The Contract Holder ModelDarlene Coen / Al MarshallThe Contract Holder ModelDarlene Coen / Al Marshall

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SEWP Contract StructureSEWP Contract Structure

5 Groups of contracts

4 Competed Groups (Groups A through D):•38 Companies => referred to as Contract Holders•21 Small businesses; 7 SDVOSB’s; 6 8(a)s•Limit of $5.6 Billion per contract• Grouping is based on initial contract competition and selection

- Set-aside vs. Full and Open- Minimum mandatory requirements

1 Non-Competed 8(a) set-aside contracts (Group E)•4 Contract Holders•Limit of $3.5 to $4 Million per contract

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Groups A through DGroups A through D

Group A: OEMs and Value Added Resellers (VARs)• 9 Contract Holders•Award based on Full and Open Competition focused on computer systems

Group B: SDVOSB VARs• 6 Contract Holders•Award based on Service Disabled Veteran Owned Small Business Set-aside focused on

Supporting Technology Group C: Small Business VARs

• 12 Contract Holders•Award based on Small Business Set-aside focused on Supporting Technology

Group D: VARs• 15 Contract Holders•Award based on Full and Open Competition focused on Supporting Technology

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Significance of Groups - ScopeSignificance of Groups - Scope

Scope of Groups A through D• Products and product based services• No Group level scope distinction. From the SEWP SOW:“Regardless of the mandatory items defined, proposed and provided by each

class, the scope of all contracts is the same”

Scope of Group E• Fixed price support services along with product solutions• Limited by contract ceiling

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Significance of GroupsFair Opportunity

Significance of GroupsFair Opportunity

Groups A through D – FAR Part 16.505(b)• Fair Opportunity MUST BE provided within at least one Group• Opportunity may be provided across multiple Groups

Group E – non-competed 8(a) set-asides• Fair Opportunity requirements do not apply• However it is strongly recommended that all Group E Contract Holders be

solicited

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Fair Opportunity and NoticesFair Opportunity and Notices

All contract holders in at least one Group must be solicited unless:•Order is under $3000•Follow-on to a previous process in which Fair Opportunity was performed and

documented•National Emergency•Conflict of Interest

Posting Notices to all Four Groups•Brand Name Requirement - Justification and Approval document must be posted to

all 4 Groups•New FAR Requirement – Notice must be posted for any order over $25,000

- SEWP Quote Request tool will provide mechanism to post notices

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Small Businesses and Fair OpportunitySmall Businesses and Fair Opportunity

Groups B and C can be solicited separately or together• If inadequate responses, re-open RFQ to other Groups

Groups A & D can be included in solicitation:•Selection is based on Best Value as determined by the issuing agency•Recommendation for small business usage: Utilize business size preferences in

selection process

Group E•Particularly for support service requirements•Check the current cap limit

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Quote Request ToolQuote Request Tool

The SEWP Quote Request tool is the only recommended method to apply Fair Opportunity and solicit quotes.

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SEWP FeeSEWP Fee

Fee is based on a non-profit budget•Goal is to provide the best service at the lowest possible cost•Average fee charged is 0.37% (due to cap)

Surcharge

Order Amount Fee Percentage

$0 to $2,222,222 0.45%

$ 2,222,222 and up Capped at $10,000

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Fee: Payment and QuotesFee: Payment and Quotes

Fee paid by the Contract Holder after Issuing Agency pays the invoice for the order including the fee

Fee may be quoted as separate line item or included in product price

Issuing Agency is responsible for listing the fee as quoted• If fee quoted separately, order should list the fee separately• If fee is not listed on the quote (and the quote is a SEWP quote) do not include the fee

as a separate line item

During order processing, Government Customer and Contract Holder are notified of the calculated fee associated with the order

Contract Holder cannot increase invoice if fee was mis-quoted

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Applying the FeeApplying the Fee

Fee is applied on the original order and any subsequent mods including exercising options•For example an order with a base total of $2 Million and 2 options of $1 Million each

will have a fee of $18,000 inclusive of all options

If an order is canceled, no fee is applied

If the amount of an order is decreased, the fee is also decreased

If the amount of an order is increased, the fee is increased

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We Work For YouWe Work For You

Pre-Award Assistance•Scope Questions•Assist with Getting RFQ Responses•CLIN Management

Orders•Data Validation•Delivery Tracking

Post Award Issues•Assistance with Issue Resolution•Debriefs •Protests•Program Performance

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Pricing – Catalog PricePricing – Catalog Price

SEWP catalog price is fair and reasonable based on:

Contract Discount Structure•Based on a set discount off of list price•Discount structure tied to initial competition and award

Pricing compared against other contract prices•Other contracts do not necessarily compare against other contracts• If pricing is not comparable, justification is required

- “I cannot sell at that price” is not a justification- “The warranty is for 2 years instead of 1” is a justification

Price must be lower than Contract Holder’s GSA price (lower fee)

Variable priced CLINs not allowed

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Pricing – Quoted PricePricing – Quoted Price

SEWP catalog price is the highest price allowed•Discounting at the quote level is highly encouraged

On average, quoted price is 27% lower than catalog price•Strong internal competition•Consolidation of requirements maximizes discounts•Prices may be negotiated

