SEAPORT ENHANCED

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SEAPORT ENHANCED
Naval Sea Systems Command Warfare Centers
Engineering, Technical and Programmatic Support
Services

• Lawson Hynson
• Head of Contracts, NSWC-PC

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Availability of Presentation

• Presentation will be available at our public web
  site http//www.ncsc.navy.mil
  
• Will be available within the next 5 business
  days
  
• Website Guidance
• Click on at top of home page
• Click on
• Click on
• Click on
• Presentation will located on that page as
  SeaPort Enhanced Presentation 4-8-04
  

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Presentation Agenda

• Background
• Acquisition strategy
• Contract characteristics
• Competitive results
• CONOPS
• Savings metrics
• General Information

4
Background

• SeaPower 21
• CNOs 2004 implementing guidance
• Business process efficiencies challenge
• COMNAVSEA initiative to add efficiencies to
  NAVSEA business processes
  

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View From The Fourth Floor

• Billions being spent under service contracts
  annually
  
• Many individual contracts being awarded to the
  same contractors for similar services
  
• No consistent corporate acquisition strategy
• Significant duplication in administrative
  procurement cost
  
• Limited strategic relationships
• Little economy of scale benefits
• Business data available limited

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Solution An Enhanced Seaport

• Award a series of nation-wide multiple award
  ID/IQ contracts (MACs) for the warfare centers
  
• While protecting local vendor base and business
  relationships
  
• Enhancing small business opportunities
• And use a variant of the e-business tool
  (Aquilent) adapted for seaport
  

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Expected Benefits of Approach

• Consolidated contracts provide a frame- work for
  consistent application of sound acquisition
  strategy, business rules and policy.
  
• Provides NAVSEA the ability to develop better
  strategic business relationships with contractors
  
  
• Allows NAVSEA to leverage its buying power on a
  nation-wide basis
  
• Web-based portal tool provides a dependable means
  for information gathering

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Acquisition Strategy

• Issue one solicitation covering the U.S. for all
  NAVSEA warfare centers service requirements
  
• Solicit and award MACs by zones
• Offerors may be awarded contracts providing them
  the ability to compete for task orders in a
  single or multiple zones
  
• Tasks are solicited and placed by the NAVSEA
  activity that has the requirement for the
  service
  

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Contract Characteristics
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Contract Fundamentals

• Five year base with two five year award-term
  options
  
• 1. The limitation of Section 843 will be
  come effective for solicitations issued on or
  after the date the DFARS interim rule is
  published in the Federal Register
• from 18 February DoD/ATL DDPA
  memo
  
• 2. The rule was published on 23 March 2004
• Emphasis of limits on pass throughs, max fees,
  guaranteed saving, and annual escalation.

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Contract Fundamentals

• Rolling Admissions the Government reserves the
  right to review the SEAPORTe Program annually to
  determine whether it would be appropriate to add
  new contract holders
• If so, will involve a similar solicitation
  process
  
• Cost Type and Fixed price Task Orders permitted
• Time Material and Labor Hour Task Orders not
  permitted
  
• Emphasis on Performance Based Orders
• Preference for Fixed Price Orders

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SEAPORTe Zones

• Zone One Northeast
• NUWC Newport
• NSWC Philadelphia
• Zone Two National Capital
• NSWC Carderock
• NSWC Dahlgren
• NSWC Indian Head
• Zone Three Mid-Atlantic
• NSWC Dam Neck

• Zone Four Gulf Coast
• NSWC Panama City
• Zone Five Midwest
• NSWC Crane
• Zone Six Southwest
• NSWC Port Hueneme
• NSWC Corona
• Zone Seven - Northwest
• NUWC Keyport

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Geographical Zones
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Why A Zone Approach

• Preserve local vendor base
• Encourages small business participation
• Reduces the need for complex teaming
  arrangements
  
• Allows for easier contract organization and
  administration e.g., SCA, rolling admissions,
  small business goals, local site provision
  

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Small Business Issues

• RFP issued on an unrestricted basis established
• 33 to small business primes (measured in )
• 20 () requirement for large business to small
  business subcontractors
  
