# Presentation: 496663

## Module 3 – Pre-Solicitation Phase

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- 	Project Management
- 	Government Specific Course I

## 
Topic 1 -
Introduction/Objectives

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- 	Project Management
- 	Government Specific Course I

- Topic 1 -
- Introduction/Objectives

## Overview of Module

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- 	Project Management
- 	Government Specific Course I

- This module:
- Introduces Federal Acquisition Regulation (FAR) and specifics of FAR regarding pre-award process.
- Examines determination of capability need and specifics of acquisition plan.

## Overview of Module (cont.)

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- 	Project Management
- 	Government Specific Course I

- Additionally, this module:
- Addresses building a Contract Requirements Package (CRP).
- Discusses selecting method of contracting.
- Identifies an excellent resource for agency-specific regulations.

## Learning Objectives

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- 	Project Management
- 	Government Specific Course I

- Define the processes for pre-solicitation.
- Identify the different policies that affect government acquisitions.
- Explain the need for the project manager to participate in pre-award actions required by acquisition planning.

- At the end of this module, you will be able to:

## Learning Objectives (cont.)

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- 	Project Management
- 	Government Specific Course I

- Describe the process for formulating pre-award contracting policies.
- Define the concept of sealed bidding.
- List the procedures for simplified acquisitions.

## 
Topic  2 - 
Introduction to FAR and the Pre-Award Process 
(FAR 1-12)

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- 	Project Management
- 	Government Specific Course I

- Topic  2 -
- Introduction to FAR and the Pre-Award Process
- (FAR 1-12)

## Federal Acquisition System

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- All acquisitions are regulated by the Federal Acquisitions Regulations System.
- Federal Acquisition Regulation (FAR)
- Agency acquisition regulations that implement or supplement the FAR

- 	Project Management
- 	Government Specific Course I

## Federal Acquisition System (cont.)

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- DEFINITION: The FAR was established to codify uniform policies for the acquisition of supplies and services by executive agencies.

- 	Project Management
- 	Government Specific Course I

## Federal Acquisition System (cont.)

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- The Federal Acquisition System will:
- Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service.
- Minimize administrative operating costs.
- Conduct business with integrity, fairness, and openness.
- Fulfill public policy objectives.

- 	Project Management
- 	Government Specific Course I

## Pre-Award Process

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- FAR Parts 1-6 detail:
- Federal Acquisition Regulations System
- Definitions of Words and Terms
- Improper Business Practices and Personal Conflicts of Interest
- Administrative Matters
- Publicizing Contract Actions
- Competition Requirements

- 	Project Management
- 	Government Specific Course I

## Pre-Award Process (cont.)

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- FAR Parts 7-12 detail:
- 7.   Acquisition Planning
- Required Sources of Supplies and Services
- Contractor Qualifications
- Market Research
- Describing Agency Needs
- Acquisition of Commercial Items

- 	Project Management
- 	Government Specific Course I

## FAR on the Internet

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- The FAR governs many aspects of the acquisition process.  You can find the complete FAR on the web at this address:
- http://acquisition.gov/far/index.html

- 	Project Management
- 	Government Specific Course I

##      FAR on the Internet (cont.)

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-      FAR on the Internet (cont.)

- Agency-specific regulations that implement or supplement the FAR can be found at the Federal Acquisition Regulation Site (FARSite):
- http://farsite.hill.af.mil

- 	Project Management
- 	Government Specific Course I

## Question

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- 	Project Management
- 	Government Specific Course I

- In what situations have you needed to use the agency acquisition regulations that implement or supplement the FAR?

## 
Topic  3 - 
Determining the Capability Need

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- 	Project Management
- 	Government Specific Course I

- Topic  3 -
- Determining the Capability Need

## Capability Need

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- First considerations are:
- What is the need to be addressed?
- What results are required to fulfill that need?
- Will these results meet our objectives?

- 	Project Management
- 	Government Specific Course I

- “What is the need for which there exists no current or adequate solution?”

