RAT II SOW_20241009.pdf

DEPARTMENT OF HOMELAND SECURITY (DHS) REVERSE AUCTION TOOL II

STATEMENT OF WORK (SOW)

1.0 GENERAL

1.1. BACKGROUND/OBJECTIVE

The Department of Homeland Security and its components (collectively referred to as

DHS herein) is responsible for the planning, negotiation, award, and administration of contracts of various types and sizes to support program offices within the organization. In pursuit of operational excellence and fiscal responsibility, DHS seeks to streamline the acquisition process by taking advantage of innovative eProcurement technologies. These technologies will assist DHS in leveraging limited resources, reducing administrative tasks, and lowering associated labor costs while ensuring stringent regulatory compliance, maintaining high levels of competition, obtaining fair and reasonable prices, and meeting the agency’s socio-economic Small Business goals.

eProcurement technologies, such as reverse auctions, offer the Government the ability to conduct robust, real-time price competitions, which may allow for multiple “rounds of bidding” for continued price reduction. These interactive bidding processes not only strengthen competition but also promote transparency and facilitate participation from both small and large businesses, thereby ensuring a more inclusive and equitable procurement environment.

To further enhance procurement efficiency and consistency across the Department, DHS has initiated an enterprise-wide acquisition for a standardized reverse auction tool and associated services. This initiative aims to establish a cohesive approach to reverse auctions, ensuring all components can uniformly benefit from its advantages. By implementing a Department-wide reverse auction tool, DHS aspires to achieve significant cost savings, improve procurement timelines, and enhance vendor engagement.

This SOW details the comprehensive scope, technical requirements, and associated services necessary for this acquisition. It outlines the strategic framework and operational guidelines for the deployment and use of the reverse auction tool, ensuring alignment with DHS’s mission to safeguard the nation through effective and efficient procurement practices.

1.2. SCOPE

DHS requires access to a full-service, web-based reverse auctioning solution that assists DHS buyers in soliciting, evaluating, and awarding multiple contract types for supplies and select services from established networks of vendors. The solution shall be based on an established commercial product, requiring little or no customization to meet DHS requirements. The solution shall be compliant with Federal Risk and Authorization Management Program (FedRAMP), Federal Information Security Modernization Act (FISMA) and any additional higher DHS security requirements.

DHS

REVERSE AUCTION TOOL II

SOW

The solution must provide for real-time and multiple rounds of bidding for continued price reductions within the timeframe and conditions established in the solicitation. DHS desires a “white-label” solution having a DHS-branded front-end for both DHS buyers and bidding vendors that includes the Department’s logo and user information.

2.0 SPECIFIC REQUIREMENTS/TASKS

2.1. The contractor shall provide a tool that includes:

2.1.1. Core Functions: The reverse auction tool will enable Government buyers to conduct real-time, competitive bidding for commodity supplies and services. This tool will be utilized across DHS buying offices to streamline procurement processes when deemed appropriate and beneficial to the Government.

2.1.2. Support Services: Ancillary support services will be integral to the tool's deployment and usage. These services include

2.1.2.1. Helpdesk Support: A dedicated helpdesk to assist users with any technical or operational issues.

2.1.2.2. Online Tutorials and Training: Comprehensive training resources, including tutorials, webinars, and documentation, to ensure users are proficient in using the tool.

2.1.2.3. Vendor Outreach Programs: Initiatives to maximize vendor participation and engagement, ensuring a diverse and competitive bidding environment.

2.1.2.4. The reverse auction tool will support various procurement vehicles, including Government-Wide (GWAC) and Department-wide Strategic Sourcing Contract Vehicles and Federal Supply Schedules (FSS). It will be used for a wide range of supplies and services, including but not limited to:

Information Technology Commodities: Workstations, laptops, servers, hardware, software, peripherals, and hardware maintenance.

Office Supplies and Furniture: Essential items for day-to-day operations.

Construction Supplies and Maintenance: Materials and services for routine maintenance, repair, or delivery.

