Workforce 3 Draft RFP 1.75.pptx

Workforce 3.0 Draft RFP #1.75 December 2020

Please submit official questions to:

dha.ncr.peo-ipo.mbx.dhms-enablers@mail.mil For informal discussions regarding WF3 and other HIVE opportunities, please visit our HIVE Community:

https://hivegov.mobilize.io/main/groups/43511/lounge

Workforce 3.0 Draft RFP Slide 2 WF3 RFP Changelog Draft #1 – 02 NOV 2020 Documents Draft RFP Concepts deck (v1) released Dollhouse graphic released Q&A form released Draft #1.75 – 16 DEC 2020 Documents Draft RFP Concepts deck updated to (1.75) Draft SF1449 (v1.75) released Attachment 1: Scope and Ordering Guide (v1.75) released Attachment 2: Lot 1 Gate Forms (v1.75) released Attachment 3: Lot 2 Gate Forms (v1.75) released Attachment 4: WF3.0 Price Worksheet (v1.75) released Attachment 5: Organizational Conflict of Interest Declaration (v1.75) released Attachment 6: DHMS-WF3 AcquServe User Guide (v1.75) released Attachment 7: Designated AcquServe Vendor Portal (v1.75) released Concepts (updates only) Lot 1 (Full-and-Open) and Lot 2 (Small Business) concepts introduced (slide 22) Lot 1 will be eligible for award of Design-To-Outcome, Core, and Incubation Task Orders Lot 2 will be eligible for award of Accelerator and Ad Hoc Task Orders Initial Task Order has been merged with Design-To-Outcome Task Orders Task Order Scenarios updated (1.75) Lot 1 Initial Sequence defined for initial Design-To-Outcome Task Order Lot 1 Scenario 1a defined for Metrics Exceeded Lot 1 Scenario 1b defined for Metrics Failed Lot 2 Scenario 1 defined for simultaneous Task Orders Lot 2 Scenario 2 defined for sequential Accelerator Task Orders Draft Gate Criteria updated (1.75) Gate 1, criteria altered to allow offerors to select and submit leading and lagging metrics for a transformation Gate 1, adjusted acceptance criteria for transformation efforts to be for large organizations Gate 1, added text response questions to the gate to provide details on the transformation effort Gate 1, adjusted gate to be submitted by the Prime Gate 2, adjusted metric criteria to be more in-line with successful products in market.

Gate 2, added text response to understand the offerors role in the product across incubation, development, and commercialization Gate 2, adjusted gate to be submitted by any team member of the offeror Gate 3, adjusted gate to be submitted by all team members of the offeror Gate 3, minor adjustment to gate metrics to ease the burden of reporting Draft proposal instructions and evaluation criteria released via SF1449 (1.75) Past Performance requirements removed Lot 1 Factor 1 (Gates) instructions and evaluation criteria released Lot 1 Factor 2.1 (Knowledge Check) instructions and evaluation criteria released Limited to ANSI C paper size (17in x 22in) Lot 1 Factor 2.2 (Small Business) instructions and evaluation criteria released Lot 1 Factor 3 (Behavior Model) instructions and evaluation criteria released Limited to 12 pages Lot 1 Factor 5 (Challenge Scenario) instructions and evaluation criteria released Modified to occur at Offeror facility with Government facilitating a live recording Up to 3 representatives in-person, up to 7 virtual representatives Offerors are responsible for method, technology, facilitation, and supplementary recordings (e.g., screen captures) 50 minute general session, 10 minute presentation session Lot 2 Factor 1 (Gates) instruction criteria released Lot 2 Factor 2 (Sample Accelerator Task Order) instructions and evaluation criteria released Limited to 12 pages

Definitions “PEO DHMS” stands for “Program Executive Office Defense Healthcare Management Systems” The Term “DHMS” refers to a stakeholder community that includes PEO DHMS, its subordinate program management offices, and its partners such as the Federal Electronic Healthcare Modernization (FEHRM) office, the Department of Veterans Affairs (VA), the Department of Health and Human Services, and the Defense Health Agency at large.

“PEO” is shorthand for “PEO DHMS” “PEO 2.0” refers to the current state of the DHMS enterprise.

“PEO 3.0” refers the to envisioned future state of the DHMS enterprise.

“WF3” is short for “Workforce 3.0,” i.e. the Indefinite Delivery, Indefinite Quantity (IDIQ) contract for a managed solution for the transformational PEO 3.0 industrial team.

Sections & Content The purpose of this document is to provide background, context, and other relevant information regarding the Workforce 3.0 concept. PEO DHMS asks that interested teams reach out with feedback to and recommendations for the strategies described herein. This RFP Draft is divided into the following slides and sections:

PEO 3.0 Aspirations An overview of key ideas and how the Draft RFP is structured.

Execution Concepts An overview of how WF3 will operate post-award and the PEO’s intent.

Task Order Scenarios An overview of the various Task Orders and scenarios that may occur throughout the WF3 Order lifecycle.

Evaluation Concepts An overview of how the WF3 partner will be selected.

Official Contract Language

Final RFP Documents

Draft RFP #1 Concepts Workforce 3.0 Draft RFP Slide 3 Background Data SF1449 Draft #1.75 (Draft #2 to be released with refinements) Work-In-Progress

Screenshot of the document crosswalk slide from “Attachment 3_PEO DHMS_AS Concept.pdf” Relevant section highlighted in orange.

Key Takeaways – Draft RFP #1.75 Draft RFP #1.75 is intended to be a deeper dive of the concepts critical to Workforce 3.0 (WF3) solicitation, evaluation, award, and performance. It aims to clarify concepts originally released during Draft #1. These concepts align with “PEO 3.0” strategy with each WF3 component working together to drive a successful PEO digital transformation.

