Final_RFP_A5_Draft_Mgmt_Plan.docx

NBACC FFRDC RFP Attachment # 5

DRAFT MANAGEMENT PLAN

FOR

A National Biodefense Analysis and Countermeasures Center Operating Contract, a Federally Funded Research and Development Center

FOR

The Department of Homeland Security

Notice for Proposing Contractors

This Management Plan (“Plan”) is in draft format for the NBACC/FFRDC full and open competition. The Plan is provided as an inclusion to the NBACC Statement of Work in Section C of the Request for Proposal (“RFP”). The draft Plan is provided as Attachment 5 to Section J of the RFP and is provided solely to provide insight to the Government’s concept of the NBACC FFRDC.

The Government recognizes the organizational differences in the possible entities that may propose on this requirement and desires to make the Plan as detailed and germane as possible to the awarded contract, contractor and the Government. At the same time, there is a need to provide complete and adequate requirements and details to outline, as nearly as possible, the total responsibilities of the parties under the awarded contract.

Considering the above, you are requested to review this document and provide any appropriate comments as to the details and requirements with your response to the RFP. Please keep in mind that sections and parts of the document such as the Appendices and the Addendums will require a major reformatting and rewrite based on the circumstances and organization of the proposing entity. It was not possible to draft a Plan as “a one size fits all” document.

Comment pages will not be included in the page count of the Technical Proposal.

MANAGEMENT PLAN

FOR THE

DEPARTMENT OF HOMELAND SECURITY

NATIONAL BIODEFENSE ANALYSIS AND COUNTERMEASURES CENTER

Table of Contents

1. INTRODUCTION:

Federally Funded Research and Development Centers (“FFRDC”s) sponsored by the Department of Homeland Security (“DHS”) established pursuant to Section 305 of the Homeland Security Act of 2002 (P.L. 107-296) represent a planned long-term Government investment in a unique resource for studies and analysis. FFRDCs perform work that: (1) is consistent with the Center's mission, purpose and capabilities; (2) is consistent with DHS's needs as reflected in the Center's core competencies; (3) is consistent with the strategic relationship between the Center and its sponsor; and (4) cannot be performed as effectively by existing in-house, other not-for-profit, or for-profit contractor resources.

Because of the importance and unique status of FFRDCs, DHS must ensure that their use is appropriate and that DHS has effective policies and procedures for their management.

2. PURPOSE:

This Management Plan ("Plan") defines DHS policies and procedures for the management and use of the DHS-sponsored National Biodefense Analysis and Countermeasures Center (“NBACC”). It also provides guidelines and procedures for ensuring compliance with the Government-wide policies set forth in the Federal Acquisition Regulation ("FAR"), Part 35.017, entitled Federally Funded Research and Development Centers.

3. APPLICABILITY:

a. This Plan applies to the Users and the Contracting Activity that awards and administers the Contract as defined in Section C below.

b. FFRDCs provide high-quality studies and analysis within the scope of their defined core work and draw on or sustain the strategic relationship between the FFRDC and the primary sponsor.

c. In addition to meeting long-term and intermediate needs of their users, FFRDCs also provide immediate, short-term assistance to address urgent high priority issues.

d. FFRDCs may be operated by either a university or consortium of universities, other nonprofit organization or industrial firm as an autonomous organization, or as an identifiable separate operating unit of a parent organization through long-term multi-year Government contracts under the authority of 10 U.S.C. 2304(c).

e. FFRDCs are outside of the Government to permit the management flexibility necessary to attract and retain high-quality scientists, engineers, and managers, and to provide an independent perspective on the critical issues that they address for their users.

f. The nature of their mission requires that FFRDCs operate in a strategic relationship with their users. Strategic relationships have the following characteristics:

i. FFRDCs and their sponsors commit to stable and long-term relationships.

ii. FFRDCs are granted access to Government and contractor information beyond that which is common to the normal contractual relationship, including intelligence data and program planning information.

iii. FFRDCs bear a special responsibility to avoid actual and perceived conflicts of interest, and they accept stringent restrictions on their scope, method of operations and the kinds of efforts they can undertake either for their sponsor or for other users.

iv. Strategic relationships enable FFRDCs to:

A. Develop and maintain in-depth knowledge of their sponsor’s programs and operations.

B. Maintain continuity and currency in their special fields of expertise, and a high degree of competence in their staff and work.

