FAR Part 7: Acquisition Strategy

1. FAR Part 7:Acquisition Strategy The Acquisition Package Presented by: The National Acquisitions Branch BLM National Operations Center And The BLM National Training Center

2. Introduction • Why is the Acquisition Package important? • It provides sufficient information for the Contracting Officer (CO) to proceed with the procurement of the required items in a timely manner • Incomplete Acquisition Packages are the • #1 • Cause of Delay • in Awarding Contracts

3. Introduction (Cont.) • What is an Acquisition Package? • The minimum documentation necessary for the CO to solicit and award a contract.

4. Introduction (Cont.) • The National Acquisitions Branch has developed a document to assist you with the preparation of Acquisition Packages: “CUSTOMER GUIDE TO REQUIREMENTS PACKAGE ELEMENTS” http://teamspace/sites-oc/acq/Shared%20Documents/Acquisition%20Guides/BLM%20NOC%20Acquisitions%20Customer%20Guide%20To%20Requirements%20Package%20Elements%20Version%202013_2.pdf Contact your Contracting Officer early and often for assistance!

5. Objective By the end of this session you will be able to… …submit a complete acquisition package.

6. Overview • Acquisition Planning • Procurement Acquisition Lead Time (PALT) • Describing Agency Needs • Funding • Market Research • Limited Sources Justifications

7. Overview (Cont.) • Mandatory Sources of Supply/Special Items • Source Selection Planning • COR Nomination Memorandum • Government Furnished Property • Contract Types and Vehicles • Checklists of Required Contents for Acquisition Packages

8. Acquisition Planning • Where will you get the information we will discuss? • The majority will be generated by you, our Customer • The remainder will come from discussions that you will hold with your Contracting Officer (CO) during Acquisition Planning • Acquisition Planning occurs before the submission of the Acquisition Package to contracting • Contact Contracting to begin acquisition planning as soon as you identify an upcoming contracting requirement

9. Acquisition Planning:What is it? • Acquisition Planningis the process by which the efforts for an acquisition are coordinated by developing a strategy and plan for managing the acquisition process • During Acquisition Planning the Acquisition Team can determine the optimum acquisition strategy providing the best value to the government • The Acquisition Team typically consists of the Customer, COR, CO, Budget Officer, Solicitor and, after award, the Contractor • Spending time upfront doing Acquisition Planning will help ensure the Government receives the correct items in time and on a best value basis

10. Procurement Acquisition LeadTime (PALT) • PALT time is defined as the interval in days between the initiation of the procurement action and award of the contract • The initiation date is the date a complete Acquisition Package is received in FBMS by Contracting • Acquisition Planning occurs well prior to the initiation date • An Instruction Memorandum (IM) is published annually with the PALT time for each type of acquisition: • Fiscal Year (FY) 2014 Dates for Submission of Purchase Requisitions (PR) to the National Operations Center (NOC) National Acquisitions Branch

11. Procurement Acquisition LeadTime (PALT) Why is PALT important? • By adhering to the PALT times, Customers can: • Allow for adequate procurement time • Ensure timely obligation of available funds • Ensure timely delivery of the required items

12. Describing Agency Needs:Requirements Documents • Types of Requirements Documents: • Performance Work Statement (PWS) • Statement of Work (SOW) • Statement of Objectives (SOO) • Specifications, Standards and Design Oriented Documents

13. Describing Agency Needs:Requirements Documents • Why are requirements documents important? • Provide an accurate description of the work to vendors • Promotes fair and reasonable pricing • Forms the basis for successful performance by the contractor and effective administration of the contract by the CO/COR • It is the Customers responsibility to develop requirements documents • The CO can provide a review of requirements documents

14. Describing Agency Needs:Requirements Documents • In describing agency needs Program Offices shall specify needs in a manner designed to: • Promote full and open competition • Only include restrictive specifications to the extent necessary to satisfy the needs of the agency • Promote to the maximum extent practicable Performance Based contracting

15. Describing Agency Needs:Requirements Documents • Performance Work Statement (PWS): • A requirements document that focuses specifically on the required results or outcomes (performance based) • Describes the requirement’s result in clear, specific, and objective terms with measurable outcomes. • Does not specify the means, methods or materials required to accomplish the task • Typically uses only commercial standards or practices • Defines the work in terms of outcomes (activities, deliverables and period of performance required for successful completion of the specified work) • Preferred method of describing requirements

16. Describing Agency Needs:Requirements Documents • Performance Work Statement (PWS) • Why is it important? • A PWS is typically used in acquisitions where desired cost savings and quality improvements will be derived from the ingenuity and creativity of the private sector vendor • Example: Moving parts and tools on the factory floor at Rock Island Arsenal:

