FirstSource II Acquisition Strategy Overview_FINAL_09.19.11.pdf

U.S. Department of Homeland Security Washington, DC 20528

September 19, 2011

Prospective Offerors:

The Department of Homeland Security (DHS) Office of Procurement Operations Enterprise Acquisitions Division is issuing the attached overview to provide prospective small businesses with preliminary information on the upcoming FirstSource II acquisition. The paper is intended to improve industry understanding of the FirstSource II requirements and to help DHS finalize the acquisition strategy.

Since its inception in 2006, the FirstSource program has been a cornerstone of the DHS Small Business and Strategic Sourcing programs. With FirstSource II, DHS will replace the current FirstSource contracts while incorporating lessons learned from the previous five years.

DHS anticipates issuing a draft Request for Proposals (RFP) and conducting an Industry Day in early November 2011. The final RFP is scheduled for release in early January 2012.

This acquisition strategy overview is for informational purposes only. DHS will solicit comments with the release of the draft RFP and requests that interested offerors hold comments or questions until that time. Additionally, DHS does not intend to maintain an interested vendor list so expressions of interest are not required. In anticipation of questions that are generally asked on this type of procurement, the attached Frequently Asked Questions are provided.

FirstSource II – Frequently Asked Questions

FirstSource II – Acquisition Strategy Overview

The following provides an overview of the anticipated acquisition strategy for FirstSource II.

The strategy is provided for informational purposes only in advance of the draft FirstSource II Request for Proposals (RFP). This exchange is being issued in accordance with Federal Acquisition Regulation (FAR) Subpart 15.201 in an effort to improve industry understanding of DHS requirements.

Background:

FirstSource is a DHS-wide multiple-award, indefinite delivery/indefinite quantity (ID/IQ) contract vehicle, specifically designed as the preferred source to acquire information technology (IT) commodity products (equipment and supplies and associated services) within DHS.

FirstSource is part of the DHS Strategic Sourcing program.

FirstSource allows DHS to:

o Leverage its significant buying power to provide the best possible prices;

o Facilitate implementation of DHS IT Architecture Standards;

o Provide a fast and flexible mechanism for Components, EAGLE and other DHS contractors to acquire IT commodities and associated services;

o Facilitate asset and spend management.

FirstSource is considered “mandatory for consideration” throughout DHS, and uses the concept of “fair opportunity” for conducting delivery order competitions.

FirstSource is a 100% small business set-aside based on North American Industry Classification System (NAICS) code 541519, Other Computer Related Services, with a size standard of 150 employees. FirstSource contractors are considered Value-Added Resellers.

FirstSource was awarded to eleven small business contractors in February 2007 with a contract term of five years. The FirstSource II acquisition will refresh and update the current FirstSource program and will incorporate lessons learned from the previous five years.

FirstSource II Objective:

The primary objective of the FirstSource II acquisition is to establish contracts with experienced Information Technology Value-Added Resellers to provide a variety of commercially-available IT commodity products to support DHS programs in accomplishing their missions. A primary goal of this acquisition is to generate cost avoidance and savings by leveraging the buying power of DHS and its components, ultimately resulting in lower prices to the Government.

FirstSource II will support the DHS IT community’s transformation to virtualization, mobility and Work Place as a Service. As it moves to a more virtualized environment, DHS has a need to have its base computers, laptops and peripherals become more standardized. FirstSource II will incorporate a list of salient characteristics for desktops, laptops, peripherals and VDI equipment as part of its base requirements.

Value Added Reseller Services include such services as:

• Configuration consulting and design

• Systems integration

• Installation of multi-vendor equipment

• Customization of hardware and software

• Training

• Product technical support

• Product maintenance

• End-user support

Small Business Strategy:

The small business strategy for FirstSource II provides for prime contracts in categories where set-aside authority exists. The set-aside categories are as follows: (1) 8(a); (2) Historically Underutilized Business Zone (HUBZone); (3) Service-Disabled, Veteran-Owned Small Business (SDVOSB); (4) Economically Disadvantaged, Women-Owned Small Business (EDWOSB); and

(5) all small businesses (including SB, non-8(a) SDB, non-EDWOSB WOSB, and VOSB). DHS will emphasize value-added reseller services in the source selection.

FirstSource II will use North American Industry Classification System (NAICS) code 541519, Footnote #18 (Information Technology Value-Added Reseller), with a size standard of one hundred and fifty (150) employees. For illustration purposes, the following provides a simplified visual depiction of the small business strategy:

Work Description Information Technology Value-Added Reseller

NAICS Code 541519 with Footnote #18 Small Business Size Standard 150 employees

Small Business Category/Target Pool

8(a) HUBZone SDVOSB EDWOSB Small Business (including SB, non-8(a) SDB, non-EDWOSB

WOSB, VOSB)

Small Business FAR Reference FAR 19.8 FAR 19.13 FAR 19.14 FAR 19.15 FAR 19.5

Anticipated Number of Contract Awardees TBD TBD TBD TBD TBD

Indefinite Delivery/Indefinite Quantity Contract Vehicle:

The Department of Homeland Security intends to award multiple IDIQ contracts with a 5 to 7 year base period of performance from this solicitation for commercial items under Federal Acquisition Regulation (FAR) Part 12 Acquisition of Commercial Items using the source selection procedures of FAR 15 Contracting by Negotiation. The contracts are anticipated to be “mandatory-for-consideration” within DHS.

