FS III Industry Day Slides 7.31.2020.pdf

FIRSTSOURCE III INDUSTRY DAY

Hosted by the Office of the Chief Procurement Officer and the

Office of the Chief Information Officer July 31, 2020

Keynote Addresses

Introduction to DHS and FirstSource Overview

Agenda DHS Small Business Program

FirstSource III Overview

Questions and Answers (includes a break)

Keynote Speakers

Soraya Correa, DHS Chief Procurement Officer

Karen Evans, DHS Chief Information Officer

INTRODUCTION TO DHS AND

FIRSTSOURCE OVERVIEW

Jaclyn Rubino Executive Director

Strategic Programs Division Office of the Chief Procurement Officer

The Department of Homeland Security

Mission:

• Counter Terrorism and Homeland Security Threats

• Secure U.S. Borders and Approaches

• Secure Cyberspace and Critical Infrastructure

• Preserve and Uphold the Nation’s Prosperity and

Economic Security

• Strengthen Preparedness and Resilience

• Champion the DHS Workforce and Strengthen the

Department

Organization:

• 3 Directorates

• 7 Operational Components

• 14 Headquarters Offices

Note: There are ten contracting offices.

The History of FirstSource

General Small

Business

EDWOSB

SDVOSB

8(a)

40 IDIQ Awards*

HUBZone

*Some FSII Contractors were awarded contracts in multiple socio-economic categories.

• Based on the success of FirstSource, DHS established FirstSource II in 2012.

• DHS needed a more efficient way to access commoditized IT.

• DHS established FirstSource in 2006.

FirstSource FirstSource II

DHS has issued over 28,000 task orders valued at $6.5B.

100% Small Business

Benefits of FirstSource

Enables DHS to Meet Socio- Economic Goals

Optimized Terms and Conditions

Subject Matter Experts & Best Practices

Streamlined Acquisition Procedures

Better Value Pre-screened Vendors

FirstSource II Data by Socioeconomic Category*

Small Business $1.7B / 46.1% /

6,089 Task Orders HUBZone

$1.2B / 33.8% / 5,859 Task Orders

SDVOSB

$439M / 12.0% / 1,225 Task Orders

EDWOSB

$132M / 3.6% / 596 Task Orders

8(a) $164M / 4.5% /

1,079 Task Orders

*Total Value Base Plus All Options

Key Takeaways

• Almost 15,000 task orders have been issued

• Approximately $3.7 billion dollars spent to date

• 40% of all task orders have been awarded to HUBZone vendors

• 1/3 of FirstSource spend has gone to HUBZone vendors

FirstSource II Data by Component*

$3.3B

$3.7B

*Total Value Base Plus All Options

CBP

$1.3B / 35.7% /

4,218 Task Orders

USCIS

$580M / 15.8% / 726 Task Orders

FEMA

$347M / 9.5% /

2,705 Task Orders

TSA

$344M / 9.4% / 513 Task Orders

HQ

$336M / 9.2% /

1,010 Task Orders

ICE

$260M / 7.1% /

2,387 Task Orders

USSS

$234M / 6.4% / 894 Task Orders

USCG

$195M / 5.3% / 1,702

Task Orders

FLETC

$52M / 1.4% / 622 Task

Orders

OIG

$11M / 0.3% / 71 Task

Orders

Key Takeaways

• Top three FSII Component spend to date:

- CBP with 36% of spend

- USCIS with 16% of spend

- FEMA with 9.5% of spend

• HQ issued over 1,000 task orders and $336 million in spend

• TSA only had 513 task orders but achieved 9.4% of the total spend

FirstSource II IT Commodity Spend Breakdown

Software Licenses &

Maintenance 36.8%

Desktops/Laptops /Tablets

21.6%

Other 13.9%

Hardware Maintenance 3.8%

Value-Added Reseller Services

2.5%

Servers/Routers 21.4%

Key Takeaways

• Software is almost 37% of the total spend

• Almost $800 million dollars were spent on Desktops/Laptops/ Tablets

• Servers/Routers account for approximately 21% of the total spend

DHS SMALL BUSINESS PROGRAM

E. Darlene Bullock Executive Director

Office of Small and Disadvantaged Business Utilization (OSDBU)

DHS Considerations

• Mission first!

⎻DHS small business contractors create jobs, contribute to the revenue base through the payment of taxes, and have opportunities to grow and flourish in support of the DHS mission.

⎻Small business inclusion in federal contracting is a longstanding government-wide policy objective.

• Set-Asides (prime and subcontracting) to the maximum opportunity practical – the law – FAR 19.201

• An office established by law in federal agencies ⎻ Ensures DHS participation in small business (includes socioeconomic) utilization ⎻ Manages the DHS small business program

• Separate and distinct from contracting

• The OSDBU works with the DHS OCPO, the ten DHS Heads of Contracting buying activities, and the Component small business specialists to ensure there are set-aside opportunities for small businesses—mission enablers.

What is the OSDBU?

What are the Federal Socioeconomic Programs?