WF3 is inspired by many commercial service models that can support the future state of PEO DHMS.

WF3 is the cornerstone to modernizing DHMS middle- and back-office functions and enabling our product teams to deliver the next wave of excellent health technologies.

This communication is intended to help develop disruptive and innovative solutions, which can only be achieved with broad participation. Participation from non-traditional firms is strongly encouraged.

Draft RFP #1.75 begins the transition from conceptual overview into contractual language. Draft RFP #2 will fully transition to contractual language. Discussions will shift to ensuring specific RFP terms reflect the concepts described previously.

Workforce 3.0 Draft RFP Slide 4 PEO DHMS wants your help to identify the best way to choose the best industry partners and align contractor rewards to PEO success. The final WF3 RFP will be shaped through a partnership between industry and the PEO.

Draft RFP #1.75 aims to refine and further explain key concepts and outcomes the PEO seeks to achieve through WF3, including the two tiers of Task Orders and how we will evaluate the Offeror’s submission. Feedback is welcome on the clarity of message, alternative strategies, etc.

WF3

Solicitation Timeline The diagram on the right represents the aspirational timeline for the WF3 initiative.

PEO DHMS plans to release a pre-recorded Virtual Industry Touch Point in mid-December to provide a deep-dive on pricing concepts.

Questions & Feedback from Draft RFP #1.75

Questions & Feedback from Draft RFP #1 Industry Touch Point #1

21 DEC 2020

Industry Touch Point #2 (video)

Contract Transitions Face-to-Face Discussions Initial Evaluation Complete Negotiations

MAY 2021

Contract Transition End

16 DEC 2020

Draft RFP #1.75

28 JAN 2021

Final RFP

FEB 2021

Source Selection

APR 2021

Contract Award & Contract Transition Start

NOV 2 2020

Draft RFP #1 Workforce 3.0 Draft RFP Slide 5

6 NOV 2020

23 NOV 2020

8 JAN 2021

Draft RFP #2

22 FEB 2021

Proposals Due

Introducing the HIVE The Health Information Vision Exchange (HIVE) is an innovative platform for matching the needs of the Federal Health sector with the capabilities of both traditional and non- traditional industry partners.

The goal of HIVE is to streamline interactions between Industry and Government in order to accelerate the adoption of transformative ideas across Federal Health agencies.

HIVE will be host to Virtual Events, News & Announcements, resource libraries, community engagement portals, and other strategic communications.

We are scheduled to launch fully in 2021. In the meantime, please join our community portal here.

Defense Health Mgmt. Systems Federal EHR Modernization Defense Health Agency Health & Human Services Veteran Affairs Department of Defense System Integrators & Consulting Firms Non-Traditional Vendors

Small Biz, Startups, & Independents

“Push” Innovative Solutions “Pull” Mission Outcomes Solution Pitches

News & Announcements

Resource Libraries

Communities of Interest

Partnering & Teaming

Virtual Events

Workforce 3.0 Draft RFP Slide 6

Call to Action Ask questions, request additional information, and (in particular) tell us when you see improvements to our approach! Stay in touch through the solicitation process.

Importantly, please join the WF3 Community of Interest on our HIVE Community platform for active, dynamic conversations.

We hope this is a great way to meet potential team members.

Register Now for HIVE

Please check out the back-up data (enclosed separately) and let us know anything else we can provide that would help you participate/understand.

Watch for this icon; it marks concepts that need your thoughtful response. We’ll seek to address feedback in the next draft.

For official industry correspondence, please send one email containing all feedback formatted using this form to the WF3 Inbox.

Other HIVE communities including groups for Workplace 3.0, Federal XaaS, and DevMAC.

Private Messaging amongst HIVE Members. Neither administrators nor other members can see your personal messages.

Discussion threads, open to read and/or participate for all community members.

https://hivegov.mobilize.io/main/groups/43511/lounge

Workforce 3.0 Draft RFP Slide 7

Workforce 3.0 PEO 3.0 Aspirations

Key Takeaways – PEO 3.0 Aspirations cultural, organizational, and technical blockers. PEO 3.0 seeks to break these blockers to operate as a world-class tech organization.

PEO 3.0 is comprised of a number of initiatives including WF3. The WF3 team forms the backbone of the DHMS Tech Organization and includes both Partner and Government talent.

WF3 is tasked with enabling other parts of PEO

3.0 in delivering modernized products and Federal Health outcomes.

All components of the PEO 3.0 strategy must be aligned to the greater outcomes at the PEO 3.0 level rather than individual, tactical outputs.

As one of the first-launched components, WF3 will drive and sustain the culture of the PEO 3.0 across Partner and Government personnel.

The PEO 3.0 vision aims to improve existing PEO DHMS product lines while achieving a digital transformation into operate as a world class technology organization. As the middle- and back-office fabric across the PEO and portfolio programs, the WF3 initiative is critical in turning this from vision into reality.

2019 PEO DHMS Purpose Goals, Strategies The current PEO, or “PEO 2.0”, has profound

Workforce 3.0 Draft RFP Slide 9

PEO 2.0

Current State The current PEO DHMS is limited by a number of factors including a rigid hierarchical and manual processes, closely aligned to legacy DoD 5000 constructs.

Program management activities are conducted through vertically-oriented divisions and replicated across each program. These functions include:

Overhead and administration Program/project management Logistics management Finance, cost, budget Engineering management Testing management

Limited Product Portfolio Electronic Health Record Military Medical Information System

Workforce 3.0 Draft RFP Slide 10

PEO 3.0

Tech Firm Launch PEO DHMS is embarking on a digital transformation to span from 2021 to 2026.

