# Presentation: 372549

##  Staff Augmentation Recompete

**Alfred L. Romo, C.P.M.**
**Sandia Contracting Representative**

## Background

_***Statement of Need***_**:  **Staff Augmentation is used when it is necessary for Sandia to supplement its work force for a period of time, needs to direct the work process, or cannot sufficiently define the work to use a Contractor-Directed (Performance-Based) Contract.
_***Description of Effort***_**: **This contract will provide on-site staff augmentation at Sandia NM and Sandia CA for the corporate HR Staff Augmentation process.** **

## Current Contracts

- Sandia currently has Staff Augmentation contracts with 11 companies – 8 in New Mexico and 3 in California
- Current contracts were awarded in 1996
- A portion of the current contracts were open competition and the remaining portion were set aside
- 2 categories: Professional & Support
- Total value to date: Several Hundred Million

## Current Contracts

_***Improvements obtained***_**:**
- Expedited process
- Electronic Time Invoices (ETI)
- Reduced Sandia acquisition costs
- Reduced co-employment risk
- Integrated Sandia Human Resources into process for acquiring Contract Associates

## New Model

- 100% Small Business Set-Aside
_***Period of Performance:***_** **Five years
_***Anticipated contract type***_**: **Time and Material** **with a Fixed Rate multiplier
_***Pricing arrangement***_**: **
- Direct Labor + Multiplier consisting of Overhead, Fringe Benefits and Profit
- Annual direct labor rate adjustments in accordance with GII/DOL

## New Model - Continued

_***Total value based on historical data***_**: **
**	****	****	**$345M - $706M
- Neither end of the price range is fixed/guaranteed and are for estimating purposes only
- Subject to Sandia budgets and Sandia requirements

## New Model - Continued

_***Sandia expects to award ***__***three***__*** ***__***(3) contracts in the following categories***_**:**
**	****	**1) Professional Services
- 		2) Support Services
- 		3) Information Technologies
- Each category will have a segment for pre-selects (personnel recruited by Sandia) and non-pre-selects (personnel recruited by the Contractor) and may include both exempt and nonexempt personnel
- Historically 36% of Contract Associates have been Pre-selects
- Current Contact Associates will go to Pre-Select component of their respective labor category

## New Model - Continued

_***Multi-step process***_:
- Down Select Process to identify a price range of offerors who meet the mandatory requirements
- Mandatory requirements:
- Split for Business Size: minimum 50% by Small Business
- Benefit Package (must meet Sandia and Service Contract Act requirements)
- Price Realism for Multiplier
- Financial Capability (balance sheet & income statement)
- Best Value will be used for final selection

## New Model - Continued

_***Type of Procurement***_**: **This will be a Competitive Procurement and has been publicized on _[http://www.fedbizopps.gov/](http://www.fedbizopps.gov/)_
_***Unique Terms and Conditions: ***_Independent Contractor Relationship and Contractor Personnel; Invoicing and Payments Through Electronic Time Invoices; Continuity of Services
_***Patent or data rights:***_** **Section I contains copyright and IP Clauses - Section II contains full suite of data right and patent clauses

## New Model - Continued

_***Teaming to be allowed, but not required: ***_
- Tax implications may apply – check with tax attorney regarding NM and CA tax codes
- Additional info regarding taxes available on Frequently Asked Questions link on Staff Augmentation website:
-   _[http://www.sandia.gov/bus-ops/index.html](http://www.sandia.gov/bus-ops/index.html)_** **

## Benefits for Sandia

_***Changes from current Contracts:***_
- Single company accountability for each Contract Associate Staffing Requisition
- Reduced overall recruiting costs
- Separate category for IT to provide specialization and effectiveness
- More streamlined proposal evaluation process

## Benefits for Successful Offerors

- Faster way to get paid through ETI (weekly with immediate payment terms)
- Sandia pays for all Sandia required training for Contract Associates (Contractor or Contract Associate pays for professional development training)
- Faster transactions through Staffing Requisitions
- Sandia typically pays for agreed-to relocation expenses
- Revenue stream

## Benefits for Successful Offerors - Continued

- Exclusive first right to fill Staffing Requisitions within their category (Sandia reserves the right to compete requisitions for failure to perform)
- Higher probability of filling Staffing Requisitions within their category

## Compliance Issues

_***Foreign Ownership, Control, or Influence requirements***_**: **Applies
_***Price-Anderson Amendments Act considerations***_**: **Defined by each job function.
_***Property issues associated with this acquisition***_**: **Defined by each job function.
_***Deliverables***_**: **Metrics on a quarterly basis
_***Ethics***_***:  ***Pre-screen Contractor Associate candidates and on-the job training
_***Safety***_: Behavior Based Safety

## Business Considerations

_***Projected Milestones for the Acquisition Cycle:***_
_***Milestone ***__***	***_**	****	****	****  **_***Date***_
- Solicitation Release                 July 2007
- Contract Award/Transition       March 2008
- Contract Performance Starts   April 2008
- Contract Completion                April 2012