Conf_Slides.pdf

US Army Corps of Engineers

BUILDING STRONG®

Energy Savings Performance

Contracting (ESPC)

Contractual Considerations

Tonju Butler

Procuring Contracting Officer

US Army Engineering & Support Center, Huntsville

18 April 2014

*The information contained in this briefing is for informational purposes only. All proposals must conform to the terms and conditions of the solicitation.*

Pre-Award Acquisition Team

Tonju L. Butler

Contracting Officer

Tonju.L.Butler@usace.army.mil

Sarah Schlapman

Contract Specialist

Sarah.M.Schlapman@usace.army.mil

Will Irby

Program Manager

Kay Sommerkamp

Office of Counsel

BUILDING STRONG® 3

Requirement Overview

This contract vehicle will be used to acquire the design, construction, and operation of energy savings projects from Energy Service Companies

(ESCOs).

The North American Industry Classification System (NAICS) code for this acquisition is 541330, Engineering Services. The small business size standard for this code is $35.5M (falls under the exception for contracts awarded under the National Energy Policy Act of 1992).

The geographic scope of the contracted services under this acquisition will cover the United States (CONUS), including Alaska, Hawaii, and all

U.S. Territories and possessions, and may include overseas locations of

Germany and Korea.

Acquisition Approach

Solicitation will result in the award of multiple-award indefinite delivery/ indefinite quantity (ID/IQ) contracts with a shared $1.5B total contract capacity over a 10-year ordering period (5-year base period and 5-year option period).

Task orders will be issued as firm fixed-price (FFP) and may include performance periods of up to 25 years.

A target of 20 contracts are planned to result from this acquisition, of which a target of at least three will be set aside for small businesses.

Task orders will either be set aside exclusively for small business competition or will be competed among all contractors (both large and small business) in accordance with detailed ordering procedures included in the solicitation.

Source Selection- Base Contracts

All proposals will be evaluated against the following factors (in descending order of importance, with Factors 3 and 4 equal in importance):

Factor 1: Corporate Technical Experience and Management Approach

Factor 2: Financial Capability

Factor 3: Past Performance

Factor 4: Small Business Participation

Factor 5: Technology Markups and Financing Markups

Basis of Award – Best Value

► Non-price related factors, when combined, are significantly more important than the price-related factor.

Small Business Participation Factor

All Offerors, both large and small, must submit a Small Business

Participation Plan to be evaluated by the SSEB.

A separate Small Business Subcontracting Plan will be submitted by large firms only and will be evaluated on a pass / fail basis prior to award. The

Subcontracting Plan should be consistent with the efforts proposed in the

Small Business Participation Plan.

Offerors will be required to propose their best effort for meeting the following small business participation percentages:

Small Business: 20%

Small Disadvantaged Business: 3%

Women-Owned Small Business: 3%

HUBZone Small Business: 2%

Veteran-Owned Small Business: 2%

Service-Disabled Veteran-Owned Small Business: 2%

Task Order Competition

Detailed ordering procedures are included in the solicitation and will be added to all resultant contracts to specify circumstances for setting-aside a task order for small businesses as follows:

7 Procurement Sensitive

Dollar Value Task Order Competition Caveats

$5 Million or Greater

Unrestricted Competition

Less than $5M The Contracting Officer will first consider reserving the Task Order for small businesses. The determination will examine the size of the project, complexity of the project and level of financing required.

Before making the determination on a particular project, the Contracting Officer will request a letter of interest from all SB firms. If fewer than two responses are received, the Task Order will open for Unrestricted Competition.

Benefits of using a single MATOC suite with task order set-asides:

Small businesses that graduate and recertify as a large business will be able to compete on unrestricted task orders.

Small businesses that gain capacity during the course of contract performance will be able to compete for larger projects whether those projects are set aside or solicited on an unrestricted basis.

Capacity will be shared between small and large businesses, providing maximum flexibility for mission accomplishment.

Small firms that are bought out by a large business must immediately recertify, and are no longer eligible for set-aside task orders.

