1 PREPARING AND NEGOTIATING AN 8(a) SOLE-SOURCE Melissa L. Moore GSFC – Code 210.M July 11, 2007...
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Transcript of 1 PREPARING AND NEGOTIATING AN 8(a) SOLE-SOURCE Melissa L. Moore GSFC – Code 210.M July 11, 2007...
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Purpose
Provide a helpful reference document for working with 8(a) Set Asides—Specifically;
“Information you need to consider for preparing and negotiating an 8(a) Sole-Source Contract.”
--no formal competition involved with contractor selection
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8(a) & the Law
FAR 6.204 (a) To fulfill statutory requirements relating to section 8(a) of the Small Business Act, as amended by Pub. L. 100-656, contracting officers may limit competition to eligible 8(a) contractors (see Subpart 19.8). (b) No separate justification or determination and findings is required under this part to limit competition to eligible 8(a) contractors.
NASA FAR SUPPLEMENT(NFS) 1819.7002(a) Contracting officers must seek out as potential sources small disadvantaged business concerns, women-owned small business concerns, historically black colleges or universities, and minority institutions, and give full consideration to these entities to satisfy NASA requirements.
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Ways to Award a Contract to an 8(a) Business Concern
Sole-Source [8(a) pre-selected or informal competition]
Competitive Set-Aside
GWACi.e. GSA—8(a) STARS
According to the SBA—The selection of an 8(a) STARS company earns 8(a) socioeconomic credit, but also credit for all the other socioeconomic attributes a firm has. (http://www.gsa.gov/Portal/gsa/ep/contentView.do?programId=11162&channelId=-15625&ooid=15749&contentId=22858&pageTypeId=8199&contentType=GSA_BASIC&programPage=%2Fep%2Fprogram%2FgsaBasic.jsp&P=6FG11 )
8 (a) SOLE-SOURCE
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General 8(a) Tips
SBA administers the 8(a) program and determines the eligibility of the participants
Memorandum of Understanding between NASA and SBA allows for NASA to Award directly to the 8(a) business
JOFOC and Synopsis are not required for 8(a) Sole-Sources under $3.5M (threshold set by FAR 19.805-1) for Services ($5.5 M for Supplies)
Authorization for Exceptions found in 6.302-5 (b) (4); FAR 5.202 (a) (4);
8(a) is a quick way to award a sole source stand-alone contract
Get to know your 8(a) business concern early on in the processBe mindful that the business does not have the “body shop” mentality
(i.e. a firm that is more concerned about quantity of contracts instead of quality)
Understand their business processes
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Common Misconception
Stereo-type:Larger acquisitions require more time and effort than smaller acquisitions.
Reality:When working with less experienced companies such as 8(a) companies more time and effort may be involved due to guidance required by an 8(a) company.
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Award Process (1 of 2)
All Documents shall be submitted through the review and approval process as stated in GSFC Circular 98-2 “Review and Approval of Procurement Documents and
Related Actions”
Meeting with Customer to discuss “Non-Competitive Purchase Requisition Package” requirements.
Doc found on O:\Drive under O:\210.M\CODE210.3\Regulations and Policies
Receive “Acquisition Package” from Customer
Submit Package to Industry AssistanceFor informal competition, can post “Sources Sought” synopsis, evaluate capability statements, conduct interviews/presentations, and select desired firm.
Prepare Request For Proposal (RFP) then send through review and approval
Submit RFP to 8(a) Concern with detailed instructions
Submission of Proposal by 8(a) Concern
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Award Process (2 of 2)
Evaluate ProposalSubmit Proposal to COTR for Technical EvaluationCost/Price Evaluation
Complete Prenegotiation Position Memorandum and send through for review and approval
Negotiations
Price Negotiation Memorandum Signed and Approved
Submit Contract for Review and Approval
Submit Contract to 8(a) Concern for Signature
Contracting Officer Signs the Contract
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Past Performance Tips
Past Performance Database (PPDB)https://prod.nais.nasa.gov/cgi-bin/nais/login_account.cgi?check=ok
Contact other Contract Specialists that have experience with this company Ask for references and make reference checks
i.e. Other Government AgenciesOccasionally, because this is an 8(a) Concern they may not have any corporate Past Performance available—but individuals within the company always have past performance you can evaluate
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NAICS Code Tips
North American Industry Classification System (NAICS)
NAICS is used for the collection, analysis, and publication of economic statistics.
Determines the Size Standard of a business, in $ amounts or employee quantity
The NAICS Code in the RFP should match the Company’s NAICS Code for 8(a) status.
