Alternate Source Selection Approaches

1
Alternate Source Selection Approaches

• For
• Competitive Procurements lt25M

2
Agenda

• Welcome
• Safety message
• Ground Rules
• History of Midrange
• Definitions
• Processes
• Pricing
• Proposal Instructions and Evaluation
• Questions and Answers

3
Safety and Administrative
Restrooms can be found in the hallway outside
this room as well as upstairs. Vending machines
are here on the first floor by the back entrance.
Fire exits are out the front entrance and side
exit doors. In the event of a fire, you must
move at least 75 feet away from the building.
4
Ground Rules

• Questions will be addressed at the end of the
  presentation. Any question unable to be answered
  at this time will be answered at a later date.
• The slides being presented today will be placed
  on the NASA Procurement website for your use.
• This discussion is generic and not for any
  particular procurement. Questions on specific
  procurements must be submitted to the CO pursuant
  to designated procedures.

5
History

• 1993 NASA Established a Midrange Test
  Program.
• 1997 Test Portion Expired, All special Midrange
  procedures had now been incorporated into FAR
  Parts 12, 14, 15.
• 2004 NASA issued guidance on the use of
  alternative source selection approaches and
  rating methods currently available within the
  flexibilities of the FAR for negotiated
  acquisitions less than 50M.

6
History

• 2005 JSC MidRange Replacement Team was
  chartered to assist in implementing the guidance
  for the Alternate Source Selection Process.
• 2006 JSC MidRange Replacement Redesign Team was
  chartered to further define and provide more
  guidance in its use and implementation.

7
Definitions

• Best value as defined in FAR 2.101
• The expected outcome of an acquisition that in
  the Governments estimation provides the greatest
  overall benefit in response to the requirement
• Trade-off is defined in FAR 15.101-1 as
• It is in the best interest of the Government to
  consider award to
• 1) other than the highest technically ranked
  offeror
• 2) other than the lowest priced offeror.

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Source Selection Processes

• Methods of Source Selection
• gt25M, traditionally uses SEB process
• Trade off between all non-cost related factors
  and cost/price
• Uses Mission Suitability
• gt100K to lt25M, JSC plans to use Alternate
  Source Selection process
• Streamlines process
• Uses Best value

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Alternate Source SelectionProcesses

• Negotiated Acquisitions gt100K and lt25M
• Use the Source Selection approach that will
  result in selection of the Offeror providing the
  best value to the Government based on the
  requirements of the contract and the contract
  type.
• Lowest Priced Technically Acceptable
• Lowest Priced Technically Acceptable with Past
  Performance
• Use of Trade-Off Analysis

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Alternate Source Selection Processes

• 1) Lowest Priced Technically Acceptable
• Similar to sealed bid approach
• Clarifications can be requested from any or all
  Offerors prior to source selection to ensure
  offerors understand the requirements and to
  determine acceptability.
• Trade-offs are not permitted.
• No additional credit is given for exceeding
  acceptability.
• Past performance is not evaluated.
• ALTHOUGH NOT TYPICALLY USED AT JSC, THIS METHOD
  CAN BE USED WHEN REQUIREMENTS ARE WELL DEFINED
  AND TECHNICAL AND PERFORMANCE RISKS ARE MINIMAL

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Alternate Source Selection Processes

• Lowest Priced Technically Acceptable with Past
  Performance considered
• Same as the Lowest Priced Technically
  Acceptable except that Offerors past
  performance is also a discriminator.
• Clarifications can be held with any or all
  offerors prior to source selection to ensure
  offerors understand the requirements and to
  determine acceptability.
• Past Performance is evaluated for acceptability
• USED WHEN REQUIREMENTS ARE WELL DEFINED
  AND TECHNICAL AND PERFORMANCE RISKS ARE MINIMAL.
  HAVING AN ACCEPTABLE PERFORMANCE RECORD IS
  SUFFICIENT.

12
Alternate Source Selection Processes

• 3) Use of trade-off analysis
• Uses a combination of technical acceptability and
  trade-off of Qualitative value characteristics
  (VC).
• The baseline (minimum requirements) are defined
  in the solicitation (e.g.Spec/SOW, safety
  health, quality)
• Qualitative value characteristics (VC) beyond the
  baseline will serve as the discriminators among
  offers.
• Trade-off Analysis allows award to other than the
  lowest priced Offeror or other than the highest
  technically ranked Offeror.
• USED WHEN PERFORMANCE UNDER QUALITATIVE
  VALUE CHARACTERISTICS ARE IMPORTANT ENOUGH TO DO
  A TRADE-OFF ANALYSIS. TRADE-OFF ANALYSIS MORE
  THAN LIKELY, WILL BE THE MOST TYPICAL BEST VALUE
  ANALYSIS USED AT JSC.

