deep dive into oasis open season on-ramps
TRANSCRIPT
Deep Dive into OASIS Open Season On-Ramps
Presented by:
Jeff Clayton, Principal
Leo Alvarez, CFCM, Manager
Mike Ryan, CFCM, Senior Consultant
Baker Tilly
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Agenda• Category Management and Spend Under Management (SUM) • What is OASIS?• Historical Performance, Successes, and Areas for Improvement• GSA’s Contract Expansion Strategy• On-Ramping (Lateral, Vertical, & Open Season)• Proposal Evaluation Criteria • Pricing Implications • Vendor Self-Scoring• Overall Value Proposition and Bid / No-Bid Considerations• Questions
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Category Management “Buy as One”• Office of Federal Procurement Policy (OFPP) launched
Category Management government-wide in January 2015
• Category Management takes common areas of spending, divides those into categories, and treats each category like a business, managed by a Category Manager
• Category Management Leadership Council (CMLC)
• Three primary goals:1. Increase savings2. Reduce the number of new contracts3. Increase the amount of spend that falls under Category
Management
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Government-Wide Category Structure (Common Spend)
Total FY 2017 Spend: $307.2BGov’tCategory
1. IT ($58.3B) 2. Professional Services ($71.1B)
3. Security and Protection ($5.4B)
4. Facility & Construction($82.7B)
5. Industrial Products and Services ($11.1B)
Category Manager (CoE)
GSA GSA DHS GSA GSA
Gov’t Category
6. Office Management($2.3B)
7.Transportation & Logistics($27.8B)
8. Travel and Lodging ($1.2B)
9. Human Capital($4.4B)
10. Medical($42.9B)
Category Manager(CoE)
GSA DoD GSA OPM DoD/VA
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Category Management (cont.)• October 2016 Proposed OMB Circular, “Implementing
Category Management for Common Goods and Services”
• Would Codify Category Management as the “principle way in which all Executive agencies must acquire common goods and services”
• Selection of “Best in Class (BIC) preferred” and “BIC mandatory” contract solutions
• As of September 2018, there are 33 government-wide BIC Solutions (e.g. GSA Schedule 70 (HW & SW), NASA SEWP, OASIS/OASIS SB, HCaTS, etc.)
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Spend Under Management (SUM) Tiers
Tier 0Spend not aligned to CM Principals
Open Market Spend
Tier 1Agency-wide
Mandatory Solutions
Agency centric strategy
Example: Air Force
NETCENTS-2 Contract
Tier 2Multi-Agency
Solutions & Agency-wide Best-in-Class
Solutions
Cross Agency Strategy
Example: GSA Schedules
Tier 3Government-wide
Best-in-Class Solutions
Government Wide Strategy
Example:OASIS
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What is OASIS?• Best in Class (Tier 3) Vehicle• Multidisciplinary government-wide contract for Professional Services• Geared towards highest technically qualified contractors with fair
and reasonable pricing• 2 separate contract vehicles, both created in 2014
1. OASIS Small Business (SB)2. OASIS Unrestricted (UNR)
• Supports commercial and non-commercial items• 5 year base period, one 5 year option• Supports all contract types including FFP, T&M, and Cost
Reimbursement type contracts
• Prohibits protests on orders valued at less than $10M
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Types of Service
5b. Space and Missiles R&D
4. Scientific R&D
2. Financial / Accounting Services
5a. Aircraft Parts and Engines R&D
3. Military/Marine/Energy Engineering
6. Aircraft R&D
1. Management/Scientific/Technical Services
Pools
Financial
Engineering
Scientific
Management Consulting
Program Management
Logistics
Core Disciplines
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NAICS Code Size Standards by Pool
01Size Standard: 15 Million
02Size Standard: 20.5 Million
03Size Standard: 38.5 Million
04Size Standard: 1000 Employees
05a 05bSize Standard: 1250 Employees
06Size Standard: 1500 Employees
541330 541380 541613 541620 541820 541850 541890
541360 541611 541614 541690 541830 541860 541910
541370 541612 541618 541810 541840 541870 541990
541330 Exception A541330 Exception B541330 Exception C
541211 541219541213 541720541214
Pool
Pool Pool Pool
Pool PoolPool
541711541712
541712 Exception B 541712 Exception ASize Standard: 1250 Employees
541712 Exception C
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OASIS Growth
Year SB UNR Receiving Agency CAF Rate Threshold2014 4.8 M - DOD DPAP 0.10% $500 M
2015 360.7 M 275.0 M US Air Force 0.10% $500 M
2016 1.0 B 1.0 B US Army 0.10% $500 M
2017 1.7 B 1.7 B US Navy 0.10% $500 M
2018 1.9 B 2.5 B DHS 0.25% $250 M
Total 5.0 B 5.5 B CMMS 0.50% $100 M
OASIS Annual Sales Memorandum of Understanding
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OASIS Areas For Improvement• Lack of Competition
– OIG Report (4/20/17): • OIG sampled 16 Task Orders with a total value of $1.4B• 7 of 9 competitive task orders of the OIG’s sample (valued at $312M)
received less than 3 bids from qualified contractors• OIG suggested that OASIS consider establishing a three bid minimum,
providing advance notice of bids, and further engaging the contractors• GSA agreed to take steps to improve competition
– Imbalance of task order awards within the pools• Small Business
– Shift of spend towards BIC contracts increases likelihood that small business will be locked out from competition
• Robins Air Force Base
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On Ramping: Open Season (Add, Not Replace)• Reasons for Open Season On-Ramps
– Inadequate competition at the task order level– M&A shrinks number of vendors– Customer-driven request for more focused sub-pools– SB graduation
• Process– Solicitation
• GSA publicizes notice on FedBizOpps• Solicitation specifies anticipated number of awards
– Proposals• Any eligible offeror may submit a proposal
– Award• GSA awards fixed number of awards to the top scoring contractors, regardless of
previous minimum scores• Immediately upon on-ramping, contractor is eligible to compete for task orders
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On-Ramping: Vertical and Lateral • Vertical & Lateral
– Small Businesses that no longer meet OASIS SB size standards
– Submit a proposal and score equal to, or higher than the lowest scoring Contractor within the pool being applied for.