## Capability Need (cont.)

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- Succinctly identify the need to be addressed.
- Clearly state the results or outcomes required to fulfill the need.
- Identify the specific agency goals and objectives to be met.

- 	Project Management
- 	Government Specific Course I

- Because identifying the need often becomes your responsibility, your goals during this time are:

## Defining the Need

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- Projects fail because of poor requirements!

- Identifying requirements at beginning of project greatly increases chances of project success.
- Commitment to early definition reduces need to correct and compensate for errors.
- Requirements become foundation for Statement of Work (SOW) and Statement of Objectives (SOO).

## Cost of Ineffective Requirements

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**Pre-Acquisition**

**Development**

**O&M**

**$ Cost to Correct**

## Effective Requirements

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- Be necessary.
- Be correct.
- Be unambiguous.

- 	Project Management
- 	Government Specific Course I

- Poorly-written requirements are often vague, contradictory, and confusing.  Effective requirements should:

## Effective Requirements (cont.)

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- Effective requirements should also:
- Be attainable.
- Be orderly.
- Be measurable.

- 	Project Management
- 	Government Specific Course I

## Effective Requirements (cont.)

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- Effective requirements should also:
- Be organized.
- Be results-oriented.

- 	Project Management
- 	Government Specific Course I

## Question

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- 	Project Management
- 	Government Specific Course I

- What was your biggest challenge in creating the list of effective requirements?

## 
Topic  4 - 
The Acquisition Plan

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- 	Project Management
- 	Government Specific Course I

- Topic  4 -
- The Acquisition Plan

## Acquisition Plan

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- DEFINITION: An acquisition plan is a formal written document reflecting the specific actions necessary to execute the desired acquisition approach.

- 	Project Management
- 	Government Specific Course I

## Acquisition Plan (cont.)

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- Planning begins when the need is identified:
- Planner forms a team
- May not be a formal team but a group of loosely affiliated people working towards a common goal
- Plan is reviewed and revised at key dates
- Previous plans for similar acquisitions should be reviewed and discussed

- 	Project Management
- 	Government Specific Course I

## Question

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- 	Project Management
- 	Government Specific Course I

- What impact/experiences have you had with reviewing previous plans that had similar acquisitions?

## Acquisition Plan (cont.)

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- A typical acquisition plan includes:
- Milestones at which decisions are made.
- Technical, business, management, and other considerations.

- 	Project Management
- 	Government Specific Course I

## Acquisition Plan (cont.)

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- Acquisition background and objectives.
- Statement of Need
- Applicable Conditions
- Cost
- Capability or Performance
- Delivery or Performance Period Requirements
- Trade-offs
- Risks

- 	Project Management
- 	Government Specific Course I

## Acquisition Plan (cont.)

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- 	Project Management
- 	Government Specific Course I

| Sources
Competition
Source Selection Procedures
Acquisition Considerations 
Budgeting and Funding 
Product or Service Descriptions  | Priorities, Allocations and Allotments
Management Information Requirements
Test and Evaluation
Contract Management  |
| --- | --- |

- Plan of Action

## 
Topic  5 - 
Building the Contract Requirements Package (CRP)

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- 	Project Management
- 	Government Specific Course I

- Topic  5 -
- Building the Contract Requirements Package (CRP)

## Contract Requirements Package

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- Generated from desired results and outcomes
- Used by Contracting Officer to solicit bids

- 	Project Management
- 	Government Specific Course I

## Contents of CRP

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- A requirements package may contain:
- Management reviews and approvals
- Certification of the availability of funds
- Description of the requirements:
- Specifications (performance or detail)
- Statement of Work (SOW)/Statement of Objectives (SOO)
- Purchase descriptions
- Correct data requirements

- 	Project Management
- 	Government Specific Course I

## Contents of CRP (cont.)

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- Any special packaging and marking requirements
- Inspection and acceptance requirements
- Delivery or performance requirements (delivery schedule)
- Special contract administration requirements
- Government estimate

