Industry_Day_CEM_FINAL_FBO_Update.pptx

AFCAA "Cost Estimating Modeling (CEM) Cost Data Improvement, Methods & Tools Development Industry Day Event for

I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force

Welcome & Admin. Items

WELCOME!

The intent of today’s Industry Day is threefold:

Enhance industry’s understanding of the AFCAA CEM R&D program and acquisition approach Obtain useful and relevant feedback from industry before release of the formal solicitation Provide Industry an opportunity to meet with the USG in closed one-on-one sessions to present information and seek clarification of any requirements Avail yourself of this opportunity to engage in Q&A and present any information that you deem worthy for consideration

Although proprietary/competition sensitive information is not sought in this setting, parties that intend to reveal such information must clearly identify it and any restrictions on its use by the USG

DO NOT DISCUSS OR EXCHANGE ANY CLASSIFIED INFORMATION

Silence cell phones in meetings No photography / recordings during any event Side conversations in the lobby please No sales pitches - Focus is on the AFCAA CEM R&D Project Please use the Questionnaire / Comment forms

Information presented today may be subject to change and is not binding upon the Government Changes resulting from the Industry Day are official only if issued through a solicitation or RFP amendment After the event, all questions, comments or concerns with the AFCAA CEM R&D Project (including the Draft solicitation and other information provided to industry) shall be directed only to the AFDW Contracting focal points Parties that do not comply with this restriction may be excluded from any solicitation One-on-One Sessions are by prior registration only Schedule is very constrained – Be on time & Finish on time

INDUSTRY DAY AGENDA

1-on-1 Meeting Schedule

One-on-One Session Schedule:

AFCAA CEM R&D Project Background and Requirements

Air Force Cost Analysis Agency

AFCAA Vision & Mission

VISION

Air Force Decisions Empowered by Objective Analysis

MISSION

Provide a world-class cost, economic and business case analysis capability helping Air Force, DoD and Congressional decision makers optimize scarce resources Objectivity – Teamwork – Communication – Credibility 2/3/2016

SAF/FMC and AFCAA Organization Economics & Business Mgmt (FMCE) Cost Analysis (FMCC) Technical Director (TD) Aircraft & Weapons (FMCA) Space Programs (FMCS) Info Technology & Electronics (FMCI) Operations &Support (FMCY)

AFCAA

Deputy Assistant Secretary (Cost & Economics) and Executive Director, Air Force Cost Analysis Agency

Associate Deputy Assistant Secretary (Cost & Economics)

2/3/2016

AFCAA Products/Services & Impact of Research AFCAA Products Milestone and Annual Estimates on all AF MDAP and MAIS programs POM Estimates; What-If Drills Special Studies AoA Consultation Should Cost/Affordability Consultation Cost Capability Infrastructure Building (Ensures Capability to Build Future Products) Cost Research: Develop databases, methods, studies & tools for estimators Community Involvement/Outreach: Industry & Govt CIPTs; Collaborative WGs Training DoD Cost Support & Info Sharing: Data/Methods, Best Practices & Lessons Learned

IMPACT OF AFCAA RESEARCH

AF-wide use and benefit Centrally accessible & modern data/methods Quality data/methods underpin quality cost estimates Reduces risk, strengthens credibility to AF budgets, POMs & other key decisions Meets Title 10 and regulatory requirements:

MDAP/MAIS Independent Cost Estimates MS-A & MS-B certified, credible estimates MDAP/MAIS annual cost estimates (ICEs, POEs, NACAs, SCPs) for POM/MSs/breaches Improves OSD assessment of AF cost capability (annual assessment to Congress) Enhances ability to achieve AT&L’s BBP initiatives (should cost/affordability) Enhances cost credibility w/ Congress

2/3/2016 AFCAA Goal – Meet demand for increased volume & timeliness (e.g. AoAs, affordability analysis, POM/PB analysis)

Cost Estimating Modeling (CEM) R&D Objectives Establish a contract with a qualified and experienced commercial entity to perform Cost Estimating Modeling (CEM) Research and Development (R&D) services in order to:

Deliver improved data, tools, and methods to the AFCAA cost analysts Increase analyst productivity to a rate that allows AFCAA to meet the current and growing demand Address Congressional concerns by improving the efficiency and effectiveness of Air Force (AF) and Department of Defense (DoD) cost estimating capabilities

