How to Create a Competitive Advantage via a ‘Sources ... to Create a Competitive ... Advantage via...

2015 National HUBZone Conference October 2015

hubzonecouncil.org 1

How to Create a Competitive

National HUBZone Conference – Chantilly VA

29 October 2015

Advantage via a ‘Sources Sought’ Response

Jeffrey R. Cuskey, CPCM, CFCM, CSCM, CPP

Program Director & Government Contracting Adviser

Bozeman Procurement Technical Assistance Center (PTAC) at MSU

[email protected] (406) 994-7739

Presentation OutlinePresentation Outline

• PTAC Mission & Services

• Understanding the Government Marketplace

– When & how to influence acquisition strategies– When & how to influence acquisition strategies– How government regulations & market research drive acquisition strategies– Opportunities for Small Businesses

• Sources Sought Notices

– Purpose & use– Important considerations for small business owners – Tips on how to respond– Some “Real World” case studies– Common response mistakesCommon response mistakes

• How to Influence Acquisition Strategies & Gain a Competitive Advantage

• Summary and Q&A



PTAC Mission PTAC Mission

• Generate employment & improve the general economic condition of supported Counties

• Assist small businesses in obtaining and performing under Federal, g p g ,State & Local Government contracts

• Offer confidential procurement technical assistance to businesses at no cost to the business owner

Helping Businesses Contract withContract with Government

PTAC Program BackgroundPTAC Program Background

• PTAC Program established in 1985 - Congressional Mandate

• Administered by the Defense Logistics Agency (DLA)

• Currently 98 PTACs Nationwide, DC, Puerto Rico & Guam

• Bozeman PTAC Re-established in 2015

• PTACs Operated as Not for Profit Organizations

• Cost-Sharing Cooperative Agreement (Grant) from DLA

• Bozeman PTAC Local Cash Match from Montana State University (MSU) &• Bozeman PTAC - Local Cash Match from Montana State University (MSU) & TechLink Center at MSU



PTAC Services PTAC Services • Vendor Registrations

• Small Business Certifications

• Government MarketingN C tN C t

g

• Identifying Bid Opportunities

• Bid Matching Services

• Government Rules & Regulations

• Bid/Proposal Review

• Contract Management

No CostNo Cost

CONFIDENTIALCONFIDENTIAL

CUSTOMIZEDCUSTOMIZED

“CRADLE “CRADLE TO TO

GRAVE”GRAVE”

• Contract Compliance

• Supplier – Agency Interface

• Specialized Training & Workshops

COUNSELINGCOUNSELING

Small Business Opportunities Small Business Opportunities –– FAR 19.201FAR 19.201

“It is the policy of the government to provide maximum practicable opportunities to …

Small Business– Small Business

– Veteran Owned Small Business

– Service Disabled Veteran Owned Small Business

–– HUBZone Small BusinessHUBZone Small Business

– Small Disadvantaged Business

– Women Owned Small Business Concerns”

“Such concerns must also have the maximum practicable “Such concerns must also have the maximum practicable opportunity to participate as subcontractors” opportunity to participate as subcontractors”



Federal Purchasing Thresholds effective 1 OCT 2015Federal Purchasing Thresholds effective 1 OCT 2015

$ & O C

-- Negotiated acquisitions require aSubcontracting Plan (or $1.5 millionfor construction) (FAR 19.702)

Above $700,000

$25,000

> $150K Full & Open Competition orOther than Full & Open Competitionunless Small Business “Rule of Two”Applies (FAR 19.502-2)

> $25K Must be advertised at FBO.GOVunless exceptions apply (FAR 5.202)

Mandatory Small

Business Set-asides.

May use Simplified Acquisition $15,000 -- $15K to $25K Displayed in Public Place

$150,000

$0

$3,500Government Purchase Card (GPC) Sole Source Allowed; Small Business Set Asides & SAP Not Mandatory

Procedures (SAP)

or by Appropriate Electronic Means

Certified COPD & CAS increased from $700K to $750KSAP Commercial Items increased from $6.5M to $7M (FAR 13.5)

