DHA Industry Day WELCOME COL Scott A. Svabek Acting Director of Procurement Defense Health Agency February 17, 2015 “Medically Ready Force…Ready Medical

DHA Industry Day WELCOME

COL Scott A. SvabekActing Director of Procurement

Defense Health Agency

February 17, 2015“Medically Ready Force…Ready Medical Force” 1

Agenda

“Medically Ready Force…Ready Medical Force” 2

Topic Presenter TimeRegistration 7:00 - 8:00Be Seated 8:00 - 8:15Adminstrative Remarks Mr. Eric Thaxton, Deputy Director of Procurement 8:15 - 8:30Opening Remarks COL Scott Svabek, Acting Director of Procurement, DHA 8:30 - 8:45AbilityOne Information Brief COL Scott Svabek 8:45 - 9:00DHA DHITS IPT Members COL Scott Svabek 9:00 - 9:15DHA Strategic Sourcing Approach & Current Status

COL Scott Svabek 9:15 - 9:30

Review of Industry RFI Questions & DHA Responses

COL Scott Svabek & DHA Team 9:30 - 10:30

Break 10:30 - 10:45

Review of RFI Survey of Industry Mr. Rich Morvatz, CAE, DHA 10:45 - 11:15

Review of Industry Submitted Recommendations & White Papers

COL Scott Svabek 11:15 - 12:00

Lunch 12:00 - 1:00Draft Structure of DHITS Generation 1 COL Scott Svabek 1:00 - 2:30

- ID/IQ Attributes - Past Performance - High Level Objectives Breakdown - Hardware & Software Requirements - Teaming Policy - Vendor Pools - Small Business Goals

Break 2:30 - 2:45Final RFI Industry Survey COL Scott Svabek 2:45 - 3:00General Questions & Answer Session COL Scott Svabek & DHA Team 3:00 - 3:30Way Ahead and Closing Remarks COL Scott Svabek 3:30 - 4:00

DHA Industry Day

Mr. Eric ThaxtonAdministrative Remarks

February 17, 2015


Registration Sign-in Sheet – be sure to sign in Emergency Exits and Restrooms Please hold all questions until you have a microphone. Please do not record or photograph during this event Please silence your electronics devices Both the government and industry partners will communicate

with honesty, integrity, and mutual respect Slides, questions, and answers will be available on FedBizOpps Please complete Feedback Survey Form—located on FedBizOpps

as attachment to industry day announcement


Administrative Announcements

Notice

∎ Requirements are going into procurementReduced Industry interaction, will cease when final RFP is

released for this requirement.

∎ Final RFI Survey through Survey Monkey will solidify our market research


DHA Industry Day

COL Scott SvabekOpening Remarks

February 17, 2015


The “Why”

The “Why Not…”

Goal for Today

Partner with Industry to Develop the Optimal Procurement Vehicle Supporting DHA Health IT By: Develop an agile vehicle that provides quicker

evaluation/award times to already vetted companies Access to Innovation quickly Grow together using lessons learned and better processes Looking to Industry Partners to provide input/feedback

to help shape an optimal and responsive contract vehicle Prepare Industry for final RFI Survey and end of current

market research“Medically Ready Force…Ready Medical Force” 9

Goal for Today

Partner with Industry to Develop the Optimal Procurement Vehicle Supporting DHA Health IT By: Get final Industry input into the market research Offer final survey to complete this phase Ensure the Government has heard all of industry,

allowing all to respond via Survey Monkey.








