Deep Dive into OASIS Open Season On-Ramps

Presented by:

Jeff Clayton, Principal

Leo Alvarez, CFCM, Manager

Mike Ryan, CFCM, Senior Consultant

Baker Tilly

Slide

Agenda• Category Management and Spend Under Management (SUM) • What is OASIS?• Historical Performance, Successes, and Areas for Improvement• GSA’s Contract Expansion Strategy• On-Ramping (Lateral, Vertical, & Open Season)• Proposal Evaluation Criteria • Pricing Implications • Vendor Self-Scoring• Overall Value Proposition and Bid / No-Bid Considerations• Questions

2

Slide

Category Management “Buy as One”• Office of Federal Procurement Policy (OFPP) launched

Category Management government-wide in January 2015

• Category Management takes common areas of spending, divides those into categories, and treats each category like a business, managed by a Category Manager

• Category Management Leadership Council (CMLC)

• Three primary goals:1. Increase savings2. Reduce the number of new contracts3. Increase the amount of spend that falls under Category

Management

3

Slide

Government-Wide Category Structure (Common Spend)

Total FY 2017 Spend: $307.2BGov’tCategory

1. IT ($58.3B) 2. Professional Services ($71.1B)

3. Security and Protection ($5.4B)

4. Facility & Construction($82.7B)

5. Industrial Products and Services ($11.1B)

Category Manager (CoE)

GSA GSA DHS GSA GSA

Gov’t Category

6. Office Management($2.3B)

7.Transportation & Logistics($27.8B)

8. Travel and Lodging ($1.2B)

9. Human Capital($4.4B)

10. Medical($42.9B)

Category Manager(CoE)

GSA DoD GSA OPM DoD/VA

4

Slide

Category Management (cont.)• October 2016 Proposed OMB Circular, “Implementing

Category Management for Common Goods and Services”

• Would Codify Category Management as the “principle way in which all Executive agencies must acquire common goods and services”

• Selection of “Best in Class (BIC) preferred” and “BIC mandatory” contract solutions

• As of September 2018, there are 33 government-wide BIC Solutions (e.g. GSA Schedule 70 (HW & SW), NASA SEWP, OASIS/OASIS SB, HCaTS, etc.)

5

Slide

Spend Under Management (SUM) Tiers

Tier 0Spend not aligned to CM Principals

Open Market Spend

Tier 1Agency-wide

Mandatory Solutions

Agency centric strategy

Example: Air Force

NETCENTS-2 Contract

Tier 2Multi-Agency

Solutions & Agency-wide Best-in-Class

Solutions

Cross Agency Strategy

Example: GSA Schedules

Tier 3Government-wide

Best-in-Class Solutions

Government Wide Strategy

Example:OASIS

6

Slide

What is OASIS?• Best in Class (Tier 3) Vehicle• Multidisciplinary government-wide contract for Professional Services• Geared towards highest technically qualified contractors with fair

and reasonable pricing• 2 separate contract vehicles, both created in 2014

1. OASIS Small Business (SB)2. OASIS Unrestricted (UNR)

• Supports commercial and non-commercial items• 5 year base period, one 5 year option• Supports all contract types including FFP, T&M, and Cost

