# Presentation: 224760

## FEDSIM Industry Partner Exchange

**April 6, 2006**

## Agenda

**FEDSIM 5-Point Business Plan**
**FAS Reorganization Update**
**GSA’s Get-Well Plan**
**GSA OIG Audit of FEDSIM**
**FEDSIM GWAC Acquisition Practices**
**FEDSIM Invoice Review**
**FEDSIM Acquisition Lead Time**
**FEDSIM Improvements**
**FEDSIM Business Development**

## FAS Reorganization Update

- Reorganization approved by Admin. Bibb
- Organizational design, functional structure submitted
- OneFund legislation to be introduced to Senate
- FEDSIM will continue as National Program within Integrated Technology Service
- Changing with the Acquisition Environment and Client Needs

## GSA’s Get Well Plan

- Lower Client Demand for FTS IT-assisted services so need to adjust Open Expenses
- FEDSIM doing well, but will be included in Early Out and Buy Out.  Do _not_ expect significant participation that will impact client service
- National Telecomm doing very well

## GSA Get Well Plan, cont.

- Sales YTD - $595M
- Obligations YTD $656M; $1.4B Plan
- Revenue YTD - $439M
- COGS YTD - $426M
- Strong performance tracking to FY04 performance ($1.4B)
- Record FY05 Sales, Obligations, Revenue, and Gross Margin that was high due to strong demand, stable response time, final use of prior year funds for new service

## GSA OIG Audit
&
FEDSIM GWAC ACQUISITION PRACTICES

Steve Kempf
FEDSIM Operations Director

- &
- FEDSIM GWAC ACQUISITION PRACTICES
- Steve Kempf
- FEDSIM Operations Director

## GSA Oversight and Audits

- GAO audit on Interagency Contracting
-  April - August 2005  Closed no findings
- GAO audit on Trilogy
-  Released March 2006
- GSA IG – November 2005–April 2006
- GSA Procurement Management Review – January 2005, March 2006
- ITS Management Controls Audit  July/August 2005
- Price Waterhouse Coopers Financial Audit September 2005,   Completed annually
- Individual Agency IG audits, Data Calls, Policy Implementation

## GSA OIG Summary

- Audit completed September 2005
- Discussion Draft presented February 2006
- Draft Report expected next week
- NO FINDINGS of violation of Laws, Regulation, or Statute

## FEDSIM GWAC Acquisition Practices

- Work is being completed on TOR templates for all major documents involved in acquisitions
- Slides in advance – all contractor slides due same day
- Section B, Clins, Funding
- Severable versus non-severable
- June 7 Memo and need to monitor funding
- Use of ranges may be changed to accommodate IG suggestions, needs of the task order, and effort to increase number of proposals and provide data as necessary
- FEDSIM is committed to Best Value procurements.  We will be exploring improvements to the process.  We expect to discuss changes at the next FEDSIM Industry Exchange

## FEDSIM GWAC SubcontractingAcquisition Practices

- Subcontractor Ceilings
- Millennia indicates negotiated at TO level and does not restrict to primes’ rates
- MLite subcontractors bound by primes’ rates
- Analysis of Subcontractor Proposals
- Subcontractor invoicing may need to be more fully documented in accordance with recommendations of auditors
- Primes required to notify FEDSIM of intent to subcontract
**Revised practice – CO approval of subcontractor rates that exceed Millennia primes’ ceiling rates **

## FEDSIM GWAC Acquisition Practices

- Discussion Topics
- Suggestions on how we can encourage more proposals under Fair Opportunity
- Process improvements for orals
- Process improvements for acquisitions

## FEDSIM GWAC Practices, cont.

- Out-year Rates
- Millennia Lite – Tom Thomas, CO
- Millennia – Susan Currey, CO

## FEDSIM Invoice Review

Howard K. Grizzle, II
Tech/QA Manager, DoD Sector

- Howard K. Grizzle, II
- Tech/QA Manager, DoD Sector

## FEDSIM Invoice Reviews

- While FEDSIM invoice reviews were cited by GSA Chief Acquisition Officer’s Procurement Management Review team as Best Practice, OIG and GAO expect more in-depth review of all detail
- Auditors’ Areas of concern
- Labor Rates, ceiling limits, treatment of overtime hours and other key terms for cost determination are clearly specified and documented for all contracts, TOs.
- Future contracts clearly reflect the appropriate Federal Acquisition travel cost requirements including purchase of the lowest standard, coach, or equivalent airfare.
- Ensure invoice review checks that invoices provide information required in contract to support the charges, goods and services billed on invoices have been received, amounts appropriate with contract terms, document resolution of questionable charges.  Invoice provide sufficient detail to link prior approval to invoiced items.
- Primes’ documentation on subs, ODCs, travel, tools
- Travel in excess of Travel Cost Principles
- Occasional travel without prior approval of GSA COR (no COR Travel Authorization)
- Engage independent third party to conduct follow-up audit work on invoices

