# Presentation: 724488

## FY 2004 Year End Acquisition Seminar

*FY 2004 Year End Acquisition Seminar*

**An Overview for **
**Office of the Secretary OIG and Program Offices   **
**         **
**Customer Outreach and Programs                             Dan Alexander & Frank Krempa     June 2004****   **

## Agenda Items

**Why do you need to get your requirements to Procurement this early? **
**Procurement Basics**
**Policies **
**Process **
**Purchase Card Basics**
**Contracting Officer Representative Policy **
**Interagency Agreements Policy**
**Acquisition waivers for organizations within CFO/ASA **

## Our workloads are INCREASING in complexity.

**Workload**
**Requirements**

**Resources**

- Why do you need to get your requirements to Procurement so early?

**Notes:**
NIST information:
- 16.5% permanent budget reduction to base.  To absorb, she will need to:
	- abolish 4 1102 positions and 1-2 support position
	- downgrade two existing vacancies
-  currently have 4 vacancies that can be filled (2 at lower grade); rest will go away to avoid a RIF
-  heaviest impact will be on procurement analyst/policy side.  it will impact:
	- bank card program
	- potential retirements and VERA's may leave group with only a GS-7 analyst
	- will not be able to properly comment on policy or participate in inter-agency groups
-  acting Deputy Director reviewing all personnel actions
	- takes longer to fill and hard time justifying promotions for procurement people
-  CAMS interface and FPDS require additional workload they don't have 
-  Procurement is trying to change its business practices to accommodate the impact of all the above by looking at commonalities and common items among labs to expedite procurements ("fast food" mentality for those so they can "home cook" the ones that need it rather than everything "home cooked") but meeting resistance
-  Impact of A-76 requirements also looming
NOAA Information:
FY 03 budget constraints in NOAA have hampered out ability to optimize
the acquisition function.  Specifically:
- For all of FY 2003, no vacancies could be filled due to funding
limitations
- Funds have been so tight that documents are printed on the backs of
copies of other documents (e.g., copies of requisitions or e-mails)
- While there were limited funds for training, there were insufficient
funds available to pay for travel for employees to avail themselves of
this training
- Travel to meet with either program offices or contractors during the
administration phase of acquisitions was non-existent for the most part
- Because of staffing limitations, advance acquisition planning (and all
that goes with real planning) has been limited to non-existent.  The
same is true for contract close-outs.

Use our expertise to best source our programs = best return on investment
Opportunity costs
	not using existing resources effectively
What if we did nothing?
Eventually potential program delivery failure
	- not enough resources to effectively procure and manage program requirements

## Our workloads are INCREASING in complexity.

**To mitigate the potential effects of this gap on you and your programs, we need adequate lead time to ensure your requirements are met by the end of the fiscal year!**

- Our available resources are DECREASING.

- Why do you need to get your requirements to Procurement so early?

**Notes:**
NIST information:
- 16.5% permanent budget reduction to base.  To absorb, she will need to:
	- abolish 4 1102 positions and 1-2 support position
	- downgrade two existing vacancies
-  currently have 4 vacancies that can be filled (2 at lower grade); rest will go away to avoid a RIF
-  heaviest impact will be on procurement analyst/policy side.  it will impact:
	- bank card program
	- potential retirements and VERA's may leave group with only a GS-7 analyst
	- will not be able to properly comment on policy or participate in inter-agency groups
-  acting Deputy Director reviewing all personnel actions
	- takes longer to fill and hard time justifying promotions for procurement people
-  CAMS interface and FPDS require additional workload they don't have 
-  Procurement is trying to change its business practices to accommodate the impact of all the above by looking at commonalities and common items among labs to expedite procurements ("fast food" mentality for those so they can "home cook" the ones that need it rather than everything "home cooked") but meeting resistance
-  Impact of A-76 requirements also looming
NOAA Information:
FY 03 budget constraints in NOAA have hampered out ability to optimize
the acquisition function.  Specifically:
- For all of FY 2003, no vacancies could be filled due to funding
limitations
- Funds have been so tight that documents are printed on the backs of
copies of other documents (e.g., copies of requisitions or e-mails)
- While there were limited funds for training, there were insufficient
funds available to pay for travel for employees to avail themselves of
this training
- Travel to meet with either program offices or contractors during the
administration phase of acquisitions was non-existent for the most part
- Because of staffing limitations, advance acquisition planning (and all
that goes with real planning) has been limited to non-existent.  The
same is true for contract close-outs.

