ACC_APG_S3CoE_VATEP_Final_SymposiumSummary6Feb19.pdf

ACC APG Source Selection Support Center of Excellence ~S3CoE Value Adjusted Total Evaluated Price (VATEP) Symposium on 6 Feb 19

Key Information Summary

There were a total of 81 registrants; 39 Industry partners and 26 Government partners attended for a total attendance of 65 participants. We started at 9:00 am and ended at 11:00 am.

The ACC APG Executive Director welcomed the audience and solicited questions at the symposium commencement; due to his expected early departure for another commitment.

Industry wanted to know if ACC APG had given guidance to lower contractor CPARS ratings to satisfactory ratings.

The Government response focused on the pivot to contract administration, which includes properly written CPARs ratings. The discussion focused on Industry and Government communication related to reporting and feedback on reports. Industry was encouraged to provide information on how they performed above satisfactory and how it was a benefit to the Government for CPARS. An Industry partner recommended that above satisfactory rating criteria be included in quality assurance plans.

Industry wanted to know if ACC APG was directing the RS3 MA IDIQ small business percentage goals. There was a discussion on the overall process and how the RS3 contract language should allow alternatives with task order proposals.

Industry wanted to know if ACC APG will take over the C5 OTA administration.

The Government response was no; but APG does have ordering authority and will administer orders awarded at APG. Industry asked if a list of all ACC APG OTA awards would be made available; the Government agreed to provide a list of OTA types awarded at APG. The OTA types awarded information is listed at the end of this document, in the outstanding action item section.

The S3CoE outlined the agenda, provided the ground rules and fundamental principles, stated the objectives and discussed the VATEP briefing slides as attached.

The five (5) panel members with VATEP experience consisted of a small business Industry partner, three (3) Government partners; an ACC APG contracting officer, a Program Executive Office Soldier (PEO Soldier) assistant product manager, an

ACC APG cost and pricing branch chief and a professor from the Defense Acquisition University (DAU).

There were questions asked during the presentation of the briefing slides and during the panel discussions; the combined key summarized questions and responses are listed below.

QUESTIONS:

1. Industry question: How does the Government enforce VATEP?

Government response: The proposed above threshold objectives that received VATEP credits would be incorporated into the contract with expectation of above threshold performance along with appropriate contract administration and surveillance to ensure compliance.

2. Government question: Is VATEP for cost type contacts only?

Government response: No FFP and cost types.

3. Government question: How does VATEP work with cost factor?

Government response: The cost evaluations are completed and adjustments are made as recommended from the technical evaluations as customarily done; the VATEP credits are applied (step 2) after technical confirmations of above threshold objectives.

4. Government question: Are VATEP adjustments after proposal or cost adjustments?

Government response: The VATEP adjustments are after the cost adjustments (most probable cost-MPC, cost type contracts).

5. Industry question: Why does the Government calculate most probable costs (MPCs) and award the proposed prices?

Government response: The MPCs are required for the Government to manage contract award risks; the proposed prices and the MPCs should be negotiated to resolve the differences in calculations. There are instances when direct and indirect rates may differ; based on the market and information available which may create differences.

6. Audience discussion points: Government market research is critical to identify above threshold objectives and affordability.

Industry question: How does VATEP work with engineering services?

Government response: VATEP is ideal for developmental efforts; it is difficult to apply VATEP to services.

7. Combined panel parting comments: Ensure VATEP credits are meaningful and don’t focus solely on each objective, consider the overall mix of meeting the combined objectives. There is presently not a lot of GAO case law on VATEP. VATEP allows the technical team to monetize the trade-space for the source selection authority. A training overview is helpful for Government teams when using VATEP.

Outstanding Action Item:

The types of other agreements that have been awarded at ACC APG as of 9 February 2019 by category are grants, cooperative agreements, technology investment agreements (TIAs) and prototype OTAs.