C. Maintain their objectivity and independence.

D. Respond to the emerging needs of their sponsor and users.

g. The NBACC will perform research, risk assessments and analysis and deliver independent and objective reports and advice in core areas important to the Primary Sponsor (defined in Section C. below) and in support of the Primary Sponsor’s requirements, policy development, decision making, program and facility management and alternative approaches, and new ideas on issues of significance. The NBACC Contractor ("Contractor") will be responsible for managing the NBACC program, establishing the performance goals and metrics, and completely managing the NBACC facility.

4. DEFINITIONS:

i. Primary Sponsor:

The Primary Sponsor is the entity that is responsible for implementing the management policies and procedures of the NBACC FFRDC. The Primary Sponsor for the NBACC FFRDC is the Science and Technology Directorate of the Department of Homeland Security (DHS/S&T).

ii. Contracting Activity:

The Contracting Activity is the entity that will award and administer the NBACC Contract (“Contract”). The Department of Homeland Security (DHS), Office of Procurement Operations is the Contracting Activity for the solicitation, negotiation, contract award and administration.

iii. User:

A user is a requiring activity or entity for the services provided through the NBACC FFRDC. The users consist of the Primary Sponsor, DHS Components, other than DHS/S&T/ONL and non-DHS agencies/entities.

iv. Core Work:

Core Work is work that is appropriate for performance by the NBACC FFRDC consistent with its mission, purpose and competencies and drawing on or sustaining a strategic relationship between the NBACC FFRDC and its Primary Sponsor. Core work will be defined in the contract’s Statement of Work and in the Contractor’s “Core Statement”.

v. NBACC Contractor:

The NBACC Contractor is the entity that is awarded the contract.

vi. Parent Institution:

The Parent Institution is the corporate parent of the NBACC Contractor. If the NBACC Contractor does not have a corporate parent, then the Parent Institution is the NBACC Contractor.

vii. Non-NBACC Work:

Non-NBACC Work is work performed by the NBACC Contractor or Parent Institution that does not comply with the definition of Core Work and is therefore not performed within the NBACC FFRDC.

5. POLICY:

a. General:

The Primary Sponsor shall operate under this policy. Specific implementing instructions shall be documented in the respective Sponsoring Agreement.

b. NBACC Work:

The Contractor may only perform Core Work as defined in its Core Statement and in accordance with the following guidelines:

i. The Primary Sponsor must approve all work.

ii. Work may only be accepted from DHS, other Government entities, state and municipal governments, and public charities.

c. Non-NBACC Work:

Parent Institutions operating the NBACC may perform non-NBACC work subject to Primary Sponsor review for compliance with established criteria mutually agreed upon by the Primary Sponsor and the Parent Institution. The criteria shall be addressed in the Sponsoring Agreement. In establishing these criteria, the following guidelines shall be used:

i. Non-NBACC work by Parent Institutions should be in the national interest, such as addressing economic, social, or governmental issues.

ii. Non-NBACC work shall not undermine the independence, objectivity, or credibility of the NBACC by posing an actual or perceived conflict of interest, nor shall it detract from the performance of the NBACC work.

iii. Non-NBACC work shall not be acquired by taking unfair advantage of the Parent Institution’s operation of its NBACC or of information that is available to that Parent Institution only through the NBACC.

iv. Non-NBACC work may be done for public sector entities and public charities. Commercial work (i.e., work for entities outside of the public sector that are not public charities) may be accepted if the Primary Sponsor grants a specific exception in writing for the commercial work request at issue. If the Primary Sponsor grants an exception, such work must be non-proprietary and may not exclusively benefit any individual for-profit entity.