If the two do not match the company must be able to prove that they are qualified to perform the work under the NAICS Code listed in the solicitation (SBA may approve additional NAICS codes for the company)
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PRENEGOTIATION POSITION MEMORANDUM
(GSFC Form 210-90)
REQUIREMENTS
Prenegotiation Position Memorandum (PPM) should fully explain the contractor and Government position in accordance with NFS 1815.406-170
The PPM will become the basis for negotiations
For all actions under $50M (including 8(a) Sole-Source)
To be successful! Take ownership of your PPM, make sure to verify the
information you receive from both the Technical Evaluation and Resource Evaluations
(Procurement Circular 02-01)
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Terminology
OFFICIAL TITLE:
Prenegotiation Position Memorandum (PPM)
(Form 210-90)
OUR TEMINOLOGY:
Pre-Neg
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General Pre-Neg Tips
Get written responses to fact-finding questions from the contractor—produces a written response for your file
Begin with the end in mind—start writing the Price Negotiation Memorandum and Contract changes while preparing for negotiations
In order to avoid inadvertent math errors use Excel spreadsheets with formulas – Check formulas
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Aspects of a Pre-Neg
Stand Alone Document
To include Chronology & Background
Technical Evaluation – “Tech Eval”
Cost/Price Analysis
Additional items are addressed on the PPM
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Stand Alone Pre Neg
Beginning with the first contact with Contracting Officers Technical Representative (COTR) or 8(a) company Document everything
Create a chronological timeline of events
Create a timeline of events from the beginning of the acquisition process
Create the document containing all the background so that a first time reviewer can easily understand and have all the information
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Tech Eval Tips
In most cases the COTR suggests an 8(a) Set-Aside
COTR may need help developing technical evaluation. There are recently developed tools available
Technical Evaluation Guidance is available on the 210 Web Pagehttp://code210.gsfc.nasa.gov/library/ASCP63-1.pdf
Form available on the O:Drive “O:\Tech Eval Support Docs” File Name NASA-C-266 (Cost Proposal Technical Analysis Request and Response)
Make sure to review the Technical Proposal & Subsequent Evaluation. Ask questions and ensure consistency and coherence. You may catch something that the COTR missed.
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Cost/Pricing Tips (1 of 2)
For Cost-Type Contracts make sure as soon as possible the Concern has a DCAA approved accounting system.
DCAA Audits/Rate Verification
Send request early as this is often what sets the pace in the scheduleRequest only the pricing support needed (i.e. rate verification & business system check)
Provide a prepared standard Excel spreadsheet for pricing actions. (Helpful for conducting negotiations as well)—several formats available on the O drive (O:/210.S/210.7/Misc).
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Cost/Pricing Tips (2 of 2)
Place burden of supporting back up documentation of price on the contractor (i.e. pay stubs, travel cost, materials, and other ODC’s)
Price verification can be done by comparing similar items through other GSFC contracts, Internet, and Commercial Price Guides
Be sure your cost analysis includes the price reasonableness determination required by (FAR 15.406-3(a)(11))
A thorough evaluation of ALL Costs is CRITICAL when working on an 8(a) Set-Aside.
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Negotiation Tips
Make sure you do your HOMEWORK
Research Companies negotiation historyIndustry standards (i.e. labor, overhead, etc.)Recent industry environment
Send negotiation questions to the contractor ahead of time—this allows them to prepare—saving time at negotiations
Conduct face-to-face negotiations only when the complexities of the negotiations warrant it—use phone and/or e-mail whenever possible
Establish a written record of agreement
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Negotiation Goal
Look for Win-Win Situations
Fair & Reasonable outcome for both parties is good business
It is not about one persons view/needs being right or wrong
Look at the big picture of creating a viable business base for the Government
Remember one party doesn’t have to lose for the other to win…BE CREATIVE!!!
IT IS A MIND-SET!!!
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Tips That Make an (1 of 2) Exceptional Contract Specialist
Regular Contact with the COTR and Contractor is VERY important.
Helping the COTR to develop the PR Package and Market Research can speed up the process
E-mail is generally good for yes or no answers, to document phone conversations, and any simple request for information
Phone is the best way to communicate anything more complicated than a yes or no answer. This can save time and confusion in the long run.
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Tips That Make an (2 of 2) Exceptional Contract Specialist
8(a) Business Concerns can be new and may require a lot of hand holding. It is best to figure this out up front.
If they are new make sure you provide them with detailed excel spreadsheets to submit their cost data with the RFP.
Also, make sure you document all conversations with the Concern.
Post Award Conferences
Walk through the contract with them making sure that all of the terms are understood by both parties.
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Recommendations
• Use the Procurement Webpage for real-time communication between Procurement employees
Allow work related blogs
Online question and answer
• Use as a training tool
• Make PIP presentation Accessible to 210
Put on the O:\Drive
E-mail to 210