In conjunction with: Top 20 Federal Contract Opportunities in Fiscal 2015: BGOV Presentation AFZAL BARI DANIEL SNYDER Senior Technology Analyst Government Contracts Specialist KEVIN BRANCATO JORGE UQUILLAS Senior Defense Analyst Quantitative Analyst MIGUEL GARRIDO BRAD DOUGLAS Quantitative Analyst Chief Operating Officer, Shipley Associates OCT. 7, 2014 Director of Government Sales Research EVAN CROEN © 2014 Bloomberg Finance L.P. www.bgov.com | @BGOV Bloomberg Government has compiled the largest fiscal 2015 opportunities » No program has issued a final request for proposal (RFP) » Many programs have issued requests for information or draft RFPs » Final RFP or substantial preparatory work (by both government and contractors) is likely in fiscal 2015 Top opportunities mostly defense – 12 defense, eight civilian » Army leads with four opportunities (two fewer than last year), including a major consolidation of service contracts and a $25 billion information technology program » 18 of 20 opportunities have more than $1 billion in potential lifetime value » Most programs will issue indefinite delivery / indefinite quantity (IDIQ) multipleaward contracts (MACs) BGOV analysts will continue to track all 20 programs through the year » Subscribe to the Federal Contracts Digest and contracting newsletter to stay up to date on important developments in large opportunities and existing contracts » Also check the Major Programs Procurement Dashboard for additional details © 2014 Bloomberg Finance L.P. 2 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 EXECUTIVE SUMMARY 3 TOP PROGRAMS: #1 THROUGH #10 Dollars in billions Estimated potential value Estimated RFP date Estimated award date $30 Q2, FY 2015 Q4, FY 2015 ITES-3S $25 Q2, FY 2015* FY 2016* D/SIDDOMS IV $20 Q2, FY 2015 Q4, FY 2015 Q1, FY 2015* Q4, FY 2015* $12 Q3, FY 2015 Q3, FY 2016* GTACS $10 Q4, FY 2015* Q3, FY 2016* Human Capital and Training Solutions HCATS $5 Q2, FY 2015* Q1, FY 2016* GSA Network Services 2020 NS2020 $4 Q2, FY 2015* Q3, FY 2016* 9 Army Warfighter FOCUS II WFF II $4 Q1, FY 2016 Q2, FY 2017 10 DHS Entry/Exit Transformation EXT $3 Q3, FY 2015* Q3, FY 2016* Rank Agency Program name Acronym 1 Army Responsive Strategic Sourcing for Services RS3 2 Army Information Technology Enterprise Solutions-3 Services 3 DHA 4 VA 5 DISA ENCORE III ENCORE III 6 Army Global Tactical Advanced Communications Systems 7 GSA 8 Defense Medical Information Systems/Systems Integration, Design, Development, Operations, and Maintenance Services Transformation Twenty-One Total Technology Next Generation T4NG $12** * Indicates Bloomberg Government date estimate ** The VA revealed on Oct. 6 that the ceiling of T4NG will be $22.319 billion Notes: DHA – Defense Health Agency; VA – Department of Veterans Affairs; DISA – Defense Information Systems Agency; GSA – General Services Administration Source: Bloomberg Government Major Programs Procurement Dashboard © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Five of the top 20 programs are valued at more than $10 billion 4 TOP PROGRAMS: #11 THROUGH #20 Dollars in billions Estimated potential value Estimated RFP date Estimated award date $1.7 Q2, FY 2015 Q3, FY 2016 CNTPO $1.6 Q2, FY 2015* Q4, FY 2015* Special Operations Command and the Special Operation Forces Information Technology Enterprise Contract SITEC II $1.0 Q2, FY 2015 Q1, FY 2016 Navy Fielded Training Systems Support IV FTSS IV $1.0 Q2, FY 2015 Q3, FY 2016 15 Air Force Sustainment and Modernization of Optical and Radar Sensors SMORS $1.0 Q2, FY 2015 Q2, FY 2016 16 HHS Unified Program Integrity Contractor UPIC $1.0 Q2, FY 2015* Q1 FY 2016* 17 DHS Next Generation Enterprise Computing Services NGECS $1.0 Q2, FY 2015* Q3, FY 2016* 18 DHS Enterprise Applications Development Integration and Sustainment EADIS $1.0 Q1, FY 2015* Q3, FY 2015* 19 USACE Joint Test and Evaluation JT&E $0.9 Q2, FY 2015* Q3, FY 2016* 20 DOT Traffic Flow Management System 2 TFMS-2 $0.8 Q1, FY 2015* FY 2015 Rank Agency Program name Acronym 11 Air Force Joint Range Technical Services J-Tech II 12 Air Force Counter Narco-Terrorism Program Office 13 SOCOM 14 * Indicates