AFCAA RDT&E Cost Research Overview Provides and enhances Air Force-wide cost estimating capabilities through developing/modernizing cost estimating data/methods/tools and making it available electronically to entire cost community Studies cover hundreds of work breakdown structure elements and functional cost elements within each weapon system type to include:

Developing optimal cost/technical/programmatic data requirements documents (templates) Designing data improvement initiatives for future data collect Performing retroactive data collect Performing analysis/methods development/improvement

IMPACT:

Higher volume, timeliness, quality and effectiveness of program cost estimates

Improve Analyst Productivity:

Less burden on analyst to retrieve & process data Become familiar with programs more quickly Complete analysis facilitates telling the program’s “story” Comprehensive Data:

Improved Planning and Compliance lead to better data “One-stop shop” for Cost, EVM, Programmatic, and Technical Centralized virtual library includes CARDs and ICEs AFCAA RDT&E in Partnership with OSD Cost Assessment Data Enterprise Data AND Methods/Tools, AND Institutional Knowledge at our analysts’ fingertips.

Higher Volume & Quality of Estimates

*Excerpt from OSD CADE Website CADE Integration Across Community

Air Force CEM Products Connections to CADE/Data Initiatives

Commodities

Aircraft UAVs Missiles / Munitions ICBMs Automated Information Systems C4I Electronics C4I Radar Avionics Electronic Warfare Engine Space Launch Vehicles

Note: Software, Operation & Support and some Other Government Cost (OGC) Included

Data Collection Requirement Templates*

Program & Milestones PMP (System/Model) Acquisition Quantity Common Elements Software (Dev and Mx) O&S Configuration Manpower Parts Cost Budget

Data Collection Improvement Initiatives

CARD Data Tables* CSDR Plan Templates* WBS Level O&S CRSs Non-cost Parameters Clarity of Definitions Etc.

Software Dev/Mx DIDs O&S Repair Cost DID Technical Data DID* Map Existing Systems to Requirements (JCARD, AFTOC, JOCAS) Historical Data Collection and Entry

Cost Technical Programmatic

Requirements

CADE

Relational Database

Feeders *By commodity products

Draft 1st Year POA&M

Draft 1st Year POA&M

Acquisition Milestones and Key Issues

Acquisition Milestones Industry Day 12 Jan 2016 Request Business Clearance 25 Jan 2016 Issue solicitation 22 Feb 2016 Receipt of proposals 23 Mar 2016 Award 18 Apr 2016 Period of Performance Basic Contract 2 May 2016 - 1 May 2018 Option Period 1 2 May 2018 - 1 May 2020 Option Period 2 2 May 2020 - 1 May 2021

* The above dates are subject to change

Intend to solicit using Full and Open competition The Government intends to evaluate offers and award a contract without discussions with offerors The offeror's initial offer should contain the offeror's best terms from a price and technical standpoint The Government reserves the right to conduct discussions if later determined by the Contracting Officer to be necessary The Government may use non-Government advisors to support the source selection

No incumbent Contractor exists for this effort Prior OSD CAPE contract did not address all of the Air Force’s specific CEM requirements This is a Research and Development effort Approximately 30 different unique skills/experience levels required over a 5 year period Anticipate 10 to 14 FTEs of effort per year in support of this effort

Special Contract Requirements Security The Space Commodity portion of the R&D effort will require Top Secret (TS) cleared personnel All other portions will require Secret (S) cleared personnel Contractor must have a final TS Facility Clearance DD254 will be issued with the formal solicitation Facilities/Government Property/GFE Government facilities/space for Contractor personnel will not be provided No Government Property or Government Furnished Equipment will be provided

Draft Solicitation Review

Sections L & M Discussion

CLIN Structure

MORGAN, DONALD W NH-03 (NON-MAIL ENABLED) (DWM) - Please renumber these as 100X

Performance Work Statement Please note that this is not intended to be a detailed discussion of the PWS, but is an overview to highlight key elements for industry awareness.

OBJECTIVE

Research, analyze, design and modernize current cost data and estimating methods and tools.

Improve the quality, timeliness, and effectiveness of the acquisition program cost estimates required by statute in support of the AF and DoD acquisition decisions, programming and execution decisions, and Congressional mandates.

REQUIREMENTS

Collect data and populate Government provided templates for designated weapon systems.

Recommend changes to the templates, develop new templates as needed and quality check and normalize received data.