• Cascading set-aside authority to the Ordering
  Officers with prior notice
  
• Small Business Size Standard
• NAICS Code 541330
• 23M average annual sales over the prior three
  years
  
• Set-Aside Programs such as 8(a), HUB Zones, etc.
  are excluded

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Acquisition Cycle Milestones

• Started Planning August 2003
• Initial Planned Award Date 5 April 2004
• Draft Solicitation Posted November 2003
• Solicitation Issued December 2003
• Proposals Received January 2004
• Evaluation Completed February 2004
• Clearance Approved March 2004
• Awards Announced 5 April 2004

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Technical Disciplines Supported

• Information Systems Development
• Information Assurance Support
• Ship Inactivation and Disposal Support
• Interoperability Issues Support Measurement
  Facilities, Range and Instrumentation Support
  
• Acquisition Logistics Support
• Supply and Provisioning Support
• Tests and Test Trials Support
• Training Support
• In-Service Engineering Support
• Fleet Introduction, Installation and Checkout
  Support
  
• Program Management Office Support
• Administrative Support

• RD Support
• TE Support
• Product Engineering, Systems Engineering and
  Process Engineering Support
  
• MSS Support
• Program Analysis Support
• Prototyping, Pre-production, Model-Making and
  Fabrication Support
  
• System Design Documentation Support
• Technical Data Support
• S/W Engineering, Development, Programming and
  Network Support
  
• RMA Support
• Human Factors Engineering Support
• System Safety Engineering Support
• CM/ILS Support
• QA Support

18
Competitive Results
19
Competition Results

• Over 800 Questions and Comments submitted in
  response to 17 November 03 draft solicitation
  
• Over 61,000 downloads for the Dahlgren
  Laboratorys website between 21 Nov 03 and 22 Jan
  04
  
• Received 152 proposals
• 103 from small businesses
• 48 from large business
• 1 from a not for profit institution

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Evaluation Factors

• Offerors Evaluated on
• Factor 1 Technical Capability Depth and
  Breadth of Experience
  
• Factor 2 - Management Approach
• Factor 3 Past Performance
• Factor 4 Cost/Price
• Factor 1 was significantly more important than
  Factors 2, 3 and 4 which were of roughly equal
  importance
  

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Evaluation Results

• Overall scores ranged from 99.25 (Outstanding) to
  65 (Satisfactory)
  
• 96.7 of offerors scored in the Good or
  Outstanding
  
• Some Numbers
• 3.73 Average Annual Guaranteed Savings
  Commitment
  
• 3.38 Average Maximum Pass-Through Rate
• 3.75 Average Annual Escalation Rate
• 7.70 Average Maximum Fee

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Presence Criteria

• Solicitation Offeror must have held or currently
  hold a prime contract, a subcontract or currently
  have a local office in the zone(s) in which the
  offeror wishes to be considered. The prime
  contract or subcontract must be with a NAVSEA
  activity.
• Several offerors did not satisfy this go/no
  criteria in certain zones

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Competition Results
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Geographical Zones Proposed


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Concept of Operations
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Use of SEAPORTe

• SEAPORT-e will be used by the NAVSEA warfare
  centers to the maximum extent possible.
  
• Even though SEAPORT is a non-mandatory
  procurement option, I will expect that we will
  use this vehicle to the maximum extent
  practicable.
• From 23 October 2003 e-mail from the
  NAVSEA warfare centers business executive

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Ombudsman

• One appointed for each NAVSEA warfare centers
  activities (not zone)
  
• Role will be to receive and review complaints /
  concerns from SEAPORTe contractors relative to
  the program. He will
  
• work communication with both contractors and
  government elements
  
• strive to address and resolve issues raised
• work to ensure that all contractors are fairly
  considered consistent will TC of contracts
  
• Is not a marketing coordinator or sales
  representative for contractors.

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List of Ombudsmen
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Achieving Small Business Goals

• In concert with each activitys Deputy for Small
  Business, the NAVSEA Director for Small and
  Disadvantaged Business Utilization, will monitor
  SEAPORTe contract actions placed/planned against
  the SDB goals - both primes subcontracting.
• Each activitys Deputy for Small Business and the
  relevant Zone Coordinator are collectively
  responsible to ensure that small business
  participation is maximized.

