Welcome to the Johnson Space Center JSC Pricing Forum

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Welcome to the Johnson Space Center (JSC)
Pricing Forum
Tuesday, June 28, 2005 Gilruth Center, Alamo
Ballroom 130 330 PM
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Safety and Administrative Information
Restrooms can be found in the hallway outside
this ballroom Fire exits are the front entrance
and side exit doors. In the event of a fire, you
must move at least 75ft. away from the building
Fire Exits
Fire Exit
Fire Exit
Restrooms
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General Information

• Office of Procurement
• External Web Page
• URL http//procurement.jsc.nasa.gov/procpub.htm

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Agenda

• The Past Where we were.
• The Present Where we are.
• SEB pricing process
• Cost realism probable cost adjustments
• Offerors proposals Observations
• Technical Resources
• Efficiencies
• Independent Government Estimate (IGE)
• The Future Where we want to be.

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SEB Process
NASA Business Forecast Published
Acquisition Plan and SOW
Industry Day
ASM
SYNOPSIS




Respond to DRFP Questions


Draft RFP Released
Preproposal Conference
RFP Released





Competitive Range Determination


Receive Proposals

Respond to RFP Questions



Discussions with Remaining Offerors







Request Final Proposal Revisions
Receive FPRs




Award Contract












Debriefings



















Pre Award Debriefings
Post Award Debriefings

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The Past

• It was a Less Complicated World
• Generally had single Contract Type Proposals
• LOE was common
• Fewer SEBs
• Technical Resources were included in the Cost
  Volume
• Did not facilitate technical analysis very well
• Supporting BOE narrative not traceable to
  resource templates
• Weaknesses were not disclosed to offerors

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The Present

• Complexity
• Multiple Contracting Methods in each Solicitation
• High Volume of SEBs/SECs and competitors
• Shift from LOE contracting to Performance Base
  Contracting requiring more analysis
• Need for speed, accuracy, and consistent
  treatment
• Weaknesses disclosed to offerors in the
  competitive range
• Discriminators imperative in very competitive
  procurements

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Benefits of Standardization

• Speed
• Government starts evaluation on day one
• Offerors know what to expect
• Offerors have more time to work on substance
  (objective requirements)
• Accuracy
• Standardized templates designed to only receive
  pertinent data
• Electronic Pricing Models designed to produce
  accurate, error-free, estimates
• Offerors can estimate cost early to perform
  internal assessments and to be prepared for final
  proposal submittal
• Consistency
• Standardization leads to an apples to apples cost
  comparison
• Ensures no offeror omits cost that may be
  required
• Allows for standard presentation to the Source
  Selection Authority

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The SEB Pricing Process

• What is done with your cost/price proposal once
  it is submitted
• Request DCAA (Defense Contract Audit Agency)
  audit
• Read cost proposal
• Validate each offerors pricing model
• Integrate and automate Team pricing models
• Test model for errors to ensure consistency with
  approach
• Make probable cost adjustments
• Develop pricing presentation charts for SSA

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Cost Realism Probable Cost Adjustments

• Errors and reconciliations
• Labor
• Incumbent labor rates/salary assumptions, if
  proposed
• Escalation
• Productive factor
• Uncompensated/compensated overtime
• DOL wage determination compliance
• DCAA input
• Non-technical in-house analysis (indirect cost,
  DOL WD fringe compliance, etc)
• Technical analysis (FTE quantity, skill mix,
  non-labor resources)

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Offerors Proposals Observations

• Offerors not bidding to the solicitation
• Ensure that their proposal reconciles to the new
  solicitation, not the current work
• Dont make assumptions if differences exist, ask
  questions
• Proposals with omissions
• All offerors may consider working to a checklist
• If the Government is requiring information you
  may not be able to provide, ask questions

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Offerors Proposals Observations

• Proposals with references to old or other Agency
  solicitations
• Lack of adequate supporting rationale in
  narrative form
• The basis of any estimate needs to be explained.
  Be specific and objective
• Lack of reconciliation between different areas of
  the proposal
• The technical and management approach should be
  consistent with each other and the staffing and
  respective cost should reflect those approaches

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Prior to Technical Part 2
Management and Technical Volumes
Cost/Price Volume

• Detailed Technical resources captured in the
  Cost Volume
• Technical and Mgmt Volumes only addressed
  resources at the total contract level
• Difficult to determine if the costs reflected
  the technical and management approaches?
• Difficult to make accurate probable adjustments
  to cost for inconsistencies?

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Technical Part 2
Management and Technical Approach w/ Resource Data

Cost/Price Volume

• Detailed Technical Resources included in the
  technical volume
• Resources drill down to specific areas of the
  SOW and only relevant selection critical
  information is requested
• Technical Evaluator checks if resources reflect
  technical and management approaches
• Strengths and Weaknesses tied to resources
• Costs reflect the impact of Tech/Mgmt Approach

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Proposed Efficiencies

• Goal Efficiencies proposed are realistic,
  adequately supported and reconcilable to the
  technical management approach.
• Ensure that the benefit is explained with words
  and numbers
• Explain the timeframe of the efficiencys benefit

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Staffing Profile
This gap needs to be explained in terms of
efficiencies or cost savings.
Efficiencies should explain this gap.
Basis of estimate should explain this gap.
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Independent Government Estimate (IGE)
At JSC, the IGE for FTE (Full Time Equivalents)
and the skill mix is published in the
solicitation generally at one WBS level higher
than where you are required to estimate.
SEB Internal
RFP
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Independent Government Estimate (IGE)

• IGE represents the governments best estimate to
  satisfy the requirements
• Does not necessarily represent current or
  historical experience.
• The IGE does not represent a ceiling or a
  baseline. If you believe an area of the WBS
  requires additional FTE over the IGE, dont
  simply lower other areas to compensate.
• IGE FTE and skill mix represent total estimated
  personnel (direct indirect) to satisfy
  requirements.
• Even if the IGE is proposed, all proposed FTE
  levels should adequately support the proposed
  technical management approach.

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The Future

• Questions?
• Are we asking for information in the most
  effective manner?
• Are we using the best practices?
• Answers
• Internal Pricing Team sweep of templates and
  practices
• Benchmarking JSC practices
• Government-Contractor working group discussion
  Forums

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Results of Pricing Sweep

• Standardized the names of all JSC Pricing
  Templates
• Discovered we had multiple names for some
  Templates
• Standardized the format of workbooks
• Technical Workbook and the Pricing Workbooks
• IDIQ and LOE workbooks will use same set of
  templates
• Templates will still be customized to reflect the
  individual specifications of each contract.

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Benchmarking

• Currently collecting and analyzing the templates
  and instructions of other NASA Centers
• Looking for things similar and different and
  investigating why other centers have adopted
  their processes
• Looking for things we do that others do not do
  and ensuring that additional JSC requirements add
  value

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Future Dialogue Forums

• Audience Contract Personnel involved in
  preparing competitive proposals
• Format Smaller working group to discuss specific
  pricing issues
• Topics
• Technical Resources Part 2
• Pricing Templates
• Evaluation Methodology and Cost Adjustments

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Contact Information

• Deputy Manager Procurement Policy Systems
  Office
• José Garcia
• 281-483-4117
• Price Analyst
• David Wilson
• 281-483-3385