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Beyond Myth Busting:Effectively Communicating with Industry

Breakout Session #C02

Name: Mark E. Hogenmiller

Chief Operating Officer, Integrity Management Consulting

Date: July 30, 2012

Time: 4:00 PM – 5:15 PM

Purpose & Objectives

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Purpose: To highlight practical applications and lessons learned regarding vendor communications

Learning Objectives:

Suggest tools and techniques to effectively apply Myth Busting concepts

Improve vendor communications

Achieve better engagement results – for Vendors and the Government

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Background Information Exchanges Communication Ground Rules Best Practices and Lessons Learned

Written Communications Industry Conferences and One-on-One

Meetings

Outline

Background

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Office of Federal Procurement Policy (OFPP) memo 2 FEB 2011: “Myth Busting: Addressing Misconceptions to Improve Communication with Industry during the Acquisition Process”

Identified and refuted common misconceptions about vendor engagements; directed agencies to:

Develop vendor communication plans Reduce unnecessary barriers Publicize communication opportunities Prioritize engagement opportunities on higher risk,

complex, and minimally competitive procurements

Information Exchanges

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Information Exchanges - Intent

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Improve the understanding of Government requirements and industry capabilities

Allow potential offerors to judge if they can satisfy the Government’s requirements

Enhances the Government’s ability to Obtain quality supplies and services Reasonable prices Increase efficiency in solicitation preparation, proposal

evaluation, negotiation, and contract award

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Enables vendors to better meet end-user requirements A basis of effective acquisition planning & market research Helpful for procurements of all types and dollar values This presentation explores beyond the FAR and OFPP

memo, from acquisition planning to solicitation release: When to use exchanges Proper amount of information required Best practices Benefits to government and industry

Information Exchanges – Outcomes

Communication Ground Rules

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Communication Ground Rules

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Prior to solicitation release Program manager, users, or contracting officer – may

meet with potential offerors and Exchange general information and conduct market

research related to an acquisition. No requirement that meetings include all possible offerors No prohibition on one-on-one meetings Information that could directly affect proposal preparation must be shared with all potential offerors

Most Frequent Responses

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“ ……….“ “We are in procurement planning at this time, so a meeting

on the follow-on strategy would not be appropriate.” “The acquisition strategy is still being worked. Thanks for

your interest.” “Unfortunately, I do not have any information at this time.”

Why are information exchanges limited?

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Educate program manager, users, contracting, and small business advocates

What are exchanges? Prior to solicitation After solicitation After receipt of proposals

What can be discussed? What are the limits? Who to notify?

Negotiations: Occur after establishment of the competitive range. They can be used in competitive and sole source acquisitions, and may include bargaining, which can apply to price, schedule, technical requirements, type of contract, or other proposed contract terms. Discussions: Negotiations that take place only in a competitive acquisition, only after establishment of the competitive range, and include bargaining. They should be tailored to each offeror’s proposal and must be conducted with each offeror in the competitive range. Conclusion: Exercising common sense and sound judgment will ensure that we maintain the integrity of the procurement process and avoid creating an unfair competitive advantage by the improper disclosure of:

Proprietary information, or Source selection information, or Advance procurement planning.

Contact: I.M Contracting Officer Acquisition Outreach Phone: 202-555-1212 Email: i.m.co@us.gov Address: 1601 Pennsylvania Ave Washington, DC 22012

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GUIDE

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COMMUNICATIONS

US Government Agency

Overcoming Communication Challenges

Best Practice – Desktop Trifold

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Negotiations: Occur after establishment of the competitive range. They can be used in competitive and sole source acquisitions, and may include bargaining, which can apply to price, schedule, technical requirements, type of contract, or other proposed contract terms. Discussions: Negotiations that take place only in a competitive acquisition, only after establishment of the competitive range, and include bargaining. They should be tailored to each offeror’s proposal and must be conducted with each offeror in the competitive range. Conclusion: Exercising common sense and sound judgment will ensure that we maintain the integrity of the procurement process and avoid creating an unfair competitive advantage by the improper disclosure of:

Proprietary information, or Source selection information, or Advance procurement planning.

