Industry_Day_Briefing_6-16-16.pptx

DoD Information Analysis Centers (IAC) Multiple Award Contract (MAC) Government-Industry Day

16 Jun 2016 Source Selection Authority: Air Force PEO/CM Program Manager & SSEB Chair: Mr. Thomas Gillespie, Director, DoD IACs Contracting Officer: Mr. Stanley Stearns, AFICA/KD, SS Lead Small Business Specialist: Ms. Nicole Perry, DTIC/OL, Dir. Small Business Programs

Bringing the “Think Tank” to the Battlespace http://iac.dtic.mil

Agenda

Information Analysis Centers Technical Area Tasks

(IAC MAC)

Program Background and IAC MAC Overview Mr. Thomas Gillespie

The Facts Behind the IACs

ESSENTIAL RESOURCE

For over 65 years, the IACs have served as an essential resource to affordably access technical data and analysis in support of current operations.

REALIGNED FOCUS

In 2008, the IAC program announced changes to our contract structure, in response to changes in legislation requiring enhanced competition. The ongoing effort to restructure the IACs was completed in the summer of 2014, aligning to current priorities of the SecDef, including Better Buying Power.

SCOPE OF WORK

The IAC program is composed of thousands scientists and engineers in 49 states. Through over 270 Technical Area Tasks (TATs), IACs conducted more than $1.3 billion in FY15 for research, development, technical studies, and analysis.

RESEARCH DATA AND ANALYSIS

Through the IACs, research data is collected, analyzed, and reused to answer recurring challenges and identify long term trends and provide recommendations to the DoD research and acquisition communities.

“IACs serve as a proven resource for maximizing the value of each dollar the department spends.”

– Preferred Use of DOD IAC Contracts - Memo Jan. 2015

IAC Enterprise Diverse Team of Government, Industry and Academia

ASD R&E

DTIC

DoD IACs Director Deputy Director

AFICA/KD

38 Staff Members Offutt AFB/Wright Patterson AFB Steering Committee & Technical Coordinating Groups Advise on direction and focus of each IAC Finance & Support Team (Millennium Corp.)

DoD IACs Government Team (CORs/PMAs)

CSIAC

Thousands of scientists and engineers ~270 technical projects in 49 states

Contractor Government

CS TAT

DSIAC

DS TAT

HDIAC

HD TAT

IAC Approach Communities of Practice Support Technical Analysis IAC approach moves from “data to decisions”

IAC Basic Centers of Operation (BCOs) Collect technical information in areas of DoD interest (reports, technical data, etc.)

Analyze information to identify trends Create information products that summarize key findings, SOARs Approach the above by establishing a Community of Practice Create forums for exchanges of current information Access “tacit knowledge” of technical experts (experiential knowledge not documented in formal reports) across government, industry and academia Answer Technical Inquiries (< 4 hrs), Extended Inquiries (4-24 hrs), Search and Summaries (24-40 hrs), and Core Analysis Tasks (CATs) CATs are less than 1 year in duration and <$500k in cost (<$1M for DSIAC)

IAC Technical Area Tasks (TATs) aka Task Orders Task order contracts providing technical analysis Must create new Scientific and Technical Information (STI) TATs can vary in length from less than a year to five years, from a few thousand dollars to over $100 million TATs are not used for staff augmentation or routine operations Result in technical reports, which are provided to the IAC BCO and made available across the Defense community through DTIC databases

IAC Technical Scope Aligning with SECDEF’s Top Priorities

Software Data & Analysis Cyber Security Modeling & Simulation (M&S) Knowledge Management & Information Sharing

Weapons Systems Autonomous Systems Survivability & Vulnerability

RMQSI

Advanced Materials Military Sensing Energetics Directed Energy Non-lethal Weapons & Information Operations

Homeland Defense & Security Critical Infrastructure Protection (CIP) Weapons of Mass Destruction (WMD) CBRN Defense Biometrics Medical Cultural Studies Alternative Energy www.csiac.org www.dsiac.org www.hdiac.org