A modernized PEO 3.0 will fulfill the goal of becoming a “world-class technology organization.” WF3 forms the backbone of this effort by providing key functions as a seamless, badge-less team of Contractors, Civilian (across agencies), and Military (across services Personnel.

Executive oversight, e.g., strategic and tactical priorities Validation and verification of contractor outcome achievement Investment planning and analysis Contract execution All inherently governmental functions Government Staff will Provide Executive Oversight

Assess current DHMS performance gaps and blockers

Own the outcomes, and provide the mid- and back-office functions

Mission Work (Product delivery and operations) Physical and virtual workplace infrastructure Periodic additional external expertise Commodities Workforce 3.0 Draft RFP Slide 11 PEO 3.0 Will Outsource (through Other Contracts)

Outsized Incentives WF3 is aligned to provide higher profits for outsized outcomes. We believe that success is achieved only through a disruptive partner strongly incentivized to bring innovative ideas to the table.

Workforce 3.0 Draft RFP Slide 12 Risk Sharing The WF3 partner and PEO share in taking on the risks (partner’s low base profits, PEO’s stalling operations) and the rewards (partner’s high incentive-driven profits, PEO’s successful digital transformation).

Evangelism The Nation’s health is more important than ever. Active duty and veteran users, deserves the best care we can deliver. Using technology to improve quality of care, access to care, and efficiency of care is the existential focus for PEO 3.0.

Business Value Health and Defense are the two largest budget line items in the U.S. Federal Government. PEO 3.0 will structure and adopt a decision making model that delivers the most value return for every dollar invested in health tech.

Idea Workforce 3.0 is the major effort to bring about PEO 3.0. PEO DHMS seeks to transform its organization into a world-class tech firm. To get there, WF3 aims to empower commercially-successful firms to foster innovative culture modernize mid- and back-office functions.

Customer Segment The current portfolio focuses almost exclusively on provider end-users. WF3 will position PEO 3.0 to expand its user base to anyone who consumes or generates health or wellness data.

WF3 Ideal State The foundation of the WF3 strategy.

Strategic Outcomes All components of the PEO 3.0 strategy must be aligned to the greater outcomes at the PEO

3.0 level rather than individual, tactical outputs.

Market WF3 will position PEO

3.0 to expand its product base to deliver products for additional federal health partners and to grow its product capability portfolio beyond the EHR.

Attributes of a “World-Class Tech Org”

Prioritize hiring and retaining the right talent. Especially in engineering, design, and data science to deliver the best product on the market. Talent retention allows for growth and promotion without leaving the project team, while providing incentives to innovate and grow.

Creative, collaborative, and entrepreneurial. Focus on creativity and invention. Seamless interaction and innovation between levels and project teams, with a motivation to help the organization grow and succeed, by delivering new products.

Open to new opportunities and ideas. Constant innovation in product offerings and seeking revolutionary solutions to problems as they appear. Taking a risk to take on a hard problem is encouraged and status quo and comfort zone thinking is disincentivized.

Continuous feedback and a culture of candor. Culture that allows for failure and risk-taking, but changes happen quickly based on objective evaluation and immediate feedback from users.

Cultural Attributes to Pursue

Product Attributes to Pursue Offer revolutionary products that are intuitive and well- designed for the user.

Deliver a product or service that people value and adopt, allowing for scale.

Offer revolutionary products that are intuitive and well- designed for the user.

Comfort zone and status quo are an outcome. Exclusively pursue the path or least resistance.

No design thinking. Products delivered to prescriptive specifications.

Individual motivations are to avoid risk and preserve self- interest.

Workforce 3.0 Draft RFP Slide 13 User experience is not considered.

Task-oriented, “check the box” mentality with no time for creative or innovative pursuits Re-use and make incremental changes to existing products.

Negative Attributes to Avoid

Workplace 3.0 Managed Solution Workforce 3.0 Managed Solution Federal XaaS Managed Solution

MHS GENESIS

Product TMIP-J Modernization Product Vehicles TBD OTS procurement including hardware, furniture, etc.

RFP

Commercial Solution Opening Enabling <$100M Enabling >$500M Enabling <$250M Capability >$100M Capability >$1000M Commodity

TBD

Q4 Base Base Base Base Option

DHMS Support Roadmap Opportunity Type / Estimate FY21 Q1 Q2 Q3 DevMAC Services Schedule and financial estimates are provided for informational purposes and are subject to change. Additional initiatives will be added to the roadmap as strategies materialize.

To discuss these upcoming opportunities and learn more, please join our HIVE Community at:

https://hivegov.mobilize.io/registrations/groups/43511

FY22 Q1 Q2 Q3 Q4

Capability >$100M

Workforce 3.0 Draft RFP Slide 14

Workplace 3.0 Description: Workplace 3.0 is a managed solution to cover the full breadth of digital workplace capabilities including document management, software lifecycle management, virtual comms, robotic process automation, physical workspaces, and other enabling areas. The overarching outcome is to ensure the PEO DHMS workforce has the same workplace experience they require to succeed at leading commercial technology firms.

Value: <$100MM Type: Enabling Release: Estimated FY21Q1 RFP Community: Workplace 3.0 Workforce 3.0 Description: Workforce 3.0 (WF3) is a different way for government to get work done. Rather than focusing on the quantity of labor, WF3 leaves the Offeror responsible for mission outcomes and incentivizes best practices. new processes, methods, and/or best-in- class methodologies from private sector to enable the entire PEO DHMS workforce to deliver world- class technology.

