Attachment_3-_Performance_Work_Statement.pdf

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PERFORMANCE WORK STATEMENT

TEACHING AND EDUCATION

SERVICES

BETTER BUSINESS DEALS (BBD)/INDUSTRY INSIGHT

COURSE AIR FORCE INSTITUTE OF TECHNOLOGY (AFIT)

WRIGHT PATTERSON AFB,

OHIO

18 NOV 2015

1. DESCRIPTION OF SERVICES / GENERAL INFORMATION

1.1. Scope: This Performance Work Statement (PWS) defines the requirement for the

Contractor to provide on-site teaching and educational services for the AFIT School of Systems and Logistics to provide education to help government acquisition personnel work more effectively with their industry partners and negotiate better business deals in support of the Air Force mission. The contractor shall comply with Government and local laws, regulations, and instructions. These classes shall be delivered at various locations which include, but may not be limited to: Wright Patterson AFB, OH; Los Angeles AFB, CA;

Hanscom AFB, MA; Tinker AFB, OK; Eglin AFB, FL; Hill AFB, UT; Maxwell-Gunter AFB, AL; and the Washington D.C. area.

1.2. Description of Services: The Contractor shall develop a workshop course called “Better Business Deals”, provide academic instruction and perform in-depth research studies in support of the objectives of the course. The Contractor shall be an Association to Advance Collegiate Schools of Business (AACSB) accredited business school and deliver a course that addresses the “Better Business Deals” course topics listed in section 1.5 of this PWS as well as current and emerging issues affecting DoD and Government business, with particular focus on aerospace acquisitions. The target audience for this Course/Workshop will be senior military and civilian acquisition professionals. Student’s career grades will range from O-2 to O-6 for the military and GS-12 to GS-15 for the civilian attendees.

Students include contracting managers, program managers, logisticians, engineers, financial managers and others, with 10-20+ years of experience and leadership positions in the Acquisition Community. The Contractor shall conduct research and analysis addressing Air Force requirements to improve business practices and develop and instruct training for implementing these practices. The contractor shall provide deliverables that meet specific requirements for tasks IAW individual task orders issued against an Indefinite-Delivery, Indefinite Quantity (IDIQ). The basic IDIQ contract will define the terms and conditions of the contract, the firm fixed price development price for the Better Business Deal course and the firm fixed price instruction price per course offering. Individual task orders issued against the basic IDIQ contract will implement the requirements and actual deliverables and capture costs for travel required applicable to contract performance.

1.3. Workshop/Course: The Contractor shall develop and teach a workshop covering the topics listed in Section 1.5 IAW the objectives listed in Appendix A to improve the business acumen of students from the Air Force acquisition community using examples from applicable defense contractor’s public financial statements. The Contractor shall

2 | P a g e provide the personnel (faculty, graduate assistants and subject matter experts), technical expertise, security and facilities to meet the objectives listed in Appendix A. The Contractor shall designate a single point of contact (POC) that has the authority to represent the organization in all matters pertaining to this contract. This POC shall be available to respond to the Government’s requirements.

1.3.1. The Contractor shall provide a Project Management Plan (PMP) within thirty (30) days of contract award that describes the proposed management approach, tasks to be performed, and a schedule for accomplishing the tasks for course development and delivery. The PMP will be submitted to the Project Manager (PM) for Government review. The Government requires that the Contractor be able to start delivering course instruction within 90 days of contract award.

1.3.2. The Contractor shall develop training material that allows an instructor to modify content to address any current issues/initiatives that are pertinent to the subject matter.

The Contractor shall be responsive to current initiatives so that instructors can easily adjust material to address public law changes, new internal rules and regulations, and discussion threads to capture the shifting environment around them. Additionally, the Contractor shall select two or three of the major defense contractors in business at each location and use those financial statements for illustrations and/or exercises.

Where possible, the contractor should use publicly disclosed financial statement for individual business units or other entities that provide more insight than a large, corporate parent.