v. There are no specified dollar limits on the volume of non-NBACC work. However, subject to any specific terms in the Sponsoring Agreement, the Primary Sponsor will periodically assess whether the non-NBACC work performed by the Parent Institution is impairing its ability to perform its NBACC work.

vi. A University operating the DHS-sponsored NBACC is not restricted from performing non-NBACC work. Such work must be obtained, however, in a manner compliant with applicable procurement policies to ensure that work is not acquired through an unfair advantage associated with the NBACC mission, purpose, or special relationship.

d. Technology Transfer Activities:

The Sponsoring Agreement may include authority for the NBACC to participate with industry in technology transfer activities when appropriate. The DHS/S&T must include adequate safeguards to ensure the NBACC remains free of organizational conflicts of interest and that the conditions for establishing and maintaining the NBACC are not compromised. The safeguards should include specific review and approval of technology transfer work by the DHS/S&T or its designee on a case-by-case basis.

e. Exceptions:

Requests for exceptions to the above policy shall be directed to the DHS/S&T or its designees as applicable.

6. NBACC Level of Effort:

a. DHS-funded Work:

Staff years of technical effort (STEs) shall be used in sizing and managing DHS-funded NBACC work. Although the total number of STEs available will be constrained by DHS budgetary considerations, STEs will provide a standard measure across all of DHS’ FFRDCs for projecting DHS workload and funding requirements. Appendix A contains the standard definition of STE to be used in computing workload requirements. DHS reserves the right to establish on an annual basis (and prior to each new fiscal year) a ceiling on the maximum number of STEs for DHS-funded NBACC work.

The DHS/S&T will establish a workload annually by STE for the NBACC based on: (a) needs; (b) a determination that those needs require one or more of the core capabilities of the NBACC; and (c) the general guidelines laid out in subparagraph 2.b. below.

b. General Guidelines:

Annual levels of effort shall be based upon application of the Core Work concept and the following guidelines: (1) Maintain a relatively stable level-of-effort; and (2) maintain competency in core areas.

c. Non-DHS Funded Work:

NBACC work funded using non-DHS appropriations will comply with the same policies and constraints as DHS funded work and will be reported in accordance with Appendix C of this Plan.

d. NBACC Fixed Fee:

The NBACC is strictly limited by DHS in the types of work it may perform. By limiting the work that can be done by the NBACC, the DHS limits the source of funds available to the NBACC to pay costs normally incurred by a business, but not reimbursed under Government cost-type contracts. As a result, fees for NBACC work may be appropriate, in accordance with the Federal Acquisition Regulation Part 35. The appropriateness of paying fees to the DHS NBACC is addressed in the Sponsoring Agreement and in the Contract provisions. When a fixed fee is authorized, the following guidelines are to be used.

a. The Sponsor/Contracting Activity must make a determination that a fee is needed. This determination is to be performed annually by evaluating the NBACC’s current Application of Funds and Sources of Funds statements, and considering the following:

(1) Proportion of retained earnings that relates to the contracted effort.

(2) Facilities capital acquisition plans.

(3) Working capital funding assessment based on operating cycle cash needs.

(4) Funding of reimbursable costs deemed “ordinary and necessary” to the NBACC’s continued successful operation.

b. If a fixed fee is determined to be needed, the Sponsor/Contracting activity will use the following as guidelines in arriving at the fee amount:

(1) An annual fee proposal justifying each element of fee. The proposal must:

(a) Provide sufficient visibility into each element of fee.

(b) Avoid the use of undefined and ambiguous terms, such as “miscellaneous” and “other”.

(c) Not include any cost for which reimbursement, either as an incurred cost or as an element of fee is prohibited by statute.

(d) Comply with fee reimbursement restrictions and/or limitations included in the Government Sponsoring Agreement and/or applicable statutes and regulations.

