November 9 FBO Posting for FSII - Industry Day Deck.pdf

FirstSource II Industry Day

November 2, 2011

Homeland Security

FirstSourceII@dhs.gov

William Thoreen, Director

Enterprise Acquisitions Division

Office of Procurement Operations Department of Homeland Security

Opening Remarks

Agenda

• FirstSource History and Objectives –

• Daniel McLaughlin, Executive Director, Office of Procurement Operations

• Guest Speaker –

• Richard Spires, DHS Chief Information Officer

• Small Business Perspective –

• Kevin Boshears, Executive Director, Office of Small & Disadvantaged

Business Utilization

• Panel Discussion – Key Stakeholders

• Duane Jenkins, Director, Infrastructure Services Planning and Control, Office of the Chief Information Officer

• Mike Smith, Director, Strategic Sourcing Program Office, Office of the Chief

Procurement Officer

• Gary Hickey, Contracting Officer, Office of Procurement Operations

Agenda cont’d

• Break

• 15 minutes

• Procurement Overview and Open Q & A Session–

• Harrison Smith, FirstSource II Contracting Officer, Office of Procurement

Operations

• Kevin Boshears, Director, Office of Small and Disadvantaged Business

Utilization

• Closing Remarks

• William Thoreen, Director, Enterprise Acquisitions Division, Office of

Procurement Operations

• Small Business Networking and Ad-Hoc (non-FSII) Consultation

• Office of Small and Disadvantaged Business Utilization & Office of Procurement Operations Staff

Daniel McLaughlin, Executive Director

Historical Perspective and the Path Forward

Richard Spires, Chief Information Officer

Office of the Chief Information Officer

Guest Speaker

Kevin Boshears, Executive Director

Office of Small and Disadvantaged Business Utilization

Office of the Chief Procurement Officer

Small Business Perspective

Small Business Perspective

• Historical perspective – August, 2006

• Five small business categories – 8(a), HUBZone, SDVOSB, EDWOSB, and general SB

• Be aware of the individual aspects of each small business program

• Be clear about which firm is serving as the prime contractor – in both the pre-award and post-award environments

• How many awards will we make?

• Competition determines the final number

• Look at other DHS-wide multiple award contracts with several categories

(EAGLE I = 28 SBs; PACTS = 27 SDVOSBs)

Key DHS Stakeholders

Duane Jenkins, OCIO

Michael B. Smith, OCPO Gary Hickey, OPO

Panel Discussion

Duane Jenkins, Director

Infrastructure Services Planning and Control

Office of the Chief Information Officer

Workplace as a Service (WPaaS)

FirstSource II Drivers

FirstSource

II

Solution

Transformation to

Virtualization

Salient Characteristics

Standardization

Substantial Savings

(O&M/Unit)

New OMB Mandate

(Competition)

Streamline Acquisition

Process (Bulk Buys)

Timeline 2-3 Yrs. Q2 FY12

WPaaS/VDI

Mobile Solutions

Traditional Desktops &

Laptops

Peripherals

Transition to Mobility and WPaaS

Strategy for Salient Characteristic Use*

Salient Characteristics

FirstSource II

•Competition among all vendors

•Based on salient characteristics

•DHS-Wide Vehicle

Component Bulk Buy

•Competition among FirstSource vendors

•For entire refresh cycle

•Based on component needs Accrued Benefits

•Reduced costs •Faster fulfillment •Standardization through competition

* Will apply to Laptops, Desktops, Peripherals, Mobility and VDI equipment

Michael B. Smith, Director

Strategic Sourcing Program Office

Office of the Chief Procurement Officer

Strategic Sourcing Program Overview

What is Strategic Sourcing?

•A collaborative process to identify and implement consolidated buys

•Using department-wide spend analysis

•Resulting in savings and efficiencies

Facilities & Construction $5,393,687

0.5%

IT Hardware $454,337,812

42.8%

IT Services $122,319,252

11.5%

IT Software $245,439,651

23.1%

Logistics Ops & Package Delivery Svcs

$5,477,786 0.5%

Office Mgmt & Misc Products

$51,305,340 4.8%

Professional & Office Area Services $168,738,663

15.9%

Security $8,829,215

0.8%

Total Cumulative Savings from Strategic Sourcing

FY 2010 Highlights

• Strategic Sourcing achieved savings of $347M for all of DHS

• Over $160M (46%) of the savings resulted from FirstSource purchases

• FirstSource, as a 100% small business set-aside, helped achieve a 36% small business usage rate within the Strategic Sourcing Program

Total Savings (FY05 to

FY10) =

over $1.0B

What have we done?

