is your rfp d.o.a.?
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IS YOUR RFP D.O.A.?. IPC CONFERENCE FOR THE PCB INDUSTRY: CRITICAL ISSUES FOR THE MILITARY MARKET Washington, D.C. – 12.08.2011 Steve DeWaters – Presenter. The Quest for the Request. RFQ = Request For Quote (Typically Commercial) - PowerPoint PPT PresentationTRANSCRIPT
IS YOUR RFP D.O.A.?
IPC CONFERENCE FOR THE PCB INDUSTRY: CRITICAL ISSUES FOR THE MILITARY MARKET
Washington, D.C. – 12.08.2011Steve DeWaters – Presenter
The Quest for the Request
RF’X’ RFQ = Request For Quote (Typically Commercial)
RFI = Request For Information (also ‘Pre-Solicitation’)…examples:
◦ US Army…inviting industry to provide information on potential topics for the XYZ Program. Industry responses to the RFI will be assessed and may assist in identifying potential future actions
◦ The Defense Advanced Research Projects Agency (DARPA) has released a Request for Information (RFI) to solicit ideas and information to support its 100 Year Starship Study™ program.
REA = Request For Equitable Adjustments◦ Modifications of the contract that were not
done formally or properly…
RFP = Request For Proposal◦ Also ‘Solicitation’
Example
Space Fence
(Space Surveillance Command)
Space Fence Configuration Nine sites located on a path across
the southern United States from Georgia to California along the 33rd parallel and consists of three (3) transmitter and six (6) receiver sites.
The main transmitting station located at Lake Kickapoo, Texas, has an average power output of 766,800 watts feeding a two-mile long antenna array. It provides the primary source of illumination.
Two other transmitting stationsare located at Jordan Lake, Alabama, and Gila River, Arizona. These stations, with average power output of approximately 40,000 watts each, improve low altitude illumination at the sides of the main beam.
It reaches straight up 10,000 miles into space with fan-shaped beams which are fixed in position, not scanned
A data processing center is located in Dahlgren, Va. Its observations are fed to NORAD Space Control Center.
~ 2 Miles
Lake Kickapoo, Texas Transmitter
Interferometer arrays of 12 antennas, each composed of 96 dipoles over a wire ground screen. With a 1700' baseline, the interferometer can measure the angle of arrival of the incoming radar signal to within .01 degree accuracy...every 10 seconds
RF’X’ Example: Space Fence
• Up to 2 Phased array radars
– S-Band, range & angles• Globally dispersed
– Increased revisit rates– Coverage gaps closed
• Detection capability– ≈ 10 cm objects– LEO: 250-3,000 km alt.– MEO: 22,000 km alt.
• Tracking capability for IOD
(IOD = Incoming Object Identification)
Space Fence
• Space Fence $1.5B - $2.5B• Pre-Solicitation (RFI) was Mar 11
• RFP release by Apr 12• Contract Award Aug 12
AFSSS
Source: Col. Brian Fredericksson, AF, 11/09/2011, HANSCOM AFB – Briefing 11.09.2011