(e) Identify, for inclusion as an element of fee, costs not reimbursable under the Contract that the NBACC, can nevertheless demonstrate are ordinary and necessary to the Contract's successful operation.

(2) The extent to which the prior representations and justifications regarding fee have proven accurate (both as to the fee amount and to the planned uses for the fee). Unexplained or repeated failure to reasonably adhere to planned use for fees should serve as a basis for challenging either the appropriateness and/or the magnitude of proposed fees.

(3) Costs incurred by the Contractor that are allowable or allocable under the cost principles (i.e., commercial using FAR 31.2, not-for-profit using OMB Circular A-122, or university affiliated using OMB Circular A-21), regulations, or statutes applicable to that Contract should be classified as direct or indirect (overhead/G&A) charges to the Contract and not included as proposed fee elements. Exceptions may be made to this guideline with primary sponsor approval.

c. These guidelines are not intended to eliminate best practice techniques in applying the applicable cost principles, such as implementation of an award or performance fee concept.

d. Appendix B elaborates on the process to be used in determining the need for fee.

7. RESPONSIBILITIES:

a. The DHS/S&T, consistent with the provisions of this Plan, is responsible to the Secretary of DHS to:

i. Ensure that STEs established for the NBACC are consistent with overall DHS requirements and strategy.

ii. Oversee implementation and execution of this Plan.

iii. Ensure that the NBACC is being used only for its intended purpose.

iv. Ensure that the costs of the goods and services it provides are reasonable, and that it produces high-quality work of value to user organizations.

v. Review descriptions of work proposed to be done by the NBACC and ensure that the work assigned is consistent with the Core Statement of Work.

b. Assure the Secretary of DHS that these provisions are being satisfied by making a specific statement in the Annual Review Assessment required in accordance with Appendix C.

8. PROCEDURES:

a. Government Sponsoring Agreements:

The DHS/S&T shall maintain Government Sponsoring Agreements. The specific content of these documents may vary depending on the nature of the relationship between the DHS/S&T and the FFRDC. The DHS/S&T may supplement the Sponsoring Agreement with operating instructions. At a minimum, the Sponsoring Agreement must include the following:

1. Provisions for the orderly termination or nonrenewal of the Contract, disposal of assets, and settlement of liabilities. The responsibility for capitalization of the NBACC must be defined in such a manner that ownership of assets may be readily and equitably determined upon a cancellation or termination of the NBACC relationship with the Primary Sponsor.

2. A prohibition against the Contractor competing with any non-FFRDC concern in response to a Federal agency formal Request for Proposal for other than the operation of a FFRDC. This prohibition is not required to be applied to any Parent Institution in its non-FFRDC operations. However, the DHS/S&T may expand this prohibition as deemed necessary and appropriate.

3. A determination of allowing the Contractor to accept work from other than DHS has been made and appropriate provisions and Conflict of Interest terms and conditions have been included in the RFP and Contract. A description of the procedures to be followed will be included in the Sponsoring Agreement, along with any limitations as to the Non-Sponsor from which work can be accepted (e.g. Federal agencies other than DHS, State, local or foreign governments, or not-for-profit organizations).

4. A description of the procedures used to make an Annual Assessment to evaluate performance in the areas of technical quality, responsiveness, value, cost and timeliness. Also required is a description of the mechanism used to provide feedback to the Contractor in order to identify and resolve any perceived or real problems.