17. Describing Agency Needs:Requirements Documents • Statement of Work (SOW): • Accurately defines the work activities, deliverables and period of performance required for successful completion of specified work for a Customer • Typically used when the task is well-known and can be described in specific terms • Provides more explicit statements of work direction than a PWS • Used when the government does not desire innovative approaches or considers any deviation in processes a risk

18. Describing Agency Needs:Requirements Documents • Statement of Objectives (SOO): • Focuses on desired high-level outcomes or agency goals • A SOO provides the Government's overall objectives and the Offerors required support to achieve the program objectives • Offerors use the SOO as a basis for preparing a SOW • Example: City of Colorado Springs parking structure:

19. Describing Agency Needs:Requirements Documents • Specifications, Standards and Design Oriented Documents • Explicit set of requirements to be satisfied; no deviation is allowed • Detailed description of requirements, dimensions, materials, methods, etc. • Specified in detailed technical data packages (plans, drawings, specifications) • Most restrictive form of requirements document

20. The Independent Government Cost Estimate (IGCE) • What is an IGCE? • The Government's estimate of the costs a prudent contractor will incur in the performance of a contract

21. The Independent Government Cost Estimate (IGCE) • Why is an accurate IGCE important? • It is a tool used by CO’s to determine the reasonableness of the prices offered by vendors • A CO is PROHIBITEDby law from entering into a contract that cannot be determined to be fair and reasonable in price • It is critical tool in single/sole sourcecontract negotiations to obtain a fair and reasonable prices • Provides for good stewardship and proper accountability of Government resources • An IGCE is NOT a quote provided by one or more vendors

22. The Independent Government Cost Estimate (IGCE) • Development of the IGCE is the responsibility of the Customer • For multi-year contracts, identify the cost for each performance year (i.e. base plus all option years), total units, or completed project • The IGCE must be in the same format as the pricing/bid schedule • This facilitates the evaluation of pricing during Source Selection • The IGCE is for Government Use Only and shall not be made available to contractors or the public

23. Funding:The Purchase Request (PR) • Why is a fully funded PR important? • A PR that is not fully funded violates the Anti-Deficiency Act A Felony • A certified, released, fully funded PR (for the amount shown in the IGCE) must be in the Acquisition Package • Contracts must be fully funded for the entire period of performance • Multi-year contracts must be fully funded for the current year • Generating the PR is the Customers responsibility

24. Funding:The Purchase Request (PR) • Submit PR’s in FBMS to: • Infrastructure Section (IT, Services & Supplies) • Purchasing Group: LNI; FBMS User ID: SSANTORO) • Construction, Architecture & Engineering Section • Purchasing Group: LNC; FBMS User ID: SROGERS2 • Include ALL attachments to the PRs in FBMS • (including , but not limited to, the SOW, IGCE, Market Research, Evaluation Criteria, COR Nomination, GFP list etc.) • Any missing item(s) causes the requisition package to be incomplete and delays award of the contract

25. Market Research:Identifying Sources • Market Research: What is it and why is it important? • Market Research is the process used to arrive at the most suitable approach to acquiring the required supplies and services • It is used to determine the number and type of firms capable of satisfying the agency’s requirements • Is required to identify potential socioeconomic opportunities (i.e., small business set-asides) • Used to determine if a sole source or brand name only requirement is valid • Market Research is the responsibility of the Customer • The CO can provide assistance (Sources Sought Notices, Industry Conferences, identification of similar purchases, available small businesses, etc.)

26. Market Research: Limited Sources- Sole Source & Brand Name • The Agencies must promote full and open competition to the maximum extent practicable. • Limited source procurements can only be used under the following circumstances: • Only one responsible source and no other supplies or services will satisfy agency requirements • The ONLY source, not the preferred source • Unusual and compelling urgency • Industrial mobilization; engineering, developmental, or research capability; or expert services •  International agreement • Authorized or required by statute • National security • Public interest (Must be signed by the Secretary of the Interior)

27. Market Research:Limited Sources- Sole Source & Brand Name • Brand-name or equal descriptions that permit prospective contractors to offer products other than those specifically referenced by brand-name, provide for full and open competition and do not require justifications and approvals to support their use. • The Limited Sources Justification & Agreement is prepared by the Customer and approved by the CO

28. Market Research:Mandatory Sources of Supply • By law the Government has established programs that require us to purchase some items from specific organizations • Prior to soliciting any commercial business we must solicit these mandatory sources and determine if the item is available from them in a reasonable amount of time • If the item is not available or not available on a timely basis commercial sources may be solicited

29. Market Research:Mandatory Sources of Supply • Mandatory Sources of Supply: • Federal Prison Industries (FPI) or (UNICOR) • National Industries for the Blind (NIB) • National Industries for the Severely Handicapped (NISH) • GSA Federal Supply Schedules (FSS) is not a mandatory source • FSS contracts are a preferred source, however we can solicit from commercial vendors if the CO has determined that is in the best interest of the government to do so