MAC TAT FY 15 Historical Information (see RFI)

Avg. TAT Value: $ 28,302,696

Memo signed by Mr. Ginman (DPAP) and Mr. Shaffer (ASD(R&E)) in Jan 2015 designated IAC MAC contracts “vehicles of first choice” for DoD Research & Development efforts (see next slide) Average Task Order values significantly higher than under previous “legacy” contracts, even on an annual basis This has resulted in a higher than anticipated ‘IDIQ ceiling burn rate’ for two of the three MACs:

Defense Systems (DS TAT) was awarded June 2014 with a $3B ceiling Projected to run out of DS TAT Ceiling by 4th Quarter 2016 J&A for ceiling increase of $3.9B to enable ordering until follow-on contract is in place, circa 1 Oct 2018, in process Homeland Defense (HD TAT) was awarded May 2014 with a $900M ceiling Projected to run out of HD TAT Ceiling by March 2017 J&A for ceiling increase of $500M to enable ordering until follow-on contract is in place circa 1 Oct 2018, in process Ceiling Concerns for Current HD & DS MACs

Cyber Security Technical Area Tasks (CS TATs)

CS TATs is an Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Contract for Research & Development (R&D). Five year period of performance started 1 Dec 2015 with a $5B ceiling.

It includes the following scope focus areas:

Cyber Security Software Data & Analysis Knowledge Management & Information Sharing Modeling & Simulation

CS TATs Full & Open awardees:

Alion Science and Technology Battelle Memorial Institute Booz Allen Hamilton Exelis (Harris Inc.)

Georgia Tech MacAulay-Brown, Inc.

ManTech Northrop Grumman Tasc Wyle

POC: dtic.belvoir.iac.mbx.csc@mail.mil Brian Stricker, Contracting Officer Jennifer Heddings, COR SB awardees are:

Barbaricum

BRTRC

DSA

Pro2Serve

SMS

Solers

Homeland Defense & Security Technical Area Tasks (HD TATs) HD TATs is an Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Contract for Research & Development (R&D) and/or Advisory & Assistance Services related to R&D efforts. Five year period of performance started 1 May 2014 with a $900M ceiling.

It includes the following scope focus areas:

Homeland Security and Defense Critical Infrastructure Protection (CIP) Weapons of Mass Destruction (WMD) Chemical, Biological, Radiological, Nuclear (CBRN) Defense Biometrics Medical Cultural Studies Alternative Energy

HD TATs awardees are:

Battelle Memorial Institute Booz Allen Hamilton Jacobs Technology, Inc.

Leidos, Inc.

MacAulay-Brown, Inc.

National Security Info. Associates (small) MRI Global Scitor Corp.

Strategic Analysis Inc. (small) TASC, Inc.

URS Federal Services Wyle Laboratories, Inc.

POC: dtic.belvoir.iac.mbx.csc@mail.mil Brian Stricker, Contracting Officer Melinda Rozga, COR

Defense Systems Technical Area Tasks (DS TATs) DS TATs is an Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Contract for Research & Development (R&D) and/or Advisory & Assistance Services related to R&D efforts. Five year period of performance started 23 June 2014 with a $3B ceiling.

It includes the following scope focus areas:

Advanced Materials Autonomous Systems Directed Energy Energetics Military Sensing Non-lethal Weapons and Information Operations Reliability, Maintainability, Quality, Supportability, and Interoperability (RMQSI) Survivability and Vulnerability Weapons Systems

DS TATs awardees are:

Alion Science and Technology Battelle Memorial Institute Booz Allen Hamilton EOIR Technologies, Inc. (small) Georgia Tech Research Institute MacAulay-Brown, Inc.

Mantech TSG-2 Joint Venture Prescient Edge Corp. (small) Strategic Analysis Inc. (small) TASC Inc.

URS Federal Services Wyle Laboratories, Inc.

POC: dtic.belvoir.iac.mbx.csc@mail.mil Todd Imhoff, Contracting Officer Glenda Smith, COR

Customers submit a Requirements Package to the DTIC IAC PMO in accordance with the Task Order guidelines.