Contact: I.M Contracting Officer Acquisition Outreach Phone: 202-555-1212 Email: i.m.co@us.gov Address: 1601 Pennsylvania Ave Washington, DC 22012

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US Government Agency

Introduction: The 1997 revision of Federal Acquisition Regulation (FAR) Part 15, Contracting by Negotiation, made some significant changes to the federal acquisition process, including the concept of exchanges and communications. This guide provides an overview of the scope and limits on exchanges with industry, primarily for program offices and others involved in acquisitions. Exchanges: The umbrella term used to encompass communications, clarifications, negotiations, discussions, and bargaining with offerors and prospective offerors during the acquisition cycle. Each term has a unique definition and role in specific phases of the acquisition. General information about an acquisition may be disclosed at any time. While program officials may meet with industry to discuss the market or a company’s products and services, they are also encouraged to consult Procurement early in the acquisition process. And if potential contract terms or conditions, such as proposal instructions or evaluation criteria, will be discussed, a contracting officer (CO) must be present. Discussions that could be perceived as negotiations or contractual commitments should never occur in such meetings. The purpose of exchanging information is to improve the mutual understanding of Government requirements and industry capabilities. Procurement can serve as a business advisor to facilitate exchanges with industry. Early exchanges, coupled with Procurement’s expertise, can improve the quality of proposals and source selections and enhance the Government’s ability to obtain quality supplies and services at reasonable prices. Exchanges prior to issuance of a solicitation: Agencies are encouraged to promote early exchanges of information about future acquisitions. These exchanges may occur among all interested parties, including potential users, Government acquisition personnel, program

officials, procurement personnel, and others involved in the conduct or outcome of the acquisition. Types of information that may be disclosed include:

Acquisition strategy Proposed contract type Proposed contract terms and conditions Acquisition planning schedules Feasibility of performance requirements Suitability of evaluation methodology Approach for assessing past performance

Techniques to promote productive exchanges of information include:

Market research One-on-one meetings Requests for Information (RFI) Requests for Comments (RFC) Draft Requests for Proposals (RFP) Pre-solicitation / pre-proposal conferences Site visits

Limits on exchanges: Any exchange of information, at any stage of the acquisition, must be consistent with the Procurement Integrity Act and the Freedom of Information Act. Government personnel must ensure that an unfair competitive advantage is not created for one offeror over another, and must avoid actions that:

Favor one offeror over another, Reveal an offeror’s technical solution, Reveal an offeror’s price without that

offeror’s permission, Reveal the names of individuals providing

past performance information about an offeror, or

Knowingly furnish source selection information in violation of procurement integrity provisions.

Exchanges after release of solicitation until receipt of proposals: Once a solicitation is issued, the CO becomes the focal point for all exchanges. It is NCSD policy that the CO must be present whenever it is expected that issues such as solicitation terms and conditions, evaluation criteria, or contract requirements will be discussed with potential offerors. The CO will amend the solicitation to document any changes in Government requirements or terms and conditions. Exchanges with offerors after receipt of proposals: Can take many forms, including clarifications, communications, negotiations, bargaining, and discussions. While program officials and technical evaluation team members have a role in exchanges after receipt of proposals and during negotiations and discussions, the CO always controls exchanges after receipt of proposals. Clarifications: Very limited exchanges that may occur when award without discussions is contemplated. They may be used to resolve minor or clerical errors and to respond to adverse past performance information, but may not be used to make significant changes to proposals. Communications: Occur after receipt of proposals and end with the establishment of the competitive range. Communications are limited to:

Offerors whose inclusion in the competitive range is uncertain, or

Offerors whose past performance information is the determining factor precluding inclusion in the competitive range, or

Offerors who have not had an opportunity to respond to past performance information.

Best Practices and Lessons Learned

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Announcements of Long-Range Acquisitions Estimates / Synopses of

Proposed Contracts

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Strategy – Use the procurement forecast to generate interest and publicize those opportunities available to small businesses. Most Common Answers:

“……….” “We are in procurement planning at this time, so a meeting on

the follow-on strategy would not be appropriate.” “The acquisition strategy is still being worked. Thanks for your

interest. “Unfortunately, I do not have any information at this time.”

Best Practices: Announcements of Long-Range Acquisitions Estimates

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Ensure the points of contact on the forecast are aware of the content and timing of the release of the document so they can address any inquiries

• Agency trained POC• POC is not the Program Manager/End User• Inquiries are screened and acknowledged• Vendors required to provide or have on file a

capabilities outline• Inquiries are forwarded to appropriate PM or End

User

Pre- Solicitation Notices

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The XXXX Agency intends to issue a solicitation on or about April 5, 2012, for professional and technical support services to meet a variety of requirements for the National Defense University in Washington, DC. The required services fall under the following NAICS codes: 541512, 541611, 541612, 541712 and 928110. The Government intends to award three or more fixed price, indefinite delivery, indefinite quantity contracts. A partial set-aside for small business concerns applies to this acquisition. Services will be acquired under individual orders placed under the resultant contracts.

