DHA Industry Day
WELCOME
COL Scott A. Svabek
Acting Director of Procurement
Defense Health Agency
February 17, 2015
“Medically Ready Force…Ready Medical Force”
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Agenda
Topic
Registration
Be Seated
Adminstrative Remarks
Opening Remarks
AbilityOne Information Brief
DHA DHITS IPT Members
DHA Strategic Sourcing Approach &
Current Status
Review of Industry RFI Questions & DHA
Responses
Review of RFI Survey of Industry
Review of Industry Submitted
Recommendations & White Papers
Draft Structure of DHITS Generation 1
- ID/IQ Attributes
- Past Performance
- High Level Objectives Breakdown
- Hardware & Software Requirements
- Teaming Policy
- Vendor Pools
- Small Business Goals
Final RFI Industry Survey
General Questions & Answer Session
Way Ahead and Closing Remarks
Presenter
Mr. Eric Thaxton, Deputy Director of Procurement
COL Scott Svabek, Acting Director of Procurement, DHA
COL Scott Svabek
COL Scott Svabek
Time
7:00 - 8:00
8:00 - 8:15
8:15 - 8:30
8:30 - 8:45
8:45 - 9:00
9:00 - 9:15
COL Scott Svabek
9:15 - 9:30
COL Scott Svabek & DHA Team
9:30 - 10:30
Break
10:30 - 10:45
Mr. Rich Morvatz, CAE, DHA
10:45 - 11:15
COL Scott Svabek
11:15 - 12:00
Lunch
COL Scott Svabek
12:00 - 1:00
1:00 - 2:30
Break
COL Scott Svabek
COL Scott Svabek & DHA Team
COL Scott Svabek
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2:30 2:45 3:00 3:30 -
2:45
3:00
3:30
4:00
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DHA Industry Day
Mr. Eric Thaxton
Administrative Remarks
February 17, 2015
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Administrative
Announcements
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Registration Sign-in Sheet – be sure to sign in
Emergency Exits and Restrooms
Please hold all questions until you have a microphone.
Please do not record or photograph during this event
Please silence your electronics devices
Both the government and industry partners will communicate
with honesty, integrity, and mutual respect
 Slides, questions, and answers will be available on FedBizOpps
 Please complete Feedback Survey Form—located on FedBizOpps
as attachment to industry day announcement
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Notice
∎ Requirements are going into procurement
Reduced Industry interaction, will cease when final RFP is
released for this requirement.
∎ Final RFI Survey through Survey Monkey will solidify
our market research
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DHA Industry Day
COL Scott Svabek
Opening Remarks
February 17, 2015
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The “Why”
The “Why Not…”
Goal for Today
Partner with Industry to Develop the Optimal Procurement
Vehicle Supporting DHA Health IT By:
 Develop an agile vehicle that provides quicker
evaluation/award times to already vetted companies
 Access to Innovation quickly
 Grow together using lessons learned and better processes
 Looking to Industry Partners to provide input/feedback
to help shape an optimal and responsive contract vehicle
 Prepare Industry for final RFI Survey and end of current
market research
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Goal for Today
Partner with Industry to Develop the Optimal Procurement
Vehicle Supporting DHA Health IT By:
 Get final Industry input into the market research
 Offer final survey to complete this phase
 Ensure the Government has heard all of industry,
allowing all to respond via Survey Monkey.
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DHA Industry Day
DHA DHITS IPT
Members
February 17, 2015
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DHITS Generation I
IPT Members
∎ 35+ IPT Members with wide range of experience and representing
all appropriate DHA Directorates
∎ Combined 300-500+ years of IT Acquisition and Contracting
experience
∎ DHA Representatives from:
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Component Acquisition Executive (CAE)
Procurement
Office of Small Business Programs
Office of General Counsel
National Capital Region (NCR) Medical Directorate
Service Chief Information Officers (CIOs)
Health Information Technology Directorate
 All 8 Divisions/PEO Offices of the DHA HIT represented
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DHITS Generation I
IPT Members
DSIDDOMS4 IPT Members
Name
Office / Title / Role
Joe Mirrow
DHA – Component Acquisition Executive (CAE) Program Manager
Sarah Davis
DHA – Contracting Officer - Procuring Contracting Officer
COL Scott Svabek
DHA – Director of Procurement - Head of Contracting Activity
Eric Thaxton
DHA – Deputy Director of Procurement
Rich Morvatz
DHA – Component Acquisition Executive (CAE)
Suzanne Curtis
DHA – Procurement Support – Chief of Staff
Stacy Lear
DHA – Procurement Directorate - Acquisition Manager
Matt Minnier
DHA – Procurement Directorate - Acquisition Manager
Tim Haight
DHA – Office of General Counsel
Cassandra Martin
DHA – Office of Small Business Programs, Director
LT William Walders
DHA NCR – Medical Directorate
Terrance Branch
DHA NCR – Medical Directorate