1.5 yrs for the design phase
contract
1. From a 12 inch minimum to a 2 inch minimum
2. S -band ranges from 2 to 4 GHz, crossing the conventional boundary between UHF and SHF at 3.0 GHz.
The Buy SideAn enormous amount of coordination, time, planning,
strategy, manpower and MONEY goes into the preparation of Defense RFP’s
◦ $10-20M to develop a single RFP is not uncommon
There are specific processes/procedures that the defense contractor needs to follow…these must never be confused with what is ordinarily acceptable in commercial practices
There are usually many different RFP’s ‘in play’ at any given time….’multiplexing the tasks…& the ‘$’
OPPORTUNITY EVALUATION(From one of the Armed Services, Agencies, Primes, or FMS)
DEFINE SUBSYSTEM ARCHITECTURE
PARTITION OF SUBSYSTEM COMPONENTS
SUBCONTRACT STRATEGY / PLAN & STAFFING
SUBCONTRACT STRATEGY / PLAN & STAFFING
PARTITION OF SUBSYSTEM COMPONENTS
DEFINE SUBSYSTEM ARCHITECTURE
CUSTOMER DRAFT RFP
PRELIMINARY TASK DESCRIPTIONS & WBS
PRELIMINARY SPECIFICATION & SOW
PRELIMINARY SOURCE IDENTIFICATION
INITIAL SUBCONTRACT RFP
COMMENTS FROM SUBS
EVALUATE POTENTIAL SUBS
SECOND DRAFT TO SUBSA
The Subcontract Process…Source: John Kabanek, former BAE Systems Sub-Contracts Mgr., NCMA Instructor, Penumbra Team Mate
DOWN SELECT
A
NEGOTIATION AND SOURCE SELECTION
RISK MANAGEMENT
ONSITE TEAM
SUBCONTRACT MANAGEMENT
APPROACH
CONTROL PROCESS
SUBCONTRACT START UP
CHANGE MANAGEMENT
STATUS AND COST
SUBCONTRACT MANAGEMENT
FINAL BLT REVIEW EPP
CUSTOMER CONTRACT
AWARDBID
SUBMITTALCUSTOMER
EVALUATIONS
NEGOTIATE / AWARD
SUBCONTRACT
CLOSE OUT
DOWN SELECT
The Sell SideDiscover the Opportunities
Synchronize with the REALITY of the Opportunities◦ Understand the RFP Process (and the PACE)
Demonstrate Your Readiness (CONOPS)
Position for Pre-Award…Receive the Award
Create a Sustainment Plan
The Sell Side (Cont’d.) It costs the defense contractor a lot of ‘$’ to prepare their RFP’s….
◦ What does it cost you to prepare a good Proposal? Are you tracking that activity? (You should be)
Did you know that you can ask for those pre-award costs to be folded into the award?
This is not a general rule, but for complex RFP’s, it can be quantified and negotiated…accounting systems need to be robust
Cost-Reimbursement Contracts (aka: Cost-Plus Contracts)FAR Sub-part 16.301-3: Limitations
(a) A cost-reimbursement contract may be used only when—(1) The contractor’s accounting system is adequate for determining costs
applicable to the contract; and
(2) Appropriate Government surveillance during performance will provide reasonable assurance that efficient methods and effective cost controls are used.
(b) The use of cost-reimbursement contracts is prohibited for the acquisition of commercial items
Guaranteed D.O.A. Pit FallsNo Cover Letter
◦ Or one that is poorly written or disconnected from the RFP body
Cut-’n-Paste Proposals
Convoluted language or reinventions
Incomplete or Late submittals (Unqualified)
Commercial Responses
Not Questioning the ‘Question-able’
The Defense Contractor is not ‘Lilly White’, either…(Examples):
• Incomplete Documentation• Expired FAR Clauses• Unrealistic Turn-Around Windows• Unavailability or Detachment • 1st Tier Customer Audits
1. NEVER BE AFRAID TO CONTACT, CHALLENGE THE RFP AUTHORS….THEY ARE LOOKING TO YOU – THE SUPPLIER – TO NOTICE, NOTIFY, AND PERFECT
2. THAT DEMONSTRATES A PROBLEM-SOLVING MENTALITY: • THE 1ST STEP IN TRUST
Good Proposal Elements
TYPICAL PACKAGE…
STATEMENT OF WORK MANAGEMENT/SUPPLIER
PERFORMANCE VOLUME TECHNICAL VOLUME COST VOLUME VARIOUS ATTACHMENTS FTP’D OR OTHER DATA
Check ListCover Letter ‘Mapped’ ContentsNo cut-’n’-pasteUse a convincing
narrativeEmphasize value
propositionsUse logic/rationale…
◦ Explain your methods◦ Not just your willingness
Check List…For assuring that requirements will be assigned and for future use as a compliancy check on the Proposal…
The Proposal should be accurately and cleanly ‘mapped’ from the Cover Letter to the ‘Volumes’ and to any supporting documentation…
THIS IS YOUR INTERNAL TOOL TO
ORGANIZE YOUR APPROACH
1. Offeror shall provide a record of past performance of efforts that directly relate to the type of effort(s) requested by this RFP. The record shall consist of the name of the company or government agency customer that the effort was performed for and the year(s) of such performance. In addition, offeror is to provide a listing of all efforts performed within the last three (3) years for our company and/or any divisions thereof. Such listing to identify the specific customer location, point of contact by name and phone number and value of the order(s). If the listing is extensive a listing of the five (5) highest valued subcontracts is acceptable.