Task Order Competition (cont)

Procurement Sensitive

BUILDING STRONG® 9

On-Ramps & Off-Ramps

Not later than 18 months prior to exercise of the option period the

Contracting Officer will determine if it is in the Government’s best interest to employ “on-ramp” or “off ramp” procedures.

On-Ramp Government will accept & evaluate new proposals with intention of adding additional contracts

Purpose is to increase competition and provide the Government with better buying power

New proposals will be subject to substantially the same proposal instructions and evaluation criteria contained in original solicitation

Off-Ramp Contracting Officer may elect to remove firms with poor performance records or firms that have not submitted any acceptable proposals for projects in which they are qualified

Overview of Solicitation

Section A: Executive Summary

Section B: Contract Line Items

Section C: Performance Work Statement

Section E: Inspection and Acceptance

Section F: Period of Performance

Section G: Contract Administration

Section H: Special Contract Requirements

Section I: Contract Clauses

Section J: RFP Attachments

Section K: Reps, Certs and Other Statements

Section L: Instructions to Offerors

Section M: Evaluation Factors for Award

Section L

Proposal shall be prepared clearly and concisely to demonstrate the Offeror has a complete understanding of requirements.

Proposal Format

Proposal Content

Page Limitations

Submission Requirements

Communications: All questions shall be submitted via Bidder Inquiry in

ProjNet in accordance with the instructions provided in Section A, Executive

Summary, of the solicitation.

Submission Requirements

NUMBER SUBMITTAL FORMAT

Complete Proposal

One hard copy/ One CD copy

PDF format and Word format, all pages to be word searchable; workable MS-Excel spreadsheets saved separately

Volumes 1, 2, 3 & 4

Four hard copies Volume 1

Three hard copies of Volumes 2, 3, and 4

One CD copy of each volume

All hard copies should be bound separately

CD copies should include a PDF format and Word format, all pages to be word searchable

Volume 5- Technology Markups and Financing Markups

One hard copy/ two CD copies

PDF format of entire volume, word format of entire volume, workable MS-Excel spreadsheets saved separately. All pages to be word searchable

All proposals shall be shipped to: US Army Engineering and Support Center- Huntsville, 4820 University

Square, Huntsville, AL 35816-1822. The package exterior should contain the solicitation number and the

POCs: Sarah M. Schlapman and Tonju L. Butler. Hand carried proposals must be delivered to the Mail Room

(rear of building, hours 0800-1630 central time) at 4820 University Square, Huntsville, AL 35816-1822 and time-stamped prior to the closing time and date. Electronic submissions will NOT be accepted.

Evaluation Factors

FACTOR 1: CORPORATE TECHNICAL EXPERIENCE AND

MANAGEMENT APPROACH OF ESPC PROJECTS

Element A: Performance Contracting Based Energy Experience and Expertise

Element B: Management Approach to Support Contract Performance

Element C: Understanding of the Army ESPC Process

Element D: Energy Baseline and Savings Calculation Capability

Element E: Ability to Develop a Measurement and Verification Plan

*Factor 1 will be discussed in greater detail in the Technical Overview presentation.

FACTOR 2: TECHNICAL AND MANAGEMENT APPROACH

Element A: Financial Strength and Stability

Element B: Ability to Obtain Required Financing at Competitive Rates

Element C: Ability to Shoulder Monetary Risk and Withstand Long Term Payback Periods

*Factor 2 will be discussed in greater detail in the Technical Overview

FACTOR 3: PAST PERFORMANCE

Element A: Past Performance Project Narratives

Element B: Past Performance Questionnaires

NOTES:

Past performance should be provided for each project submitted in Volume I.

Completed questionnaires should be submitted with proposal; however, client may send the forms directly to the Government POC identified in RFP.

Please verify customer POC contact info before submitting proposal.

Government may review other sources in addition to questionnaires.