DHA Industry Day

DHA DHITS IPTMembers

February 17, 2015


DHITS Generation IIPT Members

∎ 35+ IPT Members with wide range of experience and representing all appropriate DHA Directorates

∎ Combined 300-500+ years of IT Acquisition and Contracting experience

∎ DHA Representatives from: Component Acquisition Executive (CAE) Procurement Office of Small Business Programs Office of General Counsel National Capital Region (NCR) Medical Directorate Service Chief Information Officers (CIOs) Health Information Technology Directorate

All 8 Divisions/PEO Offices of the DHA HIT represented



DSIDDOMS4 IPT Members

Name Office / Title / Role

Joe Mirrow DHA – Component Acquisition Executive (CAE) Program Manager

Sarah Davis DHA – Contracting Officer - Procuring Contracting Officer

COL Scott Svabek DHA – Director of Procurement - Head of Contracting Activity

Eric Thaxton DHA – Deputy Director of Procurement

Rich Morvatz DHA – Component Acquisition Executive (CAE)

Suzanne Curtis DHA – Procurement Support – Chief of Staff

Stacy Lear DHA – Procurement Directorate - Acquisition Manager

Matt Minnier DHA – Procurement Directorate - Acquisition Manager

Tim Haight DHA – Office of General Counsel

Cassandra Martin DHA – Office of Small Business Programs, Director

LT William Walders DHA NCR – Medical Directorate

Terrance Branch DHA NCR – Medical Directorate

Jin Wang DHA NCR – Medical Directorate

Sean McCloskey DHA NCR – Medical Directorate

Leonard Williams DHA – NAVY CIO Representative

Chester Damian Army MEDCOM Representative

Fernando Echon DHA HIT– Infrastructure & Operations, Security Ops, Air Force CIO Representative



DSIDDOMS4 IPT Members

Name Office / Title / Role

Tim Larson DHA HIT – Representative, Defense Health Services Systems - Resource ManagerDan Magee DHA HIT – PEO, Defense Health Services SystemsMr. Joe McMullin DHA HIT – Defense Health Clinical Systems - Resource ManagerKeely Hicks DHA HIT – Defense Health Clinical Systems, AcquisitionGreg Ruby DHA HIT – Defense Health Clinical Systems Charles Raney DHA HIT – Defense Health Clinical Systems - Testing DirectorWayne Speaks DHA HIT – Infrastructure & Operations - Operations and Sustainment (O&S) Branch ChiefWilliam Novak DHA HIT – Infrastructure & Operations - O&S Chief of OperationsJennifer Pereira DHA HIT – Infrastructure & Operations - Support Services Branch ChiefBruce Tate DHA HIT – Infrastructure & Operations, Development Test & Evaluation Section Chief Marvin Baker DHA HIT – Infrastructure & Operations - O&S Branch, Enterprise Management Section ChiefMark Goodge DHA HIT – Innovation & Advanced Technology - Deputy DirectorRolando Estrada DHA HIT – Innovation & Advanced Technology - Business Operations Section (Portfolio)Jake Jacobs DHA HIT – Innovation & Advanced Technology - Strategy/Planning Branch ChiefFrank Rowland DHA HIT – Cyber Security Division - Deputy DirectorSteven McAdams DHA HIT – Portfolio Management, Enterprise Architecture BranchMAJ George Delaney DHA HIT – Portfolio Management, Enterprise Architecture Chief of OperationsBob Rhodes DHA HIT – Solutions Delivery Division, Chief of OperationsBryan Burrell DHA HIT – Information Delivery Division Verlin Hardin DHA HIT – Director, Office of EHR Transition Management


DHA Industry Day

DHITS Strategic Sourcing Approach

February 17, 2015


Strategic Sourcing Framework

We are here


Strategic Sourcing – Leading Commercial Practices

∎ GAO-13-417-Leading Commercial Practices Can Help Federal Agencies Increase Savings When Acquiring Services

“Medically Ready Force…Ready Medical Force” 23 23

Complexity: difficulty in defining performance requirements

Industry Engagement &Market Research

Conducted 3 Industry Days (22 Feb & 10 July ‘14, 17 Feb ’15)

9 Months of Industry Meetings, Presentations, Discussions, Recommendations, & White Papers

3 RFI Surveys to Industry (+1 Final Survey Pending)

Initial Draft RFP Issued (10 July ‘14)