Reimbursement type contracts

• Prohibits protests on orders valued at less than $10M

7

Slide

Types of Service

5b. Space and Missiles R&D

4. Scientific R&D

2. Financial / Accounting Services

5a. Aircraft Parts and Engines R&D

3. Military/Marine/Energy Engineering

6. Aircraft R&D

1. Management/Scientific/Technical Services

Pools

Financial

Engineering

Scientific

Management Consulting

Program Management

Logistics

Core Disciplines

8

Slide

NAICS Code Size Standards by Pool

01Size Standard: 15 Million

02Size Standard: 20.5 Million

03Size Standard: 38.5 Million

04Size Standard: 1000 Employees

05a 05bSize Standard: 1250 Employees

06Size Standard: 1500 Employees

541330 541380 541613 541620 541820 541850 541890

541360 541611 541614 541690 541830 541860 541910

541370 541612 541618 541810 541840 541870 541990

541330 Exception A541330 Exception B541330 Exception C

541211 541219541213 541720541214

Pool

Pool Pool Pool

Pool PoolPool

541711541712

541712 Exception B 541712 Exception ASize Standard: 1250 Employees

541712 Exception C

9

Slide

OASIS Growth

Year SB UNR Receiving Agency CAF Rate Threshold2014 4.8 M - DOD DPAP 0.10% $500 M

2015 360.7 M 275.0 M US Air Force 0.10% $500 M

2016 1.0 B 1.0 B US Army 0.10% $500 M

2017 1.7 B 1.7 B US Navy 0.10% $500 M

2018 1.9 B 2.5 B DHS 0.25% $250 M

Total 5.0 B 5.5 B CMMS 0.50% $100 M

OASIS Annual Sales Memorandum of Understanding

10

Slide

OASIS Task Orders and Sales by Pool

11

Slide

OASIS Sales by Pool: SB and Unrestricted

12

Slide

OASIS Areas For Improvement• Lack of Competition

– OIG Report (4/20/17): • OIG sampled 16 Task Orders with a total value of $1.4B• 7 of 9 competitive task orders of the OIG’s sample (valued at $312M)

received less than 3 bids from qualified contractors• OIG suggested that OASIS consider establishing a three bid minimum,

providing advance notice of bids, and further engaging the contractors• GSA agreed to take steps to improve competition

– Imbalance of task order awards within the pools• Small Business

– Shift of spend towards BIC contracts increases likelihood that small business will be locked out from competition

• Robins Air Force Base

13

On-Ramping

Slide

On Ramping: Open Season (Add, Not Replace)• Reasons for Open Season On-Ramps

– Inadequate competition at the task order level– M&A shrinks number of vendors– Customer-driven request for more focused sub-pools– SB graduation

• Process– Solicitation

• GSA publicizes notice on FedBizOpps• Solicitation specifies anticipated number of awards

– Proposals• Any eligible offeror may submit a proposal

– Award• GSA awards fixed number of awards to the top scoring contractors, regardless of

previous minimum scores• Immediately upon on-ramping, contractor is eligible to compete for task orders

15

Slide

On-Ramping: Vertical and Lateral • Vertical & Lateral

– Small Businesses that no longer meet OASIS SB size standards

– Submit a proposal and score equal to, or higher than the lowest scoring Contractor within the pool being applied for.

– Solicitations will be released Q4 FY18 and be left open through Q2 FY19. Contractor must qualify for Pool being applied for.

– Contractor growth may not be on the basis of an M&A or novation agreement.

– Must have demonstrated successful performance under OASIS SB.

– Contractors must continue performance on active task orders under they are closed out

OASIS SB

OASIS UNR

Vertical On-Ramp

1 5a 5b2 63

1 5a 5b2 63

LateralOn-Ramp

16

Slide

Focused On-Ramping (SubPool Creation)

• Solicitation may be issued for a variety of reasons, but usually to address a specific need within a pool, for example -– Creation of a SubPool for an underperforming NAICS code– Creation of a SubPool for 8(a) SBs or Joint Ventures

• Similar to vertical and lateral on-ramping in terms of requirements – Any offeror already possessing a contract in the affected Pool

will automatically be included in the newly formed SubPool(provided they have Pool Qualification Projects)

17

Slide

Anticipated OASIS On-Ramp Release Schedule

3/18 9/18 3/19 9/196/18 12/18 6/19 12/19

Unrestricted

Small B

usiness

UNR Base Period Expiration

SB Base Period Expiration

Vertical & Lateral On-Ramping (Runs through 6 months after SB Expiration)