– Solicitations will be released Q4 FY18 and be left open through Q2 FY19. Contractor must qualify for Pool being applied for.
– Contractor growth may not be on the basis of an M&A or novation agreement.
– Must have demonstrated successful performance under OASIS SB.
– Contractors must continue performance on active task orders under they are closed out
OASIS SB
OASIS UNR
Vertical On-Ramp
1 5a 5b2 63
1 5a 5b2 63
LateralOn-Ramp
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Focused On-Ramping (SubPool Creation)
• Solicitation may be issued for a variety of reasons, but usually to address a specific need within a pool, for example -– Creation of a SubPool for an underperforming NAICS code– Creation of a SubPool for 8(a) SBs or Joint Ventures
• Similar to vertical and lateral on-ramping in terms of requirements – Any offeror already possessing a contract in the affected Pool
will automatically be included in the newly formed SubPool(provided they have Pool Qualification Projects)
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Anticipated OASIS On-Ramp Release Schedule
3/18 9/18 3/19 9/196/18 12/18 6/19 12/19
Unrestricted
Small B
usiness
UNR Base Period Expiration
SB Base Period Expiration
Vertical & Lateral On-Ramping (Runs through 6 months after SB Expiration)
UNR Pools 1, 3, and 4 Solicitations
Expected to be released
SB Pools 3 and 4 Solicitations Expected
to be released
SB Pools 1 Solicitation Released
UNR Pool 2 Proposals Due
SB Pool 2 On-Ramp Awarded
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Anticipated Pool ExpansionPool Number of Contracts Expected On-Ramps
Pool 1:Management/Scientific/Technical Services 44 190Pool 2: Financial/Accounting Services 40 0Pool 3:Military/Marine/Energy Engineering 43 at least 80 (est.)*Pool 4: Scientific R&D 40 at least 60 (est.)*Pool 5a:Aircraft Parts and Engines R&D 23 0Pool 5b: Space and Missiles R&D 23 0Pool 6: Aircraft R&D 42 0Total Number of Contracts 255 330
Pool Number of Contracts Expected On-RampsPool 1:Management/Scientific/Technical Services 45 at least 55 (est.)*Pool 2: Financial/Accounting Services 25 15Pool 3:Military/Marine/Energy Engineering 42 at least 55 (est.)*Pool 4: Scientific R&D 42 estimate unavailablePool 5a:Aircraft Parts and Engines R&D 21 0Pool 5b: Space and Missiles R&D 21 0Pool 6: Aircraft R&D 38 0Total Number of Contracts 234 125* According to recent GSA Interact notice, GSA is targeting a total of 200 contractors in Pools 1 and 3.
Number of OASIS SB Contracts by Pool
Number of OASIS UNR Contracts by Pool
* According to recent GSA Interact notice, GSA is targeting a total of 500 contractors in Pools 1, 3 and 4. Pool 4 is being targeted specifically for a Pool of 100 contractors.
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Basis For Award
Phase 1: Acceptability Review (Pass/Fail)– General / Administrative– DCAA Audit-Ready Accounting System– Pool Qualification– Relevant Experience– Past Performance
Phase 2: Points Scored (Max 10,000)– Relevant Experience (40%, 4,000 points)– Past Performance at (40%, 4,000 points)– Systems and Certifications (20%, 2,000 points)
Last Step: Fair and Reasonable Price (Pass / Fail)
Highest Technically Rated Offerors with a Fair and Reasonable Price
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“Acceptable” Accounting System• DCAA audit ready
• Properly separates Direct and Indirect Costs
• Identifies Direct Costs by Contract
• Proper allocation of Indirect Costs to Final Cost Objectives
• Provide for adequate reporting, timekeeping, payment and record retention / data retrieval
• Provides for exclusion of unallowable costs per FAR 31
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Pool Qualification• Submitted projects must be Prime Contracts awarded by
the U.S. Federal Government– Standalone contract, SA-IDIQ, MA-IDIQ, SA-BPA, MA-BPA, GSA MAS
Sch.