The IAC PMO and Contracting Office will review the requirements package to ensure compliance, completeness and applicability to the IAC Program goals.

The Contracting Office solicits proposals from prime contractors through a RFP.

The Contracting Office awards the Task Order to the winning contractor.

Multiple Award TAT Contracts Ordering Process

STEP 1:

Requiring Activity (RA) contacts DoD IAC Program with requirement

3 months target time

STEP 2:

Workable Draft PWS submitting to DoD IAC Program electronically

STEP 3:

RA develops/ refines requirements package with CSC/CO

STEP 4:

Task Order Proposal Request (TOPR) Business Clearance

STEP 5:

TOPR Issued to Contractors

STEP 6:

Proposal Evaluation

STEP 7:

Contract Clearance

STEP 8:

Contract Award 3 months Procurement Admin. Lead Time

6 months nominal time Contracting Office enters process here

IAC Multiple Award Contracts Customer Shared Direct Cost (CSDC)

All customers who use the IAC MACs will pay a user charge called a Customer Shared Direct Cost (CSDC). CSDC covers contract use, plus assisted acquisition services (IAC Customer Support Cell and DoD contracting office).

The CSDC rate, currently 1.9%, is a percentage of the task order (TAT) obligated funds amount The charge is reviewed annually and set by the IAC Reimbursable Review Board (IRRB) – staffed by OSD Comptroller, OASD(R&E), OSD CIO and OSD OGC Most TATs are incrementally funded – CSDC collected only on funds obligated

Information Analysis Centers (IAC)

IAC MACs Notional Acquisition Strategy Mr. Stanley Stearns

IAC MAC Objectives -- Continue the IAC Program’s Unique Ability to:

As part of DTIC’s mission, carry out DoD Directive 3200.12, “DoD Scientific and Technical Information (STI) Program (STIP)” to serve as subject matter centers of excellence and specialized subject focal points.

Comply with DoD mandate to offer R&D technical area task services, under the IAC program, to the DoD S&T community IAW DoD Manual 3200.14, “Principles and Operational Parameters of the DoD Scientific and Technical Information Program: General Processes”, Mar 14.

Ensure DoD’s Scientific and Technical Information (STI) is collected, analyzed, synthesized/processed, and disseminated IAW DoD STI Program requirements.

Maximize the value of each dollar spent by the Department (typically generating 8-10% savings award values vs IGCEs) through TAT competitions.

Enable the technical sharing, collaboration and synergy between TAT contractors and BCOs, an essential part of the DoD IAC program.

Support DTIC customers, government wide, as an efficient and accessible DoD resource to affordably deliver technical research, scientific and technical analyses in support of warfighting, security and operational needs.

Enable participation of qualified small businesses, as prime and subcontractors, in all IAC contracts.

Acquisition Overview

IAC MAC

Supports Better Buying Power. Combining the HD, DS, & CS MAC into one MAC complies with Better Buying Power by improving affordability, productivity, and standardization within defense acquisitions Reduces Contract Award Time. One award process vice three will reduce amount of time contracting and program offices spend on pre-award actions in the long run Reduces Problem of Scope Ambiguity. Three MACs with different but overlapping scope areas have created confusion for both customers and program/contract offices One IAC MAC would retain the Research Analysis & Development Industrial Base. Contractor overlap across all focus areas, existing contracts (See next slide) Employ Similar Strategy.

Pursue contract structure that will continue to have Full and Open/Unrestricted and Small Business Set-Aside pools Adopt best practices from other similar IDIQ contract vehicles

Why One IAC MAC Contract?

