Key Acquisition Initiatives for Federal Government Agencies

Joanne WoytekNASA SEWP PMApril 2014

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AgendaSEWP Overview / Highlights

Leadership and Innovation

Major Initiatives

Industry Involvement

Q and A

SEWP Solutions for Enterprise-Wide Procurement

Indefinite Delivery / Indefinite Quantity (IDIQ) Contract Vehicle for purchase of IT, Telecommunications, and AV Product Solutions and related Technologies and Services

Government-Wide Acquisition Contract (GWAC)- Authorized by Office of Management and Budget (OMB)- Available to all Federal Government Agencies

• All Federal Agencies have utilized SEWP SEWP IV ends Oct 31, 2014 SEWP V starts Nov 1, 2014

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SEWP OverviewSolutions for Enterprise Wide Procurement

38 Competed Prime Contract Holders (SEWP IV)

4,600+ Providers including Cisco, Apple, NetApp, EMC, APC, Microsoft, Oracle, etc. 2,500,000+ Unique Products & Product Based Services 25,000 Orders Processed Annually * $100K Average Order Size * $2.5 Billion / Annually

KEY ACQUISTION SUPPORT OBJECTIVES• Give agencies ability to quickly procure the latest technology

• Focus on standards, information flow, tracking, and ease of use• Provide a wide range of hardware and software solutions

• Embrace innovative procurement processes for easier acquisition

“PRICE AND CUSTOMER SERVICE”cited as the major reasons customers use SEWP

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What Sets SEWP Apart… CUSTOMER SERVICE: Pre-Order Assistance, Order Processing, Post-

Order Support, and issue resolution help reduce the burden on the acquisition workforce

LOW PRICES: Contracted discount structure plus Fair Opportunity competition provides Agencies major savings

LOW FEE: SEWP Fee is 0.45%, capped at $10,000

ROBUST ONLINE TOOLS: Intuitively built for customers

NEW PRODUCT AVAILABILITY: Items based on customer requests

SPEED WITH QUALITY: Everything is Handled with Care… in One Business Day

FREE TRAINING: Request On-Site training, attend live WebEx trainings, or watch our helpful 20 minute online training video

SMALL BUSINESS USAGE: Nearly 50% of the business in SEWP is directed to Small Business Contracts5

What can be procured through SEWP? Computer Hardware

• Tablets, Laptops, Desktops, Servers, Supercomputers• Accessories

Networking and Communications• Network Appliances: Routers, Modems, etc.• Telecommunication Devices

Security Hardware• Control and Authentication Devices• Computer Anti-Theft Hardware• Surveillance Systems

Supporting Hardware• Scanners, Printers, Copiers, Shredders • Associated Supplies

Specialized Hardware• Computer Room Monitoring

Storage Hardware• Backup and Recovery• Storage Accessories

AV/Conferencing• AV Equipment and Accessories• TVs, Display Monitors, Projectors and Screens

Software and Virtualization• Commercial software packages, SaaS• Cloud Computing and Virtual Storage

Services Fully In Scope• Maintenance / Warranty / Help desk support• Installation of in-scope Products• Site Planning; e.g. determining required products• Product Based Training• Product Based Engineering Services

Services Limited In ScopeSubmit SOW for scope review for these services:• Software development• On-site operational labor• Consulting (unless part of in scope services)• Staff Augmentation

If uncertain:• Stop• Send SOW (Statement of Work), BOM (Bill of Materials), and/or Requirements Statement to help@sewp.nasa.gov • SEWP will review and get back with any scope issues

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“Leadership is the capacity to translate vision into reality.” - Warren G. Bennis

NASA SEWP Program has always been more than a set of contracts – it is viewed as an innovative experiment in IT acquisition

One of the 4 Acquisition objectives

embrace innovative procurement transactions and processes

3 Godfathers of SEWP•Set the objectives, goals and frameworks the Program continues to strive to meet

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“The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and

dreams.”— W. Arthur Porter

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Understanding the difference between administering a contract and managing an acquisition program

Bringing together disparate parts•Technical, procurement, policy•Government and Private Industry

Willingness to experiment

Hands-off upper management•Started as a non-entity / under the radar•Self-contained financially•Mutual trust and respect must be earned and maintained

Keys to SEWP’s Innovation Part I

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Accept responsibility for failures and move on

Staff: dedication to mission; willingness to listen, observe and recommend•Mission is to provide the best customer service and the best contract program possible

No mandatory customers

Managed as if the Program is a Small Business not a Government Program

Understand what drives the IT private sector

Keys to SEWP’s Innovation Part II

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Dilbert Comic Strip

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First Government-Wide Acquisition Contract

Implicit goal for the initial program – be the best program possible while keeping as low a profile as possible

Past 3-5 years have been a paradigm shift• Increased size• Increased visibility of GWACs and SEWP• Outreach is working

No longer under the radar • Viewed as a leader and need to fill that role• Leadership not confined to SEWP Contracts – Acquisition issues in general• Quality along with speed

“Management is doing things right; leadership is doing the right

things.” - Peter Drucker

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Paradigm Shift Image

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SEWP Vision Statement SEWP will solidify its reputation as an innovative, customer focused program as it

seamlessly transitions to SEWP V and will be a visible, leading contributor to NASA and the Federal IT Acquisition Community.

SEWP Mission Statement As an established and agile leader in the Federal Acquisition Community, the SEWP

Program Office manages a suite of government-wide IT product solution contracts that provide NASA and all Federal Agencies with timely access to mission critical technologies.