Use our expertise to best source our programs = best return on investment
Opportunity costs
	not using existing resources effectively
What if we did nothing?
Eventually potential program delivery failure
	- not enough resources to effectively procure and manage program requirements

## Even simplified acquisitions aren’t so simple any more!

## Late Acquisition Community Engagement in the Process Costs Time and Money

**Budget/Strategic**
**Planning**

**Requirements**
**Definition**

**Strategic Sourcing/**
**Acquisition Strategy**

**Performance **
**Management**

**Procurement/**
**Contract Award**

**Lack of effective coordination early in the process  results in inadequate specs, costly modifications,  & unnecessary delays.**

## As Business Brokers, the Acquisition Community can Save  20-30% in Overall Costs

**Requirements**
**Definition**

**Strategic Sourcing/**
**Acquisition Strategy**

**Performance **
**Management**

**Procurement/**
**Contract Award**

**Early engagement in the process **_**will**_** reduce overall time and cost by eliminating unnecessary rework.**

**Budget/Strategic**
**Planning**

## The Ultimate Message

-    'We must all hang together or assuredly we shall all hang separately.'
-                  - Benjamin Franklin

##  What are the Required Submission Dates for FY 04 Acquisitions?

| Type of Procurement | Total Dollar Value | Receipt Required |
| --- | --- | --- |
| Simplified Acquisitions (inclusive of options) | $25,000 and lower
$25,000 to $100,000 | August 20
August 6 |
| Interagency Agreements (inclusive of options) | $0 to $5,000,000
$5,000,000 and higher | July 16
July 2 |
| New Contracts (inclusive of options) | $100,000 and higher | June 28 |
| Modifications for exercising options, changes, new work, or other optional requirements under existing contracts | Any Amount | July 9 |

##  High Level Q&A 

**1.  Which acquisitions does this guidance apply to?**
**All acquisitions and interagency agreements within the Office of the Secretary and Office of Inspector General that must be awarded by September 30, 2004, or whose performance begins prior to November 1, 2004.**

-  High Level Q&A

##  High Level Q&A(continued)

**2. What if my acquisition is being funded through year-end monies approved by the CFO?  Do I have to comply with the submission dates and documentation requirements?**
**Compliance with the submission dates is not required.  As soon as funding authorization is received from the CFO, our office will work with you to quickly develop an acquisition strategy that makes good business sense and will work with you to develop the necessary acquisition documentation.**

-  High Level Q&A*(continued)*

##  High Level Q&A(continued)

**3. What if I miss the required submission dates and my request is not funded through year end monies?**
**A written request from your office director to the Director for Acquisition Management and Financial Assistance will be required.**

-  High Level Q&A*(continued)*

- An **independent government estimate** (attached to the CD-435)
- A detailed **description** of what you need. (attached to the CD-435)
- A **list of recommended vendors** to help determine competitiveness and socio-economic set-aside possibilities
- An approved Sole Source Justification as required
- The **date** when you need the product or service
- As appropriate, authorization from your servicing Director to make the purchase
- A form **CD-435** – Purchase Request form
- A form **CD-570** – Small Business Review form

-  High Level Q&A*(continued)*

**4.**  **What documentation is required?**

##  The Procurement Process

- Basic Process Steps

## How is the Procurement Process Implemented? 

**Congress**

**Office of Federal **
**Procurement Policy**

***Department ***
***Of Commerce***

**Implement**
**Government-wide**
**Procurement Policy**

**How is the Procurement Process Implemented?**

**President**

**Statutes**

**Initiatives**

***Department of ***
***Defense***

***General Services***
***Administration***

***National Aeronautics***
***&Space Administration***

**Federal Acquisition Regulation**

***Department of ***
***Labor***

***Small Business ***
***Administration***

**Notes:**
Big picture,  policy, regulation   How to buy things.

## Acquisition Team

**Program Offices**

**Congress**

***Department ***
***Of Commerce***

**Office  of General **
**Counsel  **

**Office of Acquisition**
**Management**

**Office of Executive**
**Budgeting**

**Develop R****equirements**** & ****Independent Estimates**
**Provide technical support during source evaluation process.**
**Manage the technical aspects of the contract.**

**Manage the pre & post award procurement  process**

**Acquisition Team**

**President**

**Confirms legal sufficiency**

**Certify funds are available.**

**Statutes**

**Initiatives**

**Contractor  **

**Provides Products and/or Services**

**Notes:**
Closer to you.   Focus on “What” is being purchased.  Team approach -  people you know.

## 41 U.S.C Defines 8 Public Policy Objectives 

- 41 U.S.C. 401 Office of Federal Procurement Policy Act Requirements:
**Promote full and open competition**
**Promote the participation of small business concerns**
**Promote fair dealings and equitable relationships with the private sector**
**Promote specifications describing needs in terms of functions to be performed or performance required**
**Required to the extent practicable the use of commercial products**
**Eliminate fraud and waste in the procurement process.**
**Consider an offeror’s past performance**
**Ensure payment is made in a timely manner and only for the value received**

