COMMERCIAL ENTERPRISE OMNIBUS Support Services

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COMMERCIAL ENTERPRISE OMNIBUSSupport Services
Brief to Prince William County Chamber of
Commerce- 8 May 2008 Ms. Patricia Mitchell,
PMP Director, ACSS
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Discussion Agenda

• Introduction
• Overview of the CEOss Business Model
• FY09 CEOss Performance Goals
• Key Business Metrics
• Open Season
• Q A

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Introduction
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IntroductionPatricia A. Mitchell

• BS Aerospace/Ocean Engineering (Virginia Tech,
  1985)
• Program Management Professional (PMP) (2007)
• CIO Certificate (2004)
• DAWIA Level III in Program Management (1999) and
  Manufacturing and Production (1995)
• Engineering Related Positions
• 1985 1986 NUSC (now NUWC) Mechanical
  Engineer providing ISEA support of ASW training
  targets
• 1986 1988 NAVSEA Project Engineer for ASW
  training targets
• 1989 1998 NAVAIR Industrial Engineer
  supporting production operations for Tomahawk
  Cruise Missile
• Acquisition Related Positions
• 1998 2003 MARCORSYSCOM PAE (now AC PROG)
  IT program analyst on Assessments Team
• 2003 2007 MARCORSYSCOM OCIO IT program
  manager for TIGER and IDE
• 2007 Present MARCORSYSCOM Director ACSS

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ACSS Staff FY08
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Overview of the CEOss Business Model
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Actions Process Flow
CICA FAR DFARS
BPAs are Competitively Awarded Using Two-Step
Process All Task Orders are Competed Among Domain
Prime Vendors Price / Performance-Based
Acquisition Practices Applied eP2 Web-Based
e-Commerce for Solicitation / Awards Annual Open
Season for New/Renewal Prime Awards
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Guidance Objectives
Overarching Procurement Guidance

• Focus on the Command Mission - Outcome v.
  Process
• Future Buying Practices governed by Commercial
  Rules
• Performance / Results Focus not Control /
  Oversight
• Leverage Pricing Dynamics of the Marketplace

MCSC Objectives

• Baseline a Command Business Model
• Enhance Competitive Business Climate within the
  Region
• Reward Performance / Mitigate Risk - Quantify
  Results
• Customer-centric / Regulatory Compliant

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CEOss Customer Process Model
Requirements Definition - Generate
Draft Documents
Expedited Award Process
Vendor QA - Revisions - Post Final RFQ
Evaluation Award
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Current MCSC Organization
MCSC Customer Base

• 1300 Customers
• 300M Annual Services
• 30 - Prime Vendors
• 200 Participating Firms

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Why CEOss?Best Value

• Supports Command Business Processes
• Supports high volume, quick turn-around
• Continuity of support to customers
• Budget-driven
• Efficiency of Operations
• Ease of use/availability
• Mature/streamlined process well-understood and
  consistent
• Ease of contract administration
• Leverages Best Talent from Local Vendor Pool
• Selective process for adding vendors
• Performance monitoring to retain position
• Smaller vendor base
• Higher likelihood of success
• Longstanding partnerships

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Why CEOss?Best Value

• GSA Schedules (basic contracts) already awarded
  competitively to individual contractors
• Price already determined to be fair and
  reasonable at national level
• Additional volume discounts
• Reduced procurement lead time and overhead
• Blanket Purchase Agreement (BPA) enables MCSC to
  tailor acquisition needs
• SOWs
• Agency specific special clauses/provisions
• Three tier process for determining best technical
  qualifications and lowest cost
• Contractors are initially qualified as GSA
  Schedule holders (technical/cost/past
  performance)
• Open Season source selection down-selects from
  GSA and awards BPAs to most qualified contractors
  to support MCSC
• Task order customers down-select from BPA teams
  to obtain best value decision/award

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FY09 CEOss Performance Goals
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FYO9 CEOss Performance Goals

• Sustain/Enhance Performance Levels
• Maintain Adequate Competition Levels
• Facilitate Small Business Participation
• Address Incumbency Concerns
• Training of Customer Base
• Improved Planning/Forecasting
• Evolve Model to Optimize Support to our
  Constituents (Customers and Vendors)
• Clear and Open Communications

