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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)


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


• 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


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


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


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


Overview of Government & Contractor Actions during a typical BD Process

Example of MCFCS Business Development Training


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


• Developpricing


• Developpricing


• 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


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


# 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


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


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


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)


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


Questions

• Questions from small business representatives


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.


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