Federal Small Business GoalsFederal Small Business Goals

SB Goals FY12 $B FY13 $B FY14 $B

Small Business 23% 22.24% $89.9 23.39% $83.1 24.99% $91.7

Small Disadvantaged 5% 8.0% $32.3 8.61% $30.6 9.46% $34.7

Woman-Owned 5% 4.0% $16.1 4.32% $15.4 4.68% $17.2

HUBZone 3% 2.01% $8.1 1.76% $6.2 1.82% $6.7

Service -Service Disabled Veteran

3% 3.03% $12.2 3.38% $12.0 3.68% $13.5

Government-Wide Performance - FY2014 Small Business Procurement Scorecardhttps://www.sba.gov/sites/default/files/files/FY14_Government-Wide_SB_Procurement_Scorecard_Public_View_2015-04-29.pdf



SBA HUBZone Maps

https://www.sba.gov/content/hubzone-maps

Federal Acquisition Guiding Principles* Federal Acquisition Guiding Principles*

“… In exercising initiative, Government members of the Acquisition Team may assume a specific strategy is a permissible exercise of authority if …

– It is in the Government’s best interests

– Not addressed in FAR

– Nor prohibited by law, statute, EO, regulation”

* FAR 1.102(d)1.102(d)

You may need to remind Government Officials of this authorityYou may need to remind Government Officials of this authority



Generic Acquisition ProcessGeneric Acquisition Process

1. Mission Review

2. Needs Determination

3 Requirements Determination

RequirementsGeneration

Build a Better Mousetrap Influence End Users Develop Relationships Provide Solutions Differentiate Products/Services3 Requirements Determination

4 Define/Describe Requirements

Generation

“Traditional”Contracting/ProcurementProcess

5. Acquisition Planning

6. Solicitation Phase

7. Source Evaluation Phase

8. Negotiation Phase

9. Contract Award

10. Contract Administration

Differentiate Products/Services Best Marketing Tool is

Successful Past Performance

Tailored Capability Briefs Respond to Sources Sought, RFIs Provide Recommendations Don’t Assume, Ask Questions Know the Rules & Regulations Write Customer Focused Proposals Learn from Post Award Debriefs

When & how to influence acquisition processes & outcomesWhen & how to influence acquisition processes & outcomes

11. Ownership Phase (Support)

12. Disposal

Learn from Post Award Debriefs Set & Manage Customer

Performance Expectations

How Market Research How Market Research Drives Government Drives Government

Acquisition StrategiesAcquisition Strategiesq gq g



Market Research* Market Research*

• Determination of Commercial Availability

• Customary Commercial Practices

R i t P d t D i ti & S ifi ti• Requirements, Product Descriptions & Specifications

• Solicitation Method, Contract Type & Evaluation Factors

•• Small Business SetSmall Business Set--AsidesAsides

• Support Plans, Test Plans

• Contract Terms & Conditions

• Payment Arrangements & Contract Administration

* FAR Part 10Part 10

Opportunity to Influence the Acquisition StrategyOpportunity to Influence the Acquisition Strategy

• Payment Arrangements & Contract Administration

SBA Dynamic Small Business Search (DSBS)*SBA Dynamic Small Business Search (DSBS)*http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm



Sources Sought Sources Sought NoticesNotices

Some are good, few are exceptionalSome are good, few are exceptional

Typical Sources Sought Notice Typical Sources Sought Notice

PURPOSEPURPOSE

NASA is seeking capabilitystatements from all interested

RESPONSE REQUIREMENTSRESPONSE REQUIREMENTS

Capability Statement ≤ 10 Pagesstatements from all interestedparties, including:

• SDBs• WOSBs• VOSBs/SDVOSBs• HUBZone SBs• HBCU/MIs

For purposes of determining:

• Ability to perform all work• Business POC Info• Business Size/Category• Average Annual Revenue 3 YRs• Number of Employees• Ownership & Affiliate Info• JV/Teaming/Subcontractors• List of Relevant Work – 5 YRs• How it is Relevant/Dollar amount

• Appropriate Level of Competition (I.e., SB Set Aside) and/or,

• SB Subcontracting Goals

• How it is Relevant/Dollar amount• Period of Performance• Customer Reference & POC• DUNS Number/CAGE Code



Limitations on Subcontracting



Important ConsiderationsImportant Considerations

• No“one size fits all” response template

• Government reviewers only consider what is written

• Responses reviewed by technical people who “own” the requirement• Responses reviewed by technical people who own the requirement

• May lead to a Small Business Set-Aside with Limitations on Subcontracting

• Government reviewers are cautious and need to determine a Small Business Set-Aside will not add risk or jeopardize completion of the contract