Numerous Industry RFP Questions Answered Spend Analysis Contracts and Sourcing Analysis


DHA HITS Milestone Chart

25

= Milestone

“Medically Ready Force…Ready Medical Force”

High Level Objectives

26

Section C of the RFP


DHA Industry Day

Review of Industry Questions &

DHA Responses

February 17, 2015


Industry Questions

∎ Will the Government allow firms to participate as a prime contractor on both the DSIDDOMS IV and TEAMS IDIQ contracts? Given that DHA now spans 35 program offices and includes support to the Services and MTFs, there are program offices and entities that do not have insight into the acquisition activities of one another. As such, TEAMS prime vendors working in one area of DHA would not have insight into the program management efforts of another. An OCI mitigation plan at the task order level would be an effective means for contractors to build a firewall and prevent either real or perceived OCI events from occurring.

Answer: OCI Issues will be handled in accordance with the FAR and at the Task Order level.** Answers in blue font have been revised and/or updated.


∎ How many large business DSIDDOMS IV awards does the Government intend to make?Answer: There no set determined number of awardees for

the DHITS Generation 1

∎ What NAICS will the Government use to determine the threshold for small businesses? Answer: Currently considering 3 NAICS Codes:

541511 NAICS = Custom Computer Programming Services 541512 NAICS = Computer Systems Design Services 541513 NAICS = Computer Facilities Management Services


Industry Questions

∎ Will there be tracks for SDVOSB, HUBZone, Women-Owned Small Businesses, etc?Answer: The government plans to award to enough

industry partners within all socio-economic programs for ample competition within those programs.

∎ Does the Government intend to require DSIDDOMS IV awardees to respond to a certain percentage of Task Order Proposal Requests?Answer: Yes, percentages are being considered.


Industry Questions

∎ What is the anticipated timeframe the Government will give prime DSIDDOM IV vendors to respond to Task Order Proposal Requests? What does Industry want as the minimum days to list the Task Order Proposal? What does Industry want to see in a TOPR?Answer: The Government intends to meet a goal of never

exceeding 30 days depending on the complexity of the task order. (But again this vehicle is for all Services and the DHA). Refined response later in today’s brief.


Industry Questions

∎ What is the list of Program Offices beyond the DHA Health Information Technology (HIT) Directorate that intend to use DSIDDOMS IV?

Answer: The Government anticipates that any DoD entity that is performing healthcare IT can use this contract. We are also looking at opening it up for the VA.


Industry Questions

∎ Will the Government make awards to prime vendors in all task areas or only in specific task areas?

Answer: The Government is soliciting industry feedback as to the best method to make specific awards for specific task areas or NAICS codes. Refined response later in today’s brief.


Industry Questions

∎ Will the D4 contract include all tasks areas as it did in D3?Answer: The Government anticipates at a minimum the

new vehicle will contain all the tasks but is considering adding tasks if necessary. Industry responses are encouraged. Refined response later in today’s brief.

∎ What is the timing for release?Answer: Although there is an immediate need for a DHA

contracting vehicle, it is more important that the right vehicle be put into place. A late FY15 award is the goal. See revised Milestone Chart.


Industry Questions

∎ What is DHA’s position with regard to mobile technology innovation around Task Area 8?Answer: Mobile and other technology will evolve over

the course of this contract so this contract must be flexible to support it as appropriate with DOD Security polices, procedures, and guidelines.


Industry Questions

∎ Please discuss the D/SIDDOMS replacement in the context of the overall DHA IDIQ portfolio. Answer: The scope of this contract is for everything IT

Services. TEAMS, TAARMS and DHMSM have their own varied scopes. It is DHA’s intent at this time to award as many IT Services under this vehicle as appropriate.

∎ Please provide details on the anticipated small business requirements. Answer: This is available in the draft RFP. Refined answer

later in the brief.