FACTOR 4: SMALL BUSINESS PARTICIPATION

Element A: Small Business Participation Plan (all offerors)

Element B: Small Business Subcontracting Plan (other than small businesses)

*Factor 4 will be discussed in greater detail in the Small Business

FACTOR 5: TECHNOLOGY MARKUPS AND FINANCING MARKUPS

Submission Requirements:

-Standard Form 33

-Representations, Certifications, and Other Statements

-Joint Venture/ Mentor Protégé Agreements & Approvals

-Bankruptcy Statement

-Markups Rate Spreadsheets

NOTE:

The markup rates in RFP Section J, Attachment 17- Markup Submittal Spreadsheet shall be completed and submitted by the Offeror in Volume V, Tab E. The instructions for completing these schedules are found in RFP Section J, Attachment 18- Markup Submittal Instructions.

Questions All questions must be submitted via the ProjNet website at www.projnet.org

► Bidder Inquiry Key: PQAZT9-2CTWD9

► Deadline for questions is April 23, 2014

► You will first have to register if you have never done so before

► Instructions can found in paragraph A.9 of the solicitation

Answers will be posted to www.fbo.gov and may result in amendments to the solicitation.

** No questions will be accepted via email or by phone. Individual meetings with firms will not be scheduled.

**All official information related to this acquisition will be posted to www.fbo.gov.

http://www.projnet.org/ http://www.fbo.gov/ http://www.fbo.gov/

Energy Savings Performance

Contracting (ESPC)

Program Overview

Will Irby

ESPC Program Manager

US Army Engineering & Support Center, Huntsville

18 April 2014

ESPC Program Purpose

ESPCs utilize private capital to make infrastructure improvements on military installations

Allows Energy Services Companies (ESCOs) to provide Federal customers:

► energy and water efficiency improvement projects

► renewable energy projects

► demand reduction services

Implementation and development costs are financed for up to 25 years at competitive interest rates

Payment is derived from the savings generated by the improvements – Savings must occur or contractor does not get paid

How Does ESPC Help the Army?

• ESCO fronts the capital costs

• Financed projects paid from consumption savings

• Savings ensured by mandatory measurement and verification (M&V)

• ESCO performs O&M on major systems

• ESPC saves energy & water to meet goal

O&M and

Utility

Bill

O&M and

Utility

Bill

O&M and

Utility

Bill

Capital Cost

Financing &

Debt Service

Govt. Share

O&M and

Energy

Savings

Before ESPC

Contract

During ESPC

Contract

After ESPC

Contract

Army doesn’t have sufficient funds for capital investment

Limited DPW maintenance resources

ESPC Overview

► In the 1QFY14, Huntsville Center (CEHNC) awarded four ESPC Task Orders with a total value of $72M. These projects contributed to the Army exceeding its commitment to the President’s Performance Contracting Challenge (PPCC). The

Army exceeded its goal of $384M by $114M, or 29.7% for a total of $498M, with

CEHNC contributing $422M over the Dec 2012 – Dec 2013 period.

► President’s Performance Contracting Challenge (PPCC) – the PPCC has been extended through Dec 2016. Federal Agencies, to include Army, will be expected to set aggressive goals for 3rd party financed projects.

► HNC currently supports 35 different customers with ESPC projects in development and/or construction and an additional 40 projects in performance period administration.

► HNC has approximately 8-10 projects in the “pre-solicitation” pipeline at any given time.

ESPC Program Statistics

$208M

$85M

$25M

$189M

200,000

400,000

600,000

800,000 696K

315K

75K

HNC Awards 3rd Party Capital Investment

Annual MBTU Savings

FY10 FY11 FY12

FY12 FY11 FY10

FY13

FY10

FY13

400K

FY13 FY12 FY11

FY14

$220M

FY14

Projected

430K

FY14

ESPC Programmatic Goals

Continue to meet and exceed the Army’s PPCC execution goals

Provide innovative solutions to reduce customer’s energy consumption

Partner with other DoD and Federal agencies to leverage USACE’s proven, streamlined approach to developing and awarding ESPC projects

Streamline our development approach further to achieve savings quicker

ESPC Programmatic Goals (cont’d)

Improved energy infrastructure at Army Garrisons

Reduced energy consumption (Btu)

Reduced O&M needs

Lower maintenance costs

Meeting Army energy reduction goals

Increased reliability of systems, equipment, and components

A PARTNERSHIP

Contractor

Installation

Contracting

Agency

All parties must enter contract in good faith.