Why One IAC MAC Contract? (Con’t) One IAC MAC contract would retain the Research Analysis & Development Industrial Base A total of 25 different contractors w/ 10 contractors overlapping across MACs Industry and Government would benefit by reducing resources (e.g. proposal creation, multiple evaluation teams, etc.) compared to individual MAC acquisitions

*6 SBs not listed

Objectives Draw from and build on technical focus areas’ knowledge bases Conduct studies, evaluations, and analyses Promote standardization in technical focus areas across DoD and the S&T communities Scope Matrix represents technical focus areas with types of tasks across each area

Survivabilty

Weapons Systems

CBRN Defense

Scope

Technical Scope and Requirements

Requirements Technical Area Tasks All 22 focus areas currently within the HD, DS, and CS contracts will fall under the IAC TAT MAC Separately funded orders for studies, complex analysis, engineering and technical services that generate scientific and technical information RDT&E or advisory and other services 3 award pools: 1) SB Set Aside for TATs below a specified amount - 21 scope areas, 2) Unrestricted/F&O – 21 scope areas, and 3) CBRN scope area due to bio level III lab requirement Top Secret Facility clearance required prior to contract award

IAC MAC

Early Notional Strategy Acquisition Strategy Planning:

Source Selection Authority: AFPEO/CM w/ OSD Peer Reviews Estimated Award Date: 1 Oct 2018 Contract Value: $28B ceiling limit Contract Type: Multiple Award IDIQ w/ capability for CPFF, CPIF, FFP-LOE , and FFP orders. (99%+ of TATs are CPFF) IAC TAT Ordering Period: 10 Years (2 Year Base + 4 two-Year Options) IAC TAT Ordering: Orders issued/awarded by AFICA/KD Information Analysis Center MAC (IAC MAC) (10 Year Contract, ~$28B Ceiling)

CBRN Defense (Biosafety level 3) 21 Tech Areas (Full & Open) 21 Tech Areas (SB Only, $$ Limit)

Full and Open Competition (F&O) with Small Business Set-Aside Seeking to award 10 F&O and 4 SB contracts; CBRN Defense likely to be a separate 3rd pool (F&O) – potential for three award pools Task Orders below a $ threshold to be automatic SB set-aside, threshold determined IAW market research results NAICS Code 541712, R&D in Physical, Engineering, & Life Sciences (Except Biotechnology) 1000 employee small business size standard Contract Type Multiple Award IDIQ with capability for both cost reimbursement and fixed-price orders Contract Length 10 years (2 year Base + 4 two-year Options) $28B Ceiling Cumulative total for all contractors, all years – max. Task Orders awarded $2.5K Minimum Order Guarantee Management Reporting Requirement for Base Period only (FFP CLIN)

IAC MAC

Acquisition Strategy Considerations

Organizational Conflict of Interest with IAC BCO prime contractors BCO prime contractors can hold IAC TAT contract but will be unable to bid as prime/subcontractor on TATs in their scope area, e.g., cyber BCO contractors serve as “trusted agents” DCAA-confirmed adequate accounting system for CPFF Information for Contractors, DCAA Pamphlet No. 7641.90 (www.dcaa.mil/dcaap7641.90.pdf) Small Business Set Aside Pool Small Businesses can compete for SB pool and/or F&O pool awards Will have to identify as part of proposal SB Pool TAT Competitions FAR 52.219-14, Limitations on Subcontracting: At least 50% of the cost of contract performance incurred for personnel performed by SB contractor F&O Pool TAT Competitions FAR 52.219-14 rule not applicable

Best Value Tradeoff Source Selection Process (Price & Performance) (tentative) Technical (Acceptable / Unacceptable)

Evaluation of primary focus areas with Sample Task Orders, additional focus areas with technical narrative Management approach (will include small business utilization)

Past Performance

Cost/Price

Examples of specific questions for which we are seeking industry input:

For large and small businesses, what is a 'reasonably achievable' percentage you could accomplish for small business subcontracting, in terms of % of Govt dollars obligated, based on your company's demonstrated past performance record?

For small businesses, what would you recommend as the maximum ceiling price for each Task Order that could be used to make a determination for establishing an automatic small business set aside dollar threshold on this vehicle Do the contemplated strategies present barriers to small business participation and/or competition – either at the prime or subcontractor level? If so, what are some alternatives that would remove these?