Industry Questions

∎ What key personnel requirements can we anticipate for the IDIQ level procurement?Answer: It is the intent of the Government to have the

offeror propose key personnel and their positions. Key Personnel will be identified at the Task Order Level

∎ Will there be sample tasks orders and/or awardable task orders as part of the solicitation?Answer: The Government is currently discussing this

option. No, the government does not intend to issuesample Task Orders as part of the RFP.


Industry Questions

∎ Will there be separate procurement tracks for large and small business organizations?Answer: This has not been determined yet – but we are

leaning that way and industry comments are requested. Refined answer later in today’s brief.


Industry Questions

∎ Explain the procurement approaches for task orders. E.g. will past performance be required, pre-release forecasts, response periods, etc.Answer: Past performance is always required. For

example, after the contract is awarded the plan is to measure past performance within the IDIQ. Refined answer later in today’s brief.


Industry Questions

∎ How will the DHA use internal IDIQ vehicles vs. external support such as GSA and NITAAC?Answer: It is the intent of this contract that it be used as

much as appropriate; however, DHA is considering a mandatory source and the Services will/may use it as a preferred source. The DHA Business Case Analysis supports this determination.


Industry Questions

∎ Validate that vendors will be permitted to modify teaming partners after award.Answer: This question is currently being researched;

however, just like key personnel, it is anticipated that changing out teaming partners could be approved by the Government. Refined answer later in today’s brief.


Industry Questions

∎ Explain the relationship between the DHA procurement office and the ordering program during the acquisition process.Answer: This will be explained in the final RFP; however,

industry comments are welcome. The Ordering Program is the customer and the Procurement Office is the conduit to industry to provide solutions to our customers.


Industry Questions

∎ Explain the government’s plan for re-competing the current active D/SIDDOMS III task orders. For example, will they be tasks orders on the RFP, competed on other vehicles in the short term, or extended to allow for recomplete under D/SIDDOMS III replacement contract.Answer: Basically yes, however the contracting office

responsible for the requirement will make this decision. DHA Procurement looks at all viable vehicles to meet customer requirements while DHITS Gen 1 goes through the Acquisition Process.


Industry Questions

∎ Will Government require offerors to respond to all ten task areas to be considered for an award.Answer: We seek Industry input into the Government

analysis. Refined answer later in today’s brief.


Industry Questions

∎ The 10 task areas are similar to CIOSP3 subtasks. We recommend the government also use the CIOSP3 subtasks descriptions as appropriate to reduce vendor proposal preparation costs.Answer: Government is researching this process and the

determination of how to incorporate sub task areas. Refined answer later in today’s brief. We have mapped our Requirements to appropriate NAICS codes.


Industry Questions

∎ Can the government provide an estimate on the number of awardees? Answer: No. There is no magic number. The number of

awardees will be based on a clear delineation of unsuccessful and successful offerors in accordance with the Source Selection Plan.


Industry Questions

∎ The skill sets required to perform these tasks require some specialized labor categories for PhD and MD level scientists. What is the government plan to include this level of skill set and labor categories in the contractAnswer: The Government is still collecting Market

Research for final RFP. We have mapped many of the Professional and Technical labor categories to the Bureau of Labor Statistics definitions.


Task Area 1 – Information Technology (IT) Services in Biomedical Research, Health Sciences

Industry Questions

∎ This task area may overlap the TRICARE Evaluation, Analysis, Management, and Support (TEAMS) and TRICARE – Acquisition, Automation, and Resource Management Support (T/AARMS) contracts. Will the government re-compete the TEAMS contract or will this task area be used?Answer: TEAMS will be re-competed and this issue will be

de-conflicted. DHA is conducting market research and BCA for DHA-like TEAMS replacement ID/IQ. We are also addressing OCI at the Task Order level.


Task Area 2 – Chief Information Officer (CIO)

Industry Questions

∎ Please clarify the scope of Task area 4 vs. task area 5. They both involve IT operations.Answer: See High Level Objectives (HLOs).