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Sustain/Enhance Performance Levels

• ACSS Operations
• CEOss Business Model Integrity and Execution
• Clear, Performance-Based Requirements
• Fidelity of Cost Estimates
• Invoice Processing
• Compliance with Applicable Regulations
• Vendor Performance
• QASP Metrics Compliance Scores
• Periodic Performance Reports/Reviews
• Post Award Attrition Rates
• Customer Satisfaction
• Customer Survey
• Exit Interviews

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Maintain Adequate Competition Levels
Probability of Winning

• 50 benchmark in 2008
• Alternatives
• Revert Back to Bid Rate/Team Size Relationships
• Increase Bid Rate Requirement
• Separate Bid Rate Requirement for New Work vs.
  Re-competes
• Increase Vendor Footprint
• Reduce OCI Drop Out Rate
• Limit very large TOPRs
• No supplies vendors in CEOss
• Consider as factor when selecting new vendors
• Better Workload Planning to Increase Vendors
  Ability to Respond
• Driven by DFARS 208.405-70 and the contracting
  officer receives offers from at least three
  contractors that can fulfill the requirements

Preserve BP Money
Comply With Regs
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Bid Rate Analysis

• Analysis Identifies Minimum Bid Rate Based on
• Domain Size
• Sufficient Confidence in Getting Three or More
  Offers
• Random Behavior Binomial Probability
  Distribution
• More Robust Analysis in future
• Incorporate Non-Random Factors that Influence
  Decision to Bid

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Facilitate Small Business Participation

• Recommendations
• BPA Level Small Business Subcontracting Goals
• Task Order Level Small Business Subcontracting
  Goals
• Small Business Set Aside
• New work
• As first option then to all in domain if
  insufficient response from SBs
• Increase Non-Team Allowance to Access SBs

• Challenges
• Definition of SB
• Getting Sufficient of SB Primes/subs
• Cant Force Subs to Participate
• Setting the Proper Thresholds
• Ensuring Skill-Sets Available to Support
  Set-aside Requirement
• Acquisitions/Graduations Impacting SB Status
• Customer Resistance Bundling of Requirements
• Administration

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Address Incumbency Concerns

• Transition Plan
• More Lead Time on Re-competes
• More extensive due diligence period
• Sufficient transition time from award to start of
  PoP
• Overlap with incumbent effort
• Program Office Training
• Risks and Benefits of transition
• Contingency hires
• Full disclosure during due diligence to level
  playing field
• Periodic ACSS (or other independent party)
  Participation in Re-compete Source Selection
  Boards

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Training of Customer Base

• Overall CEOss Process
• Due Diligence Dos and Donts
• Source Selection
• Use of Industry Days and Advance Planning SOWs
• Domain Placement Considerations
• Right-sizing Task Orders

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Improved Planning/Forecasting

• Quarterly CEOss Planning Conferences with Command
  Customers
• Industry Days (larger task orders)
• Advanced planning SOWs (with ROM IGCE)
• CEOss Vendor Expo/Marketing Event

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Evolve Model to Optimize Support to our
Constituents

• Joint AC Programs/AC Contracts Offsite
• Process mapping/improvement
• Roles and responsibilities
• Proper balance of rigor and flexibility
• Customer Survey
• Ongoing dialog with vendor community
• Mailbox acss_at_usmc.mil

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Clear and Open Communications

• ACSS Open Door Policy
• Partnership
• We are only successful if our customers and
  vendors are successful
• Learning Process
• What is working?
• What is not working?
• How can we improve?