If the quoted price seems questionable, notify help@sewp.nasa.gov•Most common question: I found the same item on the web for half the price•Upon further research most common reasons for price discrepancies:

- Technically comparing apples to oranges (or Apples to PCs)- Item is end of life- The required solution requires customization

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Contract Holder Relationship ManagerContract Holder Relationship Manager

2 Full-time staff serve as CHRMs (Contract Holder Relationship Managers)

Liaison between SEWP Program Management Office (PMO), Contract Holders (CH), Industry, and Users•Daily if not hourly interactions between CHRMs and Contract Holders•Annual one-on-one meetings with each Contract Holder

- Discuss past issues- Promote good communication

•Quarterly Program Manager Meetings

Assist Government Customers with Issue Resolution•Provides mediation, research, recommendations, and/or a sympathetic ear•Objective is to provide a balanced perspective

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CHRMing ActivitiesCHRMing Activities

Industry Events•Semi-annual Industry Forums

- Please encourage any company you work with who wants to know more about SEWP to attend one of these events (send email to help@sewp.nasa.gov)

•Sales Training- Sales forces at all Contract Holders are required to be trained on SEWP Contracts

•Manufacturer TrainingTrack Program PerformanceAssist in review and approval of product catalog updates:

•Technology Refreshments (TR)•Statement of Work and scope reviews

Oversight of Contract Holder Only Page (CHOP)•Web site used to provide Contract Holders with a suite of tools

Manage the Contract Holder Reports

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Contract Holder ReportsContract Holder Reports

SEWP provides Contract Holders with an array of periodical reports Contract Holder is fully informed of all SEWP-related activities,

actions, and issues in a timely fashion

Agency and Contract Holder Total Usage – Monthly Delivery Order and Quote Request Summary – Weekly Pending Quote Requests – Daily Orders With Upcoming or Overdue Delivery Times – Daily Order Receipt and Order Summary Issue Report - Daily

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SEWP Notification RecipientsSEWP Notification Recipients

Report Customer SEWP PMO

Contract Holder

Approved Manufacturer

Order Changes

RFQ/RFI

Order Quarantine

Order Processed

Delivery Date Change

Order Acknowledgement by CH

Delayed Acceptance of Order

Order Shipped

Order Overdue for Delivery

Technology Refresh

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Program PerformanceProgram Performance

SEWP Program Office tracks the performance of each Contract Holder in the following categories:

Reports

Customer Satisfaction

Information Distribution

Contract Adherence

Delivery

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Program Performance RatingsProgram Performance Ratings

Ratings are based on 4 levels•Blue = Excellent•Green = Very Good•Yellow = Fair•Red = Poor

In general, multiple problems in a given area within a 3 month window causes a downgrade

After a downgrade, 3 months without any issues results in an upgrade

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Program Performance PageProgram Performance Page

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Program Performance Categories (1 of 2)Program Performance Categories (1 of 2)

Reporting Category•Timeliness•Accuracy•Surcharge Payments

Customer Satisfaction•Response to Customer Complaints•Quality of Products and Services

Information Distribution•Correct Information

- Website- Marketing Materials- Quotes

•Follow Customer Contact Guidelines

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Program Performance Categories (1 of 2)Program Performance Categories (1 of 2)

Delivery Category•Orders Delivered by Expected Delivery Date•CH Follows SEWP Procedure for Delivery Delays

- CHOP Used to Update Order Status- Customer Properly Notified

Contract Adherence Category•Quote in Accordance with SEWP Rules

- All Quoted Items on contract- All Quoted Items included in Verification File- Quote Submitted Through SEWP Quote Interface

•Attend Required Meetings•Follow SEWP Delivery Order Policy•Reporting Accuracy

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Program PerformanceWhat it Means

Program PerformanceWhat it Means

Program Performance does not constitute the official Past Performance ratings based on FAR Part 42.15. Customer Satisfaction•Annual past performance ratings may be obtained upon request

Goal is to have everyone rated Excellent•Contract Holders were awarded a contract in part based on evaluation of program

level capabilities•Best use of the Program Performance ratings is to encourage Contract Holders to

resolve issues quickly and with minimum delay•SEWP Program Office would rather have a satisfied customer than a downgraded

Contract Holder

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Program PerformanceWhat a Low Rating Means

Program PerformanceWhat a Low Rating Means

If a rating is Good or Poor:

Check the category: •Reporting and Information Distribution are unlikely to affect an individual order

performance as these tend to be Program level issues;•Contract Adherence issues may be Customer related – typically related to Quoting or

Program level issues•Delivery and Customer Satisfaction may indicate an issue with past order fulfillment

Contact the SEWP Program Office, especially for Poor Ratings in Delivery and/or Customer Satisfaction•Program Office can provide more details on the meaning of the rating

Next version of the Quote tool will flag Contract Holders with low program performance ratings

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Program PerformanceWhat You Can Do to Help

Program PerformanceWhat You Can Do to Help

Send information about any Contract Holder issues to help@sewp.nasa.gov

CC help@sewp.nasa.gov on any correspondence with Contract Holder concerning an issue

If we do not know about the problem, we cannot assist

If we do not know about a problem, we cannot prevent it from happening again