Program Review APPL and NET

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NASA Office of Procurement
State of NASA Procurement and Tenets 29
October 2007
Bill McNally Assistant Administrator for
Procurement
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Procurement Tenets

• The procurement tenets are ancillary to the
  other Federal and Agency procurement policies and
  apply to the development of strategies for NASA
  procurements
• Purpose of the Procurement Tenets is to
  establish a set of guidelines for a NASA way of
  doing business
• Each guideline shall be addressed by HQ,
  Program, Project and Contract Managers in their
  acquisition and procurement strategies, processes
  and procedures

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Procurement Strategy Tenets

• Maximize Competition
• Early market research and continual communication
  with industry
• Focus on getting industrys best solution,
  commitment and lower cost
• Use Performance as factor in exercising options
• Plan re-competes shorter term contracts
  component breakouts have the right data and data
  rights
• Competition process thorough but not complicated
• Develop Integrated Acquisition/Procurement
  Strategies
• Involve all functional (Legal, Resource,
  Contracts, Small Business, technical) Reps early
  and throughout the planning process
• Establish an Integrated Product Team environment
• Inform and seek industry input throughout the
  acquisition
• Serves as Road Map for Program Execution and
  success

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Procurement Strategy Tenets

• Zero-based approach in developing Requirements
• Requirements Need to Earn Their Way into
  Contracts of Data Deliverables, Reviews and
  only applicable requirements
• Get Industrys Input as requirements are
  developed!
• Focus on Performance Outcomes and allow Industry
  to determine Best Way to Achieve Desired Outcome
• Use Commercial When its Available and Better
• Look at Commonality technical requirements and
  reporting
• Streamline but do not compromise on safety, good
  business decisions and successful completion
• Allow use of Commercial Processes
• Get rid of non-value added steps and Requirements
• Seek Industry Input on non-value processes and
  requirements
• Seek process improvements and effiencies

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Procurement Strategy Tenets

• Create Reward Performance Incentives
• Milestone Based
• Specific level of performance metrics and
  standards
• Successful Outcomes technical performance, cost
  and schedule performance, small business
• Shared Savings, Cost Management and Lower Life
  Cycle Cost
• Merge NASAs and Industrys Core Expertise
• Mix of NASA and Industry Design, Development and
  Integration
• Requires a Tight NASA and Industry Team with
  appropriate arms length relationship
• Common NASA Contracts and Strategies
• Common face to Industry
• NASA Contract Not a Center or Mission
  Directorate Contract
• Not zip code dependent

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Procurement
Strategy Tenets

• Reducing Cost and Cost Risk for procurements
• Move towards firm fixed price contracts after
  development, service contracts
• Perform work load analysis
• Reduce pass through contracts
• Turn Contract Upside-Down
• Insight of Prime contractors supply chain
  management
• Aggressive Pursuit of Socio-Economic Goals with
  Prime Contractors that are realistic, efficient
  and effective
• Personnel, teams, subcontractors and suppliers
  share in objectives and rewards
• Purpose of Tenets is to Maximize Return on
  Investment (ROI) for Industry and NASA!

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Objective of State of Procurement

• The Objective of this assessment is to
  determine the health of NASA procurement to
  determine how well we execute and support the
  NASA mission.
• This assessment is focused
• On current assessment
• On the next 15 months to support overall State
  of Agency assessment
• On long term performance
• Three Areas of focus

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Three Focus Areas

• Human Capital
• Workforce
• Training
• Policy
• Required
• Clear
• Contract Execution and Performance
• Good business practices
• Follow policy
• Our Objective A Healthy NASA Procurement
  Organization that Maximizes ROI for NASA!