Long term relationship.

Current Customers

Rock Island Arsenal JMTC

Rock Island Arsenal

White Sands Missile Range

FT Carson

McAlester AAP

Daegu Korea

Yongsan Korea

Ft McCoy

SPAWAR Pacific (Navy)

SPAWAR Atlantic (Navy)

Fleet Readiness Center SW (Navy)

Mobile District (USACE)

Ft Buchanan

Ft Bragg

Camp Humphries (Korea)

Aberdeen Proving Grounds

Letterkenny Army Depot

Michigan National Guard

Puerto Rico National Guard

Ft Bliss

Corpus Christi Army Depot

Hohenfels (Germany)

Wiesbaden (Germany)

Ft Lee

Adelphi Laboratory Center

Ft Leavenworth

FT Irwin

Soldier System Center Natick

West Point

Ft Greely

HNC ESPC MATOC Features

Pre-qualified pool of ESPC contractors compete for new requirements

Streamlined Task Order Acquisition Process

Performance Based Contract – contractor must deliver guaranteed savings or no payments made

Helps meet energy reduction goals

Leverages funds already being paid to the utility for critical infrastructure upgrades

BUILDING STRONG® 11

Typical ESPC Energy Conservation

Measures (ECMs) Boiler Improvements

Chiller Improvements

Air Handling Equipment

Controls

Motors and Drives

Upgrade of HVAC Systems

Lighting Retrofits

Renewable Energy Systems

Building Envelope

Water & Steam Distributions

Electrical Peak Sharing

Solar, Photovoltaic

Ground Source Heat Pumps

Generators

Variable Frequency Drives

Upgrade of Central Power Plants

Metering & Energy Information Systems

Gas-fired Infrared Heaters

Primary/Secondary Pumping Systems

Decentralization of Domestic Hot Water Systems

Decentralization of Central Power Plants

Wind

BUILDING STRONG® 12

Measurement & Verification

Critically important to ESPC Program success

Must follow Army guidance

Must conform to FEMP M&V protocols

No stipulated savings

ESCOs must see M&V as a way to promote what ESPC has provided:

► Use M&V to show benefit

► Schedule M&V briefings with the customer

► Use M&V to identify issues and alert the customer to any field problems they may not be aware of

Final Notes… What we want from ESPC

Be creative…

Be innovative…

Be responsive…

Customer focused, technical solutions to real problems…

Focus on building an ESPC program, not just executing an ESPC project…

Questions?

Energy Savings Performance Contract

Technical Overview

Bruce Forsberg

Mechanical Engineer

US Army Engineering & Support Center, Huntsville, AL

Agenda

Performance Work Statement (PWS)

Technical Highlights of ESPC

Technical – Factor 1

Technical – Factor 2

BUILDING STRONG® 3

Performance Work Statement

Performance Work Statement is a statement of work that describes the required results, rather than how it is done.

Establishes the technical requirements of the work and the products and services that can be awarded.

The contractor shall provide all personnel, equipment, tools, vehicles, materials, supervision, subcontractors, and other items and services necessary to effectively and efficiently perform all design, installation, operation, maintenance, repair, and replacement of the projects identified in the Task Order RFP and resulting proposal. All activities shall be performed in accordance with applicable codes, standards, laws, and regulations.