Jin Wang
DHA NCR – Medical Directorate
Sean McCloskey
DHA NCR – Medical Directorate
Leonard Williams
DHA – NAVY CIO Representative
Chester Damian
Army MEDCOM Representative
Fernando Echon
DHA HIT– Infrastructure & Operations, Security Ops, Air Force CIO Representative
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DHITS Generation I
IPT Members
DSIDDOMS4 IPT Members
Name
Office / Title / Role
Tim Larson
Dan Magee
Mr. Joe McMullin
Keely Hicks
Greg Ruby
Charles Raney
Wayne Speaks
William Novak
Jennifer Pereira
Bruce Tate
Marvin Baker
Mark Goodge
Rolando Estrada
Jake Jacobs
Frank Rowland
Steven McAdams
MAJ George Delaney
Bob Rhodes
Bryan Burrell
Verlin Hardin
DHA HIT – Representative, Defense Health Services Systems - Resource Manager
DHA HIT – PEO, Defense Health Services Systems
DHA HIT – Defense Health Clinical Systems - Resource Manager
DHA HIT – Defense Health Clinical Systems, Acquisition
DHA HIT – Defense Health Clinical Systems
DHA HIT – Defense Health Clinical Systems - Testing Director
DHA HIT – Infrastructure & Operations - Operations and Sustainment (O&S) Branch Chief
DHA HIT – Infrastructure & Operations - O&S Chief of Operations
DHA HIT – Infrastructure & Operations - Support Services Branch Chief
DHA HIT – Infrastructure & Operations, Development Test & Evaluation Section Chief
DHA HIT – Infrastructure & Operations - O&S Branch, Enterprise Management Section Chief
DHA HIT – Innovation & Advanced Technology - Deputy Director
DHA HIT – Innovation & Advanced Technology - Business Operations Section (Portfolio)
DHA HIT – Innovation & Advanced Technology - Strategy/Planning Branch Chief
DHA HIT – Cyber Security Division - Deputy Director
DHA HIT – Portfolio Management, Enterprise Architecture Branch
DHA HIT – Portfolio Management, Enterprise Architecture Chief of Operations
DHA HIT – Solutions Delivery Division, Chief of Operations
DHA HIT – Information Delivery Division
DHA HIT – Director, Office of EHR Transition Management
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DHA Industry Day
DHITS Strategic Sourcing Approach
February 17, 2015
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Strategic Sourcing Framework
We are here
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Strategic Sourcing – Leading
Commercial Practices
∎ GAO-13-417-Leading Commercial Practices Can Help Federal
Agencies Increase Savings When Acquiring Services
Complexity:
difficulty in defining
performance
requirements
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Industry Engagement &
Market Research
 Conducted 3 Industry Days (22 Feb & 10 July ‘14, 17 Feb ’15)
 9 Months of Industry Meetings, Presentations,
Discussions, Recommendations, & White Papers
 3 RFI Surveys to Industry (+1 Final Survey Pending)
 Initial Draft RFP Issued (10 July ‘14)
 Numerous Industry RFP Questions Answered
 Spend Analysis
 Contracts and Sourcing Analysis
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DHA HITS Milestone Chart
= Milestone
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High Level Objectives
Section C of the RFP
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DHA Industry Day
Review of
Industry Questions &
DHA Responses
February 17, 2015
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Industry Questions
∎ Will the Government allow firms to participate as a prime contractor on
both the DSIDDOMS IV and TEAMS IDIQ contracts? Given that DHA now
spans 35 program offices and includes support to the Services and MTFs,
there are program offices and entities that do not have insight into the
acquisition activities of one another. As such, TEAMS prime vendors
working in one area of DHA would not have insight into the program
management efforts of another. An OCI mitigation plan at the task order
level would be an effective means for contractors to build a firewall and
prevent either real or perceived OCI events from occurring.
 Answer: OCI Issues will be handled in accordance with the FAR
and at the Task Order level.*
* Answers in blue font have been revised and/or updated.
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Industry Questions
∎ How many large business DSIDDOMS IV awards does the
Government intend to make?
Answer: There no set determined number of awardees for
the DHITS Generation 1
∎ What NAICS will the Government use to determine the
threshold for small businesses?
 Answer: Currently considering 3 NAICS Codes:
 541511 NAICS = Custom Computer Programming Services
 541512 NAICS = Computer Systems Design Services
 541513 NAICS = Computer Facilities Management Services
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Industry Questions
∎ Will there be tracks for SDVOSB, HUBZone, WomenOwned Small Businesses, etc?
Answer: The government plans to award to enough
industry partners within all socio-economic programs for
ample competition within those programs.
∎ Does the Government intend to require DSIDDOMS
IV awardees to respond to a certain percentage of
Task Order Proposal Requests?
Answer: Yes, percentages are being considered.