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Summary

• No easy answers fix in one area may negatively
  impact another area
• Find the right balance need to focus on all
  stakeholder perspectives (ACSS, Customer, Vendor)
• Incremental changes to minimize risks dont rush
  to solutions that are not completely thought out
• Ongoing dialogue to leverage collective
  knowledge, business acumen, and lessons learned

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Key Business Metrics
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CEOss Results
through April 2008

• Expect Annual Volume of 220 Tasks
• FY08 Competition Levels lt anticipated
• On average, 3 offers per TOPR
• Out of 40 task orders, 11 have less than 3
  bidders
• Winning Scores gt.82 across domains

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CEOss FY08 Volume
through April 2008

• Value is ahead of FY07
• Likely to continue throughout the FY

• Task order volume is ahead of FY07
• More external customers involved

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CEOss Award Distributions
Command Investment Percentages
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CEOss FY08 Market
Customer / Vendor
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CEOss ALA DomainBusiness Volume

• 90.3M invested (ytd)
• 36 Task Orders
• 35 avg bid rate
• 86 avg proposal score
• 8 avg discount rate
• 89.30 avg domain rate
• 2 Small Business
• Ave winning score of 94
• 3 firms control 85 of ALA work in FY08

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CEOss BA DomainBusiness Volume

• 16M invested (ytd)
• 14 Task Orders
• 80 avg bid rate
• 86 avg proposal score
• 5 avg discount rate
• 97.55 avg domain rate
• 0 Small Business (no SB primes in this domain)
• Ave winning score of 96
• 2 firms control 98 of work effort within BA to
  date

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CEOss ES Domain Business Volume

• 86.6M invested (ytd)
• 33 Task Orders
• 38 avg bid rate
• 82 avg proposal score
• 11 avg discount rate
• 89.94 avg domain rate
• 1.4 Small Business
• Ave winning score of 95
• 3 firms control 76 of work effort within ES to
  date

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CEOss SE DomainBusiness Volume

• 35.8M invested (ytd)
• 26 Task Orders
• 40 avg bid rate
• 73 avg proposal score
• 11 avg discount rate
• 97.02 avg domain rate
• 0 Small Business (no SB primes in this domain)
• Ave winning score of 92
• 3 firms control 73 of work effort within SE to
  date

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CEOss Performance Metrics

• CEOss Operations / Efficiencies
• 771 Task Orders since Aug 2002
• Ave 17 days in Queue (Internal)
• Ave 2 Cost Reduction (Financial)
• Ave lt1 Interest Penalties (Financial)
• Ave gt95 Award Term Renewals (Customer)
• Ave 99 eP2 System Ao (Internal)

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2009 Open Season
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Considerations

• Prime Vendor Role
• Can You Do It?
• Manage a Team
• Meet CEOss Cycle Times
• Meet Competition Levels
• React to / Resolve Problems below ACSS
• Competitive Schedule
• Competitive Pricing for the Domain
• Understand the Command
• Understand your Competition

• Team Member / Partner
• What Can you Offer?
• Niche / Broad Capabilities
• Competitive Pricing
• Key Skills / Qualifications
• Market Position
• Command Presence
• Reciprocation

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Open Season Process

• Existing Vendors
• Letter of Intent
• 2 Pages
• Team Composition Changes
• Rationale for new team composition
• Ability to meet prescribed competition
  thresholds
• Discounting Policy
• Revised Proposal
• GSA Schedule Rates (September 2008-2010)
• Unilateral update of BPA

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Existing Vendor Schedule
RFI Submission due 6/13/08
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Open Season Process

• New Vendors
• Federal Business Opportunities Request for
  Information (RFI)
• Capabilities Statement
• 5 Pages
• Domain of Prime Interest
• Business Size
• Team Composition
• Corporate/Team Capabilities in Relation to Domain
  Functional Areas
• Business/Management Strategy
• Relevant Experience
• Discount Policy
• GSA Schedule
• Request for Quotation (RFQ) (provided to selected
  vendors)
• Proposal
• Combined business and technical quotation,
  including sample task order response and Past
  Performance
• Excel spreadsheet of labor rates for Prime and
  all team members
• Competitive award of BPA best value

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New Vendor Schedule
RFI Submission due 6/24/08
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RFQ issued NLT 7/14/08
BPAs awarded NLT 8/31/08
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Crafting your RFI Response
DO -
DONT -
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2009 Open Season Schedule (tentative)
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Questions?
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Back Up
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CEOss vs. Seaport-eSummary Comparison
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CEOss vs. Seaport eSummary Comparison
(continued)
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CEOss vs. Seaport-eSummary Comparison (concluded)