• The importance of small business to the United States’ economy is so great that Federal legislation has been enacted to ensure that small businesses have access to government-spending.

• While there are several sub-categories of small business, there are socioeconomic categories, including the following: HUBZone Small Business; Small Disadvantaged Small Business (SDB), which encompasses the 8(a) Business Development Program;

Woman-Owned Small Business (WOSB/EDWOSB); and Service-Disabled Veteran- Owned Small Business (SDVOSB).

• Small business laws affect most procurement policies in the government.

• For Contracting Officers and Contract Specialists this means that virtually any acquisition —including an acquisition using simplified acquisition procedures—must be considered a candidate for a socioeconomic program.

What are Small Business Set-Asides? Why?

• Provide a level playing field for small businesses ⎻ $500 Billion spent by Federal Government in contracts annually ⎻ $18 Billion Contract Spend in FY 2019– DHS

• Limits competition for certain contracts to small businesses

• Some set-aside programs are for small businesses in certain socio-economic categories:

⎻ HUBZone ⎻ Service-Disabled Veteran-Owned ⎻ 8(a) ⎻ Women-Owned/Economically Disadvantaged Women-Owned

• Two types:

⎻ Competitive ⎻ Sole Source

DHS FY 2018 Final Small Business Goal Achievement

Prime Contracting Achievement:

Achievement 2018 Goal

Achievement

Small Business 34.75% 33.00% 35.53% ($6.7B)

Women Owned Small Business 7.97% 5.00% 7.69% ($1.4B)

Small Disadvantaged Business (includes 8(a)) 14.34% 5.00% 15.87% ($3.0B)

Service Disabled Veteran Owned Small Business 5.81% 3.00% 5.65% ($1.1B)

HUBZone 3.64% 3.00% 3.93% ($737.8M)

Subcontracting Achievement:

Achievement 2018 Goal

Achievement

Small Business 49.70% 40.00% 50.00% Women Owned Small Business 11.80% 5.00% 10.30% Small Disadvantaged Business 10.90% 5.00% 8.50% Service Disabled Veteran Owned Small Business 4.70% 3.00% 3.10% HUBZone 3.30% 3.00% 3.80%

A+ 122.56%

DHS Preliminary FY 2019 Small Business Goal Achievement (as of 4-30-2020)

Small Business Prime Contracting:

FY 2019 Goal FY 2019 Preliminary Goal

Achievement (rounded)

Small Business 33.00% 36.9% ($6.74B)

Women Owned Small Business 5.00% 8.4% ($1.5B)

Small Disadvantaged Business (includes 8(a)) 5.00% 17.23% ($3.2B)

Service Disabled Veteran Owned Small Business 3.00% 6.1% ($1.1B)

HUBZone 3.00% 4.3% ($790M)

Subcontracting:

FY 2019 Goal FY 2019 Achievement

Small Business 41.00% 45.4% Women Owned Small Business 5.00% 11.0% Small Disadvantaged Business 5.00% 9.9% Service Disabled Veteran Owned Small Business 3.00% 4.4% HUBZone 3.00% 2.1%

Small Business Specialist Responsibilities

• Assist with maximizing small business opportunities in Component contracting

• Work with Component Contracting Officer/Contract Specialist to review and participate in market research to determine small business strategy

• Meet with potential vendors

• Serve as the first line of small business support

APFS – DHS Acquisition Planning Forecast System

• Forecast of Contract Opportunities

• Above $250,000 that small businesses may be able to perform under direct contracts with DHS, or perform part of the effort through subcontract arrangements with the Department’s large business prime contractors.

• For additional information on procurements not expected to exceed $250,000, please contact the appropriate DHS Small Business Specialist for each Component.

• Consistent with our mission, DHS will provide maximum practicable opportunities in our acquisitions to Small Business, Veteran-Owned Small Business, Service-Disabled Veteran-Owned Small Business, HUBZone small business, Small Disadvantaged Business, and Women-Owned Small Business concerns.

• There is a shared responsibility among all DHS employees involved in the acquisition process.

https://apfs.dhs.gov/ https://apfs.dhs.gov/

DHS Mentor Protégé Program

• To motivate and encourage large business prime contractor firms to provide developmental assistance to Small

Business, Veteran-Owned Small Business, Service-Disabled Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business concerns.

• Participation in the program will improve the performance of DHS contracts and subcontracts, foster the establishment of long-term business relationships, and strengthen subcontracting opportunities and accomplishments.

⎻ Mentor Firm – open to any large business firm that demonstrates the commitment and capability to assist in the development of small business protégés.

⎻ Protégé Firm – all small businesses that meet the definition of small business concern via FAR 19.001, based on their primary NAICS code, are eligible to be protégé firms.

• DHS has 39 active mentor-protégé agreements.

• Based on a legislative change which required agencies with mentor-protégé programs to seek SBA’s approval for continued use, SBA authorized DHS to continue operation of the DHS mentor-protégé for five years commencing on February 20, 2018.

• Does not have a JV component.

