industry days | The Contracting Education Academy

January 14, 2020 By cs

How the Air Force is breaking down perceptions of Federal procurement

The Air Force’s pitch days have become so popular that several of the squadrons are excitedly borrowing the idea.

These squadrons have a good reason to expand this approach to attracting new and different companies. About 80% of all participants in the pitch days are non-traditional defense contractors.

Maj. Gen. Cameron Holt, the deputy assistant secretary for contracting in the Office of the Assistant Secretary of the Air Force for Acquisition, Technology and Logistics, said he wasn’t surprised by the number of new contractors participating in this new approach to finding emerging technologies.

“We are hoping for those kinds of returns. After all, the idea of Air Force pitch days is specifically for that purpose,” Holt said at the National Contract Management Association’s Government Contract Management Symposium. “A lot is said about government contracting and the barriers being so high. In fact, many venture capital firms will be very open with young tech startups in America and tell them if their business model includes doing business with DoD, then they will not back them because the cash flows are too long, the time periods are too long and the processes are too long.”

Holt said the Pitch Days are breaking down all of those perceptions.

Keep reading this article at: https://federalnewsnetwork.com/air-force/2019/12/how-the-air-force-is-breaking-down-perceptions-of-federal-procurement/

January 8, 2019 By AMK

Contracting workforce at forefront of Army savings

New Year’s resolutions take on many forms. Whether it’s kicking a bad habit, curbing meals to lose weight or perhaps a making a greater effort to keep in touch with family and friends beyond the occasional social media post, a new calendar year often begins with the best intentions.

A contract specialist with the Mission and Installation Contracting Command (MICC) office at Joint Base San Antonio-Fort Sam Houston discusses Army contract opportunities with two local small business representatives during an industry outreach event in November at the University of Texas at San Antonio Procurement Technical Assistance Center in San Antonio. The event provided contracting guidance, briefings and breakout and match-making sessions with MICC contracting personnel. (Photo by Ryan L. Mattox)

Such intentions may also call for an evaluation of spending in hopes of socking away a little more in retirement accounts or building a coffer for future tuition needs of soon-to-be high school graduates. Similar efforts to save across the government also begin with individual resolutions and don’t necessarily require meticulous analysis.

Introduced as a replacement for the Army Suggestion Program, the Army Ideas for Innovation, or AI2, program became fully operation in 2017 and strives to capitalize on A innovative and creative solutions put forth by civilian and uniformed members of the service that contribute to cost savings, increased productivity and improved processes.

The call for innovative solutions by the government aimed at realizing cost savings isn’t necessarily a novel concept. In fact, a lesser known workforce goes about that task as its daily endeavor. Members of the Army Acquisition Corps possess a combination of requisite education, experience and certification levels vital in carrying out their duties to include contracting. They make up about 34 percent of the Army acquisition workforce consisting of approximately 38,500 professionals responsible for developing, acquiring, fielding and sustaining equipment and services to meet the Army’s present and emerging needs.

Contracting officers in the 1102 career series and Soldiers in the 51 Charlie military occupational specialty at the Mission and Installation Contracting Command make up a subset of the Army Acquisition Corps. They are responsible for acquiring equipment and services that support service members from the time they voluntarily raise their right hand in solemn oath to serve this nation through retirement as part of the Soldier for Life initiative.

In fiscal 2018, MICC contracting officers and Soldiers executed almost 30,000 contracts valued at more than $5 billion. This included contracts for professional scientific and technical services, administrate support, remediation services, construction, manufacturing, educational services, accommodations, food services, and utilities just to name a few. MICC contracts are vital in feeding more than 200,000 Soldiers every day, ensuring installation readiness with many daily base operations support services, readying more than 100,000 conventional force members annually, training more than 500,000 students each year, and maintaining more than 14.4 million acres of land and 170,000 structures.

The Federal Acquisition Regulation (FAR), which governs processes for acquiring contract goods and services by the DoD as well as all executive agencies, serves as the bible for contracting professionals. It prescribes policies and procedures for negotiating contract awards using other than a sealed bid. By using one or a combination of source selection approaches, MICC contracting officers obtain the best value in a negotiated acquisition.

Employed by contracting officers every day, negotiation tactics can spell significant savings and increased benefit for the Army both on a smaller scale for relatively low-dollar buys through reverse auction as well as with complex acquisitions. As many government contractors discover, skillful negotiation benefits both their respective industry interests and the government as each strives for innovative pursuits to meet operational priorities and focused efforts.

The significant role by MICC contracting professionals in the transition of rotary aircraft maintenance services between contractors at Fort Rucker, Alabama, earlier this year illustrates the value the contracting workforce bares on the Army’s efforts to save costs. The innovative approach to the $4.7 billion contract presents the potential for 191,000 extra flight hours over the next 10 years, according to the GAO, estimated at a DoD benefit of $876 million.

MICC contracting professionals also contribute to government savings by reducing opportunity costs that take on a not-so-tangible form. Efforts by the command to standardize acquisitions for full food services and base operations this year offer enterprise-wide solutions for not only decreasing bid and proposal costs but also dramatically curbing touch labor and procurement acquisition lead time.

