# Presentation: 273042

## NASA Office of Procurement

- State of NASA Procurement and Tenets
- 29 October 2007

- Bill McNally
- Assistant Administrator for Procurement

## Procurement Tenets

-   The procurement tenets are ancillary to the other Federal and Agency procurement policies and apply to the development of strategies for NASA procurements
-   Purpose of the Procurement Tenets is to establish a set of guidelines for a NASA way of doing business
-  Each guideline shall be addressed by HQ, Program, Project and Contract Managers in their acquisition and procurement strategies, processes and procedures

## 	         Procurement Strategy Tenets

- Maximize Competition
- Early market research and continual communication with industry
- Focus on getting industry’s best solution, commitment and lower cost
- Use Performance as factor in exercising options
- Plan re-competes; shorter term contracts; component breakouts; have the right data and data rights
- Competition process thorough but not complicated
- Develop Integrated Acquisition/Procurement Strategies
- Involve all functional (Legal, Resource, Contracts, Small Business, technical) Reps early and throughout the planning process
- Establish an Integrated Product Team environment
- Inform and seek industry input throughout the acquisition
- Serves as Road Map for Program Execution and success

##                      Procurement Strategy Tenets

_*Zero-based*_ approach in developing Requirements
- Requirements Need to Earn Their Way into Contracts: # of Data Deliverables, Reviews and only applicable requirements
- Get Industry’s Input as requirements are developed!
- Focus on Performance Outcomes and allow Industry to determine Best Way to Achieve Desired Outcome
- Use Commercial When it’s Available and Better
- Look at Commonality: technical requirements and reporting
_*Streamline*_ but do not compromise on safety, good business decisions and successful completion
- Allow use of Commercial Processes
- Get rid of non-value added steps and Requirements
- Seek Industry Input on non-value processes and requirements
- Seek process improvements and effiencies

## 	       Procurement Strategy Tenets

- Create Reward Performance Incentives
- Milestone Based
- Specific level of performance: metrics and standards
- Successful Outcomes: technical performance, cost and schedule performance, small business
- Shared Savings, Cost Management and Lower Life Cycle Cost
- Merge NASA’s  and Industry’s Core Expertise
- Mix of NASA and Industry Design, Development and Integration
- Requires a Tight NASA and Industry Team with appropriate “arms length” relationship
- Common NASA Contracts and Strategies
- Common face to Industry
- NASA Contract:  Not a Center or Mission Directorate Contract
- Not “zip code” dependent

##                               Procurement Strategy Tenets

- Reducing Cost and Cost Risk for procurements
- Move towards firm fixed price contracts after development, service contracts
- Perform work load analysis
- Reduce “pass through” contracts
- Turn Contract Upside-Down
- Insight of Prime contractors supply chain management
- Aggressive Pursuit of Socio-Economic Goals with Prime Contractors that are realistic, efficient and effective
- Personnel, teams, subcontractors and suppliers share in objectives and rewards
***Purpose of Tenets is to Maximize Return on Investment (ROI) for Industry and NASA!***

##      Objective of State of Procurement 

-   The Objective of this assessment is to determine the “health” of NASA procurement to determine how well we execute and support the NASA mission.
- This assessment is focused
-  On current assessment
-  On the next 15 months to support overall State of Agency assessment
-  On long term performance
-   Three Areas of focus

## 		                             Three Focus Areas 

- Human Capital
- Workforce
- Training
- Policy
- Required
- Clear
- Contract Execution and Performance
- Good business practices
- Follow policy
***Our Objective:  A Healthy NASA Procurement Organization that Maximizes ROI for NASA!***