Bloomberg Government date estimate Notes: SOCOM – U.S. Special Operations Command; HHS – Department of Health and Human Services; DHS – Department of Homeland Security; USACE – Army Corps of Engineers; DOT – Department of Transportation. Source: Bloomberg Government Major Programs Procurement Dashboard © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 A range of MACs for services, support, research, engineering and hardware #1 – RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) » RS3 will consolidate follow-ons to several multibillion-dollar MACs, including the Army’s Strategic Services Sourcing (S3) and Rapid Response Third Generation (R23G) » The Army Contracting Command-Aberdeen Proving Ground (ACC-APG) made a number of significant changes to its first RFI, including redefining the scope and structure. RS3 would provide a broad range of complex C4ISR-related knowledge-based services Details Program Responsive Strategic Sourcing for Services (RS3) Estimated value $30 billion Agency DOD, Army RFP release date Q2, FY 2015 (government estimate) Award date Q4, FY 2015 (government estimate) Contract duration 10 years Strategic Services Sourcing (S3) » ACC-APG is considering dividing the services on RS3 into five primary categories: engineering; research, development, test and evaluation; logistics; systems engineering and technical assistance (SETA); and education and training » RS3 will consist of an unrestricted track and a separate small-business set-aside suite. All SETA task orders, as well as all tasks valued at less than $10 million, will be awarded through the smallbusiness suite Rapid Response Third Generation (R23G) Incumbents Warrior Enabling Broad Sensor Services (WEBS) Technical, Administrative and Operations Support Services (TAOSS) Classification Technical Information Engineering Services (TIES) R - Professional, administrative and management support services RFI – Request for Information; C4ISR – Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Description 5 6 #5 – ENCORE III Description Details » ENCORE III will provide IT solutions for the Defense Department, including Command and Control (C2), intelligence, mission support areas, the Global Information Grid (GIG) and the DOD Information Network (DoDIN) Program » The government is starting the re-compete process very early, possibly to build in time for complexity delays and protests » ENCORE III will not include stand-alone telecommunications, hardware or software licenses » The agency hasn’t yet decided on an acquisition strategy but will probably include a separate smallbusiness lane, depending on the responses they receive © 2014 Bloomberg Finance L.P. Estimated value $12 billion Agency DOD, Defense Intelligence Systems Agency RFP release date Q3, FY 2015 (government estimate) Award date Q3, FY 2016 (BGOV estimate) Contract duration 10 years Incumbents ENCORE II 33 contracts ($5.9 billion in spending to date) Classification R – Professional, administrative and management support services 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 » ENCORE III will replace ENCORE II, which runs through 2018 and is one of the largest MACs in the federal government ENCORE III #7 – HUMAN CAPITAL AND TRAINING SOLUTIONS (HCATS) » HCATS will replace the Office of Personnel Management’s existing Training and Management Assistance (TMA) contract vehicle, providing industry best practices in human resource (HR) training / development and human capital management services » OPM was originally responsible for facilitating the re-compete acquisition procedures and abruptly canceled the procurement in February 2014 while proposals were being reviewed Details Program Estimated value $5 billion Agency General Services Administration RFP release date Q2, FY 2015 (BGOV estimate) Award date Q1, FY 2016 (BGOV estimate) Contract duration Seven years Incumbents » In April 2014, OPM and the General Services Administration signed a memorandum of understanding forming a partnership to grant GSA contracting authority to acquire HR training and development and human capital management services » HCATS will combine two OPM