• 2 Projects for SB, 3 Projects for UNR
• Project NAICS code must fall under targeted pool
• Must submit the contract documents
• 3.0 Past Performance rating for each project
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Past Performance • Applies to Pool Qualification Projects and Primary
Projects only
• Each Pool Qualification project must have a min past performance rating of 3.0
• Additional Points can be scored for ratings > 3.5
• Source of rating by order of precedence:– 1) CPARS Report– 2) Award Fee Determination– 3) Past Performance Rating Form
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Systems, Certifications, and Clearances (not mandatory)
• Systems– Approved Purchasing System– Current FPRA, FPRR, and/or Approved Billing Rates– Earned Value Management Systems (EVMS)– Acceptable Estimating System
• Certifications:– CMMI Maturity Level 2 Certification (or higher)– ISO 9001:2008 Certification– ISO 17025 Certification– ISO 14001:2004 Certification– AS9100 Certification
• Government Facility Clearances:– Secret– Top Secret
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Pricing• “Fair and Reasonable” on a Pass/Fail basis• LCAT names, descriptions, and qualifications provided in
solicitation• Min & Max Direct Labor rates provided in solicitation
attachment• Indirect rates from DCAA/DCMA approved billing rates or
FPRA’s if available• Max 7% Profit (Sole-Source T&M/L-H Ceiling Rate)• Submission of certified cost or pricing data is not
required
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OASIS Team Evaluation Process
4. Points Evaluation:Start with highest preliminary scored offers and work down
If during the evaluation an offer’s score drops below the
designated “Top X” offer’s preliminary score, the
evaluation team will stop the review and move on to the
next offer
5. Once the Top X offers have been determined,
Team will review for Fair and Reasonable
Pricing
3. Acceptability Review:Any failure will result in
removal from consideration
2. Assign preliminary score, and sort offers
highest to lowest
1. Confirm supporting documents exist for
proposal checklist and compare to offeror self
scoring worksheet
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Points Evaluation Example• Points Evaluation begins with
Contractor A (highest preliminary score)
• If the evaluation results in a reduction of Contractor A’s points to a score below the 40th Contractor’s preliminary score, Contractor A evaluation will be halted and the proposal will move to slot 41.
• The Points Evaluation of Contractor B will commence.
1. Contractor A
2. Contractor B
3. Contractor C
4. Contractor D
5. Contractor E
41. Contractor Z
40. Contractor Y
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Points Evaluation Example
41. Contractor A
1. Contractor B
2. Contractor C
3. Contractor D
4. Contractor E
40. Contractor Z
39. Contractor Y
• Points Evaluation begins with Contractor A (highest preliminary score)
• If the evaluation results in a reduction of Contractor A’s points to a score below the 40th Contractor’s preliminary score, Contractor A evaluation will be halted and the proposal will move to slot 41.
• The Points Evaluation of Contractor B will commence.
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Critical Challenges• Accounting System: Acceptability is driven by SF1408 criteria
– Focus on design (this is the function of a pre-award survey)– Recognize that the accounting system is more than an IT software package, it is
the manifestation of your business processes: Take special care to document those properly in the responses to 1408.
– DCAA is the key advisor/subject matter expert to the COs for accounting systems – when the pre-award 1408 review begins, help auditors understand your business and practices.
• If applicable, note existing deficiencies and corrective action plans
• Past Performance Coverage – Carefully assess your Federal contract project portfolio to determine not only if you
qualify BUT if you can garner enough points to compete– Performance ratings, Project Value, Mission Spaces, No. of Task Orders are
critical to securing the contract
• Post Award Reporting Responsibilities– Carefully assess ability to meet contract management responsibilities (prices paid/
task order data reporting, subcontracting plan reporting, etc.)
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Final Considerations for Bid-No-Bid Decision • Consider self-scoring against current minimum
scores on targeted pool– What will revisions to requirements mean to
potential minimum scores?– What will targeted pool size mean to
potential minimum scores? • Consider developing an RFP compliance matrix
in order review alignment with acceptability criteria
• Consider category management and impact on agency spend
• Agency history: If you qualify for the contract and attain a reasonable self score but are on the fence, consider your track record with the agencies that are currently using OASIS.
• Consider resource and time constraints in preparing an offer and meeting proposal deadline
Pool # OASIS SB OASIS UNR1 5925 78252 2250 N/A3 5875 75754 6575 75505a 6625 79505b 6975 83256 5450 N/A
Base Period Minimum Scores
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Questions
Jeff Clayton, PrincipalTel: (703) 923-8586, [email protected]
Leo Alvarez, ManagerTel: (703) 923-8625, [email protected]
Mike Ryan, Senior ConsultantTel: 703-923-8695, [email protected]