Current Awarded Initiatives

* Federal Initiatives DHS is supporting or leading

1. .38 Special Ammunition

2. .40 Caliber Ammunition 135 Grain

3. 9mm Ammunition

4. 12 Gauge Ammunition

5. Acquisition Support Services

6. Adobe Enterprise License Agreement (ELA)

7. Architecture and Engineering Services

8. Body Armor

9. Canines

10. Canine Supplies

11. Centers of Excellence

12. Chemical Munitions

13. Design/Build and Construction Services

(National and Regional)

14. Distributed Computing Platform Service

15. EAGLE (IT Services)

16. ESRI ELA (II)

17. Express and Ground Small Package

Delivery Services (FSSI)*

18. F5 Networks ELA (ESS)

19. Firearms Interactive Training Simulator

20. FirstSource – IT Hardware and Software

21. Furniture

22. HSPD-12

23. IBM ELA (ESS)

24. McAfee ELA (ESS)

25. Medical Countermeasure (MCM)

26. Microsoft ELA

27. Microsoft Enterprise Services

28. Multi-Functional Devices (printers/copiers/etc.)

29. National Academy of Sciences

30. NetApp ELA (ESS)

31. Office Supply II (FSSI) BPA*

32. Oracle ELA

33. Other Ammunition

34. PACTS

35. Personal Protective Equipment

36. Quantum ELA (ESS)

37. Symantec ELA (ESS)

38. Symantec Maintenance BPA

39. Tactical Radios

40. Uniforms

41. Vehicle Lockboxes

42. VMWare ELA (ESS)

What have we done? cont’d

• In 2010, $1 billion cumulative savings achieved

• Over a third of the spend on strategically sourced contracts goes to small businesses

• Spend through strategically sourced contracts and the number of new initiatives awarded is trending sharply upward

*This number is higher than the number of current active initiatives on slide 5 due to the expiration of some of the older vehicles

How have we done it?

Case Study: FirstSource

Commodity Description The FirstSource contract covers information technology (IT) commodity products, including, hardware, software, peripherals, networking, and infrastructure support services.

Before Strategic Sourcing Current Environment

• Various decentralized methods of procurement, from retail to contract

• Minimal leverage for price negotiations

• No visibility to products ordered

• Nine small business IDIQs used by all components

• Average discount of 26.1% off of retail prices

• Vendor reporting provides visibility into items ordered

Savings since inception (February 2007): >$580M

Anticipated FY12 Initiatives

* Federal Initiatives DHS is supporting or leading

Where is Strategic Sourcing Going?

Future Strategic Sourcing Awards

1. Ammunition (.40 cal 180 grain and 223)

2. Body Armor

3. Bulk Fuel

4. Cisco Enterprise License Agreement

5. Detection Equipment

6. EAGLE II

7. Encrypted Thumb Drives

8. Financial Management Services II

9. FirstSource II

10. Remote Sensing

11. Tactical Communications Equipment &

Services

12. Technical Acquisition & Business Support

Services (TABSS)

13. Technical Surveillance Equipment

(TechOps)*

14. Uniforms

15. Wireless Equipment, Services &

Management*

Example of the Bulk Buy Draw Down

FirstSource –

IT

Commodities

Component Bulk Buy

• DHS-wide procurement

• 9 Vendors

• Full catalog of IT commodities

• Delivery order for all of the desktops and laptops needed for the three year refresh cycle for the component