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Industry Questions
∎ What is the anticipated timeframe the Government
will give prime DSIDDOM IV vendors to respond to
Task Order Proposal Requests? What does Industry
want as the minimum days to list the Task Order
Proposal? What does Industry want to see in a
TOPR?
Answer: The Government intends to meet a goal of never
exceeding 30 days depending on the complexity of the task
order. (But again this vehicle is for all Services and the
DHA). Refined response later in today’s brief.
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Industry Questions
∎ What is the list of Program Offices beyond the DHA
Health Information Technology (HIT) Directorate that
intend to use DSIDDOMS IV?
Answer: The Government anticipates that any DoD entity
that is performing healthcare IT can use this contract. We
are also looking at opening it up for the VA.
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Industry Questions
∎ Will the Government make awards to prime vendors
in all task areas or only in specific task areas?
Answer: The Government is soliciting industry feedback as
to the best method to make specific awards for specific
task areas or NAICS codes. Refined response later in
today’s brief.
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Industry Questions
∎ Will the D4 contract include all tasks areas as it did in
D3?
Answer: The Government anticipates at a minimum the
new vehicle will contain all the tasks but is considering
adding tasks if necessary. Industry responses are
encouraged. Refined response later in today’s brief.
∎ What is the timing for release?
Answer: Although there is an immediate need for a DHA
contracting vehicle, it is more important that the right
vehicle be put into place. A late FY15 award is the goal.
See revised Milestone Chart.
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Industry Questions
∎ What is DHA’s position with regard to mobile
technology innovation around Task Area 8?
Answer: Mobile and other technology will evolve over
the course of this contract so this contract must be flexible
to support it as appropriate with DOD Security polices,
procedures, and guidelines.
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Industry Questions
∎ Please discuss the D/SIDDOMS replacement in the
context of the overall DHA IDIQ portfolio.
Answer: The scope of this contract is for everything IT
Services. TEAMS, TAARMS and DHMSM have their own
varied scopes. It is DHA’s intent at this time to award as
many IT Services under this vehicle as appropriate.
∎ Please provide details on the anticipated small
business requirements.
 Answer: This is available in the draft RFP. Refined answer
later in the brief.
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Industry Questions
∎ What key personnel requirements can we anticipate
for the IDIQ level procurement?
Answer: It is the intent of the Government to have the
offeror propose key personnel and their positions. Key
Personnel will be identified at the Task Order Level
∎ Will there be sample tasks orders and/or awardable
task orders as part of the solicitation?
Answer: The Government is currently discussing this
option. No, the government does not intend to issue
sample Task Orders as part of the RFP.
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Industry Questions
∎ Will there be separate procurement tracks for large
and small business organizations?
Answer: This has not been determined yet – but we are
leaning that way and industry comments are requested.
Refined answer later in today’s brief.
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Industry Questions
∎ Explain the procurement approaches for task orders.
E.g. will past performance be required, pre-release
forecasts, response periods, etc.
Answer: Past performance is always required. For
example, after the contract is awarded the plan is to
measure past performance within the IDIQ. Refined
answer later in today’s brief.
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Industry Questions
∎ How will the DHA use internal IDIQ vehicles vs.
external support such as GSA and NITAAC?
Answer: It is the intent of this contract that it be used as
much as appropriate; however, DHA is considering a
mandatory source and the Services will/may use it as a
preferred source. The DHA Business Case Analysis
supports this determination.
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Industry Questions
∎ Validate that vendors will be permitted to modify
teaming partners after award.
Answer: This question is currently being researched;
however, just like key personnel, it is anticipated that
changing out teaming partners could be approved by the
Government. Refined answer later in today’s brief.
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Industry Questions
∎ Explain the relationship between the DHA
procurement office and the ordering program during
the acquisition process.
Answer: This will be explained in the final RFP; however,
industry comments are welcome. The Ordering Program is
the customer and the Procurement Office is the conduit to
industry to provide solutions to our customers.
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Industry Questions
∎ Explain the government’s plan for re-competing the
current active D/SIDDOMS III task orders. For
example, will they be tasks orders on the RFP,
competed on other vehicles in the short term, or
extended to allow for recomplete under D/SIDDOMS
III replacement contract.
Answer: Basically yes, however the contracting office
responsible for the requirement will make this decision.
DHA Procurement looks at all viable vehicles to meet
customer requirements while DHITS Gen 1 goes through
the Acquisition Process.
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Industry Questions
∎ Will Government require offerors to respond to all
ten task areas to be considered for an award.
Answer: We seek Industry input into the Government
analysis. Refined answer later in today’s brief.
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Industry Questions
∎ The 10 task areas are similar to CIOSP3 subtasks. We
recommend the government also use the CIOSP3
subtasks descriptions as appropriate to reduce
vendor proposal preparation costs.
Answer: Government is researching this process and the
determination of how to incorporate sub task areas.
