Means

If a rating is Good or Poor:

  • Check the category:
    • Reporting and Information Distribution are unlikely to affect an individual order performance as these tend to be Program level issues;
    • Contract Adherence issues may be Customer related – typically related to Quoting or Program level issues
    • Delivery and Customer Satisfaction may indicate an issue with past order fulfillment
  • Contact the SEWP Program Office, especially for Poor Ratings in Delivery and/or Customer Satisfaction
    • Program Office can provide more details on the meaning of the rating
  • Next version of the Quote tool will flag Contract Holders with low program performance ratings
program performance what you can do to help
Program PerformanceWhat You Can Do to Help
  • Send information about any Contract Holder issues to
  • CC on any correspondence with Contract Holder concerning an issue
  • If we do not know about the problem, we cannot assist
  • If we do not know about a problem, we cannot prevent it from happening again