FIRSTSOURCE III OVERVIEW

Carrie Herndon

FirstSource III Contracting Officer Office of Procurement Operations

FirstSource III Contract Overview

OVERVIEW SCOPE WHAT’S

DIFFERENT

EVALUATION

FACTORS

INDUSTRY

ENGAGEMENT

TIMELINE NEXT STEPS

FirstSource III Overview

• Ceiling: $10 Billion

• Period of Performance: 10 years ⎻ 5 years, 1 three-year option, 1 two-year option

• Five Tracks ⎻ 8(a); Historically Underutilized Business

Zone (HUBZone); Service-Disabled Veteran-Owned Small Business (SDVOSB); Women-Owned Small Business (WOSB); and Small Business

• NAICS Code ⎻ 541519 footnote 18, IT Value

Added Reseller; 511210, Software Publishing

• Draft Solicitation ⎻ Late August 2020

• Final Solicitation ⎻ October 2020

• Anticipated Award ⎻ January 2021

FirstSource III Scope

• Full array of Value-Added Reseller services and access to a wide and renewable variety of IT commodities and solutions (hardware and software) from multiple Original Equipment Manufacturers (OEMs) that will be available through Delivery Order competitions.

⎻ Hardware ⎻ Software ⎻ Managed IT Services

Longer Period of Performance -10 years

Managed Services within Scope

NAICS codes

What’s Different: FS II v/s FS III

We want to build on what worked well and apply lessons learned.

Key differences:

Proposed Evaluation Factors

Phase I

Advisory Downselect

Phase II

Demonstrated Prior

Experience

Ability to Achieve Results

Past Performance Price

Note: We will incorporate your feedback into developing the draft solicitation.

Industry Engagement

• Ongoing

• Draft Solicitation

• Additional Industry Day

• Periodic updates

⎻ https://beta.sam.gov/ https://beta.sam.gov/

Industry Day Follow Up

Industry Day

Proposals Due

Performance Begins

Aug. 5

Late Aug.

Oct.

Mid Oct.

Nov.

Jan.

Apr.

Draft Solicitation

Final Solicitation

Award

Timeline and Next Steps

QUESTIONS AND ANSWERS

David Ritter

Division Director Information Technology Acquisition Center (ITAC)

Question & Answer Session Panelists

• Jackie Rubino, Executive Director, Strategic Programs Division, Office of the Chief Procurement Officer

• Darlene Bullock, Executive Director, Office of Small and Disadvantaged Business Utilization

• Phil Letowt, Executive Director, Solutions Delivery Division, Office of the Chief Information Officer

• Carrie Herndon, FirstSource III Contracting Officer, Office of Procurement Operations

• Chris Clarke, Acting Deputy Director Office of Policy, Planning and Liaison, Small Business Administration

Question 1 • Carrie Herndon, Contracting Officer

Will DHS allow for selection of more than one category for competition at the delivery order level?

Question 2 • Darlene Bullock, OSDBU

Would the government clarify the NAICS code and the size standards for those NAICS codes?

Question 3 • Chris Clarke, SBA

Do all members of a Joint Venture (JV) need to be small under each NAICS code and does the JV itself need to have both of the NAICS codes?

Question 4 • Carrie Herndon, Contracting Officer

Will the government provide on-ramp procedures after award to add additional contract holders?

Question 5 • Darlene Bullock, OSDBU, Chris Clarke, SBA

How will the government view OEM partnerships as they relate to JV offerors?

Will DHS accept the OEM partner levels of each Joint Venture partner as representative of the JV Partner Levels?

Question 6 • Phil Letowt, Director, Solutions Delivery Division

Managed services are a new addition to the scope of the FirstSource program. To better understand DHS’s needs and expectations as they relate to managed services, can DHS please:

a) Provide examples of the common types of managed services they expect to be procured through FirstSource III?

b) Confirm how these services would be classified (e.g. as a VAR service, or a type of IT product?)

Question 7 • Jackie Rubino, Strategic Programs Division

Is DHS planning to use a centralized dashboard or portal and process as are currently in use in similar IDIQs, such as SEWP or ITES?

Question 8 • Carrie Herndon, Contracting Officer

How does DHS intend to utilize 2 different NAICS codes? For instance, will certain socio-economic categories be assigned to 511210, and the other socio-economic categories be assigned to 541519? Or does DHS intend to create “sub-categories” within a socio-economic lane with some awards made under 511210 and others under 541519? Please provide clarification on how the two different codes will be used in practice.

Question 9 • Carrie Herndon, Contracting Officer

If FirstSource III is intended to procure software does DHS intend to negotiate upfront with software OEMs to establish terms and conditions at the contract level?

BREAK

INDUSTRY CHAT POD QUESTIONS

AND ANSWERS

David Ritter Division Director

Information Technology Acquisition Center (ITAC)

Closing

Thank you for participating in our industry day today!

The slides and a recording of today’s event will be posted to beta.sam at https://beta.sam.gov/

Please send questions to FSIII@hq.dhs.gov https://beta.sam.gov/