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Zone Coordinator

• Serves as the zone point-of-contact.
• Serves as a member of the SEAPORTe Council.
• Serves a liaison with vendor community including
  formation of a Zone Business Council to
  facilitate feedback among the parties.
  
• Charged with being the principal for
  communication of Zone contractors inputs on
  rolling admissions recommendations, etc.
  
• Tracks small business participation and assists
  the Deputy for Small Business in ensuring fair
  consideration of small/disadvantages in the
  Program.

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SEAPORTe Council

• The SEAPORTe Council (SC) is the group
  responsible for programmatic decisions relative
  to the program and shall meet at least
  semi-annually.
• The SC is also responsible for the Rolling
  Admissions function
  
• Membership consists of
• Each Zone Coordinator
• SEAPORTe Procuring Contracting Officer
• A NAVSEA SEA 02 designated representative
• The NAVSEA Director for Small and Disadvantage
  Business Utilization (advisor)

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Rolling Admissions

• Annually, the SEAPORTe Council shall convene to
  review the performance of the SEAPORTe Program
  in accordance with the Rolling Admissions clause.
  Inputs will be received from the Zone
  Administrators.
• The Rolling Admissions criteria are
• Quality of performance by each MAC holder.
• The number, value and complexity of work being
  awarded to each MAC holder.
  
• Amount of competition received.
• Internal transaction cost for issuing each task
  order.
  
• The amount of small business participation.
• Evolving needs of the warfare centers, the SOW
  and ceiling amount issues.

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Rolling Admissions
Annually, the SEAPORTe Council shall convene
to review the performance of the SEAPORTe
Program in accordance with the Rolling
Admissions clause. Inputs will be received from
Zone Coordinators. The Rolling Admissions crite
ria are quality of performance by each IDIQ hol
der the number, value and complexity of work ass
igned to each holder amount of competition achi
eved internal transaction cost for issuing each
task order the amount of small business particip
ation revise scope of the Statement of Work and
the ceiling amount
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Task Order Managers

• Similar to a Contracting Officers
  Representative.
  
• A Task Order Manager (TOM) under SEAPORTe will
  be considered a COR and identified as such in the
  portal.
  
• TOMs must be formally appointed and must complete
  the training required to be a COR.
  
• TOMs authority is limited by the delegation
  issued by the Ordering Officer.
  
• In no case should the TOM be viewed as possessing
  the authority to authorize contractor variation
  from the SOW, the Schedule, the cost / price or
  reduce or eliminate any inspection / acceptance
  requirements in the task order.

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Notification Of Problems

• The Zone Coordinator shall be the primary
  collection point for the identification of
  desired modifications or problems with the Portal
  or MAC contracts.
• Zone 4 Coordinator is T. L. Hynson
• Address Contracting Officer
• Naval Surface Warfare Center
• 110 Vernon Avenue (Code XPS) Panama City,
  FL 32407-7001
  
• Comms theodore.hynson_at_navy.mil (email)
• 850/234-4862 (tele)

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SEAPORT Portal

• The existing SEAPORT portal will be used to
  solicit, receive proposals and place task orders
  
• Some minor modifications to the
  e-commerce tool are being planned to better
  facilitate warfare center use

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Task Order Requirements
The award of Task Orders should only be placed
for known requirements. Task Orders may not b
e awarded for requirements that are not
defined Task Orders may not be used as larger u
mbrella vehicles for work to be defined later.
Therefore, task orders may not be issued as
BPAs, BOAs, or ID/IQs. Technical Instructions
may only be issued to provide further guidance
on a defined scope of work and may not be used
to direct or add work.
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Subcontracting Teaming

• Authority to consent to use a subcontractor that
  is part of the primes team as specified in the
  basic contract is the responsibility of the task
  Ordering Officer.
• Authority to approve requests to add new
  subcontractors to an existing team is the
  responsible of the PCO
  