REQUIREMENTS

Use the data to develop methods and tools for use by cost estimators to meet the AFCAA CEM objectives of an up-to-date, searchable, user-friendly, centrally available data repository that enables higher volume, timely delivery, high quantity, effective program cost estimates.

Systematically and continuously document Air Force and associated joint service cost estimating data requirements, then collect, store, and retrieve the required data, and provide analysis and tools for use by cost estimators.

Provide all deliverables, material, equipment, labor and supplies, tools, transportation, supervision and other expenditures necessary to fulfill this effort as described in the following tasks and subtasks for each of the following weapon system commodity groups:

Weapon System Commodity Groups Aircraft/Unmanned Air Vehicles (UAVs) Missiles/Munitions Intercontinental Ballistic Missiles (ICBMs) Automated Information Systems (AIS) & Associated Equipment C4I/Electronics and Associated Equipment Software Other Government Costs (OGC) Operations and Support (O&S) Costs for All Commodities Space and Launch Systems

REQUIREMENTS (Tasks 1-6 applicable for contract duration) Task 1 – Establish Required Nondisclosure Agreements (NDAs) Task 2 – Develop a Plan of Action and Milestones (POA&M) for the Tasks and Subtasks Task 3 – Data Collection and Normalization Task 4 – Analysis of Data Sources and Data Availability Task 5 – Existing Templates and Development of New Commodity Specific Data Task 6 – Develop Methods/Tools/CERs and Other Analytic Approaches for Cost Estimating Task 7 – Product Finalization (Focus of Option Period 2)

The Contractor is responsible for ensuring its assigned personnel (to include subcontractors) fully comply with the minimum experience and knowledge requirements.

The following personnel are considered key personnel:

Integrated Program/Technical Manager Weapon System Commodity Task Leaders Subject Matter Experts Subject area experience generally includes:

Technical – major DOD or AF weapon system requirements analysis, systems analysis, engineering, system design.

Cost – Knowledge of technical cost drivers and how they are used in common cost estimating methodologies

During performance of this contract, the Contractor is required to interface and interact with other AFCAA and OSD-CAPE Contractors based on AFFARS 5352.217-9500 Associate Contractor Agreements.

Companies and POC info will be included in the formal RFP The Contractor is responsible for understanding the methods and applications used and/or developed by the Associate Contractors for cost estimating and analysis in support of the AFCAA.

The Contractor shall notify the COR in areas they are aware duplication exists.

Work with other AFCAA Contractors on occasional tasks that will be under the management of an Associate Contractor task lead (each Contractor is responsible for the quality control of its part of the delivered product and the task lead is responsible for the overall product.

The Contractor shall provide an Integrated Program/Technical Manager and task leaders for each of the weapon system commodity groups identified in PWS paragraph 3.0, who shall be responsible for the performance of the work.

The Program/Technical Manager’s responsibilities include ensuring there is commonality and configuration compliance within all of the Data Templates, per PWS paragraph 3.2.1.5.

Administrative and clerical support under this contract shall not be considered a direct task or labor category.

Contractor personnel supporting the Space and Launch Systems weapon system commodity group must have their FINAL TOP SECRET clearances prior to commencing work on this contract. All other positions must have a FINAL SECRET clearance prior to commencing work on this contract.

Task Direction Memorandum(s) (TDMs):

When necessary, technical direction or clarification concerning the details of specific tasks set forth in the contract shall be given through issuance of TDMs by the COR.

Each TDM/TDM amendment shall be in writing, and is subject to the terms and conditions of this contract.

In no event shall a TDM constitute an assignment of new work or changes of such nature as to justify any adjustment to the estimated costs of delivery terms under this contract.

In the event of a conflict between a TDM and the contract, the contract shall control.

If in doubt, notify the COR and Contracting Officer (CO) in writing within two (2) working days of having received the TDM.

