The Contract Holder Model Darlene Coen / Al Marshall

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The Contract Holder ModelDarlene Coen / Al
Marshall
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SEWP Contract Structure

• 5 Groups of contracts
• 4 Competed Groups (Groups A through D)
• 38 Companies gt referred to as Contract Holders
• 21 Small businesses 7 SDVOSBs 6 8(a)s
• Limit of 5.6 Billion per contract
• Grouping is based on initial contract competition
  and selection
• Set-aside vs. Full and Open
• Minimum mandatory requirements
• 1 Non-Competed 8(a) set-aside contracts (Group E)
• 4 Contract Holders
• Limit of 3.5 to 4 Million per contract

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Groups A through D

• Group A OEMs and Value Added Resellers (VARs)
• 9 Contract Holders
• Award based on Full and Open Competition focused
  on computer systems
• Group B SDVOSB VARs
• 6 Contract Holders
• Award based on Service Disabled Veteran Owned
  Small Business Set-aside focused on Supporting
  Technology
• Group C Small Business VARs
• 12 Contract Holders
• Award based on Small Business Set-aside focused
  on Supporting Technology
• Group D VARs
• 15 Contract Holders
• Award based on Full and Open Competition focused
  on Supporting Technology

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Significance of Groups - Scope

• Scope of Groups A through D
• Products and product based services
• No Group level scope distinction. From the SEWP
  SOW
• Regardless of the mandatory items defined,
  proposed and provided by each class, the scope of
  all contracts is the same
• Scope of Group E
• Fixed price support services along with product
  solutions
• Limited by contract ceiling

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Significance of GroupsFair Opportunity

• Groups A through D FAR Part 16.505(b)
• Fair Opportunity MUST BE provided within at
  least one Group
• Opportunity may be provided across multiple
  Groups
• Group E non-competed 8(a) set-asides
• Fair Opportunity requirements do not apply
• However it is strongly recommended that all
  Group E Contract Holders be solicited

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Fair Opportunity and Notices

• All contract holders in at least one Group must
  be solicited unless
• Order is under 3000
• Follow-on to a previous process in which Fair
  Opportunity was performed and documented
• National Emergency
• Conflict of Interest
• Posting Notices to all Four Groups
• Brand Name Requirement - Justification and
  Approval document must be posted to all 4 Groups
• New FAR Requirement Notice must be posted for
  any order over 25,000
• SEWP Quote Request tool will provide mechanism to
  post notices

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Small Businesses and Fair Opportunity

• Groups B and C can be solicited separately or
  together
• If inadequate responses, re-open RFQ to other
  Groups
• Groups A D can be included in solicitation
• Selection is based on Best Value as determined by
  the issuing agency
• Recommendation for small business usage Utilize
  business size preferences in selection process
• Group E
• Particularly for support service requirements
• Check the current cap limit

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Quote Request Tool

• The SEWP Quote Request tool is the only
  recommended method to apply Fair Opportunity and
  solicit quotes.

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SEWP Fee

• Fee is based on a non-profit budget
• Goal is to provide the best service at the lowest
  possible cost
• Average fee charged is 0.37 (due to cap)

Surcharge Surcharge
Order Amount Fee Percentage
0 to 2,222,222 0.45
2,222,222 and up Capped at 10,000
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Fee Payment and Quotes

• Fee paid by the Contract Holder after Issuing
  Agency pays the invoice for the order including
  the fee
• Fee may be quoted as separate line item or
  included in product price
• Issuing Agency is responsible for listing the fee
  as quoted
• If fee quoted separately, order should list the
  fee separately
• If fee is not listed on the quote (and the quote
  is a SEWP quote) do not include the fee as a
  separate line item
• During order processing, Government Customer and
  Contract Holder are notified of the calculated
  fee associated with the order
• Contract Holder cannot increase invoice if fee
  was mis-quoted

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Applying the Fee

• Fee is applied on the original order and any
  subsequent mods including exercising options
• For example an order with a base total of 2
  Million and 2 options of 1 Million each will
  have a fee of 18,000 inclusive of all options
• If an order is canceled, no fee is applied
• If the amount of an order is decreased, the fee
  is also decreased
• If the amount of an order is increased, the fee
  is increased

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We Work For You

• Pre-Award Assistance
• Scope Questions
• Assist with Getting RFQ Responses
• CLIN Management
• Orders
• Data Validation
• Delivery Tracking
• Post Award Issues
• Assistance with Issue Resolution
• Debriefs
• Protests
• Program Performance

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Pricing Catalog Price

• SEWP catalog price is fair and reasonable based
  on
• Contract Discount Structure
• Based on a set discount off of list price
• Discount structure tied to initial competition
  and award
• Pricing compared against other contract prices
• Other contracts do not necessarily compare
  against other contracts
• If pricing is not comparable, justification is
  required
• I cannot sell at that price is not a
  justification
• The warranty is for 2 years instead of 1 is a
  justification
• Price must be lower than Contract Holders GSA
  price (lower fee)
• Variable priced CLINs not allowed