Technical Highlights Section C and Task Order

Measurement & Verification – Critical Over

Term of Contract

Preliminary Assessments - Short, Quick, to the Point

Feasibility Study/Proposal – Detailed, Thorough, Focused

Safety, Security, and Quality

Technical Highlights (Continued)

UMCS – Accreditation, M&V, Site Integrate

Maintenance – Responsible over Term, Replacement Equipment, Non-Replacement Equipment, Ownership

Follow FEMP Formats – Standardize –

DIDs Support Information

Follow Army ESPC Policy Guidance

Save Energy – Save Cost

BUILDING STRONG® 7

Avoid Crash and Burn in ESPC Projects Solid Baseline – Documented, M&V

Solid List of Assumptions

Accurate Complete Description of

Projects, Requirements, & Responsibilities

Partnership of Major Stakeholders

Factors for Award

Factor 1: Corporate Technical Experience and Management Approach for ESPC

Projects

Factor 2: Financial Capability

Factor 3: Past Performance

Factor 4: Small Business Participation

Factor 5: Technology Markups and Financing

Markups

Factor 1: Corporate Technical Experience and

Management Approach for ESPC Projects

Element A: Performance Contracting Based Energy

Experience and Expertise

Element B: Management Approach to Support Contract

Performance

Element C: Understanding of Army ESPC Process

Element D: Energy Baseline and Savings Calculation

Capability

Element E: Ability to Develop a Measurement and

Verification Plan

Factor 1 Evaluation

Project Information – Breadth and Depth

Capability of Management Approach

Understanding of Army ESPC Process

Capability for Energy Baseline & Savings

Calculations

Ability to Develop M&V Plans

Factor 2: Financial Capability

Element A: Financial Strength and Stability

Element B: Ability to Obtain Required

Financing at Competitive Rates

Element C:Ability to Shoulder Monetary

Risk and Withstand Long Term Payback

Periods

Factor 2 Evaluation

Assessment of the Overall Financial Capability of the Prime Contractor

► Demonstrated Financial Strength and Stability

► Ability to Competitively Obtain Required Financing

► Risk Understanding and Ability to Shoulder that Risk

Prime Contractors Statements Evaluated against

Various Financial Ratios

BUILDING STRONG® 14

Helpful Hints

Follow Section L Format

Present what you have done w/r/t what is requested and how it will be evaluated

Do not miss a “SHALL” requirement

A “SHOULD” requirement should be included

Be accurate, clear, and concise

Parting Comments

Do not make 2 sound like 2,000,000,000

Presenting information that “studies have shown” to be accurate should be avoided

Don’t Crash and Burn because of poor performance

There is going to be 87 other Proposors, so Good Luck!

Questions

Energy Savings Performance

Contracting (ESPC)

Small Business Participation vs

Subcontracting

Rebecca Vucinaj

Chief, Small Business Office

US Army Engineering & Support Center, Huntsville

NAICS Code

NAICS for this RFP is 541330, Engineering Services (Awarded

Under the National Energy Policy Act of 1992)

► Small Business Size Standard – $35.5M

Selected through Market Research

U.S. Small Business Administration

► Concurred

► Will adjudicate concerns regarding applicability of NAICS

► Will adjudicate matters regarding size determination of Offerors

Source Selection- Factor 4

The evaluation factors are in descending order of importance (with

Factors 3 and 4 equal in importance):

Factor 1: Operation & Maintenance Experience

Factor 2: Technical and Management Approach

Factor 3: Past Performance

Factor 4: Small Business Participation

Factor 5: Price

3 Procurement Sensitive

Subcontracting Plan vs

Small Business Participation Plan

Subcontracting Plan

Other than Small Business

Evaluated IAW FAR 52.219-9 &

DFARS 252.219-7003

Total Subcontracted Dollars

Acceptable plan submitted to be eligible for award

Consistent with the Small

Business Participation Plan

Small Business Participation Plan

Large and Small Business

Evaluated IAW Section M of RFP during Source Selection

Total Contract Value

Submitted with Proposal IAW

Section L of RFP

SB Participation Factor for Large vs Small Business Offerors RFP is structured to allow small businesses to submit their own participation as a prime under the FAR Part 15 Evaluation Factor.