acquisition vehicles, the current Training and Management Assistance IDIQ and a small Recruitment and Branding blanket purchase agreement » An industry day is planned on Oct. 30 © 2014 Bloomberg Finance L.P. Human Capital and Training Solutions (HCATS) Classification OPM Training Management and Assistance 53 contracts ($3.5 billion spending to date) R – Professional, administrative and management support services 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Description 7 #12 – COUNTER NARCO-TERRORISM PROGRAM OFFICE (CNTPO) » CNTPO contracts for the development, deployment, and provision of technology to engage, disrupt, and deter narcoterrorism worldwide Details Program Counter Narco-Terrorism Program Office (CNTPO) Estimated value $1.6 billion » CNTPO provides its services to law enforcement, Defense and civilian agencies, and partner nations Agency DOD, Air Force RFP release date Q2 FY 2015 (BGOV estimate) » CNTPO has a variety of contract vehicles available Award date Q4 FY 2015 (BGOV estimate) Contract duration Seven years » The largest, a $3.9 billion CNTPO MAC with an ordering period expiring in fiscal 2016, is being split across four new MACs – two in the Army and two in the Air Force » The two Air Force MACs, which haven’t yet released an RFP, are having their acquisition strategies finalized » AF MACs probably will use LPTA for source selection, with small-business and large-business pools. There will be a 40 percent small-business subcontracting goal for large businesses » Existing MAC is global: $2.2 billion in Afghanistan, $192 million in Pakistan, $171 million in South Korea and $110 million in Mexico © 2014 Bloomberg Finance L.P. Counter Narco-Terrorism Program Office ($3.9 billion spending to date) Lockheed Martin Corp. (W9113M07D0006) Incumbents Northrop Grumman Corp. (W9113M07D0007) Raytheon Co. (W9113M07D0008) Academi Holdings LLC (W9113M07D0005) Rockwell Collins Inc. (W9113M07D0009) Classification 541 - Professional, scientific, and technical services 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Description 8 #14 – FIELDED TRAINING SYSTEMS SUPPORT (FTSS IV) Description Details » FTSS IV will provide the Navy and other customers with a wide range of complex and non-complex training systems support activities • Complex activities include contractor operations and maintenance services (COMS) and contractor instructional services (CIS) • Ancillary services include training device modifications and relocations, systems management, spares and product support Program » RFP will use real and representative task requirements for proposal submissions • Lot 1: F/A-18 COMS and CIS • Lot 2: C-9B COMS and CIS © 2014 Bloomberg Finance L.P. Fielded Training Systems Support IV (FTSS IV) Agency DOD, Navy RFP release date Q2, FY 2015 (government estimate) Award date Q3, FY 2016 (government estimate) Contract duration Five years, plus three one-year options Incumbents Classification FTSS III ($980 million ceiling) • 13 incumbents • $47 million in obligation in fiscal 2013, and $50 million fiscal 2014 YTD • Base period ends in 2016, option available FTSS II ($800 million ceiling) • 11 incumbents • $59 million in obligation in fiscal 2013, and $22 million fiscal 2014 YTD J – Maintenance, repair and rebuilding of equipment 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Estimated value $1 billion ($1.3 billion ceiling) » Industry day was held on July 15; a draft RFP is expected to be released in November and a preproposal site visit is expected in December » One RFP will be released for two lots of contracts • Lot 1 – unrestricted competition for complex programs (goal of five or more contracts) • Lot 2 – small-business set-aside, non-complex programs (goal of three or more contracts) 9 OTHER PROGRAMS TO KEEP ON YOUR RADAR 10 New giant GSA Professional Services Schedule expected in fiscal 2015 » GSA will overhaul its professional services schedules by consolidating several multibillion-dollar MACs, including MOBIS, FABS, and PES, into a new mega-schedule starting in January 2015 UCLASS to move forward » Congress is forcing the Navy to settle on a mission and