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Pricing Quoted Price

• SEWP catalog price is the highest price allowed
• Discounting at the quote level is highly
  encouraged
• On average, quoted price is 27 lower than
  catalog price
• Strong internal competition
• Consolidation of requirements maximizes discounts
• Prices may be negotiated
• If the quoted price seems questionable, notify
  help_at_sewp.nasa.gov
• Most common question I found the same item on
  the web for half the price
• Upon further research most common reasons for
  price discrepancies
• Technically comparing apples to oranges (or
  Apples to PCs)
• Item is end of life
• The required solution requires customization

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Contract Holder Relationship Manager

• 2 Full-time staff serve as CHRMs (Contract Holder
  Relationship Managers)
• Liaison between SEWP Program Management Office
  (PMO), Contract Holders (CH), Industry, and Users
• Daily if not hourly interactions between CHRMs
  and Contract Holders
• Annual one-on-one meetings with each Contract
  Holder
• Discuss past issues
• Promote good communication
• Quarterly Program Manager Meetings
• Assist Government Customers with Issue Resolution
• Provides mediation, research, recommendations,
  and/or a sympathetic ear
• Objective is to provide a balanced perspective

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CHRMing Activities

• Industry Events
• Semi-annual Industry Forums
• Please encourage any company you work with who
  wants to know more about SEWP to attend one of
  these events (send email to help_at_sewp.nasa.gov)
• Sales Training
• Sales forces at all Contract Holders are required
  to be trained on SEWP Contracts
• Manufacturer Training
• Track Program Performance
• Assist in review and approval of product catalog
  updates
• Technology Refreshments (TR)
• Statement of Work and scope reviews
• Oversight of Contract Holder Only Page (CHOP)
• Web site used to provide Contract Holders with a
  suite of tools
• Manage the Contract Holder Reports

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Contract Holder Reports

• SEWP provides Contract Holders with an array
  of periodical reports
• Contract Holder is fully informed of all
  SEWP-related activities, actions, and issues in a
  timely fashion
• Agency and Contract Holder Total Usage Monthly
• Delivery Order and Quote Request Summary
  Weekly
• Pending Quote Requests Daily
• Orders With Upcoming or Overdue Delivery Times
  Daily
• Order Receipt and Order Summary Issue Report -
  Daily

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SEWP Notification Recipients
Report Customer SEWP PMO Contract Holder
Approved Manufacturer
Order Changes
RFQ/RFI
Order Quarantine
Order Processed
Delivery Date Change
Order Acknowledgement by CH
Delayed Acceptance of Order
Order Shipped
Order Overdue for Delivery
Technology Refresh
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Program Performance

• SEWP Program Office tracks the performance of
  each Contract Holder in the following categories
• Reports
• Customer Satisfaction
• Information Distribution
• Contract Adherence
• Delivery

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Program Performance Ratings

• Ratings are based on 4 levels
• Blue Excellent
• Green Very Good
• Yellow Fair
• Red Poor
• In general, multiple problems in a given area
  within a 3 month window causes a downgrade
• After a downgrade, 3 months without any issues
  results in an upgrade

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Program Performance Page
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Program Performance Categories (1 of 2)

• Reporting Category
• Timeliness
• Accuracy
• Surcharge Payments
• Customer Satisfaction
• Response to Customer Complaints
• Quality of Products and Services
• Information Distribution
• Correct Information
• Website
• Marketing Materials
• Quotes
• Follow Customer Contact Guidelines

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Program Performance Categories (1 of 2)

• Delivery Category
• Orders Delivered by Expected Delivery Date
• CH Follows SEWP Procedure for Delivery Delays
• CHOP Used to Update Order Status
• Customer Properly Notified
• Contract Adherence Category
• Quote in Accordance with SEWP Rules
• All Quoted Items on contract
• All Quoted Items included in Verification File
• Quote Submitted Through SEWP Quote Interface
• Attend Required Meetings
• Follow SEWP Delivery Order Policy
• Reporting Accuracy

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Program PerformanceWhat it Means

• Program Performance does not constitute the
  official Past Performance ratings based on FAR
  Part 42.15. Customer Satisfaction
• Annual past performance ratings may be obtained
  upon request
• Goal is to have everyone rated Excellent
• Contract Holders were awarded a contract in part
  based on evaluation of program level capabilities
• Best use of the Program Performance ratings is to
  encourage Contract Holders to resolve issues
  quickly and with minimum delay
• SEWP Program Office would rather have a satisfied
  customer than a downgraded Contract Holder

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Program PerformanceWhat a Low Rating Means

• If a rating is Good or Poor
• Check the category
• Reporting and Information Distribution are
  unlikely to affect an individual order
  performance as these tend to be Program level
  issues
• Contract Adherence issues may be Customer related
  typically related to Quoting or Program level
  issues
• Delivery and Customer Satisfaction may indicate
  an issue with past order fulfillment
• Contact the SEWP Program Office, especially for
  Poor Ratings in Delivery and/or Customer
  Satisfaction
• Program Office can provide more details on the
  meaning of the rating
• Next version of the Quote tool will flag Contract
  Holders with low program performance ratings

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Program PerformanceWhat You Can Do to Help

• Send information about any Contract Holder issues
  to help_at_sewp.nasa.gov
• CC help_at_sewp.nasa.gov on any correspondence with
  Contract Holder concerning an issue
• If we do not know about the problem, we cannot
  assist
• If we do not know about a problem, we cannot
  prevent it from happening again

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