• CO needs to determine there is a reasonable expectation of receiving offers from two or more “capable” small businesses that are competitive in terms of market prices, quality and delivery before making the requirement a small business set-aside

• No evaluation letters or results will be issued to respondents

Limitations on SubcontractingLimitations on Subcontracting

TYPE OF WORK PERCENT OF COST (13 CFR 12.6)

SERVICES At least 50% of the Costs Incurred for Personnel

SUPPLIES/PRODUCTS At least 50% of the Costs of Manufacturing the Supplies or Products (Not including the Cost of Materials)

GENERAL CONSTRUCTION

At least 15% of the Cost of the Contract with its OwnEmployees (Not including the Cost of Materials)

SPECIALTY CONSTRUCTION

At least 25% of the Cost of the Contract with its OwnEmployees (Not including the Cost of Materials)

FAR 52.219-14 Limits Subcontracting for Small Business set-asides including 8(a) Competitive & Sole Source Contracts

FAR 52.219-3 Limits Subcontracting for HUBZone set-asides and HUBZone Sole Source Contracts

FAR 52.219-27 Limits Subcontracting for SDVOSB set-asides and SDVOSB Sole Source Contracts

(1) Prime Contractors under HUBZone or SDVOSB Sole Source or Set-Asides may count the costs of other HUBZone or SDVOSB Concerns performing Subcontract work under the Prime’s Contract

(2) SBA Non-Manufacturer Rule (NMR) is an exception to Manufacturing Performance Requirements. A Non-Manufacturer may qualify to participate in a SB Supply Set Aside contract, if, among other things, it supplies product(s) of a SB made in the US or obtains a Waiver from SBA. (FAR 19.102(f))



Limitations on Subcontracting Limitations on Subcontracting –– Changes*Changes*

Current Regulations

• Service Contracts: Prime must perform at least 50% of

Proposed Regulations

• Service Contracts: No more than 50% of amount paid by p

cost of contract incurred for personnel

• Supply Contracts: Except procurements from non-manufacturers, prime must perform 50% of cost of manufacturing, less costs of materials

p yGovt may be paid to entities that are not similarly situated

• Supply Contracts: Except procurements from non-manufacturers, no more than 50% of amount paid by Govt may be paid to entities that are not similarly situated

* 2013 National Defense Authorization Act (NDAA)

materials• All SB, 8(a) & WOSB Set-

Aside Contracts: Prime must meet requirements with its own forces

are not similarly situated• All Set-Aside Contracts:

Prime may meet requirements through use of similarly situated entities

Sources Sought Sources Sought Case StudyCase Study

P idi f M tP idi f M tPresidio of Monterey Presidio of Monterey Tree Mitigation ProjectTree Mitigation Project



Tailored Responses to Sources Sought Notices Tailored Responses to Sources Sought Notices

Your OpportunityOpportunity to Influence

the Acquisition

Strategy


Answer the Mail!Answer the Mail!



Sources Sought RecommendationsSources Sought RecommendationsI recommend you insert the following paragraphs immediately above your "Thank You" paragraph. XXX (DUNS 0158XXXXX; CAGE XXXXX) has the necessary capabilities and resources to successfully complete all Draft PWS tasks and is registered in the Federal System for Award Management (SAM) as a Small Business Concern. I believe your market research will confirm that there are other Small Businesses capability of performing the tasks listed in your Draft PWS. As such, we recommend you issue your resulting solicitation as a 100 Percent Small Set‐Aside Opportunity under FAR 6.2, Full and Open Competition after Exclusion of Sources.

Sources Sought Recommendations

100 % SB Set-Aside Additionally, we believe that the Government will obtain better service, higher quality and reduced performance risk by issuing the solicitation as a Request for Proposal (RFP) under FAR 15.101 Best Value Trade‐Off procedures. The suggested Evaluation Factors are Cost, Technical Approach, Past Performance/Prior Relevant Experience and Performance Risk. It is suggested that the relative weighting of the evaluation factors state "Non‐Cost Factors when combined, are significantly more important than Cost. We recommend you award the contract as a Firm Fixed Price Contract but that you include a CLIN for Time and Materials in the event the Government wants to change the design after contract award vice making the contractor whole via a Request for Equitable Adjustment (REA). We suspect that you will want to conduct an "efficient competition" and that you do not want to spend much time with contractors who are not deemed Responsible in accordance with FAR Part 9. If that is the case, we recommend you conduct a two‐step solicitation under the 15.202 Advisory multi‐step process. In the first step, we recommend you ask for Statements of Qualifications and Past Performance Records from potential offerors and advise any non‐qualified or marginally qualified offerors that they