- Acquiring Goods and Services
- “The Process”

**There are three basic phases in the Procurement Process.**
- 	Presolicitation Phase
- 	Solicitation Phase
- 	Post Award and Administration Phase

**Notes:**
COR Training
YEAR END TRAINING
Purchase Card Training
MOU Training

## The Procurement Process Phases 

**2. Contact procurement and inform them of your needs.**
**3. Obtain funds certification. **

**1.  Solicit Offers.**
**2.  Evaluate Offers.**
**3.  Award.**

**1. Contract Surveillance.**
**2. Modifications.**

**Customer**

**Procurement Office**

- The Procurement Process Phases

**Distribution of Effort**

_**Presolicitation  Phase**_

_**Solicitation Phase**_** **

_**Post Award Admin.  Phase**_**  **

**The required level of effort shifts between each phase.   Be aware of the resource requirements.**

## Process StepsPresolicitation Phase

**  ****Determination of Need**
-  Acquisition planning required for each                             procurement
- Annual forecasting requirements IAW Department Administrative Order 208-15
- Full implementation of DAO  208-15 may lead to revision or elimination of the Waiver Process

## Process StepsPresolicitation Phase

**Identifying & Defining the Requirement **
-   Develop the specifications, statement of work/objectives   (SOW/ SOO)
-   Develop the government’s independent estimate

## Defining the Requirement

- Statement of Work
- Define the what and the **HOW**
- Statement of Objectives
- Define the what and leave the **HOW** to the contractors
- Call us early in the process!!!

## Process StepsPresolicitation Phase

**Securing the Funding for the procurement**
-   Purchase Requests (PRs) (funding certification on a CD-435)* *

## PURCHASE 

**Requisition #**

**For Mods**

**Blank for New Work**

**Fill in for Mod**

**XX       ---------------------------------                  XX   X   $X.XX**

**Phone #**

**XX        XXXXX    XXXXXXX  XXXX**

**Director**

**Director**

**S/S**

**S/S**

**Budget Signoff**

- PURCHASE
- REQUEST

**Your Office Identifier**

## Process StepsPresolicitation Phase

**  ****Team (Requestor and Contracting Officer) Analyzes the Requirements **
-   Specification or Statements of work/objectives (“The What, How Much, & How Good”)
- Options for recurring services
-   **Final decision about Sourcing is made between the Requestor, Contracting Officer, Small Business Specialist and OSDBU (CD-570).**
-   Extent of competition
-   Selection Factors, Evaluation Factors
-   Procurement Method
-   Procurement Planning Review – Are we on target?

## Process Steps Solicitation and Award Phase

**  ****Solicitation**
-   Terms and Conditions
-   Obtain legal sufficiency review of the solicitation. * *
-    Evaluate the proposal - clauses, terms, and conditions
-    Evaluate the technical statement of work/objectives
-   Soliciting offers
-  Synopsis/FEDBIZOPS
- Issue the solicitation * *

**Notes:**
67 days to 270 days

## Process Steps Solicitation and Award Phase

**Evaluation**
-   Bid evaluations
-   Proposal evaluation
-   Evaluate the technical and cost/price aspects of the proposals
-   Document findings
-   May or may not give the firms an opportunity to revise their proposals
**  ****Discussions**
-   Determine a competitive Range

**Notes:**
67 days to 270 days

## Process Steps Solicitation and Award Phase

**  ****Award  **
-   Selection for award
-   Executing awards
-   Debriefing
-   Protests * *

**Notes:**
66 days to 274 days depending

##    You may have created an unauthorized commitment! 

By Federal Regulation, only contracting officers have authority to enter into, administer, or terminate contracts.

- By Federal Regulation, only contracting officers have authority to enter into, administer, or terminate contracts.

- What happens if you ordered or purchased something, and didn’t go through the process?

## Contact your servicing procurement office to inform them of the problem.  The procurement office will ask you to complete a ratification.

Ratifications – the short definition:
Are justifications that explain the circumstances of the acquisition
Explains why it was purchased by other than a Contracting Officer
Demonstrates the price was fair and reasonable.
Certifies that funds were available
Allows the government to pay the contractor for the product or service

Without an approved ratification, you will be personally liable for the acquisition – regardless of the value.