- 	Project Management
- 	Government Specific Course I

## Contents of CRP (cont.)

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- Any special provisions or clauses
- Recommended evaluation factors
- Evaluation criteria for evaluation factors
- Recommended potential sources and results of market research
- Input for approval of other than full and open competition, if needed
- Acquisition plan, if required

- 	Project Management
- 	Government Specific Course I

## Statement of Work

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- DEFINITION: The Statement of Work (SOW) is the portion of a contract which establishes and defines all non-specification requirements for the contractor’s efforts either directly or with the use of specific cited documents.

- 	Project Management
- 	Government Specific Course I

## Statement of Work (cont.)

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- Peter S. Cole describes 10 steps to writing SOW:
- 1. Divide the work into tasks.
- 2. Use functional or performance-based terms to describe key requirements, and indicate time frames for each.
- 3. Precisely define requirements.
- 4. Specifically describe all work elements – do not generalize.
- 5. Describe previous efforts that may be helpful in meeting current requirements.

- 	Project Management
- 	Government Specific Course I

## Statement of Work (cont.)

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- 6. Describe known risks.
- 7. Ensure that descriptions are consistent – use the same terminology throughout.
- 8. Use the proposal preparation instructions, and defer the solution to the contractor’s response, if appropriate.
- 9. Describe tasks in sequence, and ensure that they flow logically from one task to the next.
- 10. If the project includes multiple phases, clearly describe those phases – include details on tasks, milestones, and dependencies.

- 	Project Management
- 	Government Specific Course I

## Contract Requirements Package

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- After the CRP has been put together, it is delivered to the Contracting Officer.

- 	Project Management
- 	Government Specific Course I

- The project manager and contracting officer ideally have a strong partnership during this process!

## 
Topic  6 - 
Selecting the Method of Contracting (FAR 13-15)

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- 	Project Management
- 	Government Specific Course I

- Topic  6 -
- Selecting the Method of Contracting (FAR 13-15)

## Contracting Methods

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- Simplified Acquisition
- Sealed Bidding
- Contracting by Negotiation

- 	Project Management
- 	Government Specific Course I

- There are many methods of contracting.  Here are three of the most common methods:

## Simplified Acquisition

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- Simplified Acquisition is well-suited for:
- Acquisitions between $2,500 and $100,000
- Commercial items up to $5,000,000
- Simplified Acquisition is detailed in FAR Part 13.

- 	Project Management
- 	Government Specific Course I

## Simplified Acquisition (cont.)

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- Purchase card
- Direct Award of 8(a) Purchase Orders
- Combined Synopsis/Solicitation for Commercial Items

- 	Project Management
- 	Government Specific Course I

- Key Simplified Acquisition Procedures (SAP) techniques include:

## Simplified Acquisition (cont.)

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- Typical SAP buys include:
- Information Technology
- Component Upgrades and Replacements
- Site Survey and Install of Office Equipment
- Base Operating Support Services
- Furniture
- Spares

- 	Project Management
- 	Government Specific Course I

## Simplified Acquisition (cont.)

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- Benefits of SAP include:
- Shorter cycle times
- Minimal administrative costs
- Competitive prices
- Excellent small business participation
- On-time delivery more likely
- High customer satisfaction

- 	Project Management
- 	Government Specific Course I

## Methods of Contracting

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- Sealed Bidding
- Competitive procedure often used in construction
- Contracting by Negotiation
- Competitive or other-than-competitive procedure

- 	Project Management
- 	Government Specific Course I

- This is by no means a complete list, but other methods for contracting include:

## Sealed Bidding

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- Sealed bids are only solicited when:
- Time permits solicitation, submission and evaluation of sealed bids.
- Award is made only on basis of price and price-related factors.
- It is not necessary to conduct discussion with responding offerors about their bids.
- There is reasonable expectation of receiving more than one sealed bid (i.e. competition).

