Attachment 3_PEO DHMS_AS Concept.pdf

September 2020

PEO DHMS

Workforce 3.0 Acquisition Strategy (AS) Concept

How to Acquire Digital Workforce as a Managed Solution

Presented To: General Public

BLUF

» Dcode to signal boost for non-traditional partners » HIVE.gov portal for effective two-way communications » 2x draft RFP and 2x industry day before solidifying acquisition strategy and RFP » Internal mentorship and coaching » Streamlined and focused source selection

→ Workforce 3.0 – Managed Solution is the next step for transformational contracting

→ Objective is outcome-based managed talent pool rather than services/labor

→ Focus is high impact/low risk quality improvements

→ Actively identifying potential accelerators

→ Industry outreach will inform the “devil in the detail” and support final decisions

→ If we don’t get the message across, we won’t attract change agents

→ Risk mitigation:

→ Timeline: (1st Draft RFP) October 2020 – (Award) April 2021

Desired Outcomes Developed by PEO IPT – many members; every org.

» Have a culture that prioritizes continuous improvement, rapid decision-making, and streamlining business priorities.

» Be a center of excellence for dynamic, multifaceted technologies, platforms, applications, and cyber security compliance.

» Adopt effective communications with internal and external stakeholders.

» Employ technology operations that reduce redundancies across the organization to achieve cost savings and improve agility.

» Drive collaboration between the federal government, industry, and academia to improve the nation’s health.

» Expertly manage the portfolio to rapidly deliver capabilities across the organization.

» Recruit high-performing, innovative personnel who are accountable to the organization’s mission.

» Follow efficient and accountable processes that support corporate operations and audit readiness.

When the transformation efforts are complete, the PEO will:

Managed Solution – Notional “Stack”

Top-Level Work Streams

» Seamless, badgeless, “whole mission” workforce » Managed, measured, paid for, rewarded by outcome » Ownership for the operation of a function – strategy and decision making remains with Government lead » Government input = problem/need, Contractor output = solution » Once approved, contractor operates the function, Government continually assesses – not supervises – and provides feedback. Feedback focused on whether the outcome is being satisfied, request is “fix it”, not “we need more people”

→ Managed Solution for Talent Pool

→ Ad Hoc Subject Matter Expertise

→ Ad Hoc Study and Assessment

» Manage and drive change in the organization to deliver great technology

→ Continuous Incremental Transformation » Analyze and assess all aspects of the organization

→ Targeted Level of Effort for Focused Support

Quality Improvements

» Allows for work to commence immediately on major changes » Supports adaptive design process » Reduce contracting drag » Improve cash flow for partner » Lowers risk for both parties

→ Accelerator Orders/CLINs

» Incentivize our success and continuous evolution » Push culture forward

→ Raise, broaden, and deepen access to talent

→ Abstract ordering guide to appropriate levels » Enable rapid, iterative ordering for SMEs, big projects, transformation efforts » Duration/throughput based for standard “annual” workstream – reduce friction and contract actions for changes

→ Reward structure tightly aligned to PEO/Program success » Move away from pricing and incentive models that drive contractors to make money by pinching pennies or submitting change orders – focus on growth opportunities, the carrot is expanded work

→ Drive toward high agency support » Frees the Government to focus on strategy and high impact

Accelerators

» Only the most impactful discriminators » Ask for information that gives meaningful confidence » Continuous integration of documentation – workflow tool and RPA generate documents as inputs are approved

(reviews are incremental) » Highlight and resolve critical misunderstandings rapidly » Highlight differences making choices easier and more supportable » Heavy use of change pages to prevent rework

→ Focused Source Selection

→ Face-to-face engagements

→ Parallel Processes

» Reduce drag induced by confusion » Eliminates drag induced by document production, review, submission

» Ensure filing, documentation, approvals are made as closely to events as possible – not at the end » Continuous updates for SSAC/SSA/HCA to eliminate long-form reviews at critical points » Live documentation – use building blocks from workflow and RPA to incrementally develop official documents » Eliminates drag induced by document production, review, submission

→ The search for new accelerators never ends….