• Single vendor

• Commodities limited to the specific items needed by the component

• Funding obligated

Order Fulfillment

Request

• Individual end-user requesting two laptops for new hires

• Selected from the component specific items included on the bulk buy

• Email sent to vendor requesting the order fulfillment against the bulk buy

Gary Hickey, Contracting Officer

Information Technology Acquisition Center

The Use of FirstSource

How We Have Used FirstSource & the Benefits Derived

• FirstSource helps the Contracting Officer meet small business goals

• Great source for Market Research

• Can issue Request for Information (RFI) to do market research

• Can contact vendors directly for market research

• Vendors understand DHS over time and provide good feedback

• Streamline procurement process via

• FedBid

• Request for Quotation (RFQ) under fair opportunity

• Can use lowest price technically acceptable (LPTA) or Best Value

How we have used FirstSource & the benefits derived cont’d

• Brand name or equal

• Looking for best solution

• The brand name is not always the best solution

• Salient Characteristics

• DHS is trying to use this more

• This may increase procurement time

• Concerns

• Delivery of products – not always following the delivery instructions

• May not meet the delivery time in the solicitation

Harrison Smith, Contracting Officer

Procurement Overview

Major Areas for Consideration

• The final Request for Proposal (RFP) is the only formal indication of the Government’s requirements, and takes precedence over any information presented, contained in these slides, or discussed at this event.

• Emphasis on Value-Added Reseller services

• Evaluation factors

• North American Industry Classification System (NAICS) Code

• 541519, Footnote #18

• Size standard -- 150 employees

• At Least 50% Requirement

• Substantive penalties will be written into all contracts

• EDWOSB Ceiling

• Per Delivery Order, not per IDIQ contract

Major Areas for Consideration cont’d

• Certification Requirements (as of the time of proposal submissions or proposal update submission) 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

Certification Requirements

SBA

Certification in the 8(a) Business

Development Program

SBA

Certification in the HUBZone Empowerment

Contracting Program

Self-Certification in Central Contractor

Registration (CCR) & the Online

Representation & Certifications Application

(ORCA)

Self- Certification in CCR, ORCA, & the

WOSB

Program

Repository

Self-Certification in CCR

& ORCA

*Current as of the time proposals are due.

Major Areas for Consideration cont’d

• Questions and Comments in Response to the Draft RFP

• Use the template provided

• Individual responses will not be provided

• FedBizOpps Postings

• Do not save as a ‘Favorite’ or use a link provided via e-mail – it will not update

• Level of Competition

• EAGLE

• FirstSource I

• PACTS

Draft Request For Proposal (RFP) – Highlights

• Period of Performance – A.2

• Five-year base period

• Re-certification will be required at the end of the base period

• Two one-year option periods

• Value-Added Reseller (VAR) Services – A.3

• Configuration consulting and design

• Systems integration

• Installation of multi-vendor equipment

• Customization of hardware or software

• Training

• Product technical support

• Product maintenance

• End-user support

Draft RFP – Highlights cont’d

• Contract Minimums/Maximums – B.2

• Minimum guarantee is $250.00 per contractor

• Maximum ceiling for the program is $3B

• Pricing – B.3

• Sample Delivery Order (all seven years)

• Scope – C.3

• Small Form Factor Device

• Static Device

• Domain Device

• Virtual Desktop Infrastructure (VDI) Device

• Peripheral Device

• FirstSource II Program Objectives – C.4

• Evaluated as part of Ability to Achieve Results (E.2.11 and E.3.4)

• Software and Enterprise License Agreements (ELAs) – C.5.5, C.5.6

• Software may be purchased through FirstSource II

• Software covered under an existing ELA will rarely, if ever, be purchased under FirstSource II

• Adobe, Microsoft, ESRI, McAfee IBM, F5, Quantum, VMWare, Symantec, Oracle, NetApp

• DHS continues to look at using ELAs – new ELAs and FirstSource II will require the transfer of software from individual purchases to the new ELA

• Large Delivery Orders and First Article Testing – E.3

• As DHS continues to support and facilitate competition, first article testing may be a part of a Delivery Order Request for Quote (RFQ), especially for large orders

• Delivery Order vs. IDIQ Period of Performance (POP) – F.5

• Individual Delivery Orders can extend up to twelve months past the base IDIQ

POP

• Place of Performance / Geographical ‘Preference’ – F.6

• Although the majority of the work will occur in the Washington, DC area, there is no geographical preference or quota