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Section L Instructions for Trade-Off Proposals

• Section L addresses what items are considered
  Baseline and which are Qualitative Value
  Characteristics with instructions on how to
  propose.
• Technical Acceptability
• Baseline Requirements
• Scope of Work, Task Order, Etc.
• Others such as Safety and Health Requirements
  Plan, Small Business Subcontracting Plan,
  Phase-In Plan, Quality Plan etc.
• Past performance
• Cost/Pricing
• Qualitative Value Characteristics are
• Any items that may be considered as value added
  to the contract

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Quality Assurance Requirements

• Quality Assurance Requirements are Dependent on
  the Specific Procurement
• Quality Requirements Specified in SOW and Data
  Requirement Descriptions (DRD)
• Typical Flight Related Requirements
• Quality Assurance Plan
• Process and Product Specifications
• Capabilities to Comply Verified
• Data from Past Customers
• Data from Government Agencies
• Physical Site Visit
• Other Procurements e.g. Admin Services,
  Facilities, Non-Flight, hazardous operations,
  etc.
• May have varying degrees of quality requirements
• Information provided will be verified

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Pricing Information Requirements

• Ensure the cost is fair and reasonable
• Proposal must be suitable for evaluation
• This means the proposal should provide the
  following
• Accounting for all resources necessary to
  complete requirements of the contract
• Traceability to the technical/management
  proposals
• Explanation of pricing and estimating techniques
  explained
• Disclosure of basis of all projections, rates,
  ratios to facilitate the Governments
  understanding and validation
• A narrative that explains all subjective elements
  of cost projections
• Submission of all required cost and compensation
  RFP templates

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Pricing Information Requirements

• Concurrent cost proposal to DCAA (if applicable)
• RFP may provide standard labor categories (SLC)
• Facilitates the Governments evaluation of labor
  and groups a broad range of categories into a
  manageable number of classifications
• Offerors may include additional/different
  categories, but they must map to the SLCs
  provided
• RFP may provide an Independent Government
  Estimate (IGE)
• IGE is the Governments estimate of the magnitude
  of the work by labor resources/skill mix
• Each offerors should develop their own estimate
  that supports their unique proposed management
  and technical approach

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Section M Evaluation Factorsfor Trade-Off
Proposals

• Section M addresses how the Government will
  evaluate the Baseline and Qualitative Value
  Characteristics proposed.
• Typical Section M Evaluation Factors include
• Technical Acceptability (e.g. Spec/SOW, safety
  health, quality)
• Meets or Does Not Meet Requirements
• Past Performance
• Rated Excellent, Very Good, Good, Fair or Poor
• A neutral rating will be given to offerors with
  no past performance
• Cost/Pricing
• Perform cost realism analysis (if the competition
  does not establish price reasonableness) and a
  price analysis
• Qualitative Value Characteristics (VC)
• These areas will be rated as significant
  value-added, minimal value-added or no
  value-added

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Observations from a Customers Perspective

• Propose to the RFP
• Dont let incumbency, being on site, or rumors
  drive your proposal
• Read carefully the RFP and respond to the RFP
  rather than what you think the Government might
  want
• Pay attention to Sections L and M
• Tell you what the Government expects in your
  proposal and how the Government will evaluate
  your proposal
• For the Value Characteristics (VC)
• If you want credit for an item as a VC, be sure
  to address it as a VC rather than just mention it
  in other parts of the proposal
• For Pricing and Cost proposal
• Follow the templates
• Let you know what the Government expects in the
  cost data
• Facilitate consistent evaluation
• Deviations to the Independent Government Estimate
  or Standard Labor Categories
• First make sure the RFP permits you to make
  deviations
• If it does, be sure to provide the rationale for
  those changes (i.e. the benefit to the Government
  from those changes)

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Observations from a Customers Perspective

• Take advantage of opportunities to ask questions
  (for example, 1-on-1 sessions, website, and email
  forums)
• Procurement teams will tell you if they cant
  answer the question
• If you dont ask, you have already assumed it
  cant be answered
• Conduct a final spell check, grammar check, and
  format check before you submit your proposal
• Proposal materials make your first impression to
  the Government make it your best
• Assess your firm's capability in light of all the
  RFP requirements
• Proposal preparation is time-consuming and
  consumes resources
• Carefully determine whether or not you are
  capable of fully meeting the Government s
  requirements before you take on the expense of a
  proposal
• Continue to monitor the procurement websites for
  opportunities
• Propose on those for which you truly feel you are
  qualified
• The more valid proposals the Government receives,
  the better value the Government receives

20
Questions

• Questions??????
• Comments or suggestions may be submitted
  electronically to Carol Devany at
  carol.devany-1_at_nasa.gov