Risks and Mitigations

» Dcode to signal boost for non-traditional partners » HIVE portal for effective, rapid, iterative, two-way communications

→ If we don’t convince industry we’re serious and base competition on the new paradigm, we will default to the status quo

» 2x draft RFP » 2x industry day » Finalize acquisition strategy after ruthlessly evaluating the art-of-the-possible » Hone source selection criteria and selectors accordingly » Mitigate protest impacts

→ If we accurately evaluate industry appetite and ability, we can achieve “meeting of the minds”

→ If we mentor internal stakeholders vis-à-vis new expectations, they will embrace the new model and excel

→ Iterative, continuous assessment – quickly abandon low-value initiatives

Iterative Assessment

RFP Draft 1 RFP Draft 2 Final RFP PEO Letter/Video → PEO Letter/Video → PEO Letter/Video KO Letter/Video → KO Letter/Video → KO Letter/Video User Stories → Possibly SOO → Section C Capability Lists → Possibly SOO → Section C Potential Scenarios → → Section L Attributes → → Section M Cost Model & Language → → Section L/M OCI (incl. Integrity Plan) → → Section H Task Order Concepts → Draft Ordering Guide → Section B/F Workforce Initiatives → Section H → Section H Data Repository Suggestions → TDL → TDL/Section J Attachments Ramps → Draft Ordering Guide → Section H Outcomes → Possibly SOO → Section C Purpose/Goals/Strategies → Possibly SOO → Section C Intro/Background → Intro/Background → Section C/G/H Mission Areas/Evolution → Possibly SOO → Section C Maturity Assessment → Maturity Assessment → Section L/M High-Level Process and Schedule → Update → Update Definitions/Glossary → Definitions/Glossary → Section C

→ Evaluation Criteria → Section M Partial (See Cost Language) → Instructions to Offerors (ITO) → Section L Potential Gates → Potential Gates → Section L/M

Example Decisions

#1: Single Award IDIQ with 2 Offerors on the Backburner #2: Multi-Award IDIQ (Horizontal) #3: Single Award IDIQ #4: Multi-Award IDIQ (Vertical)

Description

Award a single IDIQ but retain proposal validity of second and third ranked choice for award at later date. If an off-ramp decision is made #2 would be allowed to make timing updates to pricing and would receive award.

Award multiple contracts for differing workstreams and functions.

Award one contract with multiple Task Orders (TOs) to one Offeror.

Award multiple contracts to support different capability organizations

Pros

• Ability to rapidly issue a wide range of TOs of varying duration and cost for emerging needs or future issues and priorities.

• Accountability and management of the solution remain with the solution provider

• Facilitates seamless/badgeless/ frictionless approach

• Mitigates against lock-in

• Encourages a more “competitive” pricing mindset

• Increased competition could lead to reduced prices.

• Increased solution diversity

• Mitigates against poor performance/lock-in.

• Ability to rapidly issue a wide range of TOs of varying duration and cost for emerging needs or future issues and priorities.

• Accountability and management of the solution remain with the solution provider

• Facilitates seamless/badgeless/ frictionless approach

• Increased competition could lead to reduced prices

• Tailoring closer to the Program Office

• Mitigates poor performance/lock-in

• Allows for solution accountability at the level of the vertical

Cons

• Award and off-ramp/on-ramp procedures must be well designed and defendable

• Unknown support within industry

• Unsure legal viability (exploring)

• Critically, accountability for the overall solution would be lost; this significantly limits an overarching outcome measurement.

• Increased administrative burden.

• Reduced agility

• Knowledge transfer may need to occur multiple times.

• Additional FAR restrictions for a contract over $112M.

• Time to off-ramp/transition – potential lock-in

• Less likely to support unifying and maturing culture PEO/Federal-wide

• Increased administrative burden.

• Would shift some solution management burden and risk to the Government

• Potential for more than one contractor to be concurrently working on different TOs.

• Reduced agility

Risk Mitigators

• Establish expectations early in the process and document/red-team processes extensively

• Establish ruthless on and off ramp procedures and use them

• Establish expectation of heavy use of logical follow-on FOEs

• Constant focus during RFP and source selection on re-using as much material and process, make it industrialized and repeatable

• Establish off-ramps and take advantage of industrialized source selection

• Develop skillset within business team to “integrate” and standardize efforts across verticals – Government drives single culture

Dcode as Signal Booster

» Eschew confusing Government terminology/jargon » Clear relationship-focused language » Sound professional, informed, expert » Make sure we aren’t unknowingly erecting barriers to participation

→ Help Us Speak the Right Language

→ Expand Audience beyond Traditional DoD Forums like SAM

→ Train and Coach Government » Develop entrepreneurial, creative, start-up culture and mentality » Help embrace disruption of status quos » Help us understand what motivates our industry partners » Reshape our value proposition relative to outcomes

→ Support Market Expertise » Expand “networking” opportunities with hidden gem companies » Discover new sources » Facilitate partnerships with other Government and private-sector innovators

Th is s ol ic ita tio n

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