Not only does the contracting workforce save the Army money, but also those savings – both tangible and intangible – allows leadership from supported organizations to redirect those funds and resources toward other mission priorities. As trusted business advisers to their mission partners, MICC contracting professionals are dedicated to the timely delivery of contract goods and services in support of Soldiers and the Army’s commitment to readiness.

Source: https://www.dvidshub.net/image/5004231/contracting-workforce-forefront-army-savings

March 19, 2018 By AMK

Market research: To do or not to do?

Department of Defense (DoD) acquisition teams currently struggle to obtain clear and consistent market research documentation on a regular basis.

They also struggle with the question of whether market research should be completed. And many firms or agencies sometimes become confused somewhere between the market research and the solicitation phases. In 2015, the Government Accountability Office (GAO) completed a review of 28 DoD contracts, at least 50 percent of which had inadequate, inconsistent and unclear market research documentation.

In 2017, the International Journal of Market Research noted that no one possesses a “crystal ball” for obtaining information on a specific market, especially given the regular disruptions or changes in various market sectors over the last 30 years. Does your acquisition team have a crystal ball for obtaining information on a specific business market sector? Are your team’s research methodology and documentation adequate to get clear and concise results?

For an interpreter of public contract law and regulations, many more catechisms will come to mind: Do acquisition teams place any value or importance in completing market research? What are the required elements in market research? What is the proper time to complete market research? Should market research be undertaken at all?

Background

The governance statute of market research comes from Competition in Contracting Act of 1984 (CICA). Many sources state that the empirical requirement of market research comes from the Federal Acquisition Streamline Act of 1994, which only clarified the differences between the commercial and noncommercial items. CICA requires research of a market for competition and possible sources for a requirement. The governance regulation for market research is found in Part 10 of the Federal Acquisition Regulation (FAR). According to FAR Part 10, market research documentation needs to entail and describe requirements from the acquisition team.

One source of guidance provided to agencies is found in GAO’s bid decision and case studies. GAO’s publication, Market Research: Better Documentation Needed to Inform Future Procurements at Selected Agencies, GAO-15-8, describes market research as a dynamic process of examining a marketplace or obtaining intelligence about a sector. The publication, issued late in 2014, noted that market research provides the dynamics “used to collect and analyze data about capabilities in the market that could satisfy an agency’s procurement needs.”

Decisions in the federal court system, including the Supreme Court, have clarified the role of market research in procurement processes. In 2015, the U.S. Supreme Court ruled in Kingdomware Technologies v. the United States that market research is required in order to understand products and services in a particular market sector.

Observations over the last 30 years indicate that many acquisitions teams “put the cart before the horse” when obtaining the outcome of a hypothesis or question about possible sources for a product or service. These thoughts transcend public and private sector acquisition teams and lack value or purpose in market research. From the start, we need to understand what research entails and its importance.

In 2017, the Merriam-Webster’s Dictionary noted that research is a planned exploration of materials and sources to establish facts and conclusions. Documentation of research must include methodology, structure and guidance on how to interpret the data. Without a general framework or structure for interpretation, the data collected are worthless to the acquisition teams and customer.

Furthermore, in 1992, The Journal of Marketing Research noted there is a relationship between the source and the customer of market research. All stakeholders need to be able to trust the outcome of the market research. Not just the information, but the sources and interpretation of the whole process.

In 2017, The Balance website (thebalance.com) noted that the purpose of research on business marketplaces is to narrow results to a specific target in a market. Additionally, in 2017, Entrepreneur magazine reported that market research is a dynamic to gather, evaluate, and illuminate market information about a product or service for sale. Also, the term “market intelligence” has popped up in the business world in connection with market research. There is a slight difference between market intelligence and market research. In 2015, Business News Daily defined market intelligence as the information obtained to make a business determination — i.e., acquisition strategy.

And in 2017, the Bureau of Labor Statistics classified market research as the process of evaluating market conditions concerning a probable need for product or services by a customer and obtaining data from various sources. This information provides a clear understanding of vendors’ marketplace positions and their pricing and ability to perform the work required.

Methodology and the Right Question

Now that there is an understanding the purpose and value of researching a market sector for products and services, your team needs the right tools for acquiring this knowledge. In July 2015, Raconteur’s Future of Market Research publication noted the five critical steps to obtaining the best outcome of researching a market sector: compute a meaningful topic; compile new or old results; have questions in any survey seek more information than the price; and enable effortless communication of the results.

In 2017, Entrepreneur magazine noted that an acquisition professional’s research of a business sector would acquire primary and secondary information or data. Primary data is directly received from the source. This information typically derives from a Request for Information (RFI) or Sources Sought (SS), industry days or questioning vendors. Secondary data research assembles information from governmental organizations — e.g., agencies, trade associations and local chambers of commerce.

In developing the requirement, RFI or SS can be complicated and a challenge for most teams. As stated earlier, GAO’s case study of DoD’s contracting of market research was inadequate in many ways, including its determination of price reasonableness. The typical technique for finding price reasonableness is to look at a vendor’s published pricing, historical data or industry surveys. For example, a government survey can ask, “What have you charged for this product or service in the past?”

