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DON BUYING COMMAND
SPEAKER
Mr. Carlton HagansSmall Business Director
Headquarters Marine Corps
Installations & Logistics (HQMC I&L)
Mr. Jamie Thompson, SESAssistant Deputy Commandant,
Installations & Logistics (Contracts)
Headquarters Marine Corps
Guest Speaker:
Topic: Improving understanding and interaction
between HQMC I&L Contracting
Enterprise and Defense Industry Partners
When: Wednesday, July 15th at 1:00 pm EDT
SMALL BUSINESS WEBINAR SERIES
Doing Business with the DON
Improving Understanding & Interaction between the HQMC I&L Contracting Enterprise & Industry Partners
HQMC Assistant Deputy Commandant, Installations & Logistics (Contracting)
Mr. Jamie Thompson, SES
Unclassified
21300 15 July 2020 DON OSBP Webinar with HQMC I&L
Agenda
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 3
• HQMC I&L Contracts Mission & Focus Areas
• How the DON procures supplies and services
• USMC FY19 procurement overview
• What HQMC I&L is doing to improve the contracting process– HQMC I&L PALT reduction initiatives
– Training HQMC I&L HCA Contracting Professionals• Business Development and Proposal Development Processes
• Understanding the Vendor Perspective via Surveys
• What small businesses should be doing to increase its hit rate– Where do you fit into USMC SB goals?
– Resources & Homework
– Thoughts on Success
– Keys to Success
• Q&A
Role of HQMC I&L (Contracts) Division (LB)
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 4
Mission: Lead and influence our procurement enterprise to execute sound
business arrangements, which are timely, legal, and compliant through policy, oversight, assistance (consulting, not doing) & enterprise initiatives!
FY20 Focus areas• On-time execution of contract solutions that support warfighters
• Reduction of PALT (flash to bang)
• Reduction of bridge contracts
• Reduction of protests
• Career growth of the MCFCS workforce
• Compliance
How the USMC Procures Supplies & Services• DoN has ten (10) Heads of the Contracting Activity (HCAs)• Two HCAs within the USMC: Deputy Commandant, Installations & Logistics (DC I&L); and Marine
Corps Systems Command (MCSC)
5
Navy HCA Unique Procurement Authority
Deputy Assistance SECNAV for Acq. & Proc. Policies & Procedures for USMC and DON
HQMC, Installations and Logistics (I&L)Marine Corps Field Contracting System(MCFCS)
Responsible for award and administration of contracts for supplies and services to support installation and logistics requirements of the Marine Corps Fleet Marine Forces and supporting establishments.
Marine Corps Systems Command (MCSC) Responsible for award and administration of contracts for assigned programs, assigned IT systems programs or components, and relevant professional, research and engineering services, except for naval aviation programs.
Military Sealift Command (MSC) Support and maintainability of research vessels and supporting platforms
Naval Air Systems Command (NAVAIR) Aircraft procurement and sustainability
Naval Facilities Engineering Command (NAVFAC)
Construction, A/E, utilities, energy and facilities support and maintenance
Naval Sea Systems Command (NAVSEA) Sea and submarine vessels and sustainability
Naval Supply Systems Command (NAVSUP) Assigned logistics support functions and support of all non-HCA DON activities
Office of Naval Research (ONR) Assigned DON Science & Technology research
Naval Information Warfare Systems (NAVWAR)
Information dominance domain programs to include R&D, SE, and other professional services
Strategic Systems Programs (SSP) TRIDENT Strategic Weapon System development & life-cycle support
1300 15 July 2020 DON OSBP Webinar with HQMC I&L
• USMC procured $5.1 Billion of supplies and services in FY19
• Top 20 PSCs account for 57% of annual spend ($2.9 Billion)
• Recommend business leaders seek opportunities in PSC areas that suit the business’ skills, experience and capabilities.