Value: >$500MM Type: Enabling Release: Estimated FY21Q1 RFP Community: Workforce 3.0 Federal XaaS Description: The Federal XaaS initiative envisions a managed solution that enables scalable access to any "X" as a service. These services include laboratories, infrastructure, platforms, pipelines, and other capabilities necessary to reduce barriers for product teams to deliver transformative technologies across the full breadth of the Federal Health domain.

Value: <$250MM Type: Enabling Release: Estimated FY21Q3 RFP Community: Federal XaaS DevMAC Description: The DevMAC initiative is Intended to maintain a base (multiple awardees) of industry partners that can bring cutting edge software development, UI/UX, and human-centered design skills. This contract is intended to be a vehicle with dedicated small business and non-traditional pools. DevMAC will support a complex ecosystem of health technology and will be utilized to rapidly respond to calls for new capabilities by programs within the PEO DHMS portfolio.

Value: >$100MM Type: Prime Product Capabilities Release: Estimated FY21Q2 RFP Community: DevMAC PEO 3.0 Initiative Details An overview of initiatives that will propel PEO DHMS into a modernized state.

Execution Concepts

Key Takeaways - Execution PEO DHMS seeks a WF3 partner that will be a champion for digital transformation rather than a passenger. Our operational model is inspired by commercial success stories and is intended to incentivize and enable a successful relationship with the successful WF3 Offeror.

The WF3 partner directly has “skin in the game” and has direct performance incentives tied to the ongoing success of PEO DHMS. PEO seeks industry feedback on how to shape and measure those incentives.

WF3 is a multiple-award IDIQ contract with two Task Order lots. The government will award the top three Offerors with an ordering period of five years for Lot 1 Task Orders. Lot 2 will be set aside for small business and issued to address specific needs when identified by the government.

For Lot 1 Task Orders, the best of the three shall be issued the initial design-to-outcome Task Order (DTO1) with expectations for a logical follow-on for the first core Task Order. The remaining awardees will be given Incubator Task Orders.

For Lot 1 Task Orders, PEO shall periodically assess the alignment between the initial execution and the outcomes specified for the first core Task Order. These will be measured through a series of performance-based metrics and used to determine whether that contractor is given a logical follow-on for the next set of Task Orders or if the next set is awarded via fair opportunity.

Efforts to “modernize” PEO DHMS have stalled because our incentivize models for contractors – as the bulk of our workforce – are misaligned.

Workforce 3.0 Draft RFP Slide 17

Inspired by “2-and-20” WF3 aims to provide outsized rewards for exceptional outcomes. As DHMS outcomes improve, so too do the rewards for the WF3 partner. We envision three tranches of incentives:

Base Profit on Contract Incentive-Based Profit “Gamechanger” Profit The WF3 incentive model is inspired by the 2-and-20 fee structure of investment firms.

TBD (“20%”)

Incentive TBD (“2%”) Base

Gamechanger WF3 partners increase their profit as the success of the PEO and its Programs grows. Given that the PEO does not calculate capital gains, WF3 shall instead be measured by a series of performance metrics aligned to the success of the PEO. The metrics are intended to capture success at a higher, strategic level rather than tactical, operational metrics that may not be aligned to fundamental gains resulting from digital transformation.

PEO shall negotiate a lower than traditional base profit allowed as a derivative of the initial contract value. The goal of WF3 is to find transformational partners that pursue the profit ceiling, not the floor.

A successful WF3 program will capitalize on other opportunities for both the WF3 partner and the PEO to gain value in unforeseen ways. The “Gamechanger” profit pool allows for additional incentives aligned to disruptive outcomes.

Implied Value of Final WF3 Capability Set Actual Value of Initial WF3 Contract

WF3 Lot 1 Partner Profit Workforce 3.0 Draft RFP Slide 18

Value

Workforce 3.0 Draft RFP Slide 18

Metrics Driven Incentives Performance incentives form the foundation for the WF3 strategy. The PEO seeks feedback on the correct incentive models and metrics to motivate mutually-beneficial interactions between WF3 partners and stakeholders. Metrics are represented as (%) to indicate a focus on Year-over-Year growth.

These measures are intended to measure overall PEO performance, not just contract performance.

These metrics are notional for discussion purposes. PEO seeks feedback on existing and new metrics.

Program Efficiency Growth & Innovation Capability Value %↑ Ratio of personnel invested in New Product Introduction (NPI) %↑ Ratio of personnel invested in product feature enhancements %↑ Throughput of approved NPI or feature enhancements %↓ Time-to-Market gains for approved NPI or feature enhancements %↓ Proportion of Expected vs. Ad-hoc support requests %↑ Total program personnel cycle time supported by products %↑ Program personnel that self-identity as customers

%↑ What UI/UX metrics should PEO utilize?

%↑ Outputs traceable to valuable outcomes %↓ Program personnel productivity gains (cycle time) %↓ Lead Time of WF3 core processes %↑ Throughput of WF3 core processes %↓ Proportion of WF3 core process Cycle Time automated % Achievement of Small Business & Socioeconomic goals* Small Biz.

* Small business & Socioeconomic metrics do not have a YoY target and will be reviewed on a Pass/Fail basis.

WF3 Order Lifecycle The Gantt diagram on the right represents the aspirational timeline for the WF3 initiative. Each box represents issuance of a Task Order in relation to the timeline across the top.