t lik l t b i l d d i th A ' C titi R D t i ti Thi h h ld

Best Value & Suggested

Evaluation Factors

T&M CLIN

Efficient Competition -

Ad i M lti St are not likely to be included in the Agency's Competitive Range Determination. This approach should help reduce potential Bid and Proposal Costs for contractors and reduce transaction and opportunity costs for your Agency and any offerors who elect not to participate in the second phase of the solicitation. The second step is to ask for proposals and then conduct your normal evaluations and discussions with offerors. In the event that you elect to make the resulting solicitation a Small Business Set Aside opportunity, it is recommended that you negotiate performance milestones and include Performance Based Payment payments in the solicitation's terms and conditions. This addition, in not already planned, should help participating small business with their cash‐flow requirements.

Advisory Multi-StepProcess

Performance Based Payments

Impact of Tailored Responses & Recommendations








On Tue, Nov 12, 2013 at 4:17 PM, Jon xxxxx <[email protected]> wrote: Hi Jeff – I wanted to let you know that, likely in large part due to your excellent coaching and suggestions, this solicitation has been released as 100% small business set aside and as a "best value" award, both of which give our firm a competitive edge in getting the project. We sincerely appreciate your help and would like to avail ourselves of your services for proposal review once we have a draft prepared. If you have any advice for us upon reviewing the solicitation we would gladly accept it. Thank you again for the great service that you and the PTAC provide. Sincerely Sincerely,

Jon XXXXX Sr. Project Manager / Ecologist

Xxxxx Inc. 831.xxx.xxxx (cell)





NAICS CODES WITH EXCEPTIONSNAICS CODES WITH EXCEPTIONS

NAICS Codes with ExceptionsNAICS Codes with ExceptionsFrom: Robert XXXXXX Sent: Wednesday, February 25, 2015 10:17 AM To: Jeff Cuskey Subject: NAICS 541330 WITH MILIARY EXCEPTION Jeff, Our company is looking for clarification on NAICS Code 541330 – Engineering Services. As you know the basic NAICS code has a Size Standard of $15 million in average annual receipts and there are three exceptions with each exception having a Sized Standard of 38.5 Million in average annual receipts. Our company does not meet the basic NAICS Code size standard but we do meet the size standards under the NAICS Code Exceptions. The solicitation’s SOW requires engineering services related to military equipment for the Aberdeen Proving Ground. However the Agency Contracting Officer balked at using this NAICS Code Exception for our proposed work in support of Project Manager, Solider Warrior (PM-SWAR). Please provide any advice you can on this issue and what actions I can take to appeal the Contracting Officer’s proposed NAICS code assignment. Thanks so much, Bob



NAICS Codes with ExceptionsNAICS Codes with Exceptions

NAICS CODE APPEALS TO SBA OHANAICS CODE APPEALS TO SBA OHA

The following website provides information on how to appeal the assignment of a NAICS Code in the event the Contracting Officer does not designate the NAICS code that best describes

• the principal purpose of the product or service being acquired in light of the industry description in the NAICS MANUAL,

• the description in the solicitation, and

• the relative weight of each element in the solicitation.

https://www.sba.gov/oha/resources/588821



NAICS CODE APPEALS TO SBA OHANAICS CODE APPEALS TO SBA OHA

SBA OHA “STANDARD OF REVIEW” FOR NAICS CODE APPEALSSBA OHA “STANDARD OF REVIEW” FOR NAICS CODE APPEALS

“Appellant has burden of proving, by a preponderance of the evidence, all elements of its appeal…

Must prove CO’s NAICS code designation is based upon a clear error of fact or law (13 CFR 134 314; NAICS Appeal of Durodyne Inc SBA Nofact or law. (13 CFR 134.314; NAICS Appeal of Durodyne, Inc., SBA No. NAICS-3536)

SBA regulations do NOT require the CO to designate the perfect NAICS code

CO must designate the NAICS code that best describes the principle purpose of the product or service in light of …

(1) Industry Description in NAICS Manual

(2) Description in the solicitation

(3) Relative weights of each element in the solicitation (13 CFR 121.402(b))