Task Area 4 – Outsourcing

Industry Questions

∎ Can the DHA contracts office encourage programs to write requirements that allow off-site delivery at other CONUS locations to leverage mature services at lower rateAnswer: Depending on the nature of a particular delivery order, we

would not necessarily restrict the work to be performed to a particular CONUS location, but in some instances the work would need to be performed in a specific area or even at a specific location. Regardless of the location, the vendor's proposed solutions must be complaint with DOD DIACAP security regulations.


Task Area 4 – Outsourcing

Industry Questions

∎ Will the contract allow for early lifecycle pilots, proofs of concepts that were previously competed onAnswer: This requirement will not execute grants or

cooperative agreements; all other acquisitions for IT should be capable of being supported by this vehicle


Task Area 6 – Integration Services

Industry Questions

∎ Please specify which DHA standards will be required. (e.g. Enterprise architectures, development methodologies, approved products, etc.)Answer: The standards are still being defined. Specific

standards, if needed, will be defined at the Task Order level.


Task Area 10 – Software Development

Industry Questions

BREAK


Review of RFISurvey ResultsMr. Rich Morvatz

DHA/OCAE

February 17, 2015


RFI Survey Background


Request for Information (RFI) Posted to FedBiz Ops on 19 Jun 2014 Focus to gauge Industry interest/capability to meet DHA HITS

requirements Survey sought:

NAICS information Federal Agency Experience Industry experience in DHA defined “Business Areas” Small Business capability Industry Approach to Organizational Conflict of Interest IV&V capability

Data collected/analyzed on 2 July 2014 and 11 Feb 2015 178 total responses, 85 complete (62 SB, 22 LB, 1 Unknown)

Large Business NAICS Breakout


443142 - Electr

onic Str

ore

511210 - Software

Publishers

518210 - Data Pro

cessi

ng, Hosti

ng and Related Servi

ces

541512 - Computer S

ystems D

esign Se

rvice

s

541511 - Custo

mer Computer P

rogra

mming Servi

ces

541513 - Computer F

acilities M

anagement Servi

ces

541519 - Other C

omputer Related Se

rvice

s02468

101214161820

13

12

19 1917

18

N=21(Avg 3.8

NAICS per respondent)

Small Business NAICS Breakout


0

10

20

30

40

50

60

2

11

17

5153

38

51

N=62 (Avg 3.1

NAICS per respon-

dent)

Reported Small Business Designation


0

5

10

15

20

25

30

35

13

7

23

21

14

33

How does your company manage organizational conflict of interest?

Method Percent RespondentsCorporate firewalls 41.38% 36

Internal "no-bid" policies where OCI may be an issue 60.92% 53

Case-by-case basis 60.92% 53

Remove prime/subcontractor relationships if OCI is apparent 50.57% 44

Our government contracts specify categories of work that eliminate OCI between vendor pools 17.24% 15

We have no organizational conflict of interest issues 32.18% 28


Business Areas by Business Size

Business Area HLO Large SmallIT Services in Biomedical Research, Health Sciences 3 19 56

Chief Information Officer (CIO) Support 1 20 51

Imaging 4 19 39

IT Infrastructure and Services 2 22 58

IT Operations and Maintenance 1 21 56

Integration Services 3 20 55

Critical Infrastructure Protection and Information Assurance

4 19 47

Digital Government 5 20 51

Enterprise Resource Planning 1 16 42

Software Development 7 21 51


Does your company provide IV&V Services?

No32%

Yes68%


Does your company require partnerships with other companies?

No77%

Yes23%


How does your company assure independenceof IV&V services (Avoid conflict of interest)?

This is our only product line Careful screening of each po-tential job to ensure inde-

pendence

Written validation (affidavits) of independence of prime and

subcontractors

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

5.3%

85.3%

67.4%


Have you performed IV&V on DoD systems?