Best Practices:Synopses of Proposed Contracts and Requests for

Information

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Provide general information on requirement: Performance Work Statements (PWS) are nice but

not necessary Save for Draft PWS/Request For Comments

Skills required/personnel requirements Security Location(s) Capability Experience

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Contract vehicles/teaming arrangements Size and business type Other relevant information

Cost accounting system Unique Payment Terms Bound the size and length of the response – if you

give it they will take it More than a marketing pitch/Less than a proposal

Best Practices:Synopses of Proposed Contracts and Requests for

Information

Advisory Multi-Step Process (FAR 15.202)

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STEP ONE: Publish a pre-solicitation notice General description of the scope or purpose Identify the information that must be submitted and the

criteria that will be used in making the initial evaluation May be limited to a statement of qualifications and other

appropriate information Provide sufficient information to permit a potential offeror to

make an informed decision about whether to participate

Advisory Multi-Step Process (FAR 15.202)

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STEP TWO: Evaluate all responses Advise each respondent in writing either

Invited to propose ORUnlikely to be a viable competitor. All respondents may participate in the resultant

acquisition.

Why release a Draft PWS/ Request for Comments?

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Receive input on alternative solutions Obtain input on Acceptable Quality Levels for

performance-based acquisitions Solicit effective industry performance incentives Identify commercial practices Identify applicable industry standards and federal, state,

and local standards Resolve confusing language in the PWS

Why release a Draft Solicitation?

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Identify and eliminate unnecessary provisions and clauses that slip in due to boiler plate

Obtain feedback on potential cost drivers, e.g. restrictive data rights, excess CDRLs and reports

Obtain input on evaluation criteria Reduce multiple rounds of questions and amendments Contra Proferetem: “against he who proffers” – the Gov’t

is responsible for ambiguity in the solicitation (and subsequent requests for equitable adjustments)

Industry/Pre-solicitation/Pre-proposal Conferences

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4/16/2012 11:48 AM “2012 Small Business Outreach and Industry Brief will take

place on 08 May 2012 at the University Campus from 0800 to 1200.”

4/17/2012 8:28 AM “Registration Closed - Due to overwhelming response, the

registration period for the 2012 Small Business Outreach and Industry Brief is closed. Fire Marshall restrictions limit attendance, and capacity has been reached. Thank you for your support and participation.”

Best Practice:Industry Conferences - Government

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Leverage electronic communications and virtual mediums More participation Fewer security, access, escort, facility needs Cost effective Can allow for ongoing dialogues

Don’t wait for perfect information; industry knows things change; identify sources of potential change:

“If sequestration occurs, then …”

Best Practice:Industry Conferences - Industry

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Ask your questions in during the conference; don’t wait for a one-on-one meeting or hallway exchange

Your question may spark an important discussion Any significant one-on-one exchange WILL be

made public anyway For critical questions, follow up the conference with a

formal written request Even if answered in the conference Provides a record you can refer to later

Best Practice:One-on-One Meetings

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Pre-Industry Day? Post-Industry Day? Set ground rules up front Keep general notes of the discussion Consolidate and post only information that could directly

affect proposal preparation

Communication in a Virtual Medium:

GSA Industry Community

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GSA Industry Communities

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Website is used to collaborate with GSA’s industry partners and gain sufficient input and feedback Virtual Industry Day Presentation Other Presentations Questions from Industry Answers from Government Discussions/Blogs Posts

May not be an effective feedback mechanism?

GSA Industry One-on-One Meetings

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Established a series of questions for Industry to respond to in writing along with ground rules for interaction, etc.

Solicited Industry responses to these questions in “white paper” form White papers treated as proprietary White paper required in order to participate in a one-

on-one session

GSA Industry One-on-One Meetings

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The intent of this exercise is to: Gather meaningful input from Industry Provide a mechanism for all Industry partners to

contribute to the creation of the vehicle Keep the burden low for all companies while still

allowing all to have meaningful input into the process

GSA Industry One-on-One Meetings

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What this exercise is NOT: An avenue for marketing efforts

Intent is to talk about issues affecting the procurement contract, not go through company capabilities

Participation in this effort is voluntary Strongly desires input from Industry, Participation has ZERO bearing on companies

being awarded a contract

Conclusion

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Level of communication and transparency is increasing Provide guidance and education to all levels, in when and

how to communicate Review which tools you’ll use during Acquisition Planning

Establish a communication plan Early and frequent feedback will result in:

Better requirements Clearer solicitations Fewer amendments Fewer REAs Better performance Easier contract admin