• Fair Opportunity Procedures – G.3

• Orders will not be competed amongst or between socio-economic categories

• Determination of the socio-economic category is at the discretion of the

Delivery Order Contracting Officer

• Exceptions to Fair Opportunity

• Delivery Order Protests – G.7

• Less than $10M – only on the grounds that the order increases the scope, period or maximum value of the contract

• Identification of Contractor Personnel – H.7

• Intent is for there to be clarity, for the purposes of transparency and security

• Substitution of New Technology – H.12

• Updates, more recent versions, etc. may not be substituted for what is ordered without the express and written approval of the Delivery Order Contracting Officer

• Limitation on Future Contracting – HSAR 3052-209-73

• As a result of a Delivery Order, a FirstSource II Contractor may be precluded from working on other DHS efforts

• Press Releases and Other Postings/Publications – H.5, HSAR 3052.242-71

• References to the FirstSource II contract(s) and work performed must be approved by DHS

Draft RFP – Instructions to Offerors

• Proposal Submission – E.2.7

• Submission via website/portal

• Two hard copies will also be required

• Hand deliveries will not be accepted

• Consolidated Remote Delivery Site (CRDS)

• Only allows USPS, DHL, UPS, and FedEx

• Electronic version of the proposal will govern

• Certification Requirements – E.2.9

• Failure to provide adequate documentation = non-responsive

• Clarity and Evaluation/Selection in the Five Socio-Economic Categories

– E.2.10(1), E.2.10(2)

• Clarity is paramount

• Proposals in a given socio-economic category will be treated independently of any other proposals in other socio-economic categories

• Offerors may propose in one, some, or all of the five socio-economic categories

Draft RFP – Instructions to Offerors cont’d

• Expected Number of Awards – E.2.10(5)

• There is no pre-determined number of awards

• Adequate number to provide DHS with competition throughout the life of the contract, to include any purchases, graduations, etc.

• Proposal Submittal and Web-Site Traffic – E.2.11(a)

• Offerors bear the risk of heavy site traffic and any subsequent delays

Draft RFP – Proposal Volumes and Tabs

• Proposal Volumes and Tabs – E.2.11(b)

• Tab A – Executive Summary / Cover Letter (2 pages)

• Volume I – Technical/Management

• Tab B – Corporate Experience (Prime Only) (max of 4 experiences, 3 pages each, 12 page max)

• Tab C – Ability to Achieve Results (8 pages)

• Tab D – Past Performance (4 pages)

• Volume II – Price

• Tab E – Sample Delivery Order Pricing

• Volume III – Proposal and Socio-Economic Information

• Tab F – Proposal Information (no page limit)

• Tab G – Socio-Economic Information (no page limit)

Draft RFP – Tab A

• Tab A – Executive Summary / Cover Letter

• Address all items called out in the RFP

• Clearly identify which socio-economic categories are being proposed to

• Submitted only once

• Tab A will be used by the Government as an aide in understanding the organization, content, and interrelationships of the proposal

• Tab A will not be evaluated or assigned a technical rating

• In the interests of transparency, Tab A shall also include a listing of team members/subcontractors, by socio-economic category

• It is likely that the final RFP will include a clause that will require post-award updates, if any apply, to this document

• There is no benefit to having more or fewer team members/subcontractors

Draft RFP – Tab B

• Tab B – Corporate Experience (Prime Only)

• Submitted only once

• Since the prime will be providing the majority of the services, only the prime’s experience will be evaluated

• If multiple experiences that are not the prime’s are submitted, the proposal may be determined to be non-responsive

• “Deliver high quality service and solutions as a value-added reseller of IT commodities”

• Experience shall be recent and relevant

• Recent – within the past five years

• Relevant – similar in size, scope, and complexity

• Proposals which demonstrate a consistent ability to perform relevant efforts over the entire recent period may be rated higher

• Shall also include any pertinent and directly relevant certifications, recognitions, awards, etc. earned as a result of its experiences

Draft RFP – Tab C

• Tab C – Ability to Achieve Results

• Submitted once, unless there is a difference in the format of the team(s) based on the socio-economic category

• Shall address the ability to achieve results in four areas:

1. Established and specific teaming approach

• Fewer vs. more team members/subcontractors

2. Established and specific management structure/process

3. Established approach/method for processing, tracking, & reporting on orders

4. Understanding of the strategic sourcing program and the program objectives

• Additional information will be provided in the final RFP

• FirstSource II Contractors will handle tens to scores of orders, from different components with different reporting requirements, all at the same time