• Best point of entry to discuss what your business can bring to the fight is your local Small Business Professional
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 6
Analysis of USMC FY19 SpendTop 20 Product or Service Description Primary HCA FY 19 Spend
1 MAINTENANCE OF MISCELLANEOUS BUILDINGS NAVFAC $ 541,297,947
2 RADAR EQUIPMENT, EXCEPT AIRBORNE MCSC 256,527,079
3 OPERATION OF DINING FACILITIES I&L 224,826,009
4 IT AND TELECOM- TELECOMMUNICATIONS NETWORK MANAGEMENT MCSC 217,813,171
5 REPAIR OR ALTERATION OF MISCELLANEOUS BUILDINGS NAVFAC 189,436,694
6 SUPPORT- PROFESSIONAL: PROGRAM MANAGEMENT/SUPPORT I&L and MCSC 170,965,654
7 INFORMATION TECHNOLOGY SOFTWARE I&L and MCSC 166,153,445
8 R&D- DEFENSE SYSTEM: TANK/AUTOMOTIVE (ENG DEVELOPMENT) MCSC 165,711,326
9 SUPPORT- PROFESSIONAL: ENGINEERING/TECHNICAL I&L and MCSC 158,660,925
10 SUPPORT- MANAGEMENT: LOGISTICS SUPPORT I&L 131,670,313
11 IT AND TELECOM- OTHER IT AND TELECOMMUNICATIONS MCSC 106,701,331
12 PHOTO/MAP/PRINT/PUBLICATION- ARTS/GRAPHICS Various 92,362,642
13 SUPPORT- PROFESSIONAL: OTHER I&L and MCSC 82,412,008
14 SUPPORT- MANAGEMENT: OTHER I&L and MCSC 62,111,082
15 HOUSEKEEPING- FACILITIES OPERATIONS SUPPORT NAVFAC 61,952,271
16 INFORMATION TECHNOLOGY EQUIPMENT SYSTEM CONFIGURATION MCSC 59,917,661
17 MAINT/REPAIR/REBUILD OF EQUIPMENT- MISCELLANEOUS NAVFAC 54,916,397
18 ARCHITECT AND ENGINEERING- GENERAL: OTHER NAVFAC 46,910,296
19 OPTICAL SIGHTING AND RANGING EQUIPMENT MCSC 45,585,249
20 ARMOR, PERSONAL MCSC 45,512,750
$ 2,881,444,252
USMC Contract Spend by HCA & HCA Comparison
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 7
USMC Total Contract & Select Performance Data
Buying Service DON HCA FY 18 Spend ∑ FY 18 FY19 Spend ∑ FY19
USMC MCSC $1.8 B $1.7 B
I&L (MCFCS) $1.1 B $2.9 B $1.0 B $2.7 B
Navy NAVFAC $0.9 B $1.4 B
NIWC $0.1 B $0.2 B
Other HCAs $0.2 B $1.2 B $0.1 B $1.7 B
Non DoN $0.8 B $ 0.8 B $0.7 B .7 B
Total USMC Spend $ 4.9 B $5.1 B
DON HCA Comparison (FY19)
HCA Actions ∑ $
NAVSEA 50,641 $37.4 B
NAVAIR 22,669 $46.3 B
NAVFAC 26,705 $10.3 B
NAVSUP 83,644 $8.5 B
SPAWAR 13,431 $6.1 B
SSP 1,915 $2.8 B
MSC 7,512 $2.3 B
MCSC 2,599 $1.7 B
I&L 7,345 $1.0 B
ONR 4,895 $1.3 B
Contract Actions 26,000 15,266
% of Actions > SAT 7.5% 9.8%
% of Actions < SAT 92.5% 90.2%
Vendor Base 3,750 3,127
Supply Vendor Spend $1.5 B $1.2 B
Service Vendor Spend $3.4 B $3.8 B
Competition Types: Competitive Negotiation $1.9 B $1.6 B
Fair Opportunity (MAC) $1.6 B $2.1 B
Sole-Source $0.9 B $0.9 B
SAT & Other (A/E, OTA) $0.4 B $0.4 B
Competition Summary: Competitive 82% 81%
Sole Source 18% 19%
MCFCS Focus Getting Contract Solutions to Fight
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 8
OSD PALT is a good indicator of:1) Quality of Industry Engagement 2) Quality of the RFP; and3) Evaluation efficiency
MCFCS Strategy to reduce New Contract PALT– Expanded Source Selection Training (FY18)– Reducing HQ review time (43% reduction) – Increasing KO knowledge of:
• Project Management Skills • The Business Development Process • The Proposal Development Process• Annual Vendor Surveys
– Increasing Industry Engagement• Releasing draft RFPs• Long Range Acquisition Plans
Market Research
Procurement Development
& RFP Release
Proposal Phase
Evaluation Phase
Discussion Phase
Evaluation Phase #2
Award Phase
Gov’t Acquisition Process from Identification of Need to Contract Award
OSD Measured PALTNeed
identifiedRelease
RFP
Receive
ProposalAward
Contract
“New contract” PALT is decreasing over time:
• FY17 MCCLEP contract took 641 days
• FY18 new contract PALT averaged 335 days
• FY19 new contract PALT averaged 116 days
• FY20 new contract PALT projected at 126 days
• FY21 new contract PALT Goal of 100 days
• FY22 new contract PALT Goal of 90 days
Results of MCFCS Strategy
Selling Phases
Positioning Pursuit CaptureProposal Planning
Proposal Preparation
Post Submission
GovernmentMilestones
Contractor Decisions
Contractor Reviews
9
Identify
NeedDefine
Requirement
Release
Draft RFP
Release
Final RFP
Receive
Proposal
Award
Contract
BlueTeam
BlackHAT
PinkTeam
RedTeam
GoldTeam
Identify
Opportunity
Decide
To Pursue
Preliminary
Bid Decision
Validate
Bid Decision
Submit
Proposal
Blue Team – Independent validation of the capture plan,
win strategy & solution.