Refined answer later in today’s brief. We have mapped our
Requirements to appropriate NAICS codes.
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Industry Questions
∎ Can the government provide an estimate on the
number of awardees?
Answer: No. There is no magic number. The number of
awardees will be based on a clear delineation of
unsuccessful and successful offerors in accordance with
the Source Selection Plan.
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Industry Questions
Task Area 1 – Information Technology (IT) Services in
Biomedical Research, Health Sciences
∎ The skill sets required to perform these tasks require
some specialized labor categories for PhD and MD
level scientists. What is the government plan to
include this level of skill set and labor categories in
the contract
Answer: The Government is still collecting Market
Research for final RFP. We have mapped many of the
Professional and Technical labor categories to the Bureau
of Labor Statistics definitions.
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Industry Questions
Task Area 2 – Chief Information Officer (CIO)
∎ This task area may overlap the TRICARE Evaluation,
Analysis, Management, and Support (TEAMS) and
TRICARE – Acquisition, Automation, and Resource
Management Support (T/AARMS) contracts. Will the
government re-compete the TEAMS contract or will
this task area be used?
Answer: TEAMS will be re-competed and this issue will be
de-conflicted. DHA is conducting market research and BCA
for DHA-like TEAMS replacement ID/IQ. We are also
addressing OCI at the Task Order level.
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Industry Questions
Task Area 4 – Outsourcing
∎ Please clarify the scope of Task area 4 vs. task area 5.
They both involve IT operations.
Answer: See High Level Objectives (HLOs).
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Industry Questions
Task Area 4 – Outsourcing
∎ Can the DHA contracts office encourage programs to
write requirements that allow off-site delivery at other
CONUS locations to leverage mature services at lower rate
Answer: Depending on the nature of a particular delivery order, we
would not necessarily restrict the work to be performed to a
particular CONUS location, but in some instances the work would
need to be performed in a specific area or even at a specific
location. Regardless of the location, the vendor's proposed
solutions must be complaint with DOD DIACAP security
regulations.
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Industry Questions
Task Area 6 – Integration Services
∎ Will the contract allow for early lifecycle pilots,
proofs of concepts that were previously competed
on
Answer: This requirement will not execute grants or
cooperative agreements; all other acquisitions for IT
should be capable of being supported by this vehicle
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Industry Questions
Task Area 10 – Software Development
∎ Please specify which DHA standards will be required.
(e.g. Enterprise architectures, development
methodologies, approved products, etc.)
Answer: The standards are still being defined. Specific
standards, if needed, will be defined at the Task Order
level.
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BREAK
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Review of RFI
Survey Results
Mr. Rich Morvatz
DHA/OCAE
February 17, 2015
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RFI Survey Background
 Request for Information (RFI) Posted to FedBiz Ops on 19 Jun 2014
 Focus to gauge Industry interest/capability to meet DHA HITS
requirements
 Survey sought:
 NAICS information
 Federal Agency Experience
 Industry experience in DHA defined “Business Areas”
 Small Business capability
 Industry Approach to Organizational Conflict of Interest
 IV&V capability
 Data collected/analyzed on 2 July 2014 and 11 Feb 2015
 178 total responses, 85 complete (62 SB, 22 LB, 1 Unknown)
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Large Business NAICS Breakout
20
19
19
18
18
17
16
14
12
12
N=21
10
(Avg 3.8
NAICS per
respondent)
8
6
4
2
3
1
0
443142 Electronic Strore
511210 Software
Publishers
518210 - Data
541512 Processing,
Computer
Hosting and Systems Design
Related Services
Services
541511 Customer
Computer
Programming
Services
541513 541519 - Other
Computer
Computer
Facilities
Related Services
Management
Services
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Small Business NAICS Breakout
60
51
53
51
50
38
40
N=62
30
20
(Avg 3.1
NAICS per
respondent)
17
11
10
2
0
443142 Electronic
Strore
511210 Software
Publishers
518210 - Data
541512 541511 Processing,
Computer
Customer
Hosting and Systems Design Computer
Related
Services
Programming
Services
Services
541513 541519 - Other
Computer
Computer
Facilities
Related
Management
Services
Services
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Reported Small Business
Designation
35
33
30
25
23
21
20
15
14
13
10
7
5
0
Service Disabled
Veteran Owned
(SDVOB)
HUBZone
Woman Owned
Small
Small Business Disadvantaged
(WOSB)
Business (SDB)
8(a)
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How does your company manage
organizational conflict of interest?