1.3.3. The Contractor shall provide an initial delivery of instructional material to include syllabus, presentation material, and lesson plans. All presentation material shall be provided in an editable Microsoft Power Point file and all documents shall be provided in editable Microsoft Word. All materials developed shall be delivered to the AF with unlimited rights, IAW FAR 52.227-14, Rights in Data- General (MAY 2014), for use at its discretion. The Contractor retains the right to use the material for their personal purposes. Additionally, all course materials become the property of the Government with unlimited copyrights upon delivery and may be modified for subsequent use/reuse. The contractor shall provide two master hardcopies and two electronic copies of all course & certification materials to the Air Force customer and to SAF/AQX, for archival purposes. The Contractor shall also provide updated material files in the event that significant changes or improvements are made to them during execution of the course offerings.

1.3.4. The Contractor shall teach the course to AFIT instructors to review and evaluate for content and quality. Feedback from this course offering shall be incorporated into the course and approved by AFIT instructors prior to delivering the course information to students. The Contractor must receive final approval from the Government before teaching course offerings.

1.3.5. The Contractor shall teach offerings to groups of up to thirty (30) students. This

Government acquisition will have a maximum of twelve (12) course offerings over the base year period of performance. Options for each of four (4) additional years will be

3 | P a g e included in the IDIQ as identified in the Solicitation Schedule. Each option year, if exercised, will include a maximum of twelve (12) course offerings. AFIT may assign an instructor to co-teach the course with the Contractor. The workshop should discuss how for-profit companies in the commercial defense industry operate in contrast to the Government program offices. By providing key insights into the inner workings of industry partners, the goal is that USAF personnel will leave the workshop with specific abilities to translate those insights into writing better contracts and maintaining more effective and efficient business arrangements for their Air Force acquisition programs.

1.3.6. The Contractor shall provide instructors who are fluent in English and can provide proof of U.S. citizenship. The Contractor shall also provide workbooks, text books, and all other required course materials for each individual student. The Government will provide the meeting room, audio/visual equipment, and registration services.

However, some limited classroom set-up may be required such as arranging desks, chair, etc. The course shall be conducted in its entirety within a four (4) day period, in a live, on-site instructor format. The four (4) day instruction period shall not cross work weeks. The developed course shall address the course objectives.

1.3.7. In the event a course offering needs to be rescheduled, the Contractor will be notified 30 days prior to the start of the course offering to allow time for alternative arrangements.

1.3.8. The Contractor shall provide all printed material to the students for learning. These student course materials shall codify the central messages delivered through this training. This training material shall be distributed to the students by the contractor.

An electronic copy of the latest version of materials shall be sent to the course Program Manager (PM) no later than five (5) business days prior to the start of each workshop. The costs of all course materials shall be included into the price of the course workshop offering.

1.3.9. The Contractor shall demonstrate that the workshop developed under this contract meets the requirements of the Air Force through an end-of-course student survey instrument. The Contractor may use AFIT’s existing end-of-course survey or develop their own end-of-course survey as long as it evaluates the student’s experience covering the following areas: expertise and responsiveness of instructors, quality of course materials, and how well the course addressed the learning objective. The survey must also provide numeric, Likert-scale response options as well as text responses from students. The surveys shall average a 4.0 on five point Likert-scale (or

4.5 on a six point scale). The Contractor shall deliver the surveys to the Program Manager within five business days of course offering completion.

1.3.10. The Contractor shall provide Quarterly Progress Reviews (QPRs). These QPRs will be scheduled by the contractor with the PM and other Government stakeholders such as the COR, Government SME. The QPR will occur no later than fifteen (15) business days after each quarter. The QPR shall include progress to date against the Project

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Management Plan (PMP) to include cost, schedule and performance metrics, description of travel, problem areas and any applicable corrective actions, and anticipated activity for the reporting period. The QPR will be held via teleconference.

The Government reserves the right to waive QPRs if it is determined that they are not necessary.