Black Hat – Independent experts who anticipate the
competitors’ strategies, solutions, & prices
Pink Team – Reviews mock-ups, storyboards &
compliance.
**Note: Reference Shipley Associates Capture Process
Red Team – Evaluates customer focus, completeness &
communication of win strategy and solution.
Gold Team – Senior Mngt Review for risk, profit & final
Go/ No-Go Decision
Bottom Line: Per FAR 15.201, acquisition
professionals should welcome industry exchanges
during the Positioning, Pursuit & Capture Phases
1300 15 July 2020 DON OSBP Webinar with HQMC I&L
Overview of Government & Contractor Actions during a typical BD Process
Example of MCFCS Business Development Training
101300 15 July 2020 DON OSBP Webinar with HQMC I&L
High-level overview of typical 28-Day Proposal Development Cycle
Week Monday Tuesday Wed Thursday Friday Sat Sunday
1 • Analyze RFP • Assess Risk• Bid/ No-Bid
Decision• Get Proposal
Code
• WritingAssignments
• Team reviews • Win themes• Approach• Key people
• Submit RFQ Questions
• Firm up teaming
• Outline Proposal
• Develop:• Mock-ups• Storyboards
• Select Past Performance
• Select Staff• Begin Pricing• Compliance
matrix
2 • Hold Pink Team Review
• Coordinate with vendors
• Build out sections
• Develop pricing
• Build out sections
• Developpricing
• Build out sections
• Developpricing
• Build out sections
• Developpricing
• Distribute draftproposal to Red Team
3 • Lock down vendors
• Red Team (RT) Review
• Revisions to address RT
• Revisions to address RT
• Final draft of proposal
• Final Pricing
4 • Gold Team Review
• Revisionsbased on Gold Team feedback
• Final Edit & proofreadProposal
• FormatProposal
• ProduceProposal
• Drive Proposals to ContractingOfficers
Thought to ponder: Gov’t usually takes 4 months to transform mission need into RFP
Contractors typically get 30 days to develop and submit a proposal
Most proposal teams only get 7-8 days of touch time to write a proposal (yellow blocks).
Bottom Line: Key to better proposals is early and frequent release of draft RFPs
Example of MCFCS Proposal Development Training
Proposal Preparation Process – Simplified View
11
High-level overview of Proposal Development Process
Prop
osal
Mgr
Go
vtR
evie
ws
Tech
Wri
ters
Cos
tTe
amSu
b C
ontr
acto
rs
Phase
Release RFP
Bid?
Review RFP
YES
ReviewRFP
SubmitQuestions
SubmitQuestions
DevelopQuestions
DevelopQuestions
DevelopMock-ups
PinkTeam
Refine & Flesh out Draft Sections
RedTeam
Finalize Sections
Develop Price Proposal
ReviewAssigned Sections
SubmitQuestions
Distribute Q&As
Amendments
ReviewAssigned Sections
DevelopDraft Prop
GoldTeam
SubmitProposal
Price to Win
Pricing Work Continues
Final Compliance &
Submit
Gov t Starts
Evaluation
Refine & Flesh out Draft Sections
Finalize Sections
1300 15 July 2020 DON OSBP Webinar with HQMC I&L
Example of MCFCS Proposal Development Training
BLUF: Proposal development is a complex process with many interfaces on the industry side. The quality and speed
of the Government Q&A process directly impacts the contractors’ proposal development process and the final
proposal submission.
Bottom Line: Key to better proposals is early and frequent release of Q&As
Answer
Questions
Example of MCFCS Vendor SurveyBLUF: Vendor understanding of RFP & mission need affect
solution development, proposal quality, contract award speed, & contribution to warfighter success.
Purpose: Obtain vendor perspective on KPIs that affect timely execution of contract solutions that fulfill warfighter needs.