Performance Evaluation & Logical Follow-on or Fair Opportunity Determination Digital Transformation Timeline (from Current State to Ideal Future State) Ad Hoc Task Orders (represented as notional TO calls as-needed) Design-to-Outcome Task Order 1 (DTO#) Observe, Plan, and Design Outcome Approach Core Task Order (CTO#) Operational Activities & Transformation/Innovation Incubation TO (non-CTO awardees) Accelerator TO (as needed) Ad-Hoc TO (as needed) 90d Transition

14mo Initial Phase (see next slide)

60mo Ordering Period

DTO1

CTO1

CTO2

CTO3

CTO4

CTO5

CTO6

Workforce 3.0 Draft RFP Slide 20 Legend (See “Task Order Types”):

Task Order Scenarios

Lot 1 - Initial Sequence Task Orders The best of the three awardees shall be issued a 90 Day Assessment, Planning, and Transition Design-to-Outcome Task Order (DTO1) with expectations for a logical follow-on for the first Core Task Order (CTO1). CTO1 will be approximately 11 months.

Performance Assessment During CTO1, the PEO will assess overall performance of the lead Offeror and examine the achievement of WF3 performance-based metrics. PEO will then decide, based on the lead Offerors performance, to either use a logical follow-on (Scenario 1a) or compete the next Task Order cycle amongst the IDIQ awardees (Scenario 1b).

Lot 1 - Core Task Order Cycles Each cycle consists of a “Design-to-Outcome” TO and a follow-on CTO. The intent of the “Design-to-outcome” TO is to plan for the work that will be performed in the follow-on CTO, where WF3 operational activities and transformation take place. During each CTO that is awarded, PEO will continue to assess and measure performance, with the intent to make decisions for logical follow-on (Scenario 1a) or competition of the remaining CTOs (Scenario 1b). This cycle will repeat during the five-year ordering period.

Lot 1 - Incubation Task Orders Non-lead Offerors will receive incubation Task Orders that perform independent surveys of the health technology domain and provide assessments of PEO strengths and opportunities. The purpose is to provide funding to maintain familiarity with the PEO, its programs, and its product domain in case the Core Task Orders are competed.

Lot 2 - Special Project Task Order Cycles Lot 2 TOs are small business set aside and will be issued to address specific needs, such as short-term special projects or for targeted studies and reports. Each cycle consists of a 30-Day Accelerator TO and a follow-on Ad-hoc TO. Accelerator TOs will provide time to scope the project and negotiate the full terms for the Ad-Hoc TOs while allowing for work to begin immediately.

Overview of 2 Lot Structure WF3 is a multiple-award IDIQ contract with two Task Order lots. The government will award the top three Offerors with an ordering period of five years for Lot 1 Task Orders. Lot 2 will be set aside for small business.

The following slides depict the different Task Order types and the linked design.

A notional timeline is provided for the initial sequence of Task Orders, and potential scenarios for how we will execute and award the remaining Task Orders.

Workforce 3.0 Draft RFP Slide 22

Lot 1 The fair opportunity for the first sequence of Lot 1 Task Orders will be conducted concurrently with the initial IDIQ source selection.

Workforce 3.0 Draft RFP Slide 23 Task Order Types

Indicates TOs are linked by a logical follow-on

CORE

TASK ORDER

Execute WF3 operational activities and digital transformation Priced At

TO

Ordering

BI

lateral

11 Month Logical Follow-On TO Value Estimate

INCUBATION

TASK ORDER

Advise on PEO DHMS innovation posture and capability gaps

IDIQ

UNI

Day Fair Opportunity

DESIGN-TO-OUTCOME TASK ORDER

Assess as-is operations and plan new innovative activities for the next Core TO

90 Day

60 Day

Legend

ACCELERATOR TASK ORDER

Issued to design-to-outcome special projects that must start immediately

30 Day

AD-HOC TASK ORDERS

WF3 special projects, studies, and/or reports

Lot 2

Notional Design-to-Outcome Approach Workforce 3.0 Draft RFP Slide 24

Observe & Assess Scope & Plan Design Outcome Document Follow-On Task Order Specifics Develop Proposal Design Review & Discuss Negotiate Linked design Task Orders allow for preliminary work and cashflow to commence immediately, while design activities inform mutual agreement and documentation for the follow-on Core or Ad-Hoc Task Order.

Observe & Analyze PEO DHMS workflows and existing documentation

Host Workshops with Stakeholders to identify and understand PEO DHMS cultural, organizational and technical blockers

Identify Problem Scenarios & Alternatives to understand the PEO transformation journey and propose innovative alternatives that deliver solutions

Create Performance Metrics & Incentives that leverage best practices to drive achievement of the outcomes PEO DHMS seeks to achieve and deliver value

Create User Stories and personas that capture specific goals tied to outcomes

Determine Path to Success How will you execute against the problem scenarios and outcomes you propose?

Refine Based on Feedback

Agree to Metrics & Incentives that will allow PEO to measure overall performance as well as contract performance

Negotiate Pricing

Iterative Process that incentivizes success and continuous evolution of PEO DHMS

Execution of continuous design and delivery that focuses on the right things at the right time

Focus on Relationships

Reflect What’s working and what is not working? Continuously evaluate to refine the approach

Award Follow-On Order to Execute the Design Task Order Kickoff

Lot 1 - Initial Sequence The top Awardee (Initial Awardee 1) will receive Design-to-Outcome Task Order 1 (DTO1) with the initial IDIQ award, with a logical follow-on for Core Task Order 1 (CTO1).