1.3.11. The Contractor shall provide Quarterly Cost Reports provided no later than fifteen

(15) business days after each quarter to the Government SME and the COR that includes accumulated invoiced cost for each CLIN up to the previous quarter and projected CLIN costs for the current quarter.

1.4. Contracting Officer Representative (COR): The Contracting Officer will authorize a

COR to represent the Contracting Officer to perform certain contract administrative duties in conjunction with this contract.

1.5. General Information: The workshop content shall, at a minimum, answer the following questions:

The primary motivators for a for-profit businesses How shareholders affect operational business decisions Long and short and long term success measures defense industry businesses use How executive compensation affect defense industry business decisions The most effective incentives for defense industry companies and why they are the most effective incentives How negotiation techniques affect the outcome of the business arrangement between the contractor and the government

1.6. Quality Control Plan: The Contractor shall develop and implement a quality control plan to ensure fulfillment of contract objectives.

1.7. Hours of Operation: Typical course hours of operation are 0800hrs – 1630hrs Monday through Friday. The Contractor is not required to teach on federal holidays or weekends.

The Contracting Officer’s Representative (COR) is the point of contact for review and coordination of any changes in work schedule. The COR shall coordinate and approve requests prior to changes. All changes must go through the COR prior to implementation.

1.8. Security Requirements: There are no special security requirements anticipated for this effort. The Contractor will be provided a POC at each location where a course offering will be given. The Contractor will be responsible for working through the POC to obtain base access prior to the beginning of each course. Contractor employees will be subject to the local restrictions of the site visiting and shall not be in Government facilities without Government employees (either military or Government civilian) being present in the offices, classrooms and/or workspaces where the Contractor employee is working.

1.9. Continuation of Contractor Services During Base Exercises, Local Emergencies, or

Contingencies and Implementation of Local Contingency Plans: The Contractor

5 | P a g e should expect to continue teaching during planned exercises, but shall follow directions of appropriate safety and security personnel in the event of an emergency.

1.10. Safety Plan/Requirements: All teaching shall take place in a typical office/classroom environment. There are no special safety requirements anticipated for this effort.

1.11. Travel: The Contractor may be required to travel to various locations within the continental United States (CONUS) or overseas (OCONUS). These locations include, but may not be limited to: Wright Patterson AFB, OH; Los Angeles AFB, CA; Hanscom AFB, MA; Tinker AFB, OK; Eglin AFB, FL; Hill AFB, UT; Maxwell-Gunter AFB, AL; and the Washington D.C. area. For OCONUS travel, contractor employees shall obtain passports, visas, and medical clearances for designated operations areas. Travel costs shall be reimbursed in accordance with the Federal Travel Regulation, Joint Travel Regulations and Standardized Regulations as applicable from FAR 31.205-46 for locality per diem rates.

Actual modes of transportation and costs shall be agreed to in advance and reimbursed on a cost basis upon receipt of the invoice. All air travel shall be booked on American-flagged carriers, unless coordinated and approved by the Contracting Officer.

2. Services Summary

PERFORMANCE

OBJECTIVE

PWS SECTION

REFERENCE

PERFORMANCE

THRESHOLD

SS-1 Compliance of Quality Control Plan

Section 1.0, para. 1.6 0 instances of noncompliance.

SS-2 Project Management Plan

Section 1.0, para.

1.3.1

No more than 0 instance of typos per report.

Typos shall be corrected within 1 workday of notification.

SS-3 Instructional Materials Section 1.0, para.

1.3.3

The materials shall be submitted on time with no more than 0 instance of typos per report.

Typos shall be corrected within 0workday of notification.

SS-4 Initial Course Delivery for evaluation by AFIT

Section 1.0, para.

1.3.4

No more than 0 instance of typos per report.

Course will accomplish educational objectives.

Typos shall be corrected within 0 workday of notification. Course defects will be corrected prior to first course offering to students.

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SS-5 Student Materials Section 1.0, para.