Best Value Tradeoff Process

This acquisition will use a full tradeoff process between non-cost factors and cost/price Award is to be made to the offeror proposing the combination most advantageous to the Government based upon an integrated assessment of the evaluation factors and subfactors The Government may accept other than the lowest priced proposal or other than the highest technically rated proposal to achieve a best-value contract award The following evaluation factors and subfactors, ranked in order of importance, will be used to evaluate each proposal:

Evaluation Factors Factor 1: Past Performance Factor 2: Technical Subfactor 1: Establishing NonDisclosure Agreements Subfactor 2: Develop a Plan of Action & Milestones (POA&M) Subfactor 3: Analysis of Data Sources and Data Availability Subfactor 4: Refine Existing Templates and Develop New Commodity Specific Data Templates Subfactor 5: Data Collection and Normalization Subfactor 6: Develop Methods/Tools/CERs and Other Analytic Approaches for Cost Estimating Subfactor 7: Qualifications of Personnel Subfactor 8: Management Plan Factor 3: Price/Cost

Past Performance Evaluation Factor Factor 1, Past Performance, is the most important of the evaluation criteria Demonstrated prior experience involving the same focus areas and complexity as this R&D effort is essential to meet all of the PWS requirements in a timely and cost effective manner.

Higher levels of recency and relevancy in a Contractor's past performance are expected to result in the most capable, timely and cost efficient R&D solution.

Past Performance is somewhat more important than Technically Capability, and is significantly more important than Price/Cost.

Technical Capability Evaluation Factor Combined Technical/Risk Rating Approach Includes consideration of risk in conjunction with the strengths, weaknesses, and deficiencies of an offeror's proposal in determining technical ratings Considers how well an offeror's proposal demonstrates the effectiveness and efficiency of its approach and understanding of the technical requirements, and how its approach and understanding reduces the risk of unsuccessful performance The eight subfactors are those quantitative and qualitative discriminators having the most impact on the source selection decision under the Technical Capability factor

Evaluation Factor Combined Technical/Risk Rating Approach The extent of participation of small businesses to include service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns in performance of the contract shall be evaluated as part of Subfactor 8, Management Plan Subfactors 1 through 8 are approximately equal in importance to each other, and both individually and when combined are significantly more important than Price/Cost

Combined Technical/Risk Rating Approach No overall “roll-up” rating will be assigned for this factor However If one or more of the subfactors are rated "Unacceptable," then the entire Technical Capability factor will be rated "Unacceptable" If two or more of the subfactors are rated "Marginal," then the entire Technical Capability factor can be rated no higher than "Marginal"

Price/Cost

Factor 3, Price/Cost, will be evaluated using a combination of price analysis techniques IAW FAR 15.404-1(b), cost analysis techniques IAW FAR 15.404-1(c), and cost realism analysis IAW FAR 15.404.1(d) The Government anticipates that Other Than Certified Cost or Pricing Data will be required from offerors, since adequate competition is expected for this acquisition Specific “plug number” amounts will apply to the Travel and Other Direct Costs line items (Cost-No Fee Type) Offerors shall not change the “plug numbers,” which shall be inclusive of any loadings (e.g., G&A, Material Handling, etc.)

The Government intends to limit the cost realism analysis to the proposed labor rates, labor hour estimates, and the offeror's use of uncompensated overtime identified in its proposal This level of analysis will allow the Government to evaluate whether or not the offeror:

Understands the contract requirements Has proposed costs that are consistent with its technical proposal Does not demonstrate a performance risk due to excessive uncompensated overtime Has not consciously understated the proposed Price/Cost

The Government will use the probable cost of contract performance developed in the cost realism analysis to determine best value The narrative accompanying the offeror’s Price/Cost proposal must adequately support the amounts proposed by the offeror, and shall be consistent with the Technical Capability portion of its proposal Offerors shall include a redacted version of its Price/Cost proposal without any cost or price figures to facilitate the technical evaluation by the Government

Fixed Fee Rate for CPFF This acquisition is for performance of R&D that has statutory limitations imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 3905 allowing a fee that shall not exceed 15 percent of the contract's estimated cost, excluding fee However, the specific circumstances for this acquisition do not merit a fee exceeding 11 percent, and offerors will again be notified of this restriction in the solicitation Any offeror proposing a fee exceeding 11 percent under the Cost-Plus-Fixed-Fee (CPFF) line items will be considered to be nonresponsive to the solicitation, and its proposal will not be eligible for contract award

Questions

Answers

Closing Statements All questions, comments or concerns with the AFCAA CEM R&D Project (including the Draft solicitation and other information provided to industry) shall be directed only to the AFDW Contracting focal points Cynthia.i.harper.ctr@mail.mil or donald.w.morgan3.civ@mail.mil All presentation materials will be posted at www.fbo.gov The government anticipates the date for release of the formal RFP in approximately 45 days (date subject to change) A separate notice for the formal RFP will posted

Thank you for your interest and participation!

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