DTO1 is a 90-day assessment of PEO DHMS as-is operations and is intended for the Awardee to prepare a detailed “design-to-outcome” proposal that will inform the objectives, metrics, and outcomes of CTO1. The outcome of DTO1 is a fully negotiated CTO1 with agreed upon terms and conditions. CTO1 is intended to be a “crawl” phase to ensure coverage of core capabilities, continuation of services, and setting a foundation to steadily execute the organizational digital transformation. WF3 partners will be expected to seek innovation opportunities while maintaining baseline capabilities.

Additionally, the other two awardees (Awardee 2 and Awardee 3) will be awarded Incubator Task Orders. The intent of these is to evaluate the current state of PEO DHMS’ transformation and identify capability gaps.

Initial Awardee Observe, Design, Plan, Negotiate & Transition Initial Awardee Operational Activities & Transformation Performance Assessment Determine Path Forward Awardee 2 Observe / Assess / Measure Awardee 3 Observe / Assess / Measure Order Period Month

Core Task Order 1 (CTO1) Execution

Design-to-Outcome (DTO1)

PA

Logical Follow On or Fair Opportunity Determination Workforce 3.0 Draft RFP Slide 25

Incubator TOs

Lot 1 Scenario 1a – Metrics Exceeded PEO intends to use a “logical follow-on” fair opportunity exemption IF the mid-term assessment shows achievement of metrics through the completed CTO1. Awardee has exceeded performance and is awarded a logical follow-on Design-to-Outcome Task Order (DTO2) for the next cycle. This Design TO is another planning session that will inform the objectives, metrics, and outcomes of CTO2.

Performance Assessment Awardee 2 Observe / Assess / Measure Awardee 3 Observe / Assess / Measure Order Period Month

Core Task Order 2 (CTO2) Execution

Determine Path Forward

DTO2

DTO3*

*If metrics are exceeded again, the cycle will repeat with a new Design-to-Outcome TO and another CTO.

Workforce 3.0 Draft RFP Slide 26 Initial Awardee Observe, Design, Plan & Negotiate Initial Awardee Operational Activities & Transformation Initial Awardee Operational Activities & Transformation Round 2 Initial Awardee Observe, Design, Plan & Negotiate

Lot 1 Scenario 1b – Metrics Failed Awardee fails to exceed metrics and Design-to-Outcome Task Order (DTO2) is awarded to a new partner.

If the mid-term assessment does not show achievement of metrics, PEO will compete CTO2.

Performance Assessment Order Period Month

Core Task Order 2 (CTO2) Execution

Determine Path Forward

DTO2

*If Awardee fails metrics again, PEO will compete the next cycle of CTOs.

Fair Opportunity Process Fair Opportunity Process

Eval

Eval*

DTO3

Workforce 3.0 Draft RFP Slide 27 Initial Awardee Operational Activities & Transformation Awardee 2 Observe, Design, Plan, Negotiate & Transition Awardee 2 Operational Activities & Transformation Round 2 Awardee 3 Observe, Design, Plan, Negotiate & Transition Awardee 1 Observe / Assess / Measure

Awardee 3 Observe / Assess / Measure

Lot 2 – Scenario 1 Accelerator Task Orders will be issued prior to an Ad-Hoc Task Order and will provide time to accurately scope and negotiate the terms for the Ad-Hoc Task Order, while allowing for work to begin immediately. These Task Orders will be issued on as-needed basis, and the length of time will be determined during the Accelerator TO. The quantity of these has yet to be determined and will depend on PEO’s transformation progress.

Workforce 3.0 Draft RFP Slide 28

Awardee 1 Observe, Design, Plan & Negotiate Execute Project Order Period Month

Acc TO Multiple Awardees get accelerators at the same time.

AH TO

Awardee 2 Observe, Design, Plan & Negotiate Execute Project

Acc TOs

Awardee 4

Do the competition, award the accelerator then the ad-hoc. Here’s Holly, I got a question about X, we are going to compete it.

Scenario 1: Multiple awardees get accelerators at the same time.

Scenario 2: Multiple awardees get accelerators to scope the Ad-hoc. One to many ad-hoc awards. These could be mini pilot/prototyping projects.

Lot 2 – Scenario 2 Accelerator Task Orders will be issued prior to an Ad-Hoc Task Order and will provide time to accurately scope and negotiate the terms for the Ad-Hoc Task Order, while allowing for work to begin immediately. These Task Orders will be issued on as-needed basis, and the length of time will be determined during the Accelerator TO. The quantity of these has yet to be determined and will depend on PEO’s transformation progress.

Workforce 3.0 Draft RFP Slide 29

Awardee 1 Observe, Design, Plan & Negotiate Execute Project Order Period Month

Multiple Awardees get accelerators to scope the Ad-hoc, with potential for many ad-hoc awards.

Awardee 2

Awardee 4

Do the competition, award the accelerator then the ad-hoc. Here’s Holly, I got a question about X, we are going to compete it.

Scenario 1: Multiple awardees get accelerators at the same time.

Scenario 2: Multiple awardees get accelerators to scope the Ad-hoc. One to many ad-hoc awards. These could be mini pilot/prototyping projects.

Evaluation Concepts

Key Takeaways - Evaluation DHMS seeks to release a solicitation hyper-focused on meaningful distinguishers. Our evaluation methods are intended to provide WF3 Offerors with sufficient opportunity to demonstrate a capability for digital transformation and operation of the world-class tech org., in alignment with the key WF3 values.

Gate evaluations are rated pass-fail to rapidly determine viability of a team’s offer. Non-viable teams will be notified quickly to reduce wasted pursuit costs.

PEO seeks to partner with Offeror teams with a balance of strong outcome-centric, tech management prowess mixed with innovative, product-centric, and non-traditional perspectives.

Experience in the DoD/DHA community is neither required nor a priority.