1.3.7

The materials shall be submitted on time with no more than 0 instance of typos per report.

Materials will accomplish educational objectives.

Typos shall be corrected within 1 workday of notification.

SS-6 Course evaluation/feedbacks

Section 1.0, para.

1.3.8

No instances of the average rating being less than 4.0

SS-7 Quarterly Progress Reviews

Section 1.0, para.

1.3.9

The materials shall be submitted on time with no more than 0 instances of typos per report.

Typos shall be corrected within 1 workday of notification.

SS-8 Quarterly Cost Reports Section 1.0, para.

1.3.10

The materials shall be submitted on time with no more than 0 instances of typos per report.

Typos shall be corrected within 1 workday of notification.

3. Government Provided Facilities: Government facilities will be provided IAW individual task orders. The Government will provide facilities for instruction as well as the computers/projectors necessary for delivering the workshop and may provide facilities for research activities associated with the performance of the contract. The contractor shall supply additional materials incidental to conducting the training and research activities within those facilities. To facilitate the accomplishment of individual task orders, the COR may authorize the use of Government facilities and equipment such as various Air Force computer facilities, technical libraries, and other facilities. The COR shall specify and approve contractor access to these facilities and equipment on an individual task order basis.

Appendix A

A. DRAFT Lesson Objectives Overarching objective: The contractor shall provide the Air Force acquisition workforce, in program teams with training in business acumen, helping them work more effectively with industry partners and negotiate better business deals in support of the Air Force mission. The contractor shall develop and administer a course that meets the following objectives:

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1. Understand business segment portfolio assembly and how decisions are made to prioritize resources among segments.

a. Explain financial metrics and their use

b. Explain what other considerations are used to make decisions

2. Define how the stock market affects the value of corporations and how that valuation influences decisions.

a. Understand industry benchmarking

b. Explain how stock market data can be found and analyzed

c. Explain disclosure requirements

3. Detailed explanation and application of various financial statements.

a. Explain the importance of the balance sheet, income statement, cash flow statement and the statement of shareholders’ equity

b. Given a Management’s Discussion and Analysis (MD&A) statement, explain the nuances of what is important to management and be able to “see” the company through the eyes of management

c. Explain the interrelationships between basic financial statements

d. Understand the impact of policy decisions on financial outcomes

e. Explain the difference between cash flow versus profitability

4. Understand corporations’ structure, who makes the decisions and how managers are compensated.

a. Explain corporation senior executives (C-suite) and understand their motivations

b. Explain the basic tenets of the C-suite and the roles and responsibilities in the C-suite

c. Explain what the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO) and segment leadership focus on and why

d. Understand how and why industry managers are compensated and how their measures of success are market driven

5. Understand how industry makes their investment decisions.

a. Understand why time will almost always have more value to industry than it does to the government

b. Explain how industry decision are effected by five key metrics; Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Profitability Index and Payback Period

6. Understand the business development process, how it is structured and how decisions are made to capture potential future business opportunities.

a. Explain how risk, margins and revenue opportunity factor in the decision to pursue business

b. Explain how return on investment and resource capacity usage rates (personnel and factories) factor in the decision to pursue future business

c. Explain how industry estimate, measure and mitigate risks

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d. Explain the models industry uses and what assumptions they make based on these models

7. Understand the basics of negotiations.

a. Explain why there is a need to study negotiation skills

b. Given a scenario, get hands on experience researching a business and then using that knowledge to negotiate and to create and claim mutual value while understanding the stakeholders interests

c. Explain how to align interests for mutual gain

d. Explain the research and preparation required for effective negotiations

e. Explain how goals in negotiations may lead to mutual gains, efficiency and improved relationships Appendix B

B. References

1. DoD Instruction 1322.20, Development and Management of Interactive Courseware

(ICW) for Military Training

2. AFMAN 36-2234, Instructional System Development

3. AF Handbook 36-2235, Volume 10 Information for Designers of Instructional Systems:

Application to Education