2.1.3. Tool Functions and Features

The contractor shall provide a reverse auction tool that provides the following capabilities, functions, and features:

2.1.3.1. Vendor Registration – The contractor shall provide a tool that can register eligible vendors to receive auctions and submit quotes to the Government, ensuring that vendor information is kept up-to-date and secure.

2.1.3.2. Questions and Answers - Vendors shall be able to submit questions directly to the buyer regarding the solicitation; the buyer shall also be able to respond to one or all vendors with answers to questions and comments to statements.

2.1.3.3. Payment of Fees - DHS requires a solution that is vendor paid (i.e., awarded vendor pays a fee directly to the solution provider), and not a license or subscription fee model.

2.1.3.4. Target Price Setting - DHS buyers shall have the ability to set a target price, specify that the winning price than or equal to this target price.

2.1.3.5. Awardee Selection Criteria – DHS buyers shall have the capability to optionally set the criteria for selecting the winner(s), including factors beyond price, such as quality and delivery time.

2.1.3.6. Government Terms and Conditions – The contractor shall provide a tool that allow buyers to include DHS terms and conditions in the auction solicitations.

2.1.3.7. Auction Timeframe Setting – The contractor shall provide a tool that allow buyers to specify the start and end date of each reverse auction and to modify the auction timeframe as necessary.

2.1.3.8. Iterative Bidding – The contractor shall provide a tool that provide vendors the ability to continually revise their bid prices during the auction until it closes.

2.1.3.9. Multiple Solicitation Formats - The contractor shall provide a tool that allow authorized Government buyers and representatives to post online reverse auction solicitations formatted as Request for Quotations (RFQs), utilize either best value award trade off criteria or Lowest Price, Technically Acceptable (LPTA) award selection criteria, and establish auction start and end times.

2.1.3.10. Document Uploads – The contractor shall provide a tool that allow authorized Government buyers and representatives to upload and manage supporting documentation relevant to the solicitation.

2.1.3.11. Buyer Auction Controls – The contractor shall provide a tool that shall be versatile to allow buyers to have complete and independent control of the bidding process to post auctions, modify auctions, review bidding history, cancel auctions at any time if it is in the best interest of the Government, and award to any vendor providing a quote in accordance with the established evaluation criteria.

2.1.3.12. Transaction Capacity – The reverse auction system website must be capable of simultaneous transactions in support of approximately 271 per month, with the capacity to surge to 400 per month.

2.1.3.13. Prohibition on Auction Participation Fees – The reverse auction provider shall not require potential vendors, other than the awardee, to pay a fee to participate in any auction.

2.1.3.14. Password Authentication – The contractor shall provide a tool that provides for Buyer registration and unique password authentication within the Reverse Auction System website (account set-up and maintenance).

2.1.3.15. Existing Contracts – The contractor shall provide a tool that is able to load or link to, existing DHS Strategic Sourcing Contract vehicles (SSVs) identified by DHS, to include, Multiple Award Contracts (MACs), Federal Supply Schedules (FSS), or Government- Wide Acquisition Contracts (GWACs).

2.1.3.16. Authorized Buyer Access – Restrict access only to DHS buyers and other buyers explicitly authorized by the DHS Contracting Officer’s Representative (COR).

2.1.3.17. Small Business Set-Asides - During the creation of a reverse auction event, buyers shall have the ability to set solicitation(s) aside based on various socio-economic classifications.

2.1.3.18. Buyer Authorities – The tool shall ensure that only Government buyers have the authority to 'award', 'cancel', or 'modify' an auction event.

2.1.3.19. Assignment/Re-assignment of point of contact (POC) – The contractor shall provide a tool that includes a Buyer-controlled function that allows for the identification of the Contracting Officer and/or Contract Specialist POC information and the ability to re-assign a buyer associated with a reverse auction event.

2.1.3.20. Contract Clauses/Provisions – The contractor shall provide a tool that has the ability for the DHS Buyer to pre-populate, change, and/or add standard contracting clauses and provisions.

2.1.3.21. Document Extraction and Print Capability – The contractor shall provide a tool that provides the ability for buyers to view, extract, and print bid results and supporting bid documentation for contract filing purposes. At a minimum, bid results shall include:

• Name and address of each vendor participating in the auction and price proposed (by line item and total price) for each bid offered.

