CAStLE_IndustryDay_Contracting_Briefing.pptx

Center for Aircraft Structural Life Extension (CAStLE) Industry Day 19 February 2020

US Air Force Academy CAStLE 10th Air Base Wing, Contracting

USAF Academy Center for Aircraft Structural Life Extension (CAStLE) 10th Air Base Wing

Overview Commander Welcome Safety and Facilities Rules of Engagement CAStLE Overview Acquisition Overview Questions and Answers

Safety and Facilities Emergency Evacuation Evacuate out the nearest exit and assemble at the appropriate rally point

Restrooms Closest restrooms are located lower hallway

Rules of Engagement Briefings presented today contain preliminary, pre- decisional information only All information provided is subject to change The Government is not currently soliciting proposals

Rules of Engagement-Questions To ensure that information is equally available to all parties, including those who were not able to attend, some questions may not be answered during the course of the briefings presented today All questions will be answered and publically released via beta.SAM; business name will not be disclosed A question submission form will be posted to beta.SAM

US Air Force Academy CAStLE Gregory A. Shoales, Director James M. Greer, Jr., Technical Director Lucinda Matteson, Finance Manager Lt Col Aaron Drenth, Lab Operations Director CAStLE Overview Industry Day 19 February 2020 gregory.shoales@usafa.edu

10th Contracting Squadron Service – Excellence – Combat Readiness CAStLE Acquisition Overview Industry Day 19 February 2020 US Air Force Academy, 10th Contracting Squadron Sarah Vollbracht, Contracting Officer Doris Jeffers, Contracting Specialist

Source Selection Objective Source Selection Process Exploring Options FAR Part 35 Research and Development Requirements Notional Source Selection Approach Past Performance and Best Value Contract Structure Key Milestones

Overview

The objective of source selection is to select the proposal that represents the best value”. FAR 15.302 Best Value: “The expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.” FAR 2.101

IAW FAR 35.02 “…provide an environment in which the work can be pursued with reasonable flexibility and minimum administrative burden.”

Source Selection Objective

DoD of Source Selection Procedures dated 31 Mar 2016 Objective of this procedure is to ensure the Department’s source selection process delivers quality, timely products, and services to the Warfighter and the Nation at the best value for the taxpayer Source selections should be structured and conducted to communicate the Government’s requirements and objectives in clear, meaningful ways to encourage Industry to propose the best possible array of solutions Applicable to all acquisitions…competitively negotiated FAR 15 acquisitions with an estimated value greater than $10 million

Source Selection Process

What do we have to do and can we do differently to attain a Best Value Technically Acceptable source selection result?

Intent is to establish a source selection plan that simplifies the evaluation process. Each source selection stands on its own and is tailored to its specific needs.

Think outside of the traditional source selection box for methods that allow compliance within the constraints of source selection procedures, provide maximum efficiencies with the result of best value to the government.

Exploring Options

General requirements are:

Research and engineering activities performed by CAStLE cover a variety of work that follows aircraft and other structures through their life-cycle from cradle to grave Perform engineering and research activities related to material degradation due to aging, initiated by external customers Bring Air Force-relevant research and engineering activities to the classroom

What is the CAStLE Requirement?

FAR 35.002 General “…Unlike contracts for supplies and services, most R&D contracts are directed toward objectives for which the work or methods cannot be precisely described in advance. It is difficult to judge the probabilities of success or required effort for technical approaches, some of which offer little or no early assurance of full success. The contracting process shall be used to encourage the best sources from the scientific and industrial community to become involved in the program and must provide an environment in which the work can be pursued with reasonable flexibility and minimum administrative burden.”

Service – Excellence – Combat Readiness FAR Part 35 Research & Development

FAR 35 Research and Development NOT FAR 37 Performance Based Service Contract FAR Part 37 – Service means a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply DOD Instruction 5000.74 Defense Acquisition of Services - Does not apply to (4) Research and development (R&D) services and any services relating to R&D

Regulatory Guidance

FAR 35.007

Solicit only apparently qualified sources. Proposals generally shall be solicited from technically qualified sources, including sources that become known as a result of synopses or other means of publicizing requirements. If it is not practicable to initially solicit all apparently qualified sources, only a reasonable number need be solicited. In the interest of competition, contracting officers shall furnish copies of the solicitation to other apparently qualified sources.