OHA will NOT reverse a NAICS code designation in the solicitation merely because OHA would have selected a different code.” NAICS Appeal of Eagle Home Med. Corp., SBA No. NAICS-5099, (2009)



NAICS CODE NAICS CODE APPEALSAPPEALS

MAJOR TASKS/ELEMENTS IN THE SOLICITATION

RELATIVE WEIGHT OF EACH ELEMENT IN THE

RFP/RFQ

TASK ALIGNMENT WITH YOURNAICS CODE

TASK ALIGNMENT WITH CO’S NAICS CODE

XXXXX XXXXX

SOW Task 0001 ‐Description

15% 15%

SOW Task 0002 ‐Description

20% 20%

SOW Task 0003 –Description

30% 30%

SOW Task 0004 ‐ 20% 20%

SOW Task 000X ‐Description

15% 15%

Total for All Tasks 100% 65% 35%

NAICS CODE NAICS CODE APPEALSAPPEALSBob, Please recognize that I am not a lawyer and that the following should not be construed as legal advice. The following SBA OHA case is not directly related to your circumstances, g y y ,however it does provide OHA's standard of review for assignment of NAICS codes to a solicitation. Additionally it states when it is appropriate to use NAICS Code 541330 Exception #1 (Military and Aerospace Equipment and Military Weapons). See NAICS APPEAL OF: MILLENNIUM ENGINEERING AND INTEGRATION CO., APPELLANT SBA No. NAICS-5309, 2011 WL 6183624 dated December 12, 2011. “ … In so holding, OHA stated: “[W]e have held that for [the MAE&MW exception] to be appropriate, the procurement must involve professional engineering services with a military application.” Id. (citing SIC Appeal of R.M. Vrendenburg & Co., SBA No. SIC-4220 (1996); SIC Appeal of Giordano Assocs., Inc., SBA No. SIC-2502 (1986))." I recommend you ask your lawyer if the above holding is applicable to your situation. Please contact me should you have any questions. Sincerely, Jeff Cuskey, CPCM, CFCM, CSCM, CPP




( ) S O( ) S O8(A) Set Aside “Missed” Opportunity8(A) Set Aside “Missed” Opportunity

8(a) Set Aside Opportunity8(a) Set Aside Opportunity

Jeff ,

Do you know XXXXXX XXXXXXX, CO at NASA AMES? We have an 8(a) We have an 8(a) firm requesting our help in getting a project awarded as an 8(a) setfirm requesting our help in getting a project awarded as an 8(a) set--aside. Attached is the firmaside. Attached is the firm’’s RFI proposal and capabilities statements RFI proposal and capabilities statement. If you have any relationships with appropriate people, or advice for us before we send the same information (with our endorsement) to the CO, we appreciate your knowledge and help.

Respectfully and gratefully,

XXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXBusiness Opportunity SpecialistUnited States Small Business Administration, XXXXX District Office



8(a) 8(a) Certification LetterCertification Letter

“Even though your firm’s approved NAICS Code is 541611 your firm may be541611, your firm may be awarded contracts under other NAICS Codes, as long as the firm is qualified to perform the required service or task. In this regard, please note that contracts awarded under the 8(a) Business Development Program (BDP) authorityProgram (BDP) authority generally result from the self-marketing efforts of participating firms.”

Is this a Typical GovernmentSources Sought Notice?Sources Sought Notice?

?



SS Notice/RFI OpportunitySS Notice/RFI Opportunity

(NASA) ARC is soliciting comments and suggestions on contracting approaches to this effort that will enhance competition and provide business opportunities. Therefore, we are requesting feedback in any or all of the following areas for consideration during acquisition planning:following areas for consideration during acquisition planning:

1. Work Scope you could perform.

2. Suggested percentages & types of proposed requirements that could be subcontracted to each type of Small Business Concern.

3. Besides Past Performance and Price, what other evaluation factors, if any, do you believe should be included in the RFP, and why?

4. Does the selection of NAICS code 561110, (Office Administrative S i ith i t d d $7 5M) i t ? If t h tServices, with size standard $7.5M) seem appropriate? If not, what alternative NAICS code do you suggest, and why?

5. On-site support service contracts at ARC normally have a five-year period of performance. What combination of base period and options do you recommend for the duration of the contract, and why?