30. Source Selection:Evaluation Factors • Evaluation Factors are the standards for selecting the best offer/vendor • Why are quality Evaluation Factors important? • A well‐constructed Evaluation Plan is vital for selecting the best available offer • Must promote full and open competition • Only include restrictive specifications to the extent necessary to satisfy the needs of the agency • Development of Evaluation Factors is a joint effort between the Customer and the CO

31. Source Selection:Evaluation Factors • Best Value Continuum: • “Best value”is the outcome that provides the greatest overall benefit to the Government • An agency can obtain best value acquisitions by using one of the following source selection methods • The Evaluation Plan must be tailored to the complexity of the acquisition • Contact your CO for assistance in selecting a method

32. Source Selection (TPEC):Evaluation Factors • All evaluation factors and their relative importance shall be clearly stated in the solicitation and followed without deviation during source selection • Why is this important? • All proposals must be evaluated based solely on the factors contained in the solicitation • Failure to do so could result in a vendor protest, and potentially, delay or cancellation of the procurement, possibly resulting in the requirement to re-solicit

33. Source Selection (TPEC):Evaluation Factors • Types of Evaluation Methods: • Best Value/Tradeoff • Lowest-Price Technically Acceptable

34. Source Selection (TPEC):Evaluation Factors • Best Value Trade-Off Method • A Best Value Trade-offprocess is used when it is in the best interest of the Government to consider award to other than the lowest priced offer or other than the highest technically rated offer • This process permits tradeoffs among cost and non-cost factors to obtain the best overall value • The perceived benefits of a higher priced proposal shall merit the additional cost; the rationale for tradeoffs must be fully documented • Best for medium to high complexity acquisitions; suitable for all acquisitions

35. Source Selection (TPEC):Evaluation Factors • Lowest-Price Technically Acceptable Method • This type of evaluation works best with well defined, simple supply items; tradeoffs are not permitted • Used when price is significantly more important than all non‐price factors combined • All non‐cost factors (technical) are rated on a “pass/fail” basis and offers that are technically acceptable “pass” • Technically acceptable offers are ranked in price order to determine the lowest price with the lowest priced proposal selected for award

36. The Contracting Officers Representative (COR)Nomination Memorandum • The COR Nomination Memorandum • Why is it important?: • It is critical to contract success that COR’s thoroughly understand and diligently execute their duties and responsibilities • The COR memo is an educational tool that will help the COR and their supervisor thoroughly understand the COR’s duties, including knowledge requirements, duties and responsibilities, and resources required • The COR is nominated by the requiring activity and the CO formally appoints the COR; appointment is the CO’s prerogative • Prior to appointment, the CO considers the overall ability, of the COR designee and shall ascertain that the designee is appropriately qualified to act as a representative of the CO

37. The Contracting Officers Representative (COR)Nomination Memorandum • To assist COR’s in understanding and executing the COR Nomination Memorandum the NOC and NTC have developed an on-line training module entitled: “Executing the COR Nomination Memorandum” http://www.ntc.blm.gov/krc/viewresource.php?courseID=720&programAreaId=62

38. Government Furnished Property • Government Furnished Property (GFP) • Why is this important?:Providing GFP can substantially increase the Government’s liability and risk • The policy of the Federal Government is that Contractors are ordinarily required to furnish ALL labor, processes and property (materials, tools, facilities) necessary to perform Government contracts • If the CO determines GFP if required, the Customer must provide a list of GFP with the Acquisition Package • If applicable, contact your CO to determine if an exception applies

39. Contract Types:Firm Fixed Price (FP) • FP • Preferred contract type • Suitable for the vast majority of contracts • Transfers the financial risk/responsibility to the contractor • Provides maximum incentive for the Contractor to control costs and perform effectively • Is suitable for acquiring services on the basis of a well defined PWS or SOW

40. Contract Types:Cost Type Contracts • Time‐and‐Materials (T&M) and Labor Hour (LH) • Least preferredcontract type; provides no incentive to the contractor for cost control or labor efficiency • Presents the maximum financial risk to the Government • Reimbursement basis: • T&M: direct labor hours at a fixed hourly rate and materials at cost • LH: direct labor hours at a specified fixed hourly rate • It may only be used when it is not possible to estimate accurately the extent or duration of the work or to anticipate costs with a reasonable degree of confidence • This type of contract must be switched to an FP type contract as soon as costs can be accurately defined