2. If offeror requires Government Furnished Equipment (GFE) and/or Contractor Furnished
Equipment (CFE), submit a list of GFE/CFE with the proposal and identify need dates. If offeror has an approved property control system, provide written evidence of the approval. If not, provide a copy of your company procedure for control of property.
3. Your proposal price shall separately identify all Special Tooling and/or Special Test
Equipment to be acquired for use in the performance of any subcontract resulting from the RFP. Provide unit prices, quantities, total price for each special tool/special test equipment item proposed, and identify need dates. Cost details, including vendor quotes or in-house engineering estimates to be provided. A description of each and its intended use/purpose must also be provided.
4. The following DFAR clause applies to any resulting Subcontract 252.225-7014 – Preference
of Domestic Specialty metals (APR 2003) Alternate 1 (APR 2003) Applicable if the work to be furnished hereunder contained specialty metals.
5. You are advised that an award may be made without any discussion of your proposal;
therefore, your initial submission should present your best price and technical position. 6. Report separately any royalty expense included as a cost element in your offer if the amount
of the royalty expense exceeds $250. 7. Offers must be in U.S. currency (stated in “then year” dollars respective to the year of
execution, unless otherwise identified). 8. __________________________ reserves the right to request a Best and Final Offer (BAFO). 9. The award will be made to the offeror that in _______________________________
judgment submits the best overall offer. 10. If the offeror will require the use of U.S. Government facilities either paid or rent-free,
provide alternative offers; one that includes the cost of rent for use of government facilities, another premised on rent-free use of the facilities.
11. _____________________________________ requests the offeror’s most favorable prompt
payment discount terms. Preferable (add number) % 10 Net 30 Days.
Cover LetterIt Is Essential
◦Allows Good ‘1st impressions’
◦Ties to the rigorous document
◦Maps to the supporting docs
Helps the CRT◦Saves Time◦Shortens the Decision
Process◦Reflects Well on the
Supplier
1. Data Rights Assertion
B. PROPOSAL INSTRUCTIONS
1. Two submittals are required; a technical/schedule volume and a business/cost & price volume. The technical/schedule volume to be in accordance with the Statement of Work (SOW) and Specification(s) and include a detailed schedule of events. The business volume to include your cost/price details is requested for the supplied and services as outlined in Enclosure 1 and all other provisions of this RFP. For each line item described in Enclosure 1, provide the unit price/cost, extended price, and associated lead time. Non-recurring engineering (NRE), if any, must be specifically identified in your proposal and proposed as a separate item(s) (broken down by cost element, e.g. Design, Qualification Test, Documentation, Preliminary Design Review (PDR), Critical design Review (CDR), etc.).
2. With any resulting order, _________________________________ and critical
Subcontractors will conduct conference calls as required to facilitate information exchanges and provide status reporting on all major efforts. Participants will include the Subcontracts Procurement Representative and the respective program/engineering representatives. The Subcontractor shall prepare and maintain a program schedule and monthly reports that depict program milestones, activities, events and the sequence that the work is performed in. The Subcontractor shall report progress towards the accomplishment of scheduled tasks, highlight significant events, and identify unresolved problems and actions. The reporting requirement stated herein may be supplemented by on site meetings at Subcontractors facility, and will be scheduled as required, at mutually agreed dates and times. These meetings will be scheduled to support specific technical and/or business discussions. Your proposal must breakout any costs associated with the identified meetings, including assumptions made in generating the proposed costs.
3. The type of proposal required in response to the RFP is (FFP or Cost Type). 4. Your proposal is due at the above address no later than _______________. Late offers may
be considered non-responsive. Earlier submittal of the technical/schedule volume is acceptable.
5. Your proposal must remain valid through _______________________. The anticipated date
of award is __________________. 6. Offeror must provide sufficient support for its proposal pricing to allow adequate
determination of price reasonableness within __ weeks after submittal of the business volume. A basis of estimate (BOE) and a bill of material (BOM) shall be part of this input.
7. Answer completely each element and items of information requested and explain and
justify any omissions. Any and all exceptions to the RFP must be clearly stated in your response, otherwise full compliance will be assumed and that no exceptions shall exist.