Method
Percent Respondents
Corporate firewalls
41.38%
36
Internal "no-bid" policies where OCI may be an issue
60.92%
53
Case-by-case basis
60.92%
53
Remove prime/subcontractor relationships if OCI is
apparent
50.57%
44
Our government contracts specify categories of work
that eliminate OCI between vendor pools
17.24%
15
We have no organizational conflict of interest issues
32.18%
28
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Business Areas by Business Size
Business Area
HLO
Large
Small
IT Services in Biomedical Research, Health Sciences
3
19
56
Chief Information Officer (CIO) Support
1
20
51
Imaging
4
19
39
IT Infrastructure and Services
2
22
58
IT Operations and Maintenance
1
21
56
Integration Services
3
20
55
Critical Infrastructure Protection and Information
Assurance
4
19
47
Digital Government
5
20
51
Enterprise Resource Planning
1
16
42
Software Development
7
21
51
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Does your company provide IV&V
Services?
No
32%
Yes
68%
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Does your company require
partnerships with other companies?
Yes
23%
No
77%
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How does your company assure independence
of IV&V services (Avoid conflict of interest)?
100.0%
85.3%
80.0%
67.4%
60.0%
40.0%
20.0%
5.3%
0.0%
This is our only product line
Careful screening of each potential job
to ensure independence
Written validation (affidavits) of
independence of prime and
subcontractors
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Have you performed IV&V on DoD
systems?
No
43%
Yes
57%
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Federal Experience/Contracts










Large
Small
Department of Defense
15
14
Veterans Affairs
13
6
Other Federal Agencies
29
25+
Prime contractor for Pension Benefit Guaranty Corporation for the development of a new Benefit Calculation
and Valuation System
Strategic Planning
FDIC Enterprise Information Management
CATS - A&AS Support to AFMS operations
Department of Homeland Security U.S. Immigration and Customs Enforcement ICE Electronic Health Record
(EHR) System: Training development, classroom training and computer based training in support of EHR
implementation at 22 healthcare facilities
CNATRA Enterprise Operations Support Services
Online Public Access system for NARA
CBRNE and emergency management program policy development
Enterprise Computing Support Services for Sandia National Laboratories
Defense Information Systems Agency IT Support, System Administration, Help Desk
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RFI Survey Summary
 Similar proportions of Large and Small Business
 Significant experience in DHA business or
functional areas
 Wide variety of approaches to OCI, but smallest
% is former D/SIDDOMS approach
 Currently compiling and organizing materials
delivered during industry meetings with COL
Beavers.
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DHA Industry Day
Review
of Industry Submitted
White Papers
February 17, 2015
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What Our Plan is Looking Like…
∎ The following slides show Industry’s comments and
suggestions first, followed by DHA’s currently
planned way ahead.
∎ Note: DHA HITS is just finishing the market research
phase of this requirement. All of the answers below
are what is known at this time. The Government
reserves the right to change, alter or not proceed as
shown.
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Categories
∎ OCI
∎ On and Off Ramps
∎ Gates (Jacks or Better, Hunting License)
Technical Evaluation
Teaming
∎ Other suggestions/comments
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What Industry has said……..
∎ OCIs
 TMA/ DHA had OCI policies/ categories:
 Internal Support (T/AARMS) Category 1
 Program Management (TEAMS) Category 2
 Product Support (D/SIDDOMS III) Category 3
 Industry says:
 Inflexible
 Non-avoidance of OCI issues
 Constrains vendors to a single category
 Limits competition and innovation
 More opportunities for “unknown” conflict
 Does not provide “Best of Breed” solutions”
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What DHA is planning to do…for OCI
∎ Revised Policy on OCI (No specific lane for Cat 1,2,3)
∎ Categories no longer used
∎ OCI mitigation and determination will occur at the
Task Order level
∎ Revised Local clause and provisions at the contract
level
∎ Greater due diligence from the PM office and
industry
∎ OCI mitigation plan submitted to the CO for final
determination at the TO level
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What Industry has said……..On/Off
Ramps
∎ On/Off Ramps
 Broadly written
 Vendors lose interest when it doesn’t happen
 Suggested processes:




Based on annual CPARS (performance at task order level)
Ability to meet subcontracting goals
Recertification by SB at 5 year mark
Annual survey of government SMEs for needed capabilities,
tools, etc.
 Inadequate competition (2 or more bids in XX% of orders)
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What DHA is planning to do…for
On/Off Ramps
∎ On-Ramp
 Based on new technologies needed
 Inadequate competition
 Changes in SB status leaves “hole” in SB competitions
∎ Off-Ramp
 Contractor not bidding (less than XX offers per year)
 Unmet Small Business goals
 Poor performance
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DHA’s Plan ….. On/Off Ramps
∎ On-ramp as required to ensure we have competitive
contract holders that meet the needs of our
customers.
∎ Inadequate competition does not only mean a low
number of bids, it will also mean a low number of
acceptable bids (i.e. make the competitive range).
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DHA’s Plan ….. On/Off Ramps
∎ Off-ramp for:
Poor performance
Ability to meet subcontracting goals. All contracts (even
SBs) will have subcontracting goals in their contracts. In
the event they become large, the company will submit a
subcontracting plan. If it is acceptable, they stay viable
under the unrestricted.