41. Contract Types:Cost-Type Contracts (Cont.) • Time‐and‐Materials (T&M) and Labor Hour (LH) • Appropriate Government surveillance of Contractor performance is required; a QASP must be prepared • T&M and LH may only be used after the CO determines that no other contract type is suitable • The Customer must provide a justification stating suitable reasons why it is not possible to estimate accurately the duration of the work or to anticipate costs with any reasonable degree of confidence • The vast majority of Cost-type contracts can be FP contracts if the effort is expended to properly define the work

42. Contract Types:Contract Vehicles • Single Contract/Award • Issued using either a Contract or a Purchase Order • Used to acquire items on a one-time basis • Most common type of contract vehicle

43. Contract Types:Contract Vehicles • Indefinite Delivery Indefinite Quantity (IDIQ) • Is a contract; can be issued with Option Years • Used to acquire supplies and/or services when the exact times and/or quantities are not known; used for repetitive orders • Items are acquired using Task Orders(services) or Delivery Orders (supplies) • Requires a guaranteed minimum quantity/amount that MUST be purchased • If the minimum quantity is not purchased within one year then the Government must pay the vendor the guaranteed minimum amount

44. Contract Types:Contract Vehicles • Agreements • Types: (1) Blanket Purchase Agreements, (2) Basic Agreements, (3) and Basic Ordering Agreements • An agreement, between the government and the contractor • Is similar to an IDIQ; “Calls” are issued instead of Task or Delivery Orders • Contains the terms and conditions applying to future orders and a description of the items to be provided • Used when contracting for uncertain future requirements • A agreement is NOTa contractand neither party is obligated to honor it • Issued Calls are contracts • No minimum guaranteed quantity or amount is required

45. Contract Types:Contract Vehicles • Interagency Agreements (IA) • IA’s are agreements in which one agency uses the services of other agencies or uses the contracts of other agencies to obtain supplies and services • The Economy Act Applies • The Economy Act authorizes agencies to enter into agreements to obtain items from another agency (unless more specific statutory authority exists) • Economy Act orders shall be supported by a determination that states that the order is in the best interest of the Government; and, that the items cannot be obtained as economically by contracting with a commercial source • IA’s must have Specificity • The IA must include an SOW to specify the precise nature of the work to be performed • Parking is illegal. A failure to include a SOW is an indication that the Customer is parking funds. This is a violation of the Anti-Deficiency Act (a felony)

46. ACQUISITION PACKAGES CHECKLISTSOFREQUIREDCONTENTS FORACQUISITION PACKAGES

47. CHECKLISTSOFREQUIREDCONTENTSFORACQUISITION PACKAGES • Required Documents • PWS/SOO/SOW/SPECS • IGCE (if applicable include estimate of option years) • PR (If this is a multiyear contract with options, funding is needed for the base year only, not the total of all option years) • Market Research results (to include Green Purchasing Requirements) • Proposed source selection evaluation factors • Proposed COR Nomination Memorandum • Date when contract must be awarded; impact of not meeting that date • Delivery date or period of performance New Single Award Contract Action over $150,000

48. CHECKLISTSOFREQUIREDCONTENTSFORACQUISITION PACKAGES New Single Award Contract Action over $150,000 (Cont.) • Required Documents (If Applicable) • If applicable, prior year spending for contracts being re‐competed • Number of contracts being replaced • For cost type contracts: • Justification stating why it is not possible to estimate accurately or to anticipate costs with any reasonable degree of confidence • State and county in which the work will occur • For other than full and open competition (sole source, brand name or urgent requirement), include rationale and/or statutory authorityto support it • If funding is provided by another agency, a copy of the interagency agreement • A list of Government Furnished Property • Any other information relevant to justify the requirement. • Contact your NOC Contracting Officer if you require additional information

49. CHECKLISTSOFREQUIREDCONTENTSFORACQUISITIONPACKAGES • Required Documents • PWS/SOO/SOW/SPECS • IGCE (if applicable include estimate of option years) • PR (If this is a multiyear contract with options, funding is needed for the base year, not the total of all option years) • Market Research results (to include Green Purchasing requirements) • Proposed source selection evaluation factors • Proposed COR Nomination Memorandum • Date when contract must be awarded; impact of not meeting that date • Delivery Date or period of performance New Single Award Contract Action under $150,000

50. CHECKLISTSOFREQUIREDCONTENTSFORACQUISITIONPACKAGES New Single Award Contract Action under $150,000 • Required Documents (If Applicable) • If applicable, prior year spending for contracts being re‐competed • Number of contracts being replaced • For cost type contracts: • Justification stating why it is not possible to estimate accurately or to anticipate costs with any reasonable degree of confidence • State and county in which the work will occur • For other than full and open competition (sole source, brand name or urgent requirement), include rationale and/or statutory authority to support it • If funding is provided by another agency, a copy of the interagency agreement • A list of Government Furnished Property • Any other information relevant to justify the requirement. • Contact your NOC Contracting Officer if you require additional information