At times, the acquisition teams forget to ask the right questions. Initially, asking the right questions in developing the market intelligence is very important. The topics should include cost, historical experience information, technical information, and management information.

The following additional questions should get your team thinking:

To what agency have you provided the product or service?
After reviewing the RFI, SS or draft Performance Work Statement or Statement of Work, is your firm interested in submitting a proposal to the following Request for Proposal [RFP], Request for Quote [RFQ], or Broad Agency Announcement?
Is your firm interested in Prime or Subcontractor work?

Responsiveness Versus Responsibility

From my experience, acquisition professionals use the market research process as a “Down Select” or Pre-Source Selection instead of obtaining market intelligence. Businessdictionary. com defines a “Down Select” as a reduction in sources as the acquisition team proceeds through the process. Acquisition professionals use methodology for determination of responsibility to eliminate a possible source of a product or service that is felt to lack sufficient responsibility. Procurement dynamics of responsibility determination or FAR Part 9 requirements need to be completed by the contracting officer and acquisition team later in the process. This step usually is completed after proposals from an RFP or RFQ are obtained, which makes responsibility determination a part of source selection.

In 2011, GAO stated that the contracting officer only needs to make a determination of responsiveness from the market research tools — e.g., RFI, Industry Days. Additionally, the market intelligence will assist in deciding acquisition strategies — e.g., Small Business Set-Asides (SBSA) or Full and Open Competition. For example, the respondent to a RFI or SS need only answer the intent of a question to its fullest, then the vendor’s information should go toward an acquisition strategy, such as SBSA. The Cambridge Dictionary defines responsiveness by an organization or individual to a communication or request as one that is made in a satisfactory speedy manner. For this discussion, ‘respondent’ is typically a business or vendor that provides a service or product in a certain market. In 2010, the Journal of Business & Industrial Marketing noted that responsiveness consists of a vendor’s response to a customer’s need that can affect or improve performance.

Results

Acquisition professionals can use market research results or market intelligence in various ways to arrive at a business decision for the federal government. The data outcome should represent a cross-section of a market sector. The market research processes should have built-in validity and reliability methods to make sure the data represents a particular market sector. The acquisition team should look at each data point. The market research also needs to address limitations and delimitations. A data point could be anomalous and not genuinely represent a market sector or be generated within a constantly changing industry, such as that of information technology.

Another example of understanding the market intelligence would be the following: The results or market intelligence from an RFI or SS show no responses or interest to provide a service or product. In such a case, an acquisition team typically would go to a different route or source. First, the acquisition team should re-evaluate the requirements package and research methodology for shortcomings, inconsistencies and clarifications. The more information provided to a market sector in market research the better will be the market intelligence that a team acquires.

Conclusion

As public servants, we need to ensure that research and intelligence of the market sector are done completely and thoroughly as outlined in CICA and FAR 10. Also, acquisition professionals need to ask the right questions and provide correct information to the market sector in order to obtain precise results. Furthermore, the market research documentation should always include a robust method, timeframe, analysis of the data, and a recommended procurement strategy. Passing on a little knowledge provides us with purpose and direction.

This article appears in the March-April 2018 edition of Defense AT&L Magazine. The article was written by Claude L. Cable, a freelance author, teacher and acquisition professional. He holds a doctorate of Business Administration and is a Certified National Contract Manager (National Contract Management Association). The author can be contacted at clcable12@gmail.com

November 24, 2015 By AMK

‘If I knew then …’

This is part of a recurring series sponsored by Federal Times, where former federal leaders reflect upon the lessons learned since leaving government.

If you knew then what you know now … How would you have partnered with industry differently?

When agency needs arise, in order to ensure fairness and equitable consideration, lengthy and detailed requirements are crafted and sent to the industry. However, this often leads to bad outcomes. In order to mitigate protest risks, requirements are increasingly specific and fixed, but they leave very little if any room for industry to offer alternate, compelling approaches to solve the stated problems. As a result, many innovative and compelling solutions don’t even make it past the first gate, and the government suffers as a result. It also reinforces a cycle of inertia, whereby since government employees don’t see those innovative solutions, they keep asking for what they know, and as a result, continue to get the same traditional approaches and solutions.

If I had to do it over again, I would find ways to re-think how government partners with the industry.

Keep reading this article at: http://www.federaltimes.com/story/government/management/agency/2015/11/16/if-knew-then-sonny-hashmi/75721794/

May 9, 2012 By AMK

OFPP dispels 8 more agency, vendor communications myths

The solution to many of the problems with federal procurement comes down to communication between industry and government. So it’s to that end the Office of Federal Procurement Policy is taking a second turn at dispelling some of the most commonly held myths.

As Federal News Radio first reported, OFPP issued its Mythbusters 2 memo today detailing eight more fictional reasons why agencies and contractors can’t talk, and the real truths about why they can communicate freely. The administration issued the first Mythbusters memo in February 2011 with the goal of breaking down barriers in how contracting officers and program managers talk to vendors.

Keep reading this article at http://www.federalnewsradio.com/?nid=517&sid=2855399.