Inadequate competition – based on number of bids and
acceptability of bids.
Due to infancy of DHA, will not sign up for timeframe.
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Industry Says …….. Gates
∎ Gates
 Three courses of action:
 Limit awardee pool to set number
 Award to bidders that can provide capabilities and have
recent and relevant good past performance with reasonable
prices – real competition at task order level
 Develop selection criteria – higher competition at the
contract level to truly “vet” bidders.
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Industry Says …….. Gates
∎ Gates
Develop more pools or lots focused on business size
 Large
 Small Business
▻8(a)
▻SDVOSB
▻VOSB
▻WOSB
▻HUBZone
 Functional Area Pools
 Allow proposals for selected tasks rather than all tasks.
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Industry Says …….. Gates
∎ Gates
Develop clear criteria based on technical capability in each
task with proven past performance





Corporate Experience
Past Performance
Program Management
Small Business Participation
Price
Use team-based past performance versus prime-based
Have minimum number of tasks rather than all tasks
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Industry Says …….. Gates
∎ Use a two-step process with scoring so offerors know
where they stand.
∎ Ensure that NAICS code on small business does not
discourage small business from competing.
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DHA’s Plan …… Gates
∎ Limiting the pool has not been decided. However,
there will be certifications to attain “jacks or better”
∎ required such as:
CMMI Level 2 or higher
ISO 9003, 10004 and 27001
ITIL Foundation and ITIL V3
Facility Clearances (Secret or Higher)
Helpdesk/Service Desk Institution (HDI/SDI)
CAS compliant for services (if offering)
CAS Approved Purchasing System (if offering)
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DHA’s Plan …… Gates
∎ Award to responsible bidders
Can provide all capabilities
Have recent and relevant past performance
Reasonable prices by locality
Real competition at the task order level
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DHA’s Plan …… Gates
∎ Pools
Standard pool:
 All contracts will have subcontracting goals (only needed if
graduated to large)
 Provide all capabilities, will not break down into functional
areas – industry should know their team members
 All contract holders can see all requirements.
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DHA’s Plan …… Gates
∎ Pools
Innovation/Maintenance
 Can subcontract to any vendor as long as ostensible
subcontracting/small business goals are met.
 Must have low OEM mark-up fee
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Industry Say ….Gates (Technical
Evaluation)
∎ No Technical Evaluation
Two step evaluation process with defined section criteria
at each gate to limit to serious bidders
How others did it:
 Awarded to bidders demonstrating strengths. No real
technical proposal – based on corporate experience,
software development plan, past performance and price.
 Two gates – no technical proposal. Bidder had to
demonstrate past performance in each functional area. Top
40 went through an acceptable review. If acceptable with
fair and reasonable pricing, award was given.
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DHA’s Plan ….Gates (Technical
Evaluation)
∎ Minimal Technical at the Contract level
∎ Structure of Technical mapped to:
3 NAICS codes:
 541511 NAICS = Custom Computer Programming Services
 541512 NAICS = Computer Systems Design Services
 541513 NAICS = Computer Facilities Management Services
 Innovation /maintenance
∎ Must demonstrate past performance for prime and
subcontractors
∎ Must demonstrate organizational experience
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DHA’s Plan ….Gates (Technical
Evaluation)
∎ Must be able to identify and mitigate risk
∎ Must be able to subcontract successfully
∎ Prices/Costs must be reasonable
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Industry Say ….Gates (Teaming)
∎ Teaming
Need ability to team at the task order level
Inclusion of subcontractors in past performance and key
personnel evaluation factors
Acceptance of SBA-approved joint ventures or contractor
team arrangements as prime contractors
Ability of primes and subcontractors to subcontract on
multiple teams to increase the odds of winning bid,
options for task level bid/no bid decisions.
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DHA’s Plan….Gates (Teams)
∎ Can cross-team at the task order level for the
innovation/maintenance pool.
∎ Past performance for subcontractors will be required
but so will the prime.
∎ Joint ventures/teaming arrangements approved
through SBA by the date proposals are due.
∎ For the Standard Pool, teams must be set.
∎ One team only for Standard Pool, cross teams for
innovation/maintenance pool.
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DHA’s Plan….Gates (Teams)
∎ Small Business primes will have exclusive teaming
arrangements with large businesses.
∎ Large Business primes will have exclusive teaming
arrangements at award;
Small Businesses who are primes or subcontractors can
cross team after award at the task order level.
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Industry says ….. Other
∎ Responsiveness – Customer Service
Rapid response TO solutions
Highly qualified primes with proven performance
Short PALT (make it easier for both contracting and
contractor) with efficiencies – NMT 3-4 months
Offer Turn-Key Acquisition Solutions (Government-toGovernment customer service)
Task Order Ordering Guide
Allow prime to “market” vehicle.