Are small businesses planning to form teaming agreements to pursue these opportunities (traditional prime/sub arrangements as well as joint ventures and mentor-protégé agreements) – if not why not?

See DoD Guidebook for Facilitating Small Business Teaming Agreements at: http://www.acq.osd.mil/osbp/doing_business/index.htm

Industry Input Developing a “Workable” Approach

Bottom Line Up Front The Government is very receptive to industry input/feedback on the contemplated strategies Desired input includes elements of acquisition strategy, as well as post-award execution Are there best practices / samples of approaches used on other successful programs/contracts, especially with respect to source selection/proposal evaluation approaches and ordering procedures, that would optimize opportunities for small businesses?

Are there best practices / samples of approaches… that would facilitate cost and/or time savings at either the IDIQ level or Task Order level?

The IAC program has incorporated input from industry in shaping the acquisition strategies and post-award ordering processes on past acquisitions: CS TATs, DS TATs and HD TATs and all three IAC BCO contracts and plans to continue doing so on future awards

Industry Input Developing a “Workable” Approach

Industry Input

REQUEST FOR INFORMATION

PART ONE – COMPANY/ORGANIZATION OVERVIEW

In each question below please provide a detailed summary for your answers, when requested, and adhere to page length limitations.

Note: Follow these steps to “check” the Check Boxes contained within: Double Left Click on Check Box, Select Properties, Select “Checked” under Default Value, Select OK.

Part One has 20 Questions that will assist the Government in determining small business Set-asides and dollar thresholds and with the acquisition strategy. It is important that BOTH Large and Small Businesses respond to the questionnaire.

NOTE: A Background document and an RFI will be posted Friday 17 June and will be due back to the Gov’t by 15 July 2016.

REQUEST FOR INFORMATION

PART TWO – SCOPE FOCUS AREA CAPABILITY & CAPACITY TEMPLATE

Instructions: If you are demonstrating capability/capacity to perform in either Pool 1 or Pool 2, questions 21, 22 and, (if applicable) 23 must be completed for each of the three mandatory scope focus areas: 1) Survivability, 2) Reliability, Maintainability, Quality, Supportability and Interoperability (RMQSI) and 3) Modeling and Simulation. Copy and complete the template for Questions 21-23 for each of the three areas.

If you are demonstrating capability/capacity to perform in Pool 3, CBRN Defense, questions 21, 22, and, (if applicable) 23 must be completed for the scope area of CBRN Defense. Copy and complete the template for Questions 21-23 for this scope area.

Part Two has 3 Questions that will be answered three times, once for each of the three scope areas. This will assist the Government in determining capacity and capability for a potential small business Set-aside.

REQUEST FOR INFORMATION (RFI) BACKGROUND

The RFI will also have a document that provides descriptions of all the Focus areas and important information concerning this acquisition and assist you in filling out the RFI. Below is one excerpt from the Background paper to help understand what Capacity means: Capacity means the respondent would be fully prepared to successfully perform the magnitude of effort required by this contract in at least one of the pools. The number of Task Orders and corresponding level of effort, expressed as “full-time equivalents” (FTE) that the contractor would be required to demonstrate capacity to perform, per pool, is shown in Table 1 below. A ‘full time equivalent’ is defined as one OR MORE individuals, who when combined, perform an average of approximately 40 hours per week for one person on a single contract. For example, one individual who charges 40 hours/week for 52 weeks/year to a single contract, after subtracting their non-billable hours (paid absences), delivers approximately 1880-1920 hours per year to that contract – this is one FTE. Four individuals who each charge 10 hours per week individually, for 52 weeks/year to a single contract, after subtracting non-billable hours for paid absences, deliver a combined amount of approximately 1880-1920 hours per year to that single contract – this is one FTE. To demonstrate capacity, respondents must show that they can successfully perform the requirements of the pool

Projected Schedule for IAC MAC

Teaming and Small Business Ms. Nicole Perry Director of Small Business Programs, DTIC/OL

Why Team?