• Supporting documentation pertaining to the bids

• Number of vendors and number of responses per vendor (Approximately

271 per month and up to 400 simultaneous reverse auctions from a variety of different DHS users per month; allow for procurements to be awarded under existing contracting vehicles, including DHS Department-wide contracts, FSS, and GWACs

• For vendor awarded contract include Company name, address, point of contact (POC), POC phone number & e-mail address, company’s tax ID number, company’s Unique Entity Identifier (UEI) s number, socio-economic status etc.)

• Savings achieved (difference between the target price and the award price)

• Total fees to be paid to provider.

2.1.3.22. Electronic Documentation - The contractor shall provide a tool that must maintain records of each reverse auction transaction and provide the Government with access to all reverse auction data collected by the contractor.

2.1.3.23. Publicizing Opportunities - The contractor shall provide a tool that is compatible and interface with Federal regulatory requirements for publicizing and synopsizing requirements (e.g., Sam.gov postings).

2.1.3.24. Vendor Notifications – The contractor shall provide a tool that provides a capability to notify registered vendors of opportunities and any new postings.

2.1.3.25. Anonymity Among Vendors – The contractor shall provide a tool that protects the identities of participating vendors so that they are unknown to each other during the auction.

2.1.3.26. Communication of Awarded Vendor Fees – The tool provider shall ensure that, for each auction, the terms of the associated awarded vendor transaction fees, are clearly communicated in advance of the auction.

2.1.3.27. Online Bid Information - Provide to the Government buyer online access to the following information about each activity/bid Summary of all bids submitted

• Detailed information of each bid submitted

• Summary of all bids submitted

• Vendor’s specific information (i.e. Company name, address, point of contact (POC), POC phone number & e-mail address, company’s tax ID number, company’s UEI number, etc.)

2.1.3.28. DHS Front-End – DHS desires a “white-label” solution having a DHS-branded front-end for both DHS buyers and bidding vendors that includes the Department’s logo and user information.

2.1.3.29. Data Capture and Reporting – The tool shall have the capability to capture and securely retain, for on-demand reporting, data relating to individual auctions, and to generate standard reports as described in the SOW. Such data is considered sensitive and shall be protected and transmitted in accordance with DHS sensitive information safeguarding requirements.

2.1.3.30. User Support and Training – The contractor shall provide a tool that provides comprehensive user support, including a helpdesk, online tutorials, training resources, and technical assistance to ensure that DHS buyers and vendors can effectively use the system.

2.1.3.31. Compliance Monitoring – The contractor shall provide a tool that have mechanisms to monitor and ensure compliance with DHS procurement policies and federal regulations throughout the auction process.

2.1.3.32. Performance Metrics – The contractor shall provide a tool that tracks and reports on key performance metrics, such as auction completion time, cost savings achieved, vendor participation rates, and user satisfaction, to help DHS assess the effectiveness of the reverse auction tool.

2.1.3.33. Accessibility Features – The contractor shall provide a tool that complies with Section 508 of the Rehabilitation Act, ensuring accessibility for all users, including those with disabilities.

2.1.3.34. Scalability and Flexibility – The contractor shall provide a tool that is scalable to handle increased usage and flexible to accommodate future enhancements or changes in DHS procurement processes.

2.1.3.35. Security Features – The contractor shall provide a tool that includes robust security features to protect sensitive data, including encryption, secure user authentication, and regular security audits.

2.2. Ancillary Support

As a part of its solution offering, the reverse action tool provider is expected to provide, at no additional cost, customary ancillary support in the performance of reverse auctioning services to include the following:

2.2.1. Instructor-Led Training: Provide up to two (2) instructor-led classroom/auditorium buyer training sessions per year at a National Capital Region (NCR) location selected by the Government. At the discretion of the Government, webinar, teleconference, videoconference, or small group sessions may be utilized. On-Demand Web-Based Training Resources:

2.2.1.1. For DHS buyers, including comprehensive modules covering all functionalities of the reverse auction tool.

2.2.2. For vendors, ensuring they understand the bidding process and how to use the tool effectively. Help-Desk Support:

2.2.2.1. Toll-free phone and online support to troubleshoot problems and assist users during regular working hours (8AM to 8PM EST).