**Ratifications – the short definition:**
- Are justifications that explain the circumstances of the acquisition
- Explains why it was purchased by other than a Contracting Officer
- Demonstrates the price was fair and reasonable.
- Certifies that funds were available
- Allows the government to pay the contractor for the product or service
**Without an approved ratification, you will be personally liable for the acquisition – regardless of the value.**

- What happens if you ordered or purchased something, and didn’t go through the process?

## DOC Purchase Card Basics

## Purchase cards save money 
You are in control
Its faster
Merchants are happier

- Purchase cards save money
- You are in control
- Its faster
- Merchants are happier

- Why do we use the Government Purchase Card?

**Notes:**
NO separate PR  (435)     No  Purchase Order  (SF 347)    

## What are my responsibilities as a Cardholder?

- Secure the card
- Maintain a purchase log
- Make informed buys of approved products or services
- Have funds available
- Respect single purchase and cycle limits
- Reconcile and document transactions
- Use card ethically

**Notes:**
Secure – lock up    Log -  registers actions.     Third party billing- not financing   
Reconcile-  like balancing your checkbook

## Standards of Ethical Conduct

**This includes gratuities, favors, discounts, loans, services, meals or lodging **
**An employee may not accept a gift that is offered because of their official position**
**For more detail, see usoge.gov/pages/laws_regs_fedreg_stats/laws_regs.html**

**Notes:**
Public trust.    DOC official lost job for using his own company.  Conflict of interest.

## 8 Steps to remember before you buy

**Plan your monthly purchases- discounts vs. unnecessary stockpiling, and cycle limit considerations**
**Ensure availability of funds**
**Conduct market research**
**Best value approach**
**State Sales Tax Exemption**
**Be clear when talking with merchants**
**Recognize your Purchase and Cycle Limit**
**Use Required  sources – JWOD & GSA **

**Notes:**
Single and monthly Purchase limits.
 Anti-deficiency Act -    It s the Law ! 

## Prohibited/Approval Items

- Rental or lease of land or Buildings
- Travel
- Cash Advances
- Other agency prohibited items
- Obtain OCIO approvals for hardware/software

**Notes:**
Bankcard Center checks purchases
DOC policy requires  reviews (audits) 

## Get a good Quote !!

- Is everything included?  Shipping, express shipping, set-up,  parts, warranty, trade-in, training
- Usually the Government is Tax Exempt
- Tax Exempt letters are available
- Be Consistent - Ask for the same thing from each vendor
- Confirm the vendor accepts the Purchase Card

## Don’t Split Requirements !!

- Breaking up your requirement into parts to stay under your SPL is prohibited
- Temporary increases can be arranged and processed quickly – usually within one day
- If you need frequent increases, consider a higher limit.  Note: SPL over $2,500 require additional training  *(40 hours course)*

## Document and Keep Records

- Keep and use a log
- Keep item description, unit price, quantity and total cost
- Name of merchant
- Keep the receipt

## Accountable Property

- Notify Property Management if this item is accountable   (valuable and or easily pilfered)  such as computers, laptops, TVs.

## Reconcile Your Statement

- The only way DOC can manage its budget is if everyone does their part
- The HOW – TO mechanics will be offered as a refresher course by the NIST CAMS at NIST once a quarter or if we receive enough interest, NIST CAMS can come to us!
- Additionally, COAP offers one-on-one training.  Give us a call 202 482-0997.

## References

- TAX LETTER  _[http://apps.fss.gsa.gov/services/gsa-smartpay/taxletter/](http://apps.fss.gsa.gov/services/gsa-smartpay/taxletter/)_
- GSA  MANUAL  -  Blueprint		 _[www.fss.gsa.gov/services/gsa-smartpay](http://www.fss.gsa.gov/services/gsa-smartpay)_
- DOC ACQUISTION MANUAL   _[http://oamweb.osec.doc.gov/stage/app/cam.htm](http://oamweb.osec.doc.gov/stage/app/cam.htm)_
- FORMS  _[www.casc.noaa.gov/bankcard/forms.html](http://www.casc.noaa.gov/bankcard/forms.html)_
- DOC/CAS   Acquiring Goods and Services, an Overview

**Notes:**
References			Any questions?  

- COR Policy Update

## A Government-Wide Focus on Teamwork

**The Administration and Congress has shifted it’s focus to the role the “Contracting Officer’s Technical Representative” in the contracting process.  **
**Program Management – specifically the mechanisms by which the Government ensures the success of its programs and earns public confidence.**

## In accordance with Clinger - Cohen Act and Office of Federal Procurement Policy Letter 97 – 01, the Department of Commerce has established a Contracting Officer Representative Certification Program policy (CAM 1301.670).

