Need Ideas - Acquisition Strategy

[baierle]

Help! I am reaching out to the community for some synergy----- ideas on how I may accomplish this acquisition:

Scenario: Numerous types and quantities of sample analyses required for space mission, over several years. Definite need, just don’t know when and how much at this time, only estimates and descriptions of the types of analysis to be performed.

Client does not want to depend solely on evaluation of proposal and past performance info for selection of this contract award. Client ‘visualizes’ sending samples to be analyzed/ turned into data to vendors they found in their market research in order to see the contractors’ work product. This will all be based on very thoughtful criteria; researchers and scientists, here. Naturally, client is risk adverse and willing to pay for the effort to perform actual samples (via small contract(s)?) during this process and prior to award of large contract.

Q: How do I make this large, multi-year contract a competitive procurement? The two step proposal process is the one that I am familiar with, but it does not seem to fit. There is actual work effort and cost will be incurred by contractors running these tests. And, if we find the one firm that suits the client for their long-term requirement, the larger contract won’t be competitive.

Your thoughts on how I can make this happen, please?

[Don Mansfield]

Why do you think the fact that "There is actual work effort and cost will be incurred by contractors running these tests" precludes the use of a two-step proposal process?

[baierle]

Well, these aren't "sample" samples, these are real samples and we want legitimate, responsible, accountable work.

And, these samples may not be the same to each vendor; may not be given the same time.

It may not be "apples to apples" comparison with regard to competition familiar to me.

[Don Mansfield]

Why not use SAP to fulfill your requirements until you become more familiar with the vendors' work?

[baierle]

Yes, we intended to issue several SAPs to different firms to run real tests early in the mission to determine which contractor provides the best services, data, analysis.

However, the population of these samples will get numerous to support the mission, which is why we want to ultimately issue the large contract for base plus option years.

I still can't get my mind around how the larger contract can be competitive.

The only thing that I can think of is to issue several BPA's in lieu of one, competitive IDIQ.

However, that may not be good business practice because I know the client won't be rotating BPA calls once they find the firm that provides them the superior service.

[napolik]

Contracting is an art, and every contracting officer is an artist. So, there is more than one approach you can take.

One approach is to solicit and evaluate proposals using a down select process combined with the award of purchase orders or contracts. Solicit and evaluate proposals, identify the 3 proposals representing best values, award three purchase orders requiring the analysis of samples, and use the evaluation of the samples and proposed prices to make your source selection.

[baierle]

Thank you. This was the helpful nudge that I needed. I'm off to challenge the team and figure out specifically how to master this and actually put it into play....

[jwomack]

Multiple awards.

CLIN 0001 for the “sample” work.

CLIN 0002 as an optional CLIN to encompass the more significant work. This CLIN would only be exercised pending your client’s satisfaction of CLIN 0001.

Additional CLINs (e.g., 1002, 2002, 3002, 4002) as additional options to extend the performance identified in CLIN 0002.

[Guest Vern Edwards]

As I understand it, then, the government wants to hire a contractor to perform space mission analyses and the customer wants to select the contractor on the basis of sample analyses. In other words, something like a sample task approach.

If that’s right, then I want to suggest a caveat: How can you know that the quality of the sample analyses will reflect the quality of the actual work that will be done? Any offeror will put its best foot forward when trying to win the work, but what will it do after it wins the contract, especially if other (maybe better paying) customers are competing for its analytical resources?

[formerfed]

This comes up with a couple somewhat related products and services - agile software development and debt collection services. What agencies found that works for those services is establishing a pool of multiple award contracts. Work is initially distributed to all contract holders so all firms have a chance to demonstrate performance. Then past performance is a primary selection criteria for future orders. So the ones that do a good job get the majority of work

[baierle]

Vern--I agree with your caveat and shall bring this up to our "risk averse" PM for thoughtful consideration.

And, I acknowledge former fed's suggestion for multiple award, something I was avoiding (although can't articulate why).

So, without beating this horse too much, I have one more inquiry to the collective community:

Would you think multiple awards (as former fed mentioned) would be a better process for this situation than the "phased acquisition" approach outlined in NFS 1817.73?

I certainly appreciate your assistance in brainstorming this out with me....

[Guest Vern Edwards]

I wrote this in The Nash & Cibinic Report in 1995:

When would multiple awards make sense? First, whenever task order contract prices are input based rather than output based [payment based on hourly labor rates rather than bottom line prices or estimated costs and fees]. Second, whenever labor productivity improvements are not cumulative from one task order to the next. If productivity improves with learning from one task order to the next, then multiple awards may disrupt the learning process and make productivity improvements more difficult to achieve. Third, whenever labor productivity is largely the product of working conditions, supervision, and management policy decisions rather than learning through repetitive performance. Fourth, whenever the costs of improving productivity, administering multiple contracts, and competing task orders will not exceed the savings obtained through competing awardee productivity improvement programs and awardee profits.

I would change that now only to say that productivity improvements can come not only from repetitive performance, but also through progressive learning from task order to task order that is cumulatively efficient.

I also said this:

The multiple award preference policy states that every awardee must be given a “fair opportunity” to be considered for the award of each task order in excess of $2,500. The proposed rule leaves the choice of evaluation factors to the CO's discretion. The CO need not publish a synopsis, solicit written proposals, or conduct discussions with awardees prior to the award of a task order, proposed FAR 16.505( b )(1). The rule precludes protests against task order award decisions. Agencies must appoint task order “ombudsmen” to handle complaints from awardees about task order selections, proposed FAR 16.505( b )(4).

Notwithstanding these liberal policies, it is not difficult to imagine Government procurement officials conducting a mini-source selection before the issuance of each task order. Some will almost certainly consider a more formal procedure to be necessary to ensure fairness. One can easily imagine requests for proposed task order “performance” plans or “management” plans, especially for task orders of significant dollar value. One can also imagine requests for extensive cost breakdowns, certified cost or pricing data, and proposal audits. If too complex and demanding, such procedures would significantly increase an agency's administrative costs, extend the lead time associated with task order issuance, and force awardees to incur significant costs in the preparation and negotiation of task order proposals.

If there was a Nobel Prize for prediction, I would have won it, hands down.

[baierle]

Got it! Thank you very much. I'm off to prepare for my first Phased Acquisition!!

;-)

it's nice when the sun shines.

-E