2.2.2.2. Initial answer/response time not to exceed 15 minutes and problem resolution within 24 hours.

2.2.2.3. Accurate problem diagnoses and fixes, with appropriate follow-up.

2.2.3. User and Vendor Account Management: Services to set up and administer accounts for users and vendors, ensuring secure and efficient access.

2.2.4. Qualified Supplier Maintenance: Maintain lists of qualified suppliers, regularly updated to ensure a robust pool of vendors.

2.2.5. Vendor Recruitment and Training Program: A program to recruit and train new vendors to expand the supplier pool and allow DHS to provide suggested sources.

2.2.6. DHS User Community Engagement: A program to create and maintain solid relationships with the DHS user community, ensuring their needs and feedback are regularly addressed.

2.2.7. Expert Reverse Auctioning Advice: Provide expert advice when necessary (e.g., timeframe of bids, cancellation and reposting of bids). Continuous Improvement Initiatives:

Regularly gather feedback from DHS buyers and vendors to identify areas for improvement and implement necessary changes to enhance the tool and support services.

2.2.8. Performance Metrics and Reporting: Provide detailed performance metrics and reports on the usage and effectiveness of the reverse auction tool and support services, including user satisfaction and issue resolution times.

2.2.9. Dedicated Account Manager: Provide a dedicated account manager to DHS for personalized support and to address any concerns promptly.

2.2.10. BPA Account Manager

The Contractor shall provide an Account Manager who will be responsible for the centralized administration of all work performed under the BPA. The Account Manager must participate in quarterly Project Management Reviews (PMRs) and additional reviews as needed.

Serving as the single point of contact for the Contracting Officer (CO) and the Contracting Officer's Representative (COR), the Account Manager is anticipated to be a senior-level employee.

The Contractor shall provide the name of the Account Manager and any alternate(s) who will act in the absence of the Account Manager as part of the Contractor’s quote. This role is designated as Key by the agency.

The Account Manager shall be available to the COR via telephone during normal business hours and must respond to requests for discussion or resolution of technical problems within 24 hours of notification.

The cost for the Account Manager under the BPA will not be separately priced, and no administrative task order will be required.

2.2.11. Additional Support Services – The Contractor shall make available on a task order basis, additional services for professional and technical support that may be required by the buying office. Such services may include support for additional training sessions, subject matter expertise, technical expertise, surge, and other services that are not provided as ancillary support with the basic tool offering.

2.3. Deliverables

The provider will deliver standard and on-demand reports and usage data as specified in this SOW. These reports will help DHS monitor tool performance, usage patterns, and procurement outcomes.

DI

Deliverable Due Date Format SOW Paragraph Reference

Government Point of Contact

1 Tool Guide Date of Award MS Word 2.3.1 BPA CO/PM 2 Monthly Report 10th of Each Month MS

Word/Excel PowerPoint

2.3.2.1 BPA CO/PM

3 Individual Auction Report

10th of Each Month MS Excel 2.3.2.2 BPA CO/PM

4 Monthly Summary Report

10th of Each Month MS Excel 2.3.2.3 BPA CO/PM

5 Quarterly Strategic Sourcing Report

Quarterly. 15th business day of the month after the quarter

MS Excel 2.3.2.4 BPA CO/PM

6 End of Fiscal Year Report

10 days after completion of Fiscal Year

MS

Word/MS Excel

2.3.2.5 BPA CO/PM

2.3.1. Tool Guide - The Contractor shall deliver, within 30 days of award and in an electronic .pdf format, a Tool Guide to the Contractor’s reverse auction tool, The Tool Guide shall provide buyers with an easy-to-understand description of the tool, clear instructions on its use, and resource links for assistance.