Solicitations shall require offerors to describe their technical and management approach, identify technical uncertainties, and make specific proposals for the resolution of any uncertainties. The solicitation should require offerors to include in the proposal any planned subcontracting of scientific or technical work (see 35.009).

FAR Part 35.007 Solicitations

Notional Source Selection Approach

Service – Excellence – Combat Readiness One option to consider (notional)…..

Trade Off Source Selection Process IAW FAR 15.101-1.

Allows tradeoffs between non-cost factors and cost/price and allows the Government to accept other than the lowest priced offer.

Used when in the best interest of the Government to consider award to other than the lowest priced offeror.

An agency can obtain best value in negotiated acquisition by using any single or a combination of multiple source selection approaches.

Non-Cost Factors

Service – Excellence – Combat Readiness FAR 35.007 (a) Technical Competence Present and past performance of similar work;

Professional stature and reputation;

Relative position in a particular field of endeavor;

Ability to acquire and retain the professional and technical capability, including facilities, required to perform the work; and Other relevant factors

Management approach to any planned subcontracting of scientific or technical work (see 35.009)

Non-Cost Factors(con’t)

FAR 35.007 (f) In addition to evaluation for technical competence:

“…the contracting officer shall consider, as appropriate, management capability (including cost management techniques), experience and past performance, subcontracting practices, and any other significant evaluation criteria…”

Past Performance and Best Value

Service – Excellence – Combat Readiness Purpose of Past Performance is a key component in determining Best Value:

Validates promises made in proposal Incentivizes contractors to perform better – “rewards good performance” Reduces risk and oversight Past performance evaluation does not take the place of the PCO’s responsibility determination under FAR 9.1 PCO may consider past performance as part of responsibility determination

Past Performance Alternatives

FAR 15.304(c)(3)(iii) states that Past Performance “… shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold” Potential Sources:

Consideration of Past Performance Acceptability w/ Technical Risk

Current Contract Structure

Service – Excellence – Combat Readiness Current contract is Firm Fixed Price (FFP) Contract Ceiling $98M FAR 16 Indefinite Delivery Indefinite Quantity (IDIQ) CLIN Structure FFP - Labor FFP Level of Effort (FFP-LOE) - Labor Cost Reimbursable (CR) – Material, Travel, Storage and Transportation (only) Maximum labor rates determined fair and reasonable at contract award, utilized to evaluate and negotiate task order pricing

Current Contract Structure (con’t)

Service – Excellence – Combat Readiness Work Statement provides processes for requesting, negotiating and issuing task orders; request for proposal (RFP) for each task order – functions as sole source FAR 15 acquisition

Period of performance, price and CDRLs for individual task orders are negotiated and annotated on task order

Defense Contract Management Agency (DCMA) administers contract

Notional Contract Structure

Service – Excellence – Combat Readiness Use of collaborative contracting to facilitate issuance of task orders vs request for proposal (RFP) “..alpha contracting has been a collaborative effort utilized in a sole-source environment between government and industry to streamline an acquisition from beginning to end.”

Hybrid of CLINs for projects vs efforts (pre-priced rate schedules), maximum labor rates determined fair and reasonable at contract award, utilized to issue task orders and/or to evaluate and negotiate task order pricing

Notional Contract Structure (con’t)

Service – Excellence – Combat Readiness Contract Ceiling $98M FAR 16 Indefinite Delivery Indefinite Quantity (IDIQ) CLIN Structure FFP - Labor FFP Level of Effort (FFP-LOE) - Labor Cost Reimbursable (CR) – Material, Travel, Storage and Transportation (only)

CLIN for Labor with stated value referencing work statement, SubCLINs for funding only, functioning similar to an option

Key Milestones

Service – Excellence – Combat Readiness

Questions?

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