An implementation plan for the Office of the Secretary is due in July 2004.  

- An implementation plan for the Office of the Secretary is due in July 2004.

- A Government-Wide Focus on Teamwork

**Notes:**
Otto Wolff  noticed few COTRs at the OAM Procurement Conference .  He suggested a COTR Conference be held. 

## COR Certification ProgramNew Policy Issued 2004

**Appointment – Level 1, 2 or 3, determined by value or complexity**
**Training**
**4 Areas – Requirements vary according to the appointment level**
**Business/Industry**
**General Management**
**Project Management**
**Procurement Knowledge **
**Performance Plan Element **
**Annual Evaluation**

## Interagency Agreements

- A new policy has been signed out by the CFO on May 5, 2004
- Short Term:  Will provide interim guidance 7/04
- Long Term:
- Bureaus are developing implementation plans
- It is envisioned that a team consisting of representatives from program, budget & finance, legal and procurement will work together to develop the actual OSEC policy by 12/2004

## Acquisition Waivers

- Required for CFO/ASA
- Required for all transactions in excess of $100,000 based on life-cycle estimate
- Must be approved by the CFO/ASA
- Forms are available, call us at            202-482-0997 and we will forward the forms to you electronically.

## Michael S. Sade			Christine Makris
Director for Acquisition Management          	 Deputy Director for Acquisition Management
and Procurement Executive	      	 and Procurement Executive
(202) 482-4248		      	 (202) 482-4248 

Tiffany T. Hixson (HCO)		Sharon Leigh (HCO) 
Director for Commerce Acquisition Solutions	Head of Contracting & Program Manager
& Head of Contracting			Commerce IT Solutions Branch		
(202) 482-6100			(202) 482-5543

Deborah Locke			Patti Stang/Donna Calacone
Team Lead – Business Solutions		Acting Team Leads – IT Acquisition Team
(202) 482-2641	 		Commerce IT Solutions Branch
					(202-482-3416			

Daniel S. Alexander II		Frank Krempa
Team Lead – Customer Outreach & Programs	Small Business Specialist & BankCard Coordinator
(202) 482-7426			Customer Outreach & Programs
					202-482-0997

- Director for Acquisition Management          	 Deputy Director for Acquisition Management
- and Procurement Executive	      	 and Procurement Executive
- (202) 482-4248		      	 (202) 482-4248
- Tiffany T. Hixson (HCO)		Sharon Leigh (HCO)
- Director for Commerce Acquisition Solutions	Head of Contracting & Program Manager
- & Head of Contracting			Commerce IT Solutions Branch
- (202) 482-6100			(202) 482-5543
- Deborah Locke			Patti Stang/Donna Calacone
- Team Lead – Business Solutions		Acting Team Leads – IT Acquisition Team
- (202) 482-2641	 		Commerce IT Solutions Branch
- 					(202-482-3416
- Daniel S. Alexander II		Frank Krempa
- Team Lead – Customer Outreach & Programs	Small Business Specialist & BankCard Coordinator
- (202) 482-7426			Customer Outreach & Programs
- 					202-482-0997

- Principal Contacts in the Office of Acquisition Management

## Contact Information

- Room:  6521Telephone:  482-6100Fax: 482-4988 or 501-8122

- SERVICEES
-  CHART

## Future Training

- Requirements Development
- Independent Government Cost Estimate Development
- Source Selection
- Contract Administration
- Interagency Agreements
- Contracting Officer Representative Policy Update
- Purchase Card (BankCard)
- Purchase Card Statement Reconciliation & Approval

## Further References

**Commerce Forms:  http://www.doc.gov/forms/fdirect.htm**
**Office of Acquisition Management:  http://oamweb.osec.doc.gov/**
**Federal Acquisition Regulations:  http://www.arnet.gov/far/**

## Any Questions?

**Notes:**
COR Training
YEAR END TRAINING
Purchase Card Training
MOU Training

- Call if I may be of help.
- Frank Krempa (202) 482-0997
- Or
- Send your questions via email  to   _[fkrempa@doc.gov](mailto:fkrempa@doc.gov)_
- May you have great success!

- Call Us

**Notes:**
YEAR  END TRAINING
Purchase Card Training
MOU Training

## Let Us Help Put the Pieces Together 

**Notes:**
66 days to 274 days depending