2.3.2. Reports Requirement - The Contractor shall submit reports electronically to the

Contracting Officer, Contract Specialist, Contracting Officer Representative (COR) and other DHS personnel identified by the COR. The Contractor may develop the format but shall include all the required elements described in this section for each respective report. Monthly reports shall be due no later than the 10th business day of each month. End of Fiscal Year reports shall be due no later than ten (10) days after the reporting period. The contractor shall provide a reverse auction tool that is capable of delivering reporting data so that DHS can track spend and savings data for procurements completed using the tool. Some reporting that might be required or requested includes, but is not limited to, number of auctions by buyer-component-contract, number of vendors, number of bids, spend- savings calculations, training and help desk ticket reports. The Contractor shall submit reports in appropriate files to include MS Excel, MS Word and MS PowerPoint.

2.3.2.1. Monthly Reports - The Contractor shall submit monthly reports on individual reverse auctions as well as monthly summaries of all auction activities for the previous month including but not limited to all posted, awarded, and canceled procurements.

These reports are in addition to the tools’ on-line / on-demand data reporting capability described in the SOW.

2.3.2.2. Individual Auction Reports - The Contractor shall submit a monthly report detailing individual auctions and summarizing all procurement activity for the previous month.

The Contractor shall include all posted, awarded, and canceled procurements.

1) Individual auction reports shall be submitted in MS Excel and include the following information regarding individual procurements:

a. Component

b. Division

c. Contracting Officer Name

d. Bid control number

e. Description of Product/Service Procured

f. Product Service Code

g. Status of Action (e.g., posted, awarded, cancelled)

h. Auction Date

i. RFP

j. Type of Set Aside

k. Number of Sources Notified

l. Number of vendors

m. Number of bids

n. Number of bids per Vendor

o. Number of Small Business Participating

p. Number of bids best value award criteria,

q. Number of bids using LPTA criteria

r. Target Price

s. Award Price

t. Savings Achieved

u. Fee Paid

v. Awardee

w. Business size of vendor

x. Contract Number

y. (Contract utilized (for orders awarded under an Indefinite

Delivery/Indefinite Quantity (IDIQ) or FSS contract)

z. TIN/CAGE

2.3.2.3. Monthly Summary Reports - The monthly summary reports for each component and DHS overall shall include the following information:

a. Total number of participating vendors

b. Total number of bids received

c. Total value of contracts awarded

d. Number of reverse auctions

e. Number of awards made

f. Number of bids best value award criteria,

g. Number of bids using LPTA criteria

h. Total spent via reverse auction

i. Total savings achieved.

j. Total fees paid

k. Total number of set asides

l. Number of Cancelled Auctions

m. Average number of sellers bidding

n. Average number of bids per buy

o. Average number of no-bids per buy

p. Average number of sellers notified

q. Max number of sellers bidding

r. Max number of bids per buy

s. Max number of no-bids per buy

t. Max number of sellers notified

u. Small business participation per buy

v. Number of buys with one vendor

2.3.2.4. Quarterly Strategic Sourcing Report 0 The Contractor shall submit quarterly (no later than the 15th of the month after the quarter e.g., October 15) a Quarterly Strategic Sourcing Report to include the following:

a. Reporting Period (month and year)

b. Contract Number

c. Vendor Name

d. Order/Call Number

e. Order/Call Date

f. Order/Call Description (brief description of services)

g. Component (DHS Component) Placing Order/Call

h. DHS Contracting Officer/Phone Number for the Order/Call

i. Period of Performance Start (date task started) for the Order/Call

j. Period of Performance End (date task ended or is scheduled to end) for the Order/Call

k. Order Type – Firm Fixed Price, Labor-Hour, Cost Plus Award

Fee, Cost Plus Fixed Fee, Time and Materials for the Order/Call

l. GSA FSS Fixed Semester/Term Rate

m. DHS BPA Fixed Semester/Term Rate

n. DHS Savings Percent (calculated field that requires no vendor input)

o. Task Order Fixed Semester/Term Rate

p. Order Discount Rate (calculated field that requires no vendor input)

q. Savings to DHS for the Period (the total dollar value of discounts provided to DHS)

r. Savings Methodology Baseline (what is the savings based off of

(i.e., discount off list price, discount off GSA Schedule, etc.))

s. Comments

2.3.2.5. End of Fiscal Year Reports - At the conclusion of each Government fiscal year of performance, the Contractor shall deliver a comprehensive report, to include appropriate MS Excel tables, that describes all reverse auction procurement activities for the year including all elements listed under the Monthly Reports.