Expand opportunities Take advantage of SBA affiliation rules Maximize complementary skills, resources, capabilities Minimize risks Fill gaps in past performance Eliminate barriers (e.g., support geographically dispersed requirements) Increase competitiveness

Selecting Teaming Partners Compatible contractors Assess team chemistry Management styles, corporate cultures, strategic visions Assess team member capabilities Business, financial, other resources Assess legal constraints OCI issues, debarments/suspensions, qualification requirements All must understand terms and conditions of agreement

Ways to Find Teaming Partners Government Resources:

SBA District Offices – Business Development Specialists Subnet (SBA.gov) Subcontracting Opportunities Directory (SBA.gov) SBA’s Dynamic Small Business Search Industry Day External Resources:

FedBizopps – “Interested Vendors List” Tab on RFIs

Affiliation Business concerns are affiliates of each other if directly or indirectly, either one controls or has the power to control the other, or another concern controls or has the power to control both Stock ownership Common management Affiliations deals with business relationships a SB may have with other firms and how those relationships affect the size status of the SB Prime-sub relationship is not at arms length Business relationship outside particular contract that may cause affiliation

Joint Ventures Contract in joint venture’s name Contract performance responsibility lies with joint venture Normally a joint venture is a small business concern when the combined revenues or employees of all joint venture partners do not exceed the small business size standard SBA excludes affiliation from joint ventures under certain circumstances

Affiliation Exemptions for Joint Ventures for set-asides other than 8(a) A Joint Venture of two or more small business concerns may submit an offer as a small business, without regard to affiliation, and the size standard is applied to the individual concerns rather than to the combined assets of the joint venture as long as all are small under the NAICS used and The acquisition is bundled or consolidated at any dollar value The acquisition is not bundled or consolidated and the contract value exceeds ½ the applicable revenue based size standard Size standard = $31M. For exemption to affiliation rule, acquisition must be more than $15.5M The acquisition is not bundled or consolidated and the contract value (including options) exceeds $10M for employee based size standard) Size standard = 1000 employees. For exemption to affiliation rule, acquisition must be more than $10M

Information Analysis Centers (IAC)

Future Acquisition Considerations – CSIAC Follow-On Contract

Acquisition Strategy 100% Small Business Set-aside, NAICS 541712, 1000 Employees Best Value Full Tradeoff source selection Contract Type – Single Award IDIQ contract with capability for both CPFF & FFP orders Contract Length – 5 or 6 years (TBD) (1 or 2 year Base + 2 two-year Options) Estimated Contract Award Date – 4th Qtr FY17 Draft RFP planned ~ 4th Qtr FY16 Current Contract: FA8075-12-D-0001 (2012-2017), Quanterion Solutions Inc., $25.9M for 60 months, includes $15M CATs NTE amount

Follow-On Contract Value Estimate

CSIAC Follow-On Contract Acquisition Overview Requirements Performance Based -- “what” not “how” Information Collection, Management and Processing, Analysis, and Dissemination of Scientific and Technical Information Multiple levels of technical inquiry support Secret facility clearance required Core Analysis Tasks (CATs):

Separate, customer funded task orders for extended inquiries, search and summary, conferences, state of the art reports, etc.

Limited to R&D support/S&T analysis Less than $1M (TBD) per CAT and 12 month period of performance Only one open CAT order per customer

*$6M is a subset of the $19M and includes $750K estimate for transition

Mr. Thomas Gillespie Director, DoD Information Analysis Centers thomas.c.gillespie.civ@dtic.mil Direct: 703-767-9245

Ms. Nicole Perry Director, Small Business leslie.n.perry.civ@mail.mil Direct: 703-767-8226

Contracting Officer stanley.stearns@us.af.mil Direct: 402-294-4711

Questions and Answers

Slides available at http://iac.dtic.mil FedBizOpps image2.jpeg image3.jpeg image4.png image5.png image1.png image6.jpg image7.png image16.png image8.jpeg image9.jpeg image10.jpeg image11.png image12.png image13.png image14.png image15.png image17.jpeg image18.jpeg image19.jpeg image20.png image21.jpeg