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Exceptions To FASA

• Within a zone, the contracting officer shall give
  every SeaPort-e MAC holder a fair opportunity to
  be considered for a task-order exceeding 2,500
  unless a statutory exception applies (see below).
  All task orders shall be competed unless
  extraordinary circumstances exist. The SeaPort
  Portal requires Contracting Officers to provide
  rationale for such acquisitions. This rationale
  must be as thorough as possible and identify
  methods by which any alternative sources were
  sought. If an Activity uses the logical
  follow-on exception, the rationale shall describe
  why the relationship between the initial order
  and the follow-on is logical (e.g., in terms of
  scope, period of performance, or value).
•  
• Exceptions to the fair opportunity process are
  detailed below
  
• (i) The agency need for the supplies or services
  is so urgent that providing a fair opportunity
  
• would result in unacceptable delays,
• (ii) Only one awardee is capable of providing the
  supplies or services required at the level of
  
• quality required because the supplies or
  services ordered are unique or highly
  specialized,
  
• (iii) The order must be issued on a sole-source
  basis in the interest of economy and efficiency
  because it is a logical follow-on to an order
  already issued under the contract, provided that
  all awardees were given a fair opportunity to be
  considered for the original order.
• (iv) It is necessary to place an order to
  satisfy a minimum guarantee.
  
• All rationales must be coordinated with the
  Zones Ombudsman and approved in accordance with
  NAVSEA Justification and Approval thresholds.
  For those rationales, where the approval
  threshold is NAVSEA HQ, the rationale shall be
  prepared using the format of a formal
  Justification and Approval in accordance with the
  NAVSEA Contract Handbook. SEA02/02B is the
  highest approval necessary.

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Undefinitized Orders

• Undefinitized orders are not permitted!

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Task Order Solicitations

• Task orders will be solicited from the contract
  holders that are in the zone where the principal
  part of the work is to be performed.
  
• The zones solicited will not be based on the
  location of the warfare center activity
  contracting for the work.
  
• Principal part of the work effort will be
  determined by the Ordering Officer in the
  planning stage by analysis. The analysis will
  identify which zone is most likely to be where
  the primary part of the labor costs will be
  incurred.

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Performance Based SOWs

• DoD Requires performance-based SOWs to be used to
  the maximum extent possible
  
• Under SEAPORTe Performance-based SOW are to be
  used
  
• Any non-performance-based orders require a waiver
  be approved prior to order placement
  

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Small Business Review

• The activitys Deputy for Small Business
  responsible for placement of the order is the
  cognizant SADU for the individual action.
  
• A pre-solicitation review is required for each
  action.
  
• Based upon that review the requirement may be
  set-aside for small business.
  
• Actions that the SADBU can not determine with
  confidence initially that sufficient small
  business primes capable of the work are available
  will be solicited without regard to business
  size.
• A statement citing the cascading set aside
  provision will be included in the solicitation.
  
• Subsequent to receipt of proposals, the SADBU may
  then set-aside the requirement based upon
  responses received.
  
• Actions not initially set-aside or specifically
  reserved by the SADBU for post proposal review
  will be considered unrestricted solicitations.

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Past Performance

• The SEAPORTe PCO will be responsible for
  submission of Contractor Performance Assessment
  Reports (CPARS)
  
• To support this action individual Task Order
  Performance Evaluation (TOPE) reports will be
  required for each individual task order.
  
• Activity Ordering Officers will be responsible
  for ensuring that the TOPEs are completed.
  
• The CPARS will be submitted to the Past
  Performance Information Retrieval System
  (PPIRS).
  

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Saving Metrics
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Potential Savings Metrics

• Savings from redirected GSA or similar service
  contract providers user fees
  
• Conversion of LoE orders to performance-based
  orders
  
• Task order competition savings
• Operation of Guaranteed saving provisions in
  the contracts
  
• Volume discounts
• Conversion of cost-plus task orders to fixed
  priced orders ??
  
• Others?

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General Information
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Large Business Primes

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Small Business Primes

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Small Business Primes

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Small Business Primes

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Not For Profit Prime

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Questions?