SS Notice/RFI OpportunitySS Notice/RFI Opportunity6. ARC is considering solicitation, evaluation, and award using the policies

unique to the acquisition of commercial services, FAR Part 12, inconjunction with Part 15, Contracting by Negotiation. Please advise if youconsider the requirement to be a commercial or commercial-type service.

7. The Government is considering an Indefinite-Delivery, Indefinite Quantity(IDIQ) contract type with firm fixed price task orders to satisfy itsrequirements. Please comment on what type of contract provides thebest approach for this type of work, how risk should be shared by theGovernment and Contractor, and how the contract type you propose would incentivize a Contractor to perform high quality work at areasonable price.

8 If an IDIQ contract type (FAR 16 504) is selected for the procurement8. If an IDIQ contract type (FAR 16.504) is selected for the procurement,would a single award IDIQ contract or multiple award IDIQ contracts bemost appropriate for the requirement, and why?

9. What is your recommendation for length of a Phase-In period, and whatreasoning supports that recommendation?



PTAC Evaluation & ResponsePTAC Evaluation & Response

Tom, As requested, I reviewed XXX LLC's draft response to NASA RFI APASS-RFI-2014-L. The following are my comments and suggestions: The NASA Contracting Officer has done a great job with this RFI. She is soliciting inputs on all aspects of the acquisition strategy, contract types, set asides, small business participation goals, base and option periods, phase in period, etc. However, XXX LLC's draft response to the NASA RFI does NOT answer the mail. It is a generic capability statement with past performance information th t d t t b l t l l t t NASA'that does not appear to be completely relevant to NASA's requirements. XXX LLC missed an opportunity to influence NASA's acquisition strategy. Specifically, XXX LLC did NOT …

Acquisition of Commercial ItemsAcquisition of Commercial Items

12.000 Scope of part.

This part prescribes policies and procedures unique to the acquisition of commercial items. It implements the Federal Government’s preference for the acquisition of commercial items contained in 41 U.S.C. 1906, 1907, and 3307 and 10 U.S.C. 2375-2377 by establishing acquisition policies more closely resembling those of the commercial marketplace and encouraging the acquisition of commercial items and components .

Recommend Commercial T&Cs if the Solicitation will or should be issued under FAR Part 12



Tips for Responding to a Tips for Responding to a Sources Sought NoticeSources Sought Notice

Sources Sought Response TipsSources Sought Response Tips

• Answer all questions & follow instructions

• Do not provide extraneous information

• Fully understand the Agency’s requirement & demonstrateFully understand the Agency s requirement & demonstrate experience applicable to the requirement

• Validate all capability claims by listing relevant contracts and experience

• Discuss all items that will be evaluated & demonstrate performance methodologies

• If you are combining past performance contracts, provide a breakout depicting the relative size, scope and complexity of each contract

• If applicable, list required certifications & security clearances

• If teaming, show the valued added, how you will manage subcontractors & discuss prior supplier management experience



Sources Sought Response TipsSources Sought Response Tips

• Provide employee details – Numbers, Capabilities & Office Locations

• Demonstrate capacity or potential approach to achieving capacity to conduct the government’s requirement by indicating the amount of

i t f iliti i l d d th i f th t ff (b l bequipment or facilities involved and the size of the staff (by labor category) needed

• In addition to demonstrating technical capability, show the holistic capability of your company

• Management practices• Financial stability• Quality processes

Source: Derrick Hu, Deputy Director, NAWCWD Office of Small Business Programs, “Tips for Responding to a Sources Sought Announcement”NAVAIR Public Release 2012-299

• Subcontractor & Supplier management• If applicable, how you will mitigate transition risk

• Avoid making unsubstantiated claims, generalizations, opinions, non-specific statements & providing non-tailored boilerplate responses

Common Response MistakesCommon Response Mistakes

• Parroting back requirements without providing evidence of capability

• Providing generic capability statements

• Failing to demonstrate your ability to manage, as a prime contractor,Failing to demonstrate your ability to manage, as a prime contractor, the types and magnitude of tasking listed in the PWS

• Failing to demonstrate your technical ability or potential approach to achieving technical ability to perform and comply with the limitations on subcontracting

• Failing to demonstrate your capacity or potential approach to achieving capacity to conduct the requirements of the PWS

Source: Tom Winans, Deputy for Small Business, Naval Surface Warfare Center, Port Hueneme Division Small Business Office, “Strategies for Response to Sources Sought Notices” dated 6/10/2013

• Failing to provide relevant past performance information that is similar in size, scope and complexity to the agency’s requirements

• Asserting the company has the required skill, experience or ability without presenting any substantiating detail or evidence



How to Demonstrate CapabilitiesHow to Demonstrate Capabilities

Government technical reviewers …

“will disregard all claims of capability, knowledge andexperience.