requirements for future unmanned carrier-launched airborne surveillance and strike (UCLASS) pilotless aircraft » Lockheed Martin, Boeing Co., General Atomics and Northrop Grumman will compete for program » The fiscal 2015 budget request has $2.7 billion allocated through fiscal 2019 for the effort Global C4ISR Installation on-boarding soon » On Aug 21, SPAWAR SYSCOM issued an RFP for up to three new companies to join the Sea Enterprise II MAC, which is used to install systems bought using MACs such as CANES and Pillars. With $516 million in orders over four years and a ceiling of $1.4 billion, there should be sufficient headroom for all task orders through the Feb. 9, 2019, end date Program and Systems Support (PASS) MACs on the way » NAVAIR intends to solicit a five-year IDIQ suite of MACs collectively worth up to $496 million » Acquisition will support agencies in the areas of project, program and portfolio (PPP) management © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Alliant and Alliant Small Business on the horizon » Acquisition planning is underway for re-competes of GSA’s two large IT GWACS Government sales resources Other resources on BGOV.com Business development » Major Programs Procurement Dashboard » Awards and Opportunities Search » Bid Tracker » Partner Finder News & analysis » BGOV Analysis and Insights » Bloomberg BNA » News Research » Contract Intelligence Tool » Contracts Search » Small Business Dashboard Exclusive BGOV analyst content » Actionable market and MAC analyses to track and prepare for opportunities » Timely budget- and policy-oriented analyses » Relevant insights on a variety of topics affecting contractors » Webinars offering a wealth of actionable information © 2013 2014 Bloomberg Finance L.P. Legislation » Congress Tracker » BGOV Bill Summaries » CRS Reports Regulation » Federal Register » Code of Federal Regulations » Regulation Comment Search 11 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 BGOV RESOURCES CAN HELP CONTRACTORS DIG DEEPER INTO THESE OPPORTUNITIES UPCOMING RELATED EVENTS 12 Live Event: Breakfast Briefing – Army Budgets, Opportunities & the Future – Oct. 14, 2014 (7:30 a.m.-9:30 a.m.) » Join BGOV analysts to discuss the prospects for the Army budget in fiscal 2015 as it makes its way through Congress, upcoming major contracting opportunities, and the future of the Army’s budget in fiscal 2016 and beyond. Webinar: A Data-Driven Approach to Partnering: Part II – Oct. 22, 2014 (2 p.m.-3 p.m.) » Join BGOV for the second of our two-part complimentary webinar series which explores in real-time how attendees can use data and tools to make informed teaming decisions that will result in more business opportunities. » In partnership with Lohfeld Consulting Group Sign up for all events at www.about.bgov.com © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 BGOV events Qualifying Your Bid Opportunities Webinar Presenter: Brad Douglas COO, Shipley Associates [email protected] 13 Why Qualify Your Bid Opportunities? 14 BD Lifecycle: Opportunity Assessment Phase Decision to assess (qualify) the opportunity 15 • Research opportunity, customer, and competition to determine win potential • Confirm alignment with capabilities and strategic direction Decide to pursue opportunity BD Lifecycle: Capture Planning Phase Decision to pursue 16 • Prepare, review, and implement capture plan to influence customer • Move from unknown to known to preferred position with customer Decide to plan proposal Bid Qualification at Key Milestones Draft RFP Customer Milestones Final RFP Proposals Due Award Proposal PostMarket Proposal Long-Term Opportunity Capture DevelopSubmittal BD Phase SegmentaPlanning Positioning Assessment Planning ment Activities tion 0 1 2 3 4 5 6 Qualification Marketing/ Preliminary Bid Proposal Final and Decision Interest Pursuit Campaign Bid Validation Submittal Offer Gates Pink Team Blue Team Color Team Reviews Red Team Green Team Black Hat White Hat Gold Team • Multiyear Key strategic Documents plan 17 • Annual • Opportun- • Capture operating ity analysis plan report plan • Marketing plan • Capture plan • Storyboards • Mockups • Story• Proposal boards revision • Mockups • Lessons learned • Final draft proposal • Contract Don’t Be Afraid to “No-Bid” Anywhere During Opportunity Qualification 18 Qualification Decision at the “Interest” Level The Interest Decision verifies that an identified opportunity fits your organization’s strategic direction and capability. 