Ordering will be based upon the fair opportunity procedures of FAR 16.505(b) for orders under multiple award contracts. For FirstSource II, fair opportunity will be conducted by selecting one of the five socioeconomic categories and competing the order among those firms within the selected category. For example, if the 8(a) category is selected, only the 8(a) firms will compete for the order.

Place of Performance:

FirstSource II will allow for delivery order performance at any location in the United States (CONUS) or outside the United States (OCONUS).

Contemplated Evaluation Factors:

DHS contemplates using the following evaluation factors to determine the most highly qualified Information Technology Value Added Resellers and the best value to the Government:

o Corporation Experience o The extent to which the Offeror has demonstrated corporate experience as an

Information Technology Value Added Reseller on efforts of a same or similar nature to that of FirstSource II.

o Management Approach.

o The extent to which the Offeror has demonstrated:

o The ability to handle large volumes of delivery orders;

o The ability to ensure a high level of customer satisfaction;

o An understanding of Program Objectives (Strategic Sourcing and

Technical);

o Ability to manage the contract.

o Past Performance o The extent to which the Offeror’s past performance demonstrates its capability and capacity to deliver high quality service. The references used for Corporate Experience will also be used for Past Performance.

o Pricing

Next Steps for the FirstSource II Program:

Provided below is the anticipated milestone schedule for the FirstSource II program. Please note that this schedule is tentative in nature and is subject to change. Any changes in the schedule will be posted to www.fbo.gov.

Event Planned Date

Release of Draft RFP November 2011

Industry Day November 2011

Release of Final RFP January 2012 http://www.fbo.gov/�

Listed below are DHS’ responses to anticipated questions regarding FirstSource II.

FREQUENTLY ASKED QUESTIONS

1. Can an offeror propose in more than one small business category?

Yes. An offeror may propose in any or all categories for which it is eligible. However, DHS will select the most highly qualified offerors in each respective category. Although an offeror may be eligible in more than one category, it will only be eligible for delivery order competitions in the category(s) in which it is selected for award.

2. The selected NAICS code describes IT Value-Added Resellers. What is a value-added reseller?

The North American Industry Classification System (NAICS) code for First Source II is 541519, Foot Note 18 (Information Technology Value-Added Reseller). Under this NAICS Code an Information Technology Value Added Reseller provides a total solution to information technology acquisitions by providing multi-vendor hardware and software along with significant services. Significant value added services consist of, but are not limited to, configuration consulting and design, systems integration, installation of multi-vendor computer equipment, customization of hardware or software, training, product technical support, maintenance, and end user support. For purposes of Government procurement, an information technology procurement classified under this industry category must consist of at least 15 percent and not more than 50 percent of value added services as measured by the total price less the cost of information technology hardware, computer software, and profit.

The FirstSource II procurement will seek offerors with significant experience as an IT value-added reseller.

3. Do I have to have experience as a value-added reseller to propose on FirstSource II?

No. However, the source selection will place significant emphasize on the experience of offerors as value-added resellers. Offerors with limited or no such experience are unlikely to be selected for award.

4. Can a small business offeror form a joint venture with a large firm and still be considered small for this requirement?

For FirstSource II, the only Joint Ventures (JV) with a large business that will be allowed are a JV between an 8(a) protégé firm and its approved Small Business Administration mentor. This type of JV would be considered small (and therefore eligible for FirstSource II) so long as the 8(a) protégé is small for the procurement. Interested 8(a) firms should contact their local SBA District Office for more information.

5. Are there different joint venture limitations for each socioeconomic category?

A joint venture is an association of individuals and/or concerns with interests in any degree or proportion by way of contract, express or implied, consorting to engage in and carry out no more than three specific or limited-purpose business ventures for joint profit over a two year period, for which purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally.

The Relaxed Affiliation Rule (13 CFR 121.103(h)(3))) applies to First Source II because it is an employee based size standard procurement that is over $10 million. Relaxed affiliation means that so long as each Joint Venture (JV) member individually qualifies as a small business, then the JV qualifies as small.

For more information on the requirements for specific socioeconomic JVs see the following Code of Federal Regulation citations:

a) HubZone – 13 CFR 126.616

b) Service Disabled Veteran Owned – 13 CFR 125.15(b)

c) 8(a) – 13 CFR 124.513(b)(1) and 13 CFR 124.513(3)

d) Economically Disadvantaged Women Owned Small Businesses – 13 CFR

127.506

e) General Small – 13 CFR 121.103(h)(3)

For additional information on 8(a) JVs, please see the answer to question 4 above.

6. In order to submit a proposal to First Source II did the offeror have to submit a response to the Request for Information (RFI)?

No. A response to the RFI was not necessary to submit a response to the Request for Proposal (RFP).

7. Is experience working in DHS required to propose on FirstSource II?

No.

8. How many contracts will DHS award as a result of the FirstSource II solicitation?

The number of contract awards in each of the small business categories has not been pre-determined. However, for FirstSource II to be a manageable program for the Government and a beneficial program for the awardees, a limited number of contract awards will be made.

9. Does an offeror need to be located in the Washington DC metropolitan area to receive a contract award?

No. The FirstSource II source selection will not consider the geographic location of offerors.

September 19, 2011