5. When cost-type contracts are used, the DHS/S&T should identify any cost elements or fee that require advance agreement and/or approval. Such items may include, but are not limited to personnel compensation, depreciation, various indirect costs such as Independent Research and Development, or others as deemed appropriate by the sponsor.

b. Core Statement:

The DHS/S&T shall maintain a current Core Statement describing the purpose for establishing the NBACC, the nature of the strategic relationship between the NBACC and the Primary Sponsor, and a description of the mission, general scope of effort, and core competencies. NBACC must maintain so that it can assist in accomplishing the sponsoring agency's mission. This statement must be specific enough to permit discrimination between work that is within the scope of effort for which the NBACC was established and work that should be performed elsewhere.

c. Comprehensive Review:

Prior to the Contracting Officer (CO) exercising options for Award Terms, the DHS/S&T shall conduct a comprehensive review of the continuing use of and need for the NBACC. This review must comply with Federal Acquisition Regulation, Part 35.017. The resulting determination to approve continuation or termination of the sponsorship shall be made by the Contracting Officer or the DHS/S&T, as appropriate, prior to the anticipated Contract renewal date. Appendix D contains guidelines for the conduct of comprehensive reviews. The Sponsor should follow the guidelines to ensure consistency and thoroughness in the review process.

d. Reports:

DHS requires specified and ad hoc reports in order to perform necessary oversight functions and responsibilities. The schedule and content of reports and other submissions currently required are shown in Appendix C.

9. EFFECTIVE DATE

This Plan is effective upon date of final signatures set forth below.

10. MANAGEMENT PLAN APPENDICES:

Appendix A—Staff Year of Technical Effort (STE)

In calculating workload requirements to be delivered during the fiscal year, the NBACC and the DHS/S&T shall use the standard definition of STE and work year shown below.

STEs apply to direct professional and consultant labor, performed by researchers, mathematicians, programmers, analysts, economists, scientists, engineers, and others who perform professional-level technical work primarily in the fields of studies and analyses; systems planning; and program and policy planning and analysis.

Minimum educational requirements for STE employees and consultants are a baccalaureate degree from an accredited college or university. In rare instances, non-degree personnel may be included, but only if they possess the equivalent of a baccalaureate degree in education and experience, and are performing work of the same type and level as that performed by degreed STE employees.

A STE work year is defined to be 1,810 hours of paid effort for technical services. STE work years include both NBACC employee and subcontracted consultant technical effort.

(For calculation purposes within each Fiscal Year, “On Loan", "No Cost" or “Free” employees and consultants of the above labor categories shall be counted toward the total STE work years.)

Appendix B—Determination of NBACC Need for Fee (Applicable to Fixed Fee Only)

When the Primary Sponsor and Contracting Activity perform the "need" evaluation, all elements of the NBACC expenses (Application of Funds) should be analyzed and then compared to the projected sources of income (Sources of Funds). As an example, if income exceeded expenses for the prior fiscal year, there would be a surplus to working capital, which should be considered in the following year's determination of fee needs. Such surplus should be evaluated in light of the NBACC's working capital needs and its reasonable needs for resources to apply to other uses, such as debt retirement or compliance with financial accounting standards. If, on the other hand, expenses exceeded income for the prior year or are forecast to do so for the current year, there may be a need to replenish the NBACC's available financial resources in order to allow it to continue efficient operations.

The Sponsor's and Contracting Activity's recognition of the need for a fee should also consider the benefit provided to the operation and purpose of the NBACC. Activities that benefit a parent institution as a whole (for example, use of fee to provide working capital to meet the payroll) may be appropriate if there is a benefit to the Government. Conversely, activities whose primary purpose is to benefit or enhance a non-FFRDC corporate parent or affiliate, or to expand the corporation's work for sponsors other than DHS, shall not serve as justification for needing a fee or be used in establishing the fee amount.

The examples of cost categories that may be used to justify fees and establish fee amounts follow:

1. Working Capital: Fee may reflect the amount of funds necessary to fund the normal business operations of the NBACC, as assessed on an operating cycle basis. Specifically, fee may reflect the working capital needs of the NBACC. Working capital represents funds available to pay current operating expenses (between the time the cost is incurred and reimbursement is received). The NBACC may either use their own reserves (to the extent such reserves are in liquid form) or borrow, thereby incurring interest expense, to satisfy the NBACC's working capital needs.