• If multiple experiences that are not the prime’s are submitted, the proposal may be determined to be non-responsive

• ‘Established and specific’ is not the same thing as ‘an approach/process will be developed’

Draft RFP – Tab D

• Tab D – Past Performance

• Submitted only once

• Consists of two items:

1. Past Performance Statement

• Contractor-generated, and included in the proposal

2. Past Performance Questionnaires

• Generated by customer(s), and not included in the proposal

• Must correlate directly to the experiences provided under Tab B

• If it does not, it will not be evaluated

• Past Performance Statement should describe how the Offeror performed during the course of the contract actions described in Tab B

• Include performance metrics, delivery schedules met or exceeded, corrective actions, etc., as appropriate

Draft RFP – Tab E

• Tab E – Sample Delivery Order Pricing

• Submitted only once

• Information submitted will be used to generate a total evaluated price

• Every effort will be made to streamline and standardize the submission of pricing

• Range from standard pricing templates to a web-site with defined fields

• Pricing for the base and option periods will be required

• Will include items in all five categories of equipment

Draft RFP – Tab F

• Tab F – Proposal Information

• Submitted once for each socio-economic category to which the Offeror is proposing

• Will not be evaluated or assigned a rating

• Shall include

• Representations, Certifications and Other Information – 52.212-3

• Equal Employment Opportunity Compliance Review

• Signed SF-1449 and addendum

Draft RFP – Tab G

• Tab G – Socio-Economic Information

• Submitted once for each socio-economic category to which the Offeror is proposing

• Will not be evaluated or assigned a rating

• But, may result in the determination that an Offeror is not responsive if it does not provide the information required for the socio-economic categories to which it is proposing

• May need to be re-submitted if updated proposals are required

• Pending or in-process statuses are not acceptable

• Shall include

• CCR registration in 541519

• For self-certifying socio-economic categories, written correspondence to the

Contracting Officer

• For socio-economic categories which require certification by the SBA, current and complete documents

Questions, Guidance, Postings to FBO, etc.

• In the interests of transparency, DHS has and will continue to provide as much information as possible via www.fbo.gov

• All documents, questions and answers, and other information provided during this event will be posted on www.fbo.gov

• Any and all questions should be submitted to FirstSourceII@dhs.gov

• It is extremely important to be clear and follow directions

• No requests for in-person meetings on FirstSource II are being granted with any Contractor

• Updates will be provided to www.fbo.gov on a monthly basis, if not more often frequent http://www.fbo.gov/� http://www.fbo.gov/� mailto:FirstSourceII@dhs.gov�

Schedule

• Comments on Draft RFP Due – November 16, 2011

• Release of Final RFP – Not Later than December 30

• Proposals Due – 30-45 days after Final RFP

• Timeline for proposals will include an estimate/time for questions and answers

• Government evaluation period will be lengthy

• Award is dependent on the number of proposals and release of the Final RFP

• Should occur not later than the third quarter of FY2012

William Thoreen, Director

Closing Remarks

Important Websites

FirstSource II Slides, Conference Attendee List, News and Updates:

o FedBizOpps (www.fbo.gov)

Federal Acquisition Regulation (FAR) o www.acquisition.gov/far

Central Contractor Registration (CCR) o www.ccr.gov

Online Representations and Certifications Application (ORCA) o www.orca.gov http://www.acquisition.gov/far� http://www.ccr.gov/� http://www.orca.gov/�

“Ask a Fed”

• Location – Lobby

• Open small business networking

• Ask a Contracting Officer*

• Ask general procurement questions to an OPO Contracting Officer

• Ask a Small Business Advocate*

• Ask general small business questions to a DHS Small Business Specialist

*Non-FirstSource II related questions

Changes to PPT (Post-Industry Day)

• Slides numbered in bottom right-hand corner (Does not include the “Title” slide)

• Slide entitled “Break/Intermission” has been removed

• Color of text within yellow boxes changed from white to dark blue (Slide 12)

• Amount of total FirstSource savings since its inception has been corrected from “$446.5M” to “>$580M” (Slide 18)