They want to see evidence of capability.

Demonstrating a fact requires the offeror to presentsubstantiating detail, not just assert the required skill,experience or ability.”


How to Demonstrate CapabilitiesHow to Demonstrate Capabilities

“Our company has 37 years’ experience carrying out a variety of rigorous testing programs for the U.S. Navy and has always satisfied its customers’requirements”.

Compare the following two statements:

“Our company has 37 years’ experience carrying out surface warfare systems testing at the platform, system, and equipment level. This includes radar systems integration, system design and test agent services for USS NEVERSAILED-NEVERWILL class; prime contractor for NEVERSAILEDNEVERWILL EMI testing; directing the live-fire portions of Project XYZ; and modernization test program development and execution for AN/WSN-XYZ installations”.

• In the first case, the company is merely asserting they can do the work


• In the second case, they are demonstrating they have done the same and/or similar work

• The first is a statement of opinion

• The second provides substantiating information!



How to Influence the Acquisition StrategyHow to Influence the Acquisition StrategyWhen making a recommendation to “improve” an agency’s acquisition strategy:

• Provide a clear, concise & compelling reason why it is in the government’s best interest to adopt your recommendation

As applicable show how your recommendation• As applicable, show how your recommendation

• Solves a specific agency problem• Improves the acquisition outcome• Reduces performance risk• Increases competition and/or removes restrictive specifications• Reduces monitoring, oversight & transaction costs• More closely mirrors commercial T&Cs and best practices• Provides greater performance incentive(s) • Reduces barriers for small business participation• Reduces the government’s workload• Better allocates risk between industry and the agency• Promotes the attainment of a “Best Value” Solution

• Remember to keep the focus on the customer’s needs & “hot” buttons

How to How to Gain a Competitive AdvantageGain a Competitive Advantage

• Provide “Customer Focused” recommendations that also give your company a competitive advantage

• Include requirements, such as higher quality standards or industry certifications, that d th b f titreduce the number of competitors

• If you cannot compete on price, suggest a “Best Value Trade-Off” Acquisition Strategy

• Recommend evaluation factors that coincide with your company’s strengths & “Differentiators”

• If you have no government contracting experience, recommend the agency allow commercial and subcontracting past performance

• Recommend specifications that you can meet but others might have a challenge meeting

• “Sleep with the Enemy”p y

• Ask other small businesses to respond to Sources Sought Notices to increase the changes the agency will make the solicitation a small business set-aside

• Develop strategic teaming arrangements with other small businesses to fill capability gaps and enhance your competitiveness



Are Agencies Asking for Too Much Info?Are Agencies Asking for Too Much Info?

YES.YES. Per FAR 10.001(b), agencies should not request potential sources to submit more than the minimum pinformation necessary.

NO.NO. Agencies are reluctant to set-aside contract opportunities if they cannot obtain sufficient information and evidence that there are two or more capable small businesses that can perform the requirements of a planned contractcontract.

Are Agencies Asking for Too Much Info?Are Agencies Asking for Too Much Info?

https://www.youtube.com/watch?v=VTU-rcl6tgYMay 12, 2011 Source: opengovtv



Sources Sought Response SummarySources Sought Response Summary

No Fluff No ParrotingCustomer Focus

No Puffery Relevant PP InfoGood References

Sources Sought Response SummarySources Sought Response Summary

Attention to Detail Understand RequirementsFollow Instructions

Ask QuestionsDemonstrate CapabilitiesSubstantiate Claims



Look Before You Leap!Look Before You Leap!

“Contracting with the Federal Government is like dancing with a gorilla. With very few exceptions, g g y p ,

you dance the way the gorilla wants you to dance and if you don’t do what the gorilla wants, things

can get ugly very quickly.”

Source: Federal Government Construction Contracts, 2d Edition

PTAC Counselors can provide Free Dance LessonsPTAC Counselors can provide Free Dance Lessons

How to Find a PTACHow to Find a PTAC

http://www.aptac-us.org/

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