## FEDSIM Invoice Reviews

- FAR 31.201-2(d) Contractors required to properly account for costs incurred on contracts and to maintain records, including supporting documentation, adequate to demonstrate that costs claimed have been incurred, are reasonable, are allowable and are allocable to contract, including costs related to subcontractors
- Revised Practice – FEDSIM is negotiating for DCAA to perform periodic reviews of Millennia and MillenniaLite prime contractor documentation for Labor, Subcontractor Labor, Travel, ODCs, Tools
- Purpose – Ensure that invoiced costs are in line with company’s CAS Disclosure Statement (Approved Billing Practice)

## Review of Invoice Procedures

- FEDSIM needs to understand IP’s cost accounting methodology
- Recommend one-on-one meetings with IPs to understand:
- Internal Accounting Practices
- CAS Disclosure Statement
- Approved Billing Practices
- Approved Contractor Purchasing System
- FEDSIM POC: Wendy Drucker (703) 306-7672
- 				wendy.drucker@gsa.gov
- FEDSIM will add findings to COR training

## Review of Invoice Procedures

- IP submits invoice in TOS Next (if TO in system) or paper invoice to GSA Finance Ft. Worth, TX-VITAP
- FEDSIM COR receives invoice in TOS Next
- 7 calendar days to review Labor, ODCs, Tools, and Travel to ensure Prompt Payment compliance
- Compares Tools with Consent to Purchase and Travel with Travel Authorization
- Prime Labor Hours compared to bundled ceiling rates, Labor of subcontractors compared to approved bundled subcontractor rates
- Confirms receipt of contractor and subcontractor personnel services, any labor hours surges, receipt of ODCs and Tools, and any Travel
- Can approve or reject in total; partial payment for hardcopy (Non-TOS Next invoices only)
- Working on capability to approve in TOS Next partial payments

## FEDSIM Invoice Reviews - Travel

- Federal Travel Regulations (FTR)
- Joint Travel Regulations (JTR)
- State Department Standardized Regulations (for travel in areas not covered in FTR or JTR)
- FAR requires contractor to provide documentation to justify higher airfare costs
- Each Task Order has instructions for Travel Authorizations and Invoice detail required

## FEDSIM Acquisition Lead Time

Ken Evans, DoD Group Manager

- Ken Evans, DoD Group Manager

## FEDSIM Acquisition Lead Time

- Starts when requirements and funds received in form of signed Interagency Agreement
- Ends when new award or mod completed
- Established goals by acquisition type (GWAC complex, simple, MAS, 8(a), etc.)
- Tracked actual times to procure

## FEDSIM Acquisition Goals 

| Type of Action | Pre-Release
Includes IA  | Release to 
Award | Total
IA to Award |
| --- | --- | --- | --- |
| Equipment | 3 Weeks | 4 Weeks | 7 Weeks |
| Schedule – Services | 4-8 Weeks | 5 Weeks | 9-13 Weeks |
| GWAC – Complex | 8-12 Weeks | 12 Weeks | 20-24 Weeks |
| GWAC – FFP/LH | 4-8 Weeks | 10 Weeks | 14-18 Weeks |
| 8(a) Directed | 4-8 Weeks | 8 Weeks | 12–16 Weeks |
| Mods – Unilateral | 2 Weeks | 2 Weeks | 4 Weeks |
| Mods – Bilateral | 2-4 Weeks | 4 Weeks | 6–8 Weeks |

## FEDSIM Acquisition Baseline 

| Type of Action
(Signed IA to Award) | Current Average Time  | Goal
(w/Process Improvement) |
| --- | --- | --- |
| Equipment |   8 Weeks |  6 Weeks |
| Schedule – Services | 14 Weeks | 12 Weeks |
| GWAC – Complex | 24 Weeks | 19 Weeks |
| GWAC – FFP/LH |  14-18 Weeks | 12–16 Weeks |
| 8(a) Directed | 12-16 Weeks | 10-12 Weeks |
| Mods – Unilateral |   4 Weeks |   2 Weeks |
| Mods – Bilateral |  6-8 Weeks |   5 Weeks |

## GWAC – Complex Timeline (Goal)

## FEDSIM Improvements

Karen Kopf, Defense Sector Director

- Karen Kopf, Defense Sector Director

## FEDSIM Project Management Improvement Goals

- Quality Infusion
- Best Practices
- Repeatable Processes
- Efficient Processes

## FEDSIM Improvement in the Works

- Quality Assurance Managers
- Howard K. Grizzle, II, DoD Sector
- Kathy Udell, Civilian Sector
- Interagency Agreements
- More specific bona fide need so no perception of ‘banking’; checklist provided to all PMs
- Delegated signature to Group Managers for 2005 & 2006 IA Amendments
- Fax signatures again acceptable

## FEDSIM Improvement in the Works (cont’d)

- Acquisition Templates/SOP
- Contract Review Panels
- Chaired by Contracting GMs
- Acquisition Plan, Pre-solicitation, Pre-Award, Ceiling increases of 10%+, PoP extensions of 3+ months
- Integrated Project Teams yield quicker approvals
- Higher first approval

## FEDSIM Improvement in the Works (cont’d)

- Project Performance Managers
- Specialized support for:
- Account Establishment
- Standardized Client Reporting
- Funding Tracking
- Funding Controls
- Invoice Review
- Schedule/Cost Baseline Tacking
- Project Performance Monitoring
- EVM
- Pilot kick-off for Invoice Review