COMMERCIAL ACTIVITIES

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COMMERCIAL ACTIVITIES
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Terminal Learning Objective
Action Conditions Standard
Identify the policy, review and inventory
process, personnel responsibilities, cost
studies, Performance Work Statements (PWS), Most
Efficient Organization (MEO), and the advantages
and disadvantages of the Commercial Activities
Program. Given Summary Sheet, DA Pam 5-20 and
AR 5-20. IAW AR 5-20 and DA Pam 5-20.
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Commercial Activity Goals

• Rely on private sector
• Implement national policy
• Cost effective CA by competition

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Commercial Activity Criteria

• A function must meet the following tests
• Operated and managed by a federal agency.
• Obtainable from private sector.
• Separable from other functions, suitable for
  performance in house or by contract.
• Needed, recurring service.

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Commercial Activity Policy

• The Army will not perform a CA unless
• Review and approval by the ASA (IE).
• Cost comparison shows Armys performance less
  costly than a contractor.
• Government products or services are
  preferred.

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Review Exceptions

• Sensitive weapons.
• Law enforcement.
• Confinement.

• MTOE positions.
• RDTE.
• Mandatory/ exempted.

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Responsibilities

• ASA (IE) and ASA (MRA).
• ACSIM.
• Commanders.
• DRM.
• CPO.
• Contract ADMIN personnel.

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Commercial Activity Inventory

• Lists all commercial activities.
• Updated annually.
• Includes description of each commercial activity.

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Commercial Activity Tools

• Commercial Activities Inventory.
• Army Commercial Activities Management Information
  System (ACAMIS).
• Commercial Activities Proposed Action Summary
  (CPAS).

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Commercial Activity Reviews

• Existing in-house.
• Expansions.
• Existing contracts.
• New requirements.
• Direct Conversions or Streamlined Cost Studies.

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Performance Work Statement (PWS)

• Function of work.
• Location of work.
• Quantity of work.
• Quality and timeliness of work.
• Quality Surveillance Assurance Plan (QSAP).

PWS/QSAP
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Management Plan

• Most Efficient Organization (MEO).
• In-house cost estimate (IHCE).
• Technical Performance Plan (TPP).

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Most Efficient Organization

• Optimum in-house.
• Must match PWS.
• Becomes Governments bid (IHCE).
• Must be able to implement.

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Cost Study Process
MEO Implemented
Independent Review
Congress
Management Plan
MEO Development
Appeal
CPAS
Cost Comparison
OR
PWS/QSAP
Review
Present Organization
Bids
Solicitation
Contractors
Award Contract
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Commercial Activity Advantages

• Endstrength vs. contractor.
• Dollar savings.
• Efficiency.

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Commercial Activity Disadvantages

• Savings at HQDA.
• OMA appropriation.
• Extras lost.
• Morale.

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Commercial Activity Results

• Cost studies
• Position studies
• More cost effective
• In-house
• Contractor
• Positions - government to contractor

• 468
• 25,000
• 247 (51)
• 221 (49)
• 14,900

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Terminal Learning Objective
Action Conditions Standard
Identify the policy, review and inventory
process, personnel responsibilities, cost
studies, Performance Work Statements (PWS), Most
Efficient Organization (MEO), and the advantages
and disadvantages of the Commercial Activities
Program. Given AR 5-20. IAW AR 5-20.