Workforce 3.0 Draft RFP Slide 31 We want you to be excited about this solicitation! Our novel RFP-building process, community platforms, and evaluation methods are designed to streamline direct engagement with Offerors.

We want a positive user experience for Offerors.

The WF3 solicitation prioritizes content quality over content quantity – helping lower Offeror pursuit costs and helping the PEO rapidly evaluate. We aim for written proposal sections not to exceed 20 pages.

Challenge Scenarios seek to gauge the Offeror’s ability at rapid solutioning within the WF3 scope areas. Offerors are expected to bring the best minds and partners that will perform, innovate, and deliver as part of the WF3 team.

Anticipated Evaluation Timeline

FEB 2021

Written Proposals Submitted Offerors will submit written and pricing proposals to AcquServe.

MAR 2021

Full Written & Pricing Proposals Evaluated Government will evaluate the remainder of written proposals to determine the Competitive Range.

MAR - APR 2021

Discussions Offerors will be invited to virtual discussions with the government and be allowed to revise proposals until discussions conclude.

Government will further reduce the Competitive Range to the Top 3 selected for award.

APR 2021

Workforce 3.0 Contract Awarded Government will notify Workforce 3.0 awardees and kick off the Initial Task Order transition activities.

FEB - MAR 2021

Gate Evaluation & Notification Government will evaluate short responses on team qualifications on a pass-fail basis. “Acceptable” Offerors will proceed forward.

MAR 2021

Challenge Scenario Evaluations Those in the Competitive Range will be invited to participate in a virtual WF3 solutioning session to be evaluated on both live and recorded results.

APR 2021

Offeror Negotiations Top 3 will work with the Government to finalize specifics terms, pricing, and responsibility matters in order to submit a limited final proposal revision.

Workforce 3.0 Draft RFP Slide 32

Workforce 3.0 Draft RFP Slide 33 Proposal Vision (Lot 1) The WF3 proposal is designed to be lean and focuses on distinguishing a successful partner aligned to WF3 strategy. The following sections are anticipated as part of the final RFP.

Legend:

High-Weighted Tradeoff Factor

Live Component

Narrative

Pass/Fail

Visual Aid(s)

Low-Weighted Tradeoff Factor Quantitative Component

Gates Offeror teams will be tasked with demonstrating the base qualifications necessary to support WF3. Offerors must pass all Gate elements in order to be eligible for further consideration.

To be Evaluated for All Offerors Small Business Offeror teams will be tasked with outlining the interaction model with small and/or non-traditional businesses as bases of some of the leading innovative talent and solutions.

Knowledge Check Offeror teams will be tasked with developing visual aids to describe a comprehensive approach architecture. Offerors must clearly demonstrate an understanding of the full breadth of function to be provided to avoid any gaps in PEO 3.0 operations.

Behavior Model Offeror teams will be tasked with explaining the culture, talent model, incentives, and other behavioral aspects necessary for a successful interaction model amongst the WF3 team.

Pricing Offeror teams will be tasked with pricing IDIQ-level orders as described in the Task Order Types overview. Core Task Orders will be priced using a method of extrapolating sample efforts.

To be Evaluated for Offerors Successful in the Gate Checks Challenge Scenarios Offeror teams will be tasked with developing a solution to a problem provided by the Government in real-time as a realistic business challenge. All team interactions to develop the solution shall be recorded and uploaded for evaluation by the Government.

To be Evaluated for Offerors in the Competitive Range

Proposal:

Remaining Evaluation (Prime & Sub)

Gate Element 2:

Product Prowess (Prime or Sub) Gate Element 3:

Talent Experience (Prime & Sub) If “Pass” Gate Element 1.1:

Disruptive Outcomes WF3 Offerors must have successfully engineered business transformations (i.e. Digital Transformation, Process Transformation, Market Transformation, etc.) for a client.

Gate Elements:

Pass/Fail Evaluation Workforce 3.0 Draft RFP #1 Slide 34 This gate qualification checks whether the Offeror team has at least one member that has contributed significantly to an organization’s significant improvement in market position. This can be defined as a digital transformation of an incumbent or disruption of incumbents through a new market entrant.

Responses will be limited to describing and proving pre-identified metrics and will be evaluated on a pass-fail basis.

Gate Element 1:

Disruptive

(Prime)

Lot 1:

Full-and-Open L1

Gate Element 1.2:

Product Prowess PEO seeks WF3 Offerors with significant experience in the incubation, development, and commercialization of a successful, significant new technology product. Offerors will need to propose and reference a “Significant New Technology Product” a member has taken to market.

Gate Elements:

Pass/Fail Evaluation Workforce 3.0 Draft RFP #1 Slide 35 This gate qualification checks whether the Offeror Team has at least one member that has brought an idea to reality successfully.

Responses will be limited to describing and proving pre-identified metrics and will be evaluated on a pass-fail basis.

Proposal:

Remaining

Gate Element 1:

Disruptive

Gate Element 3:

Talent Experience

If “Pass”

Prowess (Prime or Sub)

Gate Element 1.3:

Talent Experience The WF3 prime must be able to recruit exceptional talent to help the PEO’s teams deliver cutting edge products. This talent pool must be fostered, developed, and retained for long-term PEO DHMS success.

This gate qualification checks whether the Offeror Team is structured to provide a successful recruiting, retention, and reward model to meet WF3 needs.

Responses will be limited to describing and proving pre-identified metrics and will be evaluated on a pass-fail basis.

Proposal:

Remaining

Disruptive

Prowess (Prime or Sub) If “Pass”

Workforce 3.0 Draft RFP #1 Slide 36

Gate Element 3:

Knowledge Check WF3 Offerors must have both a comprehensive understanding of the WF3 scope of work and a vision for how to execute a successful tech firm.