19 Qualification Questions at Early Interest Phase Category 20 Questions Opportunity Is the opportunity real and funded? Do we know the potential project owner’s perception of us? Fit Does this opportunity support our strategic, annual operating, account, or marketing plans? Positioning Does the customer know we are considering this opportunity? Are we an incumbent? If not, have we been actively calling on the prospect? Customer Mission Do we thoroughly understand the customer’s mission? Competition Do we know who potential competitors are likely to be? Can we team with a competitor if necessary? Are there alternatives to our likely solution? Pursuit Qualification Decision The Pursuit Decision analyzes customer, opportunity, and competitor intelligence to decide whether to advance to capture planning. 21 Qualification Questions at Pursuit Phase Category 22 Questions Business Case Do we have adequate business development resources to aggressively develop the opportunity? Are there acceptable profit margins or other strategic reasons for wanting to win? Does the opportunity conflict with other contracted or expected work? Decision-Makers, Issues/Hot Buttons Do we know the key decision-makers and their issues and hot buttons? Do the key decision-makers know us? Contractor Role and Responsibilities Do we have a clear understanding of our anticipated role? Are there any potential conflicts of interest for us? Competition Have we identified probable competitors? Competitive Position Do customer requirements match our competencies? Have we established a price to compete? Do we have a baseline solution aligned to the price to compete? Preliminary Bid Qualification Decision The Preliminary Bid Decision assesses win strategy, competitive position, technical solution, and price to win, determining whether to plan a proposal. 23 Qualification Questions at Preliminary Bid Phase Category 24 Questions Contract Schedule Do we have a clear understanding of the deliverables and schedule? Evaluation Process Are we sure of the evaluation process to be used? Competition Do we know the customer’s perception of competitors? Has an objective bidder comparison been completed? Subcontracting Do we have firm commitments from needed teammates? Past Performance Do we have strong, relevant past performance? Management Does our management approach provide added value? Technical Does our technical solution provide added value or discriminators? Discriminators, Themes Are our discriminators unique and important to the customer? Can the customer justify selecting us based on our discriminators and cost? Pricing to Win Has a price to win been determined, and is it acceptable to management? Opportunity Status Is the customer adhering to the expected schedule? If not, why not, and what does that tell us about the opportunity? Bid Validation Qualification Decision The Bid Validation Decision confirms your tentative plan to prepare a bid after seeing the final request for proposals. 25 Qualification Questions at Bid Validation Phase Category Questions RFP Analysis Are announced RFP terms as anticipated and still acceptable? Does the RFP show evidence of influence by competitors? Based on published evaluation criteria, can the customer justify selecting us? Solution Are technical requirements in the RFP what we anticipated? Is our technical approach verified as acceptable to the customer? Are teammate roles clearly defined and formally agreed? Are the proposal schedule, budget, outline, and compliance checklist complete? Is the proposal team identified? Has a draft executive summary been prepared? Proposal Readiness Has the price to win been updated based on the latest competitive intelligence and RFP? Is our preliminary, bottom-up cost estimate consistent with the price to