The Program provides best value and cost savings for the Federal Government and American taxpayer through innovative procurement tools and processes; premiere customer service and outreach; and advocation of competition and cooperation with industry.

“The price of greatness is responsibility.” — Winston Churchill

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Major InitiativesSupply Chain Risk Management

Strategic Sourcing

Information Flow

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Supply Chain Risk ManagementDefinitions are important

•Counterfeit/tainting•Authorized reseller•Gray market•Risk management/levels of assurance

Standards and guidelines under development•Over 100 groups •Just released standard on Counterfeit / tainting: OTTP-S

-Open Trusted Technology Provider Standard- Industry led with DoD and NASA SEWP participation-The Open Group Website https://www2.opengroup.org/ogsys/catalog/c139

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SCRM Issues 100% Assurance impossible to achieve

Risk can be identified and assessed•There is a cost associated with lowering the risk•Acquirer needs to do a risk/benefit analysis

SEWP V will include risk based info – product provenance•Manufacturer•Authorized Reseller•Partnered with an authorized reseller/distributor•Known provenance /no official authorization•Unknown/unidentified origin/supply chain

SEWP V will also include other mitigating data

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How Strategic Sourcing Can Be a Good Fit for an Agency’s IT Solutions

Discounted Price on Products and/or Services•Set target price for supplier to meet•Use total annual spend to strengthen price negotiation

Greater Predictability in Acquisition Timetable

Consistency of Ordering Process and Product Supply

Improved Budget Planning

Increased Likelihood of Achieving Strategic Goals

Increased Standardization of Commonly-Purchased IT Solutions (Reduction in Acquisition Disparity)

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In 2012, as part of establishing crosscutting goals to improve management across the federal government, OMB called for agencies to strategically source at least two new products or services in both 2013 and 2014 that yield at least 10 percent savings.

In December 2012, OMB further directed certain agencies to reinforce senior leadership commitment by designating an official responsible for coordinating the agency’s strategic sourcing activities. In addition, OMB identified agencies that should take a leadership role on strategic sourcing.

Additionally, OMB directed these agencies to promote strategic sourcing practices inside their agencies by taking actions including collecting data on procurement spending.

Strategic Sourcing – OMB Goals

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Strategic Sourcing – SEWP

Member of OMB IT Strategic Sourcing group•Lead for laptop/desktop initiative

-Work is progressing on common technical specifications and definitions

SEWP V will fully integrate locating, ordering, tracking and reporting of data related to strategic sourcing

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Information FlowAs a central Program for decentralized Government

Acquisition, SEWP is an information channel between Industry and Government

SEWP V increases the information provided during RFQ•Contract Holder Information

-Past performance concerns-Business size / designation / set-aside opportunities-Supply Chain information

•Product Information-Government initiatives (e.g. Energy Star)-Agency specific approval (option to provide pre-approved product list)-Strategic sourcing options

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Item Level TrackingOversight Groups (Congress, OMB), CIOs, IT Managers

want to understand, track and report on IT purchases•Government tracking reliant on multiple systems and data entry•Industry tracking is often commercial oriented; i.e. not detailed to Government level data

•SEWP V – tracking will be handled by the Program Office

Data will be useful for:•Consolidating future buys•Determining organizational trends•Standardize requirements and purchases•Data Calls•Legal issues

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Other Information Channels

Government Customers•What is available?

-SEWP is a quote based contract – catalog dynamically built on customer requirements

-SEWP V will have a product categorization structure and interactive website to provide a product lookup tool to feed RFQ process

Government Agencies•Ability to control / guide ordering process

-Agency web page: List specific clauses and procedures-Agency Line Item Approval Flag

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4 Ways Industry Is Involved

Place Products/Services Under Existing Contracts

Align with Existing Contract Holders

Purchase from Existing Contracts

Win a SEWP Prime Contract

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“Provider” of IT Products / Solutions• Work with one or more Prime Contract Holders to request product addition

-Business case is negotiated between Prime and provider• A Prime Contract Holder must first request acceptance of provider

-Check is made by SEWP to ensure products in scope• After a provider is accepted

-Any Prime may add products from the provider-Products added through Technology Refreshment process

Authorized reseller information may be provided by provider only

This is the best and easiest way to be involved in SEWP

Place Products Under Existing Contracts

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Align with Existing Contract HoldersForm a business realtionship to fill gaps; for example:

•Geographic Coverage•Technological Expertise•Agency specific expertise•Sales force augmentation

While an available path, the relationship is purely Business to Business•SEWP Program Office interacts at the Contract Holder level•Orders remain between Government agency and Contract Holder

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Purchase from Existing ContractsAuthorized Support Service Contractors may Utilize SEWP

Contracts as Part of Their Government Contract•Authorization Letter from Support Service Contractor’s CO (Contracting Officer)-Authorization required on an individual support service contract basis

•Appropriate FAR 51 requirements must be met•List of Authorized Support Service Contractors available on SEWP website

Over 100 companies with appropriate support service contracts have been authorized to use SEWP

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Win a SEWP Prime ContractSEWP IV Contracts will end in Oct 2014

SEWP V RFP and Proposal period ended Dec. 2013•Government is evaluating submitted proposals•New Contract Awards Planned by Nov 2014 •All Official Information will be provided through FedBizOpps (www.fbo.gov) and the SEWP website (www.sewp.nasa.gov)

Long, Costly Process•Competitive Process•Extensive Requirements•Strong Competition•No Guarantees (winners and losers)•Next opportunity – 2024

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Questions?

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