- 	Project Management
- 	Government Specific Course I

## Risk and Sealed Bidding

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- For example, after Hurricane Katrina struck New Orleans, the government used sealed bidding procedures to order a large number of emergency trailers.

- Who took the risk here?  The contractors took on the cost risk, while the government took on the performance and schedule risk.

- This is a shortcoming that escapes most in the acquisition business.

## Contracting by Negotiation

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- Negotiated Contracts:
- Sole Source
- Contract that is entered into, or proposed, after soliciting and negotiating with only one source.
- Competitive
- Multiple offers are solicited with winner being selected based on criteria established by the government.

- 	Project Management
- 	Government Specific Course I

## Sealed Bidding vs. Negotiation

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- 	Project Management
- 	Government Specific Course I

| Sealed Bidding | Negotiation |
| --- | --- |
| Well-defined requirements.  | Less defined requirements  |
| Adequate competition | Competitive or Sole Source |
| Invitation for Bid (IFB) | Request for Proposal (RFP) |
| Award based on price-related factors | Discussions/Negotiations Expected |
| No discussions. | Discussions/Negotiations expected. |

## Question

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- 	Project Management
- 	Government Specific Course I

- What method of contracting do you see most often?  What situations have you encountered involving these methods of contracting?

## Types of Contracts

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- Contract types are grouped into two categories:
- Fixed-price contracts
- Cost-reimbursement contracts
- Other contract types combine both categories.

- 	Project Management
- 	Government Specific Course I

- After you select method of contracting, you determine the type of contract that best suits the requirements:

## Types of Contracts (cont.)

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- 	Project Management
- 	Government Specific Course I

| Fixed-Price | Cost-Reimbursement |
| --- | --- |
| Low risk to government | Higher risk to government |
| Well-defined requirements | Less defined requirements |
| Guaranteed delivery | Contractor’s best effort |
| Payment after delivery/performance | Payments made as costs are incurred |
| Profit based efficient performance/cost control | Fee used to compensate contractor beyond cost |
| Uses RFP solicitation | Uses RFP solicitation |

## Other Types of Contracts

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- Indefinite Delivery
- Definite Quantity
- Indefinite Quantity
- Requirements
- Time-and-Materials
- Labor-Hour
- Letter Contract

- 	Project Management
- 	Government Specific Course I

##  Letter Contracts

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-  Letter Contracts

- Letter contracts are often used in emergency situations.
- For example, after the attacks of 9/11, the government used letter contracts to get crews to New York City to start cleaning up.
- They did not know how much or for how long, but getting someone there was the first priority.  They then had 30 days to finalize the terms of the contract.

## 
Topic  7 - 
Review

- 3-

- 	Project Management
- 	Government Specific Course I

- Topic  7 -
- Review

## Learning Objectives

- 3-

- 	Project Management
- 	Government Specific Course I

- Define the processes for pre-solicitation.
- Identify the different policies that affect government acquisitions.
- Explain the need for the project manager to participate in pre-award actions required by acquisition planning.

- Recall the learning objectives for this module:

## Learning Objectives (cont.)

- 3-

- 	Project Management
- 	Government Specific Course I

- Describe the process for formulating pre-award contracting policies.
- Define the concept of sealed bidding.
- List the procedures for simplified acquisitions.

## Key Points

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- Determining the Capability Need
- Succinctly identifying need
- Clearly stating outcomes that fulfill need
- Acquisition Plan
- Written document reflecting acquisition actions
- Contains acquisition background and objectives

- 	Project Management
- 	Government Specific Course I

## Key Points (cont.)

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- Building the Contract Requirements Package
- Preparing effective requirements
- Write Statement of Work (SOW)
- Selecting the Method of Contracting
- Choosing appropriate method for your needs
- Simplified Acquisition, Sealed Bidding, or Contracting by Negotiation

- 	Project Management
- 	Government Specific Course I