08Dec Industry Day Keynote Brief_09MDA4111.pdf

MiDAESS Industry Day Keynote Presentation

Ms. Katrina Wahl Deputy for Acquisition Management

Missile Defense Agency

December 18, 2008 Distribution Statement A:

Approved for public release;

distribution is unlimited

Approved for Public Release

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MiDAESS Keynote Speaker Notes

• MiDAESS Schedule Changes

• Acquisition Strategy

• Small Business Set-Aside Approach

• Contract Process

• OCI Policy

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• DRFP Release Delayed Due To:

- MDA Organization Changes

- Changes in Administration

• Industry Day Is An Opportunity To:

- Review MiDAESS Strategy

- Discuss OCI Policy Changes

- Discuss Changes in Functional Requirements as Seen in

DRFP (Jan 08) and Sources Sought (Oct 08)

MiDAESS Schedule Changes

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Acquisition Strategy

• Consolidation of Similar Functional Area A&AS Requirements into Capability Groups based on Director MDA, functions (AE, PM BMDS, Agency Heads)

• Resulted in Consolidation of more then 181 Separate Contract Vehicles

- 73% of Existing Contacts Less 25 MYE/Contract

• Consolidation Goals

- Implement national engineer and support services for the BMDS mission across the enterprise

- Enhance the sharing of BMD expertise and knowledge across the Agency.

- Centralize the acquisition of support services manpower in a more efficient manner.

- Reduce Agency overhead cost enterprise-wide

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• Six (6) Separate Capability groups Established

- Quality, Safety and Mission Assurance

- Acquisition Support

- Engineering Support

- Infrastructure and Deployment Support

- Agency Operations Support

- Security & Intelligence

Acquisition Strategy

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MS Benefit Analysis:

Consolidation and Bundling - Savings (Cost Avoidance)

• Complied with Small Business Administration (SBA) Consolidation/Bundling Guidelines to Address Requirement for “Substantially Measurable Savings”

- SBA Requires “a Minimum of 5 percent of the Estimated Contract Value (Including Options) or $8.6 Million, whichever is Greater, if the Value Exceeds $86 Million”

- MiDAESS Contract Value = $4.0B or $800M/Year Ceiling

– SBA Requires 5% Savings or $40M/Year

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MS Benefit Analysis:

Consolidation and Bundling - Savings (Cost Avoidance)

• Benefit Analysis Results:

- Average “Existing” Labor Cost for A&AS (180 Contracts*)

= $702.8M/Year

- Average “Existing” Administrative Cost for A&AS (180 Contracts*)

= $21.5M/Year

- TOTAL: $724.3M/Year

- Potential Labor Cost for A&AS (~30 Contracts) = $630.9M/Year

- Potential Administrative Costs for A&AS (~30 Contracts) = $3.6M/Year

- TOTAL: $634.5M/Year

- Potential MiDAESS Savings = $89.8M/Year or 12% Savings

• Data Sources:

- MDA PRIDE Database*

- GSA Schedules, Commercial Composite Rates, and DoD Contracting

Source for Admin

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Small Business Set-Aside (SBSA) Approach

• Market Analysis #1 (January 2008)

- Identified Small Business Capability by Functional Area

- Resulted in Identification of multiple New SBSA Prime Contract

Opportunities Across MDA

• Market Analysis # 2 (November 2008)

- Identified Small Business capability by Capability group

- Consolidated Results with Market Research #1

- Re-enforced Market Analysis #1 Findings

- Identified Additional SBSA Prime Contractor Opportunities

• In Addition to SBSA Prime Opportunities

- MDA will Require and Validate Contractor Proposed SB

Utilization

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MiDAESS Functional Capability Groups Full and Open/Small Business Mix by Group

$0

$50

$100

$150

$200

$250

QSMA (QS)

Acquisition (DA, DL, DI, DOB, LA)

Engineering (DE, DT, DV, DOC)

Infr/D eployment (D

FO, DOI)

Agency Ops (DS, DOH, PA)

Security/Intel (DOS)

Large Business Small Business

Large Business = $457.8M/Yr.

Small Business = $283.3M/Yr.

$M

Total = $741.1M/Yr

Current Small Business A&AS = 24% MiDAESS Small Business A&AS = 38% (Increased 14%)

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MiDAESS Contract Strategy Multiple IDIQ Contracts

• Separate RFP for Full & Open and SBSA

• Each RFP has Separate Unique Requirements

• Industry Must Propose and Meet All Requirements for Capability

Group of Interest

- Geographically Dispersed Workforce

- Cross Functional Enterprise Requirements

• Goal is Multiple IDIQ Contracts Per Capability Group

• Teaming is Key Characteristic of MiDAESS Strategy

• Best Value Source Selection

• Task Orders Will be Competed Between IDIQ Contract Awards

• Assessment of Performance Monthly with Quarterly Reviews Tied to Semi and Annual CPARS Submissions

• Performance Key Component of Future Task Order Award Process

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MiDAESS Contract Strategy Multiple IDIQ Contracts

• Transition From Existing Contracts to MiDAESS

- All Existing Contracts Will be Allowed to Reach Natural End Point

- As Contracts Ends Task Orders Will be Awarded by Capability Group to Replace Existing Requirements

MDA

Contract #1

MDA

Contract #2

MDA

Contract #3

MiDAESS Acquisition

Capability Group

MiDAESS Acquisition

Task Order #1

MiDAESS Engineering

Task Order #1

MiDAESS Engineering

Capability Group

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OCI Policy Changes

• Major Changes in MDA OCI Policy.

• New Policy Posted 26 Nov 2008.

• OCI Policy Example #1:

- Company A agrees to provide advisory and assistance services to the Quality, Safety and Mission Assurance functional area.

Company A should not be allowed to support the prime contractors or any of the subcontractors developing the

BMDS.

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OCI Policy Example #2

• Company A agrees to provide advisory and assistance services to the Acquisition Support functional group. Company A should not be allowed to support the prime contractors or any of the subcontractors developing the BMDS. However, with approved OCI mitigation plans, Company A could be allowed to support other MiDAESS functional groups as a prime contractor or subcontractor.

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OCI Policy Examples #3

• Company A agrees to provide advisory and assistance services as a prime contractor to the Engineering Support functional group.

Company A should not be allowed to support the prime contractors or any of the subcontractors developing the BMDS.

However, with approved OCI mitigation plans, Company A could be allowed to support other functional groups as a prime contractor or subcontractor.

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QUESTIONS