This evaluation asks for Offerors to develop visual aids to describe a comprehensive approach architecture.

The visual aid should include all necessary information to demonstrate understanding of scope and feasibility of the approach. The diagram on the right provides a notional list of topics to be covered.

Some archetypical capability areas and functions must include detailed bases of estimates to support price analysis.

Intra-Team Relationships

Backoffice Functions

Integration & Culture

Workstream Team Structure

Incubation Functions

Organizational Design Capability Areas (Scope of Work)

Inter-Team Relationships

Major Solutions

TOPICS FOR THE APPROACH ARCHITECTURE (NOT EXHAUSTIVE)

USEFUL REFERENCES

(NOT REQUIRED, NOT COMPREHENSIVE)

Periodic Table (notional scope, not exhaustive)

PEO DHMS

Organizational Design (2020 Assessment)

Workforce 3.0 Overview Infographic

To receive an “Acceptable”, architecture must clearly demonstrate an understanding of the full breadth of function to be provided to avoid any gaps in PEO 3.0 operations.

Knowledge Check:

Workforce 3.0 Draft RFP Slide 37

WF3 team must include participation from small businesses, socioeconomic businesses, and non-traditional business partners.

This requirement is pivotal to the WF3 strategy as these firms often possess some of the best talent and expertise in our line of business.

This evaluation asks for Offerors to provide a Workshare plan that shows us how you will create a meaningful work share and “badge-less” culture.

Small Business & Socioeconomic workshare goals will be tracked as a incentive metric. Failing to achieve targets may result in lower incentive profit or competitive Core Task Orders.

Task Order awards No overly-limiting restrictions or “muzzles” on subcontractor interactions Must clearly identify strategy for subcontractor access to incentive profit and/or Gamechanger profit Workshare plan Breakout and allocation of WF3 work with subcontractors Notional Targets (feedback welcome):

30% small business participation 10% non-traditional participation These can be satisfied by the Prime if they are small/non- traditional Partner Traceability Demonstration of direct alignment between proposed team members and WF3 functions Will leverage the Knowledge Check Approach Architecture as a baseline for comparison

Small Business:

Workforce 3.0 Draft RFP Slide 38

How will you financially incentivize personnel to seek game-changing outcomes? How will your executives be incentivized to accept project-level risks in order to achieve outsized outcomes across PEO 3.0?

Team Member Motivation & Chemistry How will you motivate the desired behaviors in team members?

How will you maintain and foster an innovative culture across company boundaries? How will you monitor and enforce workshare agreements?

How will you foster a powerful base of non-traditional companies to participate as part of your Offeror Team?

External Influence How will you influence positive behaviors amongst Government personnel?

How will you influence adoption of a positive WF3 culture across external contractor teams and stakeholders that utilize PEO 3.0 services?

Organizational Design How is your organizational structure designed to foster innovation and successful performance?

How will your organizational design transform over time as WF3 transitions from the current baseline state (without cap in coverage) to an innovative future state?

Behavior Model WF3 team members must be front-line champions and drivers for the success of PEO

3.0. We are very interested in understanding how Offerors will successfully motivate behavior across Contractor, Civilian, and Military personnel in order to achieve a successful transformation.

Instead of a traditional management approach or corporate experience volume, the WF3 proposal will include an analysis of the linkage between motivations and human behaviors in the context of performing the WF3 scope of work. This evaluation will distinguish the differences in culture established by the different approaches.

Below are sample questions to signify the nature of the Behavior Model proposal write-up. Offerors are not required to specifically answer these questions as part of their response nor limited to only answering these questions as part of their response.

Eval Factor: Behavior Approach including Organizational Model, Teaming, Personnel Incentives, and Culture Management, High Overall Importance Workforce 3.0 Draft RFP Slide 39 The successful Offeror will describe a feasible strategy for and demonstrate a feasible capability to sustain behaviors (and influence Government and stakeholder behaviors) to optimize the outcomes across PEO 3.0.

Challenge Scenario Challenge Scenarios are based on realistic business challenges. Teams will be expected to develop a solution within a restricted time period and submit their solutioning session as a recording. Recordings are evaluated both on solution merit and team member chemistry.

Step 1: Challenge topics issued, Offerors identify personnel for live teams Step 2: Challenge details released, Restricted time begins countdown Step 3: Offerors develop solution, Session is recorded for upload

Scenario (Provided at Evaluation):

“Software Asset Management”

Scenario (Provided at Evaluation):

Eval Factor: Team Chemistry & Solution Feasibility, High Overall Importance Workforce 3.0 Draft RFP Slide 40 “Multimedia Development & Strategic Communications” Below are two sample scenarios to demonstrate the nature of the challenges.

These will not be used as part of the final solicitation.

Topic (Provided in Advance): Topic (Provided in Advance):

L1 Scenario: PEO DHMS recently failed a vendor’s software compliance audit and is seeking an overhaul of its license management strategy. The PEO lacks a coherent view of its current software landscape. Existing licenses are mostly managed at the PMOs while some licenses are provided by the DHA.

Challenge: Recommend an approach to resolve the issue and improve the PEO’s visibility into licenses. Include details on personnel, technology solutions, business processes, approximate costs, and timeline necessary to support the approach.

Scenario: PEO DHMS seeks to publish a high-quality marketing video to coincide with the next MHS GENESIS deployment wave. However, the safety of DHMS personnel is paramount and production must account for physical restrictions due to COVID.

Challenge: Provide a high-level storyboard for the video…