Click to add the title of your presentation Breakout Sessions # 115, 215, 315, 415, 515, 615 Dr. Mike Criss, CPCM Jack Hott, CPCM, Fellow Date: July 19 & 20 2010 1 1 Monday Schedule • Session 115 (Hott) – Acquisition Strategy & Pre-Award Competencies (CMBOK chap 3 & 4) • Session 215 (Criss) – CM Introduction & CMBOK Overview (CMBOK chap 1 & 2) • Session 315 (Hott) – Contract Award Competencies (CMBOK chap 5) 2 Tuesday Schedule • Session 415 (Criss) – Specialized Knowledge Competencies (CMBOK chap 7) • Session 515 (Hott) – Post-Award Competencies (CMBOK chap 6) • Session 615 (Criss) – Unique Commercial and Federal Contracting & Exam Discussion (CMBOK chap 8-10) 3 Acquisition Strategy Competencies • • • • • • Acquisition Planning Market Research Contract Methods and Methodology Contract Types Contract Incentives Other Types of Contracts, Agreements, and Arrangements • Contract Financing • Intellectual Property 4 Acquisition Planning • • • • • • • • Description of Need Conditions & Constraints Establish Target Costs Required Capabilities or Performance Delivery or Performance Period Trade-offs Risk Plan of Action 5 Contract Methods & Methodology • • • • • • • Sealed Bidding Negotiation Simplified Acquisition Federal Supply Schedules E-Commerce Master Agreements Prequalification 6 Contract Type • • • • • • • Cost-Reimbursement Time & Materials Fixed-Price Incentives (Cost & Performance) Awards (Objective & Subjective) BOA & IDIQ I hate hybrids and letter contracts!!! 7 Contract Financing • Commercial – Loans, Line of Credit, Advance Funding, Venture Capital • Government – Progress Payments based on incurred cost, Construction Progress Payments, Milestone, Performance-Based Payments, Advances, and Loan Guarantees 8 Intellectual Property • • • • • • • • • Patent Rights Copyrights Trademark Data Rights Licensing Royalties Trade Secrets Shop Rights Nondisclosure Agreements 9 Pre-Award Competencies • • • • • Acquisition Planning Market Research Acquisition Plan Contract Methods and Methodology Contract Incentives 10 Pre-Award Competencies • • • • • Requirements Preparation Publicity Proposal Evaluation Source Selection Negotiations 11 Preparation of Requirements • • • • • • • Complexity Statement of Work Contract Type and Method Terms and Conditions Evaluation Procedures Proposal Preparation and Submission Other Considerations 12 Preparation of Requirements • Statement of Work (SOW) • Types – Design – Performance – Functional 13 Preparation of Requirements • Elements of a SOW – Objective – Scope – Description – Performance Standards – Reporting Requirements – Staffing Requirements – Resources to be Provided – Reference Documents 14 Contract Type and Method • • • • • Fixed-Priced Cost Reimbursable Fee or Profit Incentive Arrangements Risk Sharing 15 Terms and Conditions • • • • • • • Risk Sharing Reduce Ambiguity Boiler Plate Automated Systems Pick List Standard or General Terms Special Terms or Conditions 16 Evaluation Procedures • • • • • • • • Clearly State Evaluation Procedures Sealed Bidding (IFB) Negotiated (RFP) Too Few vs Too Many Factors Independent Factors Relative Importance Understanding by Offerors Follow Plan 17 Instructions for Proposal Preparation and Submission • To Ensure Uniform Submission are Received • Specific vs General • Areas to Consider – Page Count and Format – Organization of Proposal – Number of Copies – Due Date 18 Other Preparation Considerations/Requirements • Independent Technical Review • Marketplace Comments – Draft RFP • Pre-Solicitation Notices and Conferences 19 Publicity • Government Agencies – Over Certain Dollar Thresholds • Posted on Website – FEDBIZOPS – Doing Business With • Exceptions – Certain Government-Wide Contracts – Mandatory Sources – Small Business Programs – Under Thresholds • Adequate Number of Sources • Or Informal Methods 20 Publicity • Commercial Organizations – Trade Journals or other Media – May Use Government Resources – Maybe Contract Specific Language 21 Publicity • Advertisement should remain open long enough to be useful. • Amendments and Changes can also be advertised. 22 Proposal Evaluation • Typical Evaluation Considerations • Typical Evaluation Techniques 23 Typical Evaluation Considerations • • • • • Price Technical Capabilities Management Capabilities Past Performance Relative Significance of Evaluation Factors 24 Typical Evaluation Techniques • • • • Separate Evaluation of Technical Aspects Compliance Matrix Independent Evaluation Uniform Rating Scale – Numeric Scales – Color Schemes – Adjectival Scales • Compare Results and Reach Consensus 25 Source Selection • Organization and Process • Organization – Page 39 • Process – Page 40 26 Negotiations • • • • Preparation Negotiation Team Negotiation Objectives Negotiation Guidelines 27 Negotiations • Strategies and Tactics – Cooperative – Competitive – Time Restricted – Deadlock 28 Negotiations • The Negotiation – Fact–Finding – Location – General Introductions – Agenda – Use of Question and Answer – Start Easy 29 Negotiations • Agreement – Negotiation Document • • • • • • Description of Supplies or Services Solicitation or Proposal Number Parties Involved History Negotiations Objectives Negotiation Summary – – – – Concessions Major Items discussed and outcomes Use and reliance on data Copy of agreed-to final position 30 Introduction • What is a Contract – Offer and Acceptance – Legal Purpose – Competent Parties – Adequate Consideration – Requirements for Writing or Form – Rescission – Bilateral vs. Unilateral – Express vs. Implied 31 Introduction • What is Contract Management? • A Process of Managing: – Deliverables – Deadlines – Contract Terms – Ensuring Customer Satisfaction 32 Introduction • Ethics • Professional Certification – Bachelor’s Degree – Five Years Experience – 120 Hours of Continuing Education – Pass Examination • Must have approved application on file to sit for the exam 33 Introduction • Contract Life Cycle – Acquisition Planning – Pre-Award – Award – Post-Award 34 Introduction • Stakeholders and Organizational Influences – Many Stakeholders • Principle and Secondary – Internal and External Organizational Influences • Managers • Marketplace • Technology 35 Introduction • Competencies – Business • • • • Marketing Management Operations Accounting – Contracting • Ethics • Laws and Regulations • Standards of Conduct 36 Contract Award Competencies • Preparation of Contract Document • Award • Notification 37 Contract Award Competencies • Award – Preparation of the Contract Document – Contract File – Post-Award Conference • Notification 38 Award • Preparation of the Contract Document – Form • UCF, UCC, Other – Capture Agreement – Reduce Ambiguities – Attachments 39 Award • Contract File – Completeness • Record of – – – – – Pre-Solicitation Activities Solicitation Evaluation Award Process Close Out Administration – Include Appropriate Documents – Proper Review of File 40 Award • Post-Award Conference – Consider Complexity of Contract – Not a Meeting to Fix Problems – Confirm Understanding and Begin Performance – Consider Attendees 41 Notification • Prompt Notification of Successful Offeror • Notification to Unsuccessful Offerors • Publicity Requirements 42 Specialized Knowledge Competencies • • • • • R&D A&E and Construction IT Service Contacts Contract with State and Local Governments • Supply Chain Management • International Contracting 43 Research and Development • Future looking and uncertain requirements • Difficult to define scope see page 58 • Widely Publicized • Not Suited for FFP • Solicitations Given only to Qualified Firms • Evaluation Criteria see page 59 • Awarded on the Basis of Technical Approach or Innovation 44 A&E and Construction • A&E – Professional Services – Modified Evaluation Approach – Selected Based on Most Qualified • Construction – Uses Sealed Bidding and Negotiation – Special FAR Part and takes Precedence 45 Information Technology • Risk due to pace of change • Use of modular contracting – Braking requirements into smaller packages to minimize risk 46 Service Contracts • • • • • Special FAR Part Walsh Healy Service Contract Act Wage Determinations Performance Based Contracting 47 State and Local Governments • Varies by State and Municipality • Can be closer to Commercial • See page 62 48 Supply Chain Management • Evolutionary Process • Lower Total Installed Cost – Reduce Number of Suppliers – Negotiate Long-Term Contracts – Rigorous Inspection of Supplier Base – Continuous Improvement 49 International Contracting • Buy America and Trade Agreements Act – Sensitive to Foreign Content • • • • • • • • • • Language Location Different Meaning and Commercial Terms Currency Differences More Third Party Involvement Social Customs Different Processes Legal Processes Tax Implications Export Issues and Political Climate 50 Post-award Competencies • • • • • • • • Contract Administration Subcontract Administration Changes and Modifications Property Transportation Disputes Termination Contract Closeout 51 Contract Administration • Depth of Post-Award Administration Impacted by Many Factors – Contract Type – Value – Financing – Quality of SOW/Specifications – Profitability – Expectations of the Parties 52 Contract Administration (con’t) • • • • • • Effective Communication Post-Award Meeting Period Status Review Meetings Written Status Reports Observation Documentation 53 Subcontract Administration • • • • • • Risk Associated with Outsourcing Client Oversight of Outsourcing Win Strategy Impact on Outsourcing The Privity Conundrum Subcontractor Claims Flowdown of Requirements & Clauses 54 Changes and Modifications • Directed – Who can direct – What can be directed • Constructive – Action or inaction that results in a change not through contract change provisions/clauses • Cardinal – Out of Scope – Breach of Contract • Force Majeure – Acts of God – Excusable Delay 55 Changes and Modifications • Prompt Notification of Apparent Noncompliance • Early Identification of Changes • Agreement of Authority to Affect Change • Agreement on Estimating Processes • Written Concurrence 56 Property • • • • Ownership Accountability Competitive Advantage Property Administration 57 Transportation • • • • Required Receipt Dates Mode of Transportation Transportation Related Services Responsibility for Transportation Charges 58 Disputes • • • • • Contractual Remedies Informal Collaboration Negotiation Alternative Dispute Resolution (ADR) Resolution Through Available Legal Means 59 Termination • • • • Termination for Default (T4D) Termination for Convenience (T4C) Termination by Mutual Consent No-Cost Termination/Cancellation 60 Contract Closeout • Required goods or services have been received and accepted (Physical Completion) • Property disposition • Classified data disposition • Outstanding claims and issues settled • Invoices received and paid • Final Invoice and release • Formal notice of administrative closeout executed • Excess funds deobligated 61 Unique Commercial Contracting Competencies • Agency • Authority • Uniform Commercial Code 62 Unique federal Contracting Competencies • • • • Statues and Regulations Role of FAR Ratification Unique Practices – Pre-Award – Award – Post-Award • Mistakes and Protests • Socioeconomic Programs 63 Anatomy of a MultipleChoice Question • Stem – Read the FULL statement to understand what the question is asking • Key – The correct answer • Distracters – Plausible answers to those who cannot ascertain the correct answer 64 Test Time! • Discussion? • Questions? 65 66