Positive trends FY20 ( > 10% increase): a) Solicitations allows vendors to demonstrate the value of
their product and/or service.b) Work statements are clear and unambiguous.c) Performance-based RFPs provide required outcomes rather
than dictating vendor procedures.d) Contracting offices, contracting officer, and/or contracting
officer’s representative work to resolve post-award issues in a timely and fair manner.
Negative trends FY20 ( > 10% decrease): a) None with greater than 10% drops.b) Some vendor comments are critical of solicitation lead-
times, and modifications & CPARs timelines.
HQMC I&L response to the Survey: • October 2019, hosted an industry panel with MCINCR RCO
staff to discuss requirements development, industry proposal development process, opportunities to improve communication, and ways to increase contracting speed,
• Started tracking release of draft RFPs
121300 15 July 2020 DON OSBP Webinar with HQMC I&L
# Vendor Survey Questions FY19 FY20 %Δ
1 Solicitations/orders are issued with sufficient lead-time to allow for opportunity assessment/ qualifications and bid proposal development.
83% 79% -5%
2 Solicitations are crafted in a manner that allows you to demonstrate the value of your product and/or service.
63% 83% 32%
3 Instructions to offerors and evaluation criteria (e.g., RFP sections L and M or equivalent) are clear and unambiguous.
77% 84% 9%
4 Work statements are clear and unambiguous. 71% 79% 11%
5 For performance-based requirements, work statements provide required outcomes rather than dictating how a contractor must achieve those outcomes.
66% 81% 24%
6 Contract terms and conditions are clear and unambiguous.
80% 84% 5%
7 The contracting office, contracting officer, and/or contracting officer’s representative work with me to resolve post-award issues in a timely and fair manner.
66% 83% 26%
8 My invoices are paid within contractual timelines. 83% 84% 1%
9 If applicable, the contracting office provides timely and fair past performance assessments to CPARS.
74% 80% 8%
Responses/Total invitees 7/20 18/41
WorkforceVendorsCustomers
Success
Summary of Training Strategy & Results
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 13
Strategic Training Targeted to Contract Mission Needs
BenefitTraining
Reduce PALT
ReduceBridges
ReduceProtests
Develop Skills
ImproveDelivery
Source Selection
Proj Mngt
BD Process
FIN Law
FAR TRNG
COR TRNG
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 14
Where do you fit into USMC SB Goals?
• How can you help the
USMC surpass its SB
goals?
• Do you sell services or
supplies that my HCA
procures?
• Understanding PSCs,
LRAF, and HQMC SB
goals is key to shaping
requirements for set-
aside
• Sell your solutions to
your SBP via courtesy
calls, and the KO via
RFI responses
Resources & HomeworkResources:
• FPDS-NG– Sell to the Contracting offices that
are buying the services and supplies that align to you
• Commercial Business Development databases
– Not mandatory, but might be worth it to you and your business
• Your teaming partners– Who can enhance your strengths to
deliver solutions the Govt will buy
• Small Business Professional
Homework:
• Planning– Do your research
– Make a convincing argument that you understand what Marines need.
• Engage, Engage, Engage– Review Long Range Acquisition
Forecast
– Start shaping 24 months out.
– Respond to Sources Sought Notices with your capabilities, experience, ideas, proposal development times, & proposal page count needs
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 15
Thoughts
• Success requires:– Well articulated solutions (approach and price) that demonstrate you are the right
selection for contract award
– Past performance that is appropriate for solution you are proposing to provide
• Success stories:– Transition to small business set aside resulted in new perspectives that saved $24 Million
which was applied to previously unfunded readiness improvement initiatives
– Small business innovation to support COVID-19 needs – faster development than large
• Horror stories:– Proposals that parroted proposal instructions (i.e., “We will provide qualified staff.”)
– Staffing plans with “TBD” for 50% of the proposed staff
– One page proposal for a $200 million RFP.
– Request for a proposal due date extension without stating why additional time was needed (i.e., no supporting rationale)
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 16
Keys to Success
• UNDERSTANDING WARFIGHTER NEEDS
• UNDERSTANDING WHAT WARFIGHTERS WILL PAY
• WELL WRITTEN PROPOSALS THAT SUPPORT AWARD WITHOUT DISCUSSIONS
• DEMONSTRATED EXECUTION PLAN
• PAST PERFORMANCE CONVEYS CONFIDENCE
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 17
Questions
• Questions from small business representatives
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 18
Wrap Up
Thank you:
• For the opportunity to talk with you today;
• For your interest in supporting the United States Marine Corps; and
• For the competitive advantage you provide to our warfighters.
1300 15 July 2020 DON OSBP Webinar with HQMC I&L 19
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