Advance notice of RFP (Post PWS, etc.)
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DHA’s Plan …… Other
∎ We want rapid response but until we have a “PWS”
building tool, our time is spent helping write the
requirement.
∎ We want, really, really want highly qualified primes
with proven performance
∎ Shorten PALT – Who wants to call Congress? Again,
better requirements shorten the PALT
∎ Offer Turn-Key Acquisition Solutions – we do, that’s
why it’s so slow……..
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DHA’s Plan …… Other
∎ Task Ordering Guide will be included
∎ No need to “market” vehicle at this time. There is no
fee associated with it.
∎ Post PWS, RFIs, etc. is a good practice.
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Industry says …. Other
∎ DHA needs to save money!
Shorter proposals
Savings clause
 Business improvement processes
 Innovations
 Cost Saving Initiatives
Pass through rates identified at base contract level with no
fee on ODCs.
Minimize Bridge Contracts
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Industry says …. Other
∎ LPTA – CO not allowed to award any contract valued at 10%
over the lowest, technically-acceptable offeror’s bid without
the approval of the Commanding Officers.
∎ ODCs over 10% of contract value requires higher approval
(why not procured on their own?)
∎ Labor Rates: Any fully burdened labor rate over $260,000
needs higher level approval.
∎ Subcontracts after award requires approval.
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DHA Plan ….. Other
∎ Would love shorter proposals however it is a tradeoff between getting the award in place to assist the
rationalization and cost savings versus a long
technical evaluation. Maybe next time?
∎ Savings Clause – we are considering
∎ Pass through rates identified at based contract level
with no fee on ODCs.
∎ This vehicle should assist us in minimizing bridge
contracts. Bridge contracts cost us in:
Credibility, time, and money.
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DHA’s Plan …… Other
∎ Subcontract adjustments after award requires approval
∎ ODCs and 10% over LPTA is being considered.
∎ Overhead rates restrictions are being considered.
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LUNCH BREAK
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DHA Industry Day
Summary
Draft Structure of DHITS GEN 1
Based on Industry Input and
DHA Review
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DHITS Gen 1 Structure Beginning
to Look Like
∎ Multiple Award IDIQ
∎ Duration: 5 years with 5 year Ordering Period (like GSA Alliant)
∎ Ceiling: $10 Billion
∎ 1 RFP (both SB and LB awardees)
∎ Ample vendor and socio-economic participants to meet DHA
SB goals
∎ 42% Sub-contracting plan for unrestricted vendors
∎ Technical structure based on NAICS
∎ Teaming: No Cross-teaming on 4 basic NAICS/Cross Teaming
on Innovation and HW/SW Maintenance
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DHITS Gen 1 Structure Beginning
to look Like…
∎ Past Performance
 2 sets of Past Performance
 1 for the 3 NAICS Codes
 1 specific for the innovation pool
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High Level Objectives
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Hardware Requirement
∎ 3-year on site warranty
∎ Warranty tracking
∎ DHA standard desktop/applications pre-loaded
∎ Direct ship to ordering activity w/in 30 days
∎ Added to DHA inventory w/ required labeling
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Hardware Incentives
∎ Fewer order but larger value:
 potentially 4 orders/year >$5M
∎ Prompt Payment - Net 15 from receipt of tracking
information
 WAWF and credit card payments
∎ Standardization of HW configuration (examples)
 1 laptop HW configuration
 1 clinical configurations
 1 non-clinical configuration
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Software Requirements
∎
∎
∎
∎
∎
Enterprise Software Initiative (ESI) at no pass-thru
Added to DHA inventory
Added to DHA standard configuration (if required)
Licensing
3 year software maintenance
 If required
 Annual pre-priced CLIN
∎ Software Licenses or any sort of commercial licensing
agreements are required up front and will be evaluated during
the tradeoff process.