A common mistake in procurements is asking both small and large businesses to submit SUBCONTRACTING goals, because this requires small businesses to SUBCONTRACT to attain the goal.

Instead SBs should be allowed to submit their own PARTICIPATION as a PRIME. Therefore, under the SB Participation Factor, you should see “SB Participation Goals”…meaning…

► Large businesses achieve the goals through subcontracting;

► Small businesses can achieve goals through their own performance/participation as a prime or with small business subcontractors.

All Offerors (both large and small businesses) will be evaluated on the level of small business commitment demonstrated for the proposed acquisition and the use of small businesses demonstrated in the performance of prior contracts relevant to the PWS. The following shall evidence small business participation:

The extent to which small business firms are specifically identified in the proposal;

The extent of commitment to use such firms (enforceable commitments will be weighted more heavily than non-enforceable ones);

The identification of the complexity and variety of the work small businesses are to perform;

Past performance of the Offeror in complying with the requirements of the clauses at FAR

52.219-8, Utilization of Small Business Concerns; and for all large business Offerors, FAR

52.219-9, Small Business Subcontracting Plan; and

The extent to which the Offeror meets or exceeds the small business participation goals.

SB Participation Evaluation Factor

Small Business Participation Plan

Minimum—20% of the total contract value commitment to small business participation

Sub-categories:

► Small Disadvantaged Business 3%

► Woman-Owned Small Business 3%

► HUBZone Small Business 2%

► Veteran-Owned Small Business 2%

► Service-Disabled Veteran-Owned 2%

Examples For a $1.5B contract with a SB Participation Goal of 20%, LB offerors must propose to offer $300M to small firms through 1st tier subcontracting; because

$300M is 20% of $1.5B total contract dollars.

LBs will determine their own subcontracting plan percentage and it’s dependant on how much the LB prime plans to subcontract .

If LB says $500M total will be subcontracted (then $300M SB/$500M = 60% of the subcontracted dollars go to SBs.

If LB says $700M will be subcontracted (then $300M SB/$700M = 43% of subcontracted dollars go to SBs).

The subcontracting % is irrelevant, as long as the total dollars subcontracted to small firms matches what is proposed in the SB Participation plan. Contractors determine their SB subcontracting plan percentages through this equation {total dollars subcontracted to SBs/total dollars subcontracted}

Questions???

Joint Ventures in Energy Savings

Performance Contracts (ESPC) III

Gary Heard

SBA PCR

Huntsville Engineering and Support

Center

Agenda

Size

Affiliates

Joint Venture

Teaming Agreement

Evaluation – SB Participation

Subcontracting

Limitation on Subcontracting

NAICS and Size Standard NAICS 541330, Engineering Services under

National Energy Policy Act of 1992

Size standard associated with NAICS 541330 is $ 35.5 Million

This means that a company, including its affiliates, would be considered a "small business" if its average annual gross receipts does not exceed $35.5 Million for the past three years. If a company has not been in business for three years, the average weekly revenue for the number of weeks the company has been in business is multiplied by 52 to determine the average annual receipts.

Who are your “affiliates?” Why do you care?

Affiliation

13 CFR § 121.103

• Concerns and entities are affiliates when one controls or has the power to control the other or a third party controls or has the power to control both. Power does not have to be exercised; it just has to exist.

• Factors considered include ownership, management, previous relationships or ties to another concern, and contractual relationships.

• Control can be positive or negative; direct or indirect.

• Determination based on totality of the circumstances.

Examples of Affiliation

• Stock ownership

• Stock options/Agreements to Merge

• Common Management

• Identify of Interest

• Newly organized Concern

• “Ostensible subcontractor”

• Joint Ventures

13 CFR § 121.103

BUILDING STRONG® 6 Procurement Sensitive

Joint Venture Defined in 13 CFR 121.103(h)

An association of individuals and/or concerns with interests in any degree or proportion consorting to engage in and carry out no more than 3 specific or limited-purpose business ventures for joint profit over a 2-year period, for which purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis. Otherwise, it will be determined to have a general affiliation.