2. Other Unreimbursed Expense: Fee may reflect costs that will be used by the NBACC to pay for a variety of other expenses not included in the above two categories. These types of expenses must be "ordinary and necessary" to the operation of the NBACC and should not include allowable or allocable costs (direct or indirect) that can be charged to the Contract. Fee serves as the only source of funds to pay such expenses. However, if there is sufficient justification for including additional expenses in fee, that can be permitted if justified to the satisfaction of the sponsor. In order for these expenses to become appropriate for consideration as a fee need, they must be separately identified and justified in the annual fee proposal. The projected occurrence of such expenses does not in itself justify the allowance of fee; i.e., the NBACC must establish that the expenses are "ordinary and necessary" for its successful operation.

Appendix C—DHS Secretary Reporting Requirements for the NBACC

Appendix D—Comprehensive Review Guidelines for DHS-Sponsored NBACC

The purpose of the comprehensive review is to formally analyze the use and need for the NBACC in order to assist the Secretary of DHS in determining whether to continue sponsorship of the NBACC. The comprehensive review shall be initiated by the Contracting Officer (CO) and shall be accomplished by the Executive Agent, the PM and the COR with assistance as may be required from the DHS activities.

This appendix provides the guidelines for reporting the results of NBACC Comprehensive Review in accordance with this Management Plan and the FAR.

· Identify the NBACC, its Primary Sponsor and Contracting Activity. Include the date and term of the NBACC's current Sponsoring Agreement.

· Provide a detailed examination of the Primary Sponsor's special technical needs and mission requirements that are being performed by the NBACC to determine whether, and at what level, they should continue to exist (FAR 35.017-4 (c)(1)).

· Identify requirements for NBACC support including known specific programs involved, the level of effort required and the types of tasks to be performed.

· Consideration of alternative sources (FAR 35.107-4(c)(2)):

· Specify the special research, systems development, or analytical needs, skills, and/or capabilities involved in accomplishing NBACC tasks.

· Explain why the capabilities cannot be provided as effectively by in-house personnel, for-profit or not-for-profit contractors, university-affiliated organizations, or another existing FFRDC. Include statements on the alternatives to the FFRDC that were considered and the rationale for not selecting each of them.

· Provide a detailed assessment of the efficiency and effectiveness of the NBACC in meeting a User's needs including the Contractor's ability to maintain its objectivity, independence, quick response capability, currency in its field(s) of expertise, and familiarity with the needs of its sponsor (FAR 35.017-4(c)(3)).

· Include a summary of NBACC accomplishments and their effectiveness in meeting User needs since the last comprehensive review. As a minimum, the quality and timeliness of the work produced, the number and dollar value of projects and programs assessed, and the user evaluations of performance should be addressed. A summary of the results of the most recent Annual Assessment should be included. All major users should participate in this portion of the comprehensive review. Discuss any criticisms or concerns that the Users had with FFRDC performance and the steps taken to resolve those issues.

· Conduct an assessment of the Contractor management controls to ensure cost-effective operation (FAR 35.017-4(c) (4)).

· Discuss accounting and purchasing systems; overhead costs and fees; oversight actions taken to verify cost-effective operations; and other management issues as deemed appropriate.

· Provide a determination that the criteria for establishing the NBACC are satisfied and that the Sponsoring Agreement is in compliance with FAR 35.017, FAR 35.017-2, and the Management Plan. Include a statement addressing each of the criteria. Provide a certification that the Sponsoring Agreement accurately reflects the mission of the NBACC.

· Discuss agreements between the Government and the Contractor. These agreements may cover such items as authorization of fees, provision of Government facilities and equipment, distribution of residual assets of settlement and liabilities in event of dissolution, maintenance of specific cash reserves, and waivers to accounting policies or regulatory requirements.

· The comprehensive review should provide a recommended course of action and be signed by the Sponsor’s agency head. The COR shall distribute the signed review. The DHS Secretary’s concurrence with the results of the comprehensive review is required prior to renewal or termination of the Contract.

Attachment 5 to HSHQDC-15-R-00050 Page 8