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Software Incentives
∎ Prompt Payment – net 15
 WAWF and credit card payments
∎ Fewer order but larger value:
 Potentially 4 orders per year
 Minimum of 100 seats (if seat licensing required)
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Vendor Pools Core Services
(HLOs 1-4)
Small Business Pool
∎ Provide all capabilities
 May team with large or small
 Team members must all be
unique (no cross teaming
within pool)
∎ Number: 4-5 competitors
for each FAR 19 designation
 SB, SDVOSB, WOSB, 8(a),
HUBZONE
Unrestricted Pool
∎ Provide all capabilities
∎ Robust SB subcontractor
management program
 Team members must all be
unique (no cross teaming
within pool)
∎ 40% SB subcontracting goal
 Includes 1% AbilityOne
∎ Subcontractor mgt plan
No Restrictions on HW and SW Partnering (HLO 6 & 7)
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Innovation Pool (HLO 5)
Definition
∎ “Foster a culture that embraces
innovative approaches to protect,
support and advance the health
and welfare of military personnel
by accelerating medical
technologies and new standards
that can be applied in theater or
in the clinical facilities that
support the MHS’s mission”
 DHA Health IT Directorate Initiative
Competitors (applies to HLO 5 only)
∎ 5-10 teams
∎ Can cross team from either
pool (small, unrestricted)
 Rapid teaming capabilities
 CMMI level 4 cert min
∎ Demonstrated capability of
fielding novel HIT in 1-2 yrs
 HR: MHS-wide
 R: Service-wide or commercial
 SR: MTF unique
 NR: Initiatives older than 4 yrs
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Pools Advantages/Disadvantages
Two Pools
One Pool
∎ Can set aside requirements for SB
pool or SB type easily
∎ Different evaluation criteria for basic
contract award
∎ Can contain different instructions
w/regard to subcontracting
∎ Able to set different bid rate criteria
by pool
∎ When SB recertify they are in limbo
∎ All vendors see all requirements even
if set aside for SB
∎ Difficult to differentiate contract
terms/evaluation criteria by size
∎ Only two pools instead of 3 to
manage HLO 1-4 and HLO 5
∎ Must open on-ramp to entire pool
∎ Easier to deal with SB when they
recertify
 Moving causes problems
w/partnering structures
 Can no longer get SB credit but they
are still eligible to compete in SB pool
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Small Business – DHA’s
Commitment
∎ DHA is committed to supporting the Federal policy to
ensure small businesses have the maximum
practicable opportunity to participate as prime
contractors and subcontractors in DHA contracts:
Small businesses are the heart of the U. S. economy and a
very critical part of the DHA procurement process
Small businesses, as both prime and subcontractors within
the supply chain, are effective sources of innovation and
positive influence on cost competitiveness
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Office of Small Business
Programs - Cassandra Martin
∎ Serves on the proposed Strategic IT Contract IPT
Advocate for SB
Will work with IPT to identify optimal solutions to meet
mission goals and maximize SB participation
 Consider contract spend data
 Market investigation
Encourage the use of SBs to perform niche areas
 Cost efficiencies; Provide SB opportunity to prime
Establish SB Prime and Sub-contracting Goals
 Opportunities for Teaming and Joint Ventures
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11
Small Business and AbilityOne
Program Goals
SB Prime Contracting Goals
Small Business
FY2015
42.0%
HUBZone Small Business
3.0%
Service-Disabled Veteran-Owned Small Business
3.0%
Small Disadvantaged Business*
5.0%
Women-Owned Small Business
5.0%
SB Subcontracting Goals
Small Business
FY2015
39.0%
HUBZone Small Business
3.0%
Service-Disabled Veteran-Owned Small Business
3.0%
Small Disadvantaged Business*
5.0%
Women-Owned Small Business
5.0%
AbilityOne Program
1.0%
*Small Disadvantaged Business awards include 8(a) awards
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11
Small Business – Be Prepared
∎ In preparation……a few tips:
 Focus on agility, flexibility, and responsiveness
 Position company to accept various contract types (i.e.,
FFP, Cost Plus, or other)
 Ensure security issues are met
 OCI Mitigation – be prepared at the prime and sub level –
err on the side of being more risk adverse
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11
BREAK
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DHA Industry Day
COL Svabek
Final RFI Survey
February 17, 2015
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Final RFI Survey
∎ Requirements are going into procurement
More restrictive meetings with Government
All meetings will halt once final RFP is released
∎ Final RFI Survey through Survey Monkey will solidify
our market research
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DHA Industry Day
Question & Answer
Session
February 17, 2015
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DHA Industry Day
Way Ahead and Closing Remarks
February 17, 2015
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Professional Services Council 2014
Acquisition Policy Survey
∎ We don’t need acquisition reform. We need budget
stability and competent people to do acquisition and
competent companies to do the work.
∎ Contract Structure, techniques and strategies is core
element of a successful acquisition.
∎ Accessing technology innovations and solicitation is
critical to reducing agency costs and improving
performance.
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Professional Services Council 2014
Acquisition Policy Survey
∎ The challenge comes from culture. We are trying to
promote innovation but we send a message of
regulation and oversight.
∎ The message from the top is clearly promoting
communications but the workforce is still hesitant.
The culture is still “we are the government, you are
not.”
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Strategic Sourcing Framework
We are here
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DHA HITS Milestone Chart
= Milestone
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DHA HITS Milestone Chart
= Milestone
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Goal for Today - Recap
Partner with Industry to Develop the Optimal Procurement
Vehicle Supporting DHA Health IT By:
 Develop an agile vehicle that provides quicker
evaluation/award times to already vetted companies
 Access to Innovation quickly
 Grow together using lessons learned and better processes
 Looking to Industry Partners to provide input/feedback
to help shape an optimal and responsive contract vehicle
 Prepare Industry for final RFI Survey and end of current
market research
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…the “Why Not”
Thank You From the DHITS Team!
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