17 March 2010
Space and Naval Warfare Systems
Center Atlantic
Multiple Award Contracts
Steve Harnig
Contracts Division 2255
1
BACKGROUND
▼ Sect. 843 of the National Defense Authorization Act FY08
 Enhanced competition requirements for task and delivery order
contracts (IDIQs)
 Prohibits award of single source IDIQs with limited exceptions
− Approval thresholds – $10M and below require CCO approval
− $10M to $100M require HCA approval
− Greater than $100M require ASN approval
▼ Increase speed to capability with quick response IDIQ
vehicles
2
CURRENT MACS IN SPAWAR ATLANTIC
▼ PBX Routers and Switches (8(a) set-aside; 9 awardees)
▼ Program Management/Engineering Services (8(a) set-
aside; 33 awardees)
▼ Network Centric Services (unrestricted; 2 awardees)
▼ Satellite Communications Equipment (SB set-aside; 8
awardees)
▼ Portable SATCOM Terminals (unrestricted; 7 awardees)
▼ Automated Fuel Handling (unrestricted; 3 awardees)
▼ Radio Telephone Equipment (8(a) set-aside; 4 awardees)
3
MACS IN PROGRESS AT SPAWAR ATLANTIC
▼ N65236-06-R-0832 – Telephony
▼ N65236-08-R-0016 – ISEA Support Services
▼ N65236-08-R-0027 – Automated Fuel Handling Services
▼ N65236-09-R-0012 – Joint Basing and Technology
Transition Support
▼ N65236-09-R-0019 – AV Hardware
▼ N65236-10-R-0002 – C4ISR/IT Support for Multiple AORs
▼ Command-Wide Supply MACs
 N65236-08-R-0070 – Intelligence, Surveillance, and
Reconnaissance (ISR)
 N65236-08-R-0077 – Command and Control (C2)
 N65236-08-R-0098 – Communications Equipment
4
LESSONS LEARNED/AREAS FOR IMPROVEMENT
▼ Contracts Department conducted a Lean Six Sigma Event
to address following areas identified on current MACs as
possible improvements:
 Use of Statement of Objectives (SOO)
 Source Selection Plan and Evaluation Matrix
 Exemption to Fair Opportunity and Brand Name Justification
 Solicitation
 Discussions and Clarifications
 Business Clearance Memo and Source Selection Memo
5
LESSONS LEARNED/AREAS FOR IMPROVEMENT
▼ Use of Statement of Objectives (SOO)
 Goals = Standard Format, Improved Description of Objectives
 Better SOOs will result in better competition on each MAC order
 SOO should result in well written Performance Work Statement
▼ Source Selection Plan and Evaluation Matrix
 Goals = Standard Template for SSPs, Standard Method of
Evaluation
 Standardization will result in better competition and enhance
understanding of how we evaluate proposals
 Consistent use of SSPs and Evaluation methodology will ensure
quality source selections
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LESSONS LEARNED/AREAS FOR IMPROVEMENT
▼ Exemption to Fair Opportunity and Brand Name
Justification
 Goals = Template for Exemption and Justification
 Template will ensure that each exemption or justification is
adequately documented
 Standardization will enhance understanding of the process
▼ Solicitation
 Goals = Standard format for solicitations
 Standardization will improve quality of proposals (consistent)
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LESSONS LEARNED/AREAS FOR IMPROVEMENT
▼ Discussions and Clarifications
 Goals: Create a standard process for conducting discussions or
clarifications
 Standard process will improve quality of competition and ensure
quality source selection decisions
▼ Business Clearance Memo and Source Selection Memo
 Goals: Templates for each memo
 Standardization will improve the quality of each memo and ensure
that business decision are properly documented
8
LESSONS LEARNED/AREAS FOR IMPROVEMENT
▼ Each team has completed the initial improvement event
▼ Goal is to roll out improvements this quarter
▼ Continuous process improvement on all MACs
 Growth area since this contract type is mandated
9
Best Practices from Current MACs
▼ Industry Days on new, large MACs
 Enhance understanding of requirements and improve competition
▼ Periodic (Quarterly) Contract Reviews
 Meet with each MAC holder
 Discuss issues (what is working, what can be improved)
▼ Open Communication
 In addition to periodic reviews, government and industry partner to
make the MAC mutually beneficial for each program
 Share ideas for improvements, ensure optimum competition on
orders
▼ Definitive Contracts
 Identify requirements that can be awarded on contracts other than
IDIQs
10
Best Practices from Current MACs
▼ Multiple Award Approach
 RFPs may include language limiting anticipated number of
awardees
 Use E-Commerce for task order competitions
▼ Contract Ceilings
 Set ceilings on each MAC award in aggregate amount for all
orders placed under the MAC
− Example: $250M MAC award to 3 awardees. All 3 contract
awards will reflect a ceiling of $250M; however, this amount is
shared across all 3 awardees. Through task order
competition, the total value of awards made under the MAC
cannot exceed $250M.
11
Leading Contract Professionals
▼ Challenges
 High workload
 Contracting is an art
 Constant change in policy and procedures
 Contracts are the end of the acquisition process
 Contract award lacks sense of accomplishment
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Leading Contract Professionals
▼ High Workload
 Despite Economic Conditions – DOD spending continues at a high
pace
 Due to lack of contracting knowledge in technical teams, work is
difficult and requires flexibility
 Balance of pre and post award actions
▼ What can a leader do?
 Develop leaders in the acquisition process
− Empowered accountability
13
Leading Contract Professionals
▼ Contracting is an art
 The more complex the action, the less standardized the process
 No acquisition is exactly the same as another
 Acquisitions are done through teams, teams are made of
individuals, individuals introduce variation
▼ What can a leader do?
 Create processes and train professionals to think within the
process (not rely on the process completely)
 Enhance training with real-life examples
− Concentrate on unique issues experienced
 Develop teaming skills/facilitation skills/leadership skills to work
more effectively in team setting
14
Leading Contract Professionals
▼ Constant change in policy and procedures
 Maintain balance with policy changes and workload
 Working in constant change may feel like chaos
▼ What can a leader do?
 Leverage strengths on team (some people are good with policy)
 Monitor amount of change on your team
− Learning zone versus chaos zone
 Centralize concerns with policy
− Leader needs to consolidate concerns and determine proper
implementation of policy
15
Leading Contract Professionals
▼ Contracts are the end of the acquisition process
 Lead time has been used by the time it gets to Contracts
− Pressure from customers
− Deadlines are unrealistic
▼ What can a leader do?
 Support your team and your leaders
− Establish where concerns are directed
− Ensure your leaders know how to use you
 Insist on realistic milestones in the acquisition process
− Have to engage early and often
− Manage expectations
 Educate customers
16
Leading Contract Professionals
▼ Contract award lacks sense of accomplishment
 Workload forces professionals to move immediately to the next
task
 Contract is on paper (rarely a masterpiece)
▼ What can a leader do?
 Create the sense of accomplishment
 Use goals (i.e., quarterly awards)
 Celebrate accomplishments (publicly)
 Educate employees on the larger goals and how they impact them
− Success towards large goals
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