UNR Pools 1, 3, and 4 Solicitations

Expected to be released

SB Pools 3 and 4 Solicitations Expected

to be released

SB Pools 1 Solicitation Released

UNR Pool 2 Proposals Due

SB Pool 2 On-Ramp Awarded

18

Slide

Anticipated Pool ExpansionPool Number of Contracts Expected On-Ramps

Pool 1:Management/Scientific/Technical Services 44 190Pool 2: Financial/Accounting Services 40 0Pool 3:Military/Marine/Energy Engineering 43 at least 80 (est.)*Pool 4: Scientific R&D 40 at least 60 (est.)*Pool 5a:Aircraft Parts and Engines R&D 23 0Pool 5b: Space and Missiles R&D 23 0Pool 6: Aircraft R&D 42 0Total Number of Contracts 255 330

Pool Number of Contracts Expected On-RampsPool 1:Management/Scientific/Technical Services 45 at least 55 (est.)*Pool 2: Financial/Accounting Services 25 15Pool 3:Military/Marine/Energy Engineering 42 at least 55 (est.)*Pool 4: Scientific R&D 42 estimate unavailablePool 5a:Aircraft Parts and Engines R&D 21 0Pool 5b: Space and Missiles R&D 21 0Pool 6: Aircraft R&D 38 0Total Number of Contracts 234 125* According to recent GSA Interact notice, GSA is targeting a total of 200 contractors in Pools 1 and 3.

Number of OASIS SB Contracts by Pool

Number of OASIS UNR Contracts by Pool

* According to recent GSA Interact notice, GSA is targeting a total of 500 contractors in Pools 1, 3 and 4. Pool 4 is being targeted specifically for a Pool of 100 contractors.

19

Proposal Evaluation

Slide

Basis For Award

Phase 1: Acceptability Review (Pass/Fail)– General / Administrative– DCAA Audit-Ready Accounting System– Pool Qualification– Relevant Experience– Past Performance

Phase 2: Points Scored (Max 10,000)– Relevant Experience (40%, 4,000 points)– Past Performance at (40%, 4,000 points)– Systems and Certifications (20%, 2,000 points)

Last Step: Fair and Reasonable Price (Pass / Fail)

Highest Technically Rated Offerors with a Fair and Reasonable Price

21

Slide

“Acceptable” Accounting System• DCAA audit ready

• Properly separates Direct and Indirect Costs

• Identifies Direct Costs by Contract

• Proper allocation of Indirect Costs to Final Cost Objectives

• Provide for adequate reporting, timekeeping, payment and record retention / data retrieval

• Provides for exclusion of unallowable costs per FAR 31

22

Slide

Pool Qualification• Submitted projects must be Prime Contracts awarded by

the U.S. Federal Government– Standalone contract, SA-IDIQ, MA-IDIQ, SA-BPA, MA-BPA, GSA MAS

Sch.

• 2 Projects for SB, 3 Projects for UNR

• Project NAICS code must fall under targeted pool

• Must submit the contract documents

• 3.0 Past Performance rating for each project

23

Slide

Relevant Experience: Difference Between Primary and Secondary Projects

Slide

Past Performance • Applies to Pool Qualification Projects and Primary

Projects only

• Each Pool Qualification project must have a min past performance rating of 3.0

• Additional Points can be scored for ratings > 3.5

• Source of rating by order of precedence:– 1) CPARS Report– 2) Award Fee Determination– 3) Past Performance Rating Form

25

Slide

Systems, Certifications, and Clearances (not mandatory)

• Systems– Approved Purchasing System– Current FPRA, FPRR, and/or Approved Billing Rates– Earned Value Management Systems (EVMS)– Acceptable Estimating System

• Certifications:– CMMI Maturity Level 2 Certification (or higher)– ISO 9001:2008 Certification– ISO 17025 Certification– ISO 14001:2004 Certification– AS9100 Certification