In Response, Reply To:
RFP # _________ Date: ______________
Subcontractor Name:
Subcontractor Address:
Attn: __________
Subject: _________________________
Reference: _________________________
Enclosures: Add Deliverables and Pricing & Cost Submittal Instructions Add Applicable General Terms & Conditions Add Applicable Prime Contract Special Provisions (H Clauses) Add Statement of Work Add Specification(s) and/or Drawings Gentlemen:
____________________________, solicits your support as a potential Subcontract source for ______________ Program.
Three (3) copies each of the proposal should be submitted to:
(COMPANY NAME) (COMPANY ADDRESS) ATTENTION: (NAME) A. DOCUMENTS INCORPORATED BUT NOT ATTACHED The following documents are incorporated herein and although not attached, apply to this RFP and any resultant subcontract. Where the words “(COMPANY NAME)” appear in this document or in any forms and terms and conditions, substitute (COMPANY NAME). Copies of these documents may be obtained by access to ______________________________, website at the following URL address: _________________________ or may be obtained from the __________________________________ Procurement representative.
1. _______________________________, Quality Assurance Codes. The following code(s) apply: _______
2. Packaging Codes: The following code applies: ________ 3. Supplier Shipping Instructions 4. Cost Accounting Standards Certification
Convincing Narrative & Explanations 2.2.2.2 Lean Expectations and Requirements
◦ XYZ Supplier shall have documented processes and metrics in place which, at a minimum, address the use of a capability assessment tool that monitors engineering and manufacturing best practices. The best practices include, but are not limited to, design for manufacturability/assembly/service (DFMA), and performance and process modeling and simulation, value stream mapping & analysis, work balancing, standard processes, visual controls, point-of-use staging, feeder/supply chain lines, employee empowerment & teaming, and defect/variation reduction.
POOR ANSWER:◦ XYZ, upon request, will provide objective evidence of striving to meet the above
expectations.
BETTER ANSWER:◦ XYZ believes in open communications and establishing strong working relationships to
establish program progress and to achieve the requirements of both the contractor and XYZ in an efficient and cost effective manner.
Specific evidence – examples of DFMA charts, value stream maps, and analytical data - supporting documented processes and metrics are found in Attachment B under corresponding section 2.2.2.2. Additional documentation also can be found there – under sub-section heading 2.2.2.2 (a) – providing evidence of a comprehensive employee training program for 5S Lean Manufacturing Principles.
The FAR/DFARS Federal Acquisition Regulations and Defense Federal
Acquisition Regulations System ◦ FAR is a set of rules within DFARS
The FAR contains hundreds of contract clauses implementing federal statutes and regulations. ◦ Those laws and regulations, as well as the clauses themselves,
require a prime contractor to incorporate—or “flow down”—certain clauses into subcontracts related to the prime contracts.
The primary factors in determining whether a clause must be included in a particular agreement are:◦ (a) whether the agreement is a “subcontract”◦ and (b) whether the flow-down is mandatory.
An Example of a ‘Trip Wire’…
52.223.13 Certification of Toxic Chemical Release Reporting is no longer an applicable FAR clause.
That is, it has been removed from the FAR. It is a fairly old clause (AUG 2003) and should not be seen on current solicitations.
Should check any other current RFPs received as it should not be part of terms and conditions unless the prime contractor has it in their contract as part of a follow-on effort. Even so, they should not have accepted it as a requirement. Many times the prime contractors do not update their documents (terms and conditions, applications for data base additions, etc) on a regular basis and instead do a "block update" every year or 2 years.
Contract Types The term "no-bid contract" is a popular phrase for what is
officially known as a "sole source contract“
A “cost-plus contract”, also termed a Cost Reimbursement Contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit
The term "fixed price" (as in: firm fixed-price contract) is a phrase used to mean that no bargaining is allowed over the price of a good or, less commonly, a service◦ Beware ‘REBATES’:
de riguer purchasing strategy…◦ Rebates tied to contract pricing is potentially hurtful to the supplier◦ Discount programs are better…tied either to past behavior or forward
accumulations Independent of time
SummaryRFP’s Are Expensive, Serious Efforts
◦CRT’s Are Looking for Like-Minded Suppliers
Contract Review Teams Look for Thoroughness, Ease-Of-Consideration, Value ◦CRT’s Do Not Have Time to Waste
Proposal Development Requires Thought/Care◦There Are Real ‘D.O.A. Pit Falls’ to Overcome
There Are Three Basic Contract Types
An Award is Only the Beginning…