win? Can the solution be profitably delivered at the price to win? Issues 26 Have all our internal issues been addressed and resolved? Last Words on Bid Qualification Advance Qualification Decisions •Secure funding •Commit staff •Track results Defer Archive decision package •Set schedule •Identify contingencies Document lessons learned End 27 •Redirect resources Best Practice: Adopt a Bid Qualification Discipline 1 2 3 4 28 • Define a bid qualification process with decision gates and reviews • Fit your process to your environment • Document roles and responsibilities • Make your bid qualification process an executive priority Contact Information: Brad Douglas [email protected] 888.772.9467 (WINS) 29 30 Q&A 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Follow us on Twitter: @BGOV © 2014 Bloomberg Finance L.P. Afzal Bari is a Senior Technology Analyst with Bloomberg Government. He spent five years as a strategy consultant at the Corporate Executive Board. Bari has passed all three levels in the Chartered Financial Analyst program. He holds an MBA from Duke University and undergraduate degrees in information technology and government. [email protected] +1 202 416 3409 @afzal_bari Kevin Brancato is a Senior Defense Analyst with Bloomberg Government. Before joining Bloomberg, he was a management scientist at the RAND Corporation, where he analyzed weapon system costs and defense manpower policies. He received a B.A. in math from Columbia University and a Ph.D. in economics from George Mason University. [email protected] +1 202 416 3385 @kevinbrancato Miguel Garrido is a Quantitative Analyst with Bloomberg Government. Before joining Bloomberg, he was an economic consultant for Edgeworth Economics, where he analyzed legal disputes and regulatory matters. Garrido graduated from Princeton University, where he majored in economics and studied political economy. [email protected] +1 202 416 3514 @MGarridoDC © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 31 ABOUT THE BGOV ANALYSTS 32 ABOUT THE BGOV ANALYSTS (CONTINUED) Jorge Uquillas is a Quantitative Analyst with Bloomberg Government. He previously worked at the Antitrust Division of the U.S. Department of Justice as an economic research analyst performing statistical, regression and geographic analysis to support antitrust investigations. He holds an MBA from the University of Chicago Booth School of Business, an M.A. in economics from The George Washington University, and a B.S. from the University of Maryland. © 2014 Bloomberg Finance L.P. [email protected] +1 202 416 3542 @UquillasDC 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Daniel Snyder is a Government Contract Specialist with Bloomberg [email protected] +1 202 416 3527 Government. He has spent five years working in procurement consulting. @DanielSnyder22 He holds an undergraduate degree in political science from Siena College and is pursuing a M.S. in government contracts at The George Washington University. ABOUT BLOOMBERG GOVERNMENT 33 Follow us on Twitter: @BGOV DISCLAIMER Copyright 2014 Bloomberg Finance L.P. Not for redistribution except by an authorized BGOV user, and only as expressly permitted in the Bloomberg Government terms of service. All permitted uses shall cite BGOV as a source. ON BGOV.COM » Major Programs Procurement Dashboard » Contracts Intelligence Tool » Awards & Opportunities Search » Bid Tracker RELATED ANALYSIS » BGOV 200 » Future Years Defense Plan » Major Defense Acquisition Programs » $22B DHS EAGLE Ready to Soar » $32B in IT Remains on Alliant Large Business » $7.6B in IT Task Orders Await on VA’s T4 » IT MAC Trends and Opportunities » $60 Billion in Opportunities Await on GSA’s OASIS » SEWP IV-V Transition Spawns Billions in IT » The Future of Big MACs © 2014 Bloomberg Finance L.P. 20 FEDERAL CONTRACT // TOP OPPORTUNITIES IN FISCAL 2015 Bloomberg Government is a comprehensive web-based service that provides rich data, analytical tools, timely news and in-depth policy analysis, for those who need to understand the business impact of federal government actions. For more information, visit www.bgov.com or call +1 877 498 3587.