2.4. Government Furnished Resources

The Contractor shall provide all resources necessary to operate the reverse auctioning tool and provide the ancillary support described herein.

2.5. Place of Performance

The reverse auctioning system shall be hosted and operated at the Contractor’s facilities. All performance, data storage and processing must occur in the Continental U.S. or its territories. The Contractor may be required to perform training and related support services on-site at DHS facilities as specified in the agreement or order but will not be provided with permanent workspaces.

2.6. Hours of Work

The Contractor shall provide online access to its reverse auction services 24 hours a day, 7 days a week, and 365 days per year (24x7x365) within the parameters of its commercially advertised system availability. The Contractor shall alert the Contracting Officer Representative (COR) of planned system outages for maintenance, upgrades, etc., with as much advance notice as feasible but not less than three business days before the outage.

Technical and customer service support shall be available Monday through Friday, except Federal holidays, between the hours of 8:00 AM and 8:00 PM (EST). Federal holidays for each year of performance can be found at http://www.opm.gov/fedhol/index.asp. The Contractor may be required to provide support during extended hours to assist the DHS in satisfying end of Fiscal Year procurement requirements.

2.7. Period of Performance

The period of performance for furnishing reverse auction services is 12 months from date the contract award, with two (2) 12-month option periods, and two 12-month award terms, subject to the Government’s needs and the availability of funds.

2.8. Applicable Documents

The following documents provide specifications, standards or guidelines that must be complied with to meet the requirements of this task order:

• DHS Enterprise Architecture

• DHS Management Directive 140-01, Information Technology Security Services

• DHS Management Directive 4300 Information Technology Systems Security

• DHS Management Directive 103-01 Enterprise Data Management Policy

• NIST Special Publication 800-30 Revision 1: Guide for Conducting Risk

Assessments

• NIST Special Publication 800-37 Revision 1: Guide for Applying the Risk

Management Framework to Federal Information Systems: a Security Life Cycle Approach

• NIST Special Publication 800-53 Revision 4: Security and Privacy Controls for

Federal Information Systems and Organizations

• NIST Special Publication 800-53 Revision 5: Security and Privacy Controls for

Federal Information Systems and Organizations.

• NIST Special Publication 800-144, Guidelines on Security and Privacy in Public Cloud Computing, dated December 2011

• 36 CFR Chapter XII Subchapter B Records Management

• DHS Policy Directive 4300A Information Technology System Security Program, Sensitive Systems (Version 13.3, February 13, 2023)

2.9. Security and Privacy

The Contractor, and the reverse auction tool provided, shall comply with all DHS security requirements specified in the contract, to include clauses pertaining to the safeguarding of sensitive information.

2.10. Section 508 Requirements

1. For each commercially available technology product or service addressed in your response, please provide an Accessibility Conformance Report (ACR) to document how the product conforms to the Section 508 standards. The ACR should be created using the Voluntary Product Accessibility Template Version 2.0 508 (or later). The template can be found at https://www.itic.org/policy/accessibility/vpat.

2. Describe your approach to ensuring ICT conforms to the applicable Section 508 requirements. Your response may include:

• Your organization’s accessibility policy (provide a link if publicly available)

• The life cycle processes used to ensure accessibility.

• The testing approach(s) your organization uses to validate conformance to the Section

508 requirements, including the test methodologies and tools.

• Prior experience supporting Section 508 in government contracts of a similar nature

• Description of known Section 508 issues and constraints with technology components that would be used in a solution that meets the requirements in this RFI.

https://www.itic.org/policy/accessibility/vpat

DEPARTMENT OF HOMELAND SECURITY (DHS) REVERSE AUCTION TOOL II STATEMENT OF WORK (SOW)