• Government Facility Clearances:– Secret– Top Secret

26

Slide

Pricing• “Fair and Reasonable” on a Pass/Fail basis• LCAT names, descriptions, and qualifications provided in

solicitation• Min & Max Direct Labor rates provided in solicitation

attachment• Indirect rates from DCAA/DCMA approved billing rates or

FPRA’s if available• Max 7% Profit (Sole-Source T&M/L-H Ceiling Rate)• Submission of certified cost or pricing data is not

required

27

Slide

OASIS Team Evaluation Process

4. Points Evaluation:Start with highest preliminary scored offers and work down

If during the evaluation an offer’s score drops below the

designated “Top X” offer’s preliminary score, the

evaluation team will stop the review and move on to the

next offer

5. Once the Top X offers have been determined,

Team will review for Fair and Reasonable

Pricing

3. Acceptability Review:Any failure will result in

removal from consideration

2. Assign preliminary score, and sort offers

highest to lowest

1. Confirm supporting documents exist for

proposal checklist and compare to offeror self

scoring worksheet

28

Slide

Points Evaluation Example• Points Evaluation begins with

Contractor A (highest preliminary score)

• If the evaluation results in a reduction of Contractor A’s points to a score below the 40th Contractor’s preliminary score, Contractor A evaluation will be halted and the proposal will move to slot 41.

• The Points Evaluation of Contractor B will commence.

1. Contractor A

2. Contractor B

3. Contractor C

4. Contractor D

5. Contractor E

41. Contractor Z

40. Contractor Y

29

Slide

Points Evaluation Example

41. Contractor A

1. Contractor B

2. Contractor C

3. Contractor D

4. Contractor E

40. Contractor Z

39. Contractor Y

• Points Evaluation begins with Contractor A (highest preliminary score)

• If the evaluation results in a reduction of Contractor A’s points to a score below the 40th Contractor’s preliminary score, Contractor A evaluation will be halted and the proposal will move to slot 41.

• The Points Evaluation of Contractor B will commence.

30

Special Considerations

Slide

Critical Challenges• Accounting System: Acceptability is driven by SF1408 criteria

– Focus on design (this is the function of a pre-award survey)– Recognize that the accounting system is more than an IT software package, it is

the manifestation of your business processes: Take special care to document those properly in the responses to 1408.

– DCAA is the key advisor/subject matter expert to the COs for accounting systems – when the pre-award 1408 review begins, help auditors understand your business and practices.

• If applicable, note existing deficiencies and corrective action plans

• Past Performance Coverage – Carefully assess your Federal contract project portfolio to determine not only if you

qualify BUT if you can garner enough points to compete– Performance ratings, Project Value, Mission Spaces, No. of Task Orders are

critical to securing the contract

• Post Award Reporting Responsibilities– Carefully assess ability to meet contract management responsibilities (prices paid/

task order data reporting, subcontracting plan reporting, etc.)

32

Slide

Final Considerations for Bid-No-Bid Decision • Consider self-scoring against current minimum

scores on targeted pool– What will revisions to requirements mean to

potential minimum scores?– What will targeted pool size mean to

potential minimum scores? • Consider developing an RFP compliance matrix

in order review alignment with acceptability criteria

• Consider category management and impact on agency spend

• Agency history: If you qualify for the contract and attain a reasonable self score but are on the fence, consider your track record with the agencies that are currently using OASIS.

• Consider resource and time constraints in preparing an offer and meeting proposal deadline

Pool # OASIS SB OASIS UNR1 5925 78252 2250 N/A3 5875 75754 6575 75505a 6625 79505b 6975 83256 5450 N/A

Base Period Minimum Scores

33

Questions

Jeff Clayton, PrincipalTel: (703) 923-8586, Jeff.Clayton@bakertilly.com

Leo Alvarez, ManagerTel: (703) 923-8625, Leo.Alvarez@bakertilly.com

Mike Ryan, Senior ConsultantTel: 703-923-8695, Michael.Ryan@bakertilly.com