No more than 3 contracts over a 2-year period, starting from the date of the submission of the 1st offer.

Must be in writing

Must do business in its own name

May be in the form a legal entity and have its own employees, but it is not required.

JV and SB Size Standard

A Joint Venture is a small business (SB) concern when the combined revenue of all joint venture partners does not exceed the

SB Size Standard

JV size exemption for a “Large” Procurement

► Procurement is bundled; or

► It is a “large” procurement (i.e. dollar value of acquisition is exceeds ½ of the size standard)

► Then JV is Small if EACH joint venture partner is small.

Limitation on Subcontracting applies to the aggregate JV work

BUILDING STRONG® 8 Procurement Sensitive

8(a) Joint Venture 8(a) JV must be approved by the SBA (Applies only to 8(a) Acquisition)

In an unpopulated JV (one without its own employees, 8(a) JV must perform 40% of the work done by the JV and must not be simply administrative functions. [Source: 13 CFR 124.513(d)]

8(a) mentor-protégé JVs are considered small as long as the 8(a) protégé is small for the procurement.

SDVOSB

• SDVOSB can JV with 1 or more SBs

• SDVOSB JVs are considered affiliated unless they are offering on a “large” procurement

• Limitation on contracting applies to the aggregate JV work.

• An individual SDVOSB can fulfill the Limitations on subcontracting by using other SDVOSB subcontractors

BUILDING STRONG® 9 Procurement Sensitive

HUBZone A HUBZone may only JV with another HUBZone concern to be considered a HUBZone concern

However, the JV itself need not be certfied as a HUBZone

HUBZone JVs offering on a “large” procurement can qualify as small as long as each HUBZone partner is small for the acquisition.

Limitation on Subcontracting applies to aggregate effort of JV

HUBZone mentor and protégé will not be found affiliated when the mentor-protégé relationship is Federally approved.

HUBZone mentor can subcontract to its protege

BUILDING STRONG® 10 Procurement Sensitive

ED/WOSB

• WOSB/EDWOSB JVs are affiliated unless offering on a “large” procurement

• The WOSB/EDWOSB participant in the JV must be designated in CCR and ORCA as WOSB/EDWOSB

• JV must provide a written JV agreement to the Contracting Officer (KO) containing the elements of 13

CFR 127.506

• Limitation on Subcontracting applies to the aggregate JV work

Teaming

Both small and large businesses might benefit from teaming arrangements.

Section M: “‘Offeror’ refers to the proposed prime contractor and all proposed contractor team members/major subcontractors. “Contractor team arrangement” is an arrangement in which (1) two or more companies form a partnership or joint venture to act as a potential prime contractor or (2) a potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program (see FAR 9.6).”

Note the requirement for letters of commitment for key subcontractors.

Joint Venture or Teaming with Subcontractors?

SBA affiliation rules & exceptions

52.219-14, Limitation on Subcontracting

►Services

►At least 50% of the cost of contract performance incurred for personnel shall be expended for employees of the firm.

BUILDING STRONG® 13 Procurement Sensitive

Evaluation of Proposals

Small Business (SB) Participation is a secondary evaluation factor …

BUT

Large Businesses (LBs) may be evaluated for their past performance in achieving their subcontracting goals in the “Past Performance” evaluation factor

► All firms (both LBs and SBs) will submit a SB Participation

Proposal

• SBs can include their contract performance in the %s to be completed by SB in their SB Participation Proposal

Where Can I Find the CFR

Federal Regulations (CFR) on-line:

http://ecfr.gpoaccess.gov

Size regulations -- 13 CFR Part 121

8(a) & SDB regulations -- 13 CFR Part 124

Government Contracting Programs – 13 CFR Part 125

HUBZone Program – 13 CFR Part 126

Service Disabled Veteran Program – 13 CFR 125.8-28

Women-Owned Small Business Program-13 CFR 127 http://ecfr.gpoaccess.gov/