No43%

Yes57%


Federal Experience/Contracts

Large SmallDepartment of Defense 15 14Veterans Affairs 13 6

Other Federal Agencies 29 25+


Prime contractor for Pension Benefit Guaranty Corporation for the development of a new Benefit Calculation and Valuation System

Strategic Planning FDIC Enterprise Information Management CATS - A&AS Support to AFMS operations

Department of Homeland Security U.S. Immigration and Customs Enforcement ICE Electronic Health Record (EHR) System: Training development, classroom training and computer based training in support of EHR implementation at 22 healthcare facilities

CNATRA Enterprise Operations Support Services Online Public Access system for NARA CBRNE and emergency management program policy development Enterprise Computing Support Services for Sandia National Laboratories Defense Information Systems Agency IT Support, System Administration, Help Desk

RFI Survey Summary

Similar proportions of Large and Small Business Significant experience in DHA business or

functional areas Wide variety of approaches to OCI, but smallest

% is former D/SIDDOMS approach Currently compiling and organizing materials

delivered during industry meetings with COL Beavers.


DHA Industry Day

Review of Industry Submitted

White Papers

February 17, 2015


What Our Plan is Looking Like…

∎ The following slides show Industry’s comments and suggestions first, followed by DHA’s currently planned way ahead.

∎ Note: DHA HITS is just finishing the market research phase of this requirement. All of the answers below are what is known at this time. The Government reserves the right to change, alter or not proceed as shown.


Categories

∎ OCI∎ On and Off Ramps∎ Gates (Jacks or Better, Hunting License)

Technical EvaluationTeaming

∎ Other suggestions/comments


What Industry has said……..

∎ OCIs TMA/ DHA had OCI policies/ categories:

Internal Support (T/AARMS) Category 1 Program Management (TEAMS) Category 2 Product Support (D/SIDDOMS III) Category 3

Industry says: Inflexible Non-avoidance of OCI issues Constrains vendors to a single category Limits competition and innovation More opportunities for “unknown” conflict Does not provide “Best of Breed” solutions”


What DHA is planning to do…for OCI

∎ Revised Policy on OCI (No specific lane for Cat 1,2,3)∎ Categories no longer used∎ OCI mitigation and determination will occur at the

Task Order level∎ Revised Local clause and provisions at the contract

level∎ Greater due diligence from the PM office and

industry∎ OCI mitigation plan submitted to the CO for final

determination at the TO level “Medically Ready Force…Ready Medical Force” 71

What Industry has said……..On/Off Ramps

∎ On/Off Ramps Broadly written Vendors lose interest when it doesn’t happen Suggested processes:

Based on annual CPARS (performance at task order level) Ability to meet subcontracting goals Recertification by SB at 5 year mark Annual survey of government SMEs for needed capabilities,

tools, etc. Inadequate competition (2 or more bids in XX% of orders)


What DHA is planning to do…for On/Off Ramps


∎ On-Ramp Based on new technologies needed Inadequate competition Changes in SB status leaves “hole” in SB competitions

∎ Off-Ramp Contractor not bidding (less than XX offers per year) Unmet Small Business goals Poor performance

DHA’s Plan ….. On/Off Ramps

∎ On-ramp as required to ensure we have competitive contract holders that meet the needs of our customers.

∎ Inadequate competition does not only mean a low number of bids, it will also mean a low number of acceptable bids (i.e. make the competitive range).


DHA’s Plan ….. On/Off Ramps

∎ Off-ramp for:Poor performanceAbility to meet subcontracting goals. All contracts (even

SBs) will have subcontracting goals in their contracts. In the event they become large, the company will submit a subcontracting plan. If it is acceptable, they stay viable under the unrestricted.

Inadequate competition – based on number of bids and acceptability of bids.

Due to infancy of DHA, will not sign up for timeframe.


Industry Says …….. Gates

∎ Gates Three courses of action:

Limit awardee pool to set number Award to bidders that can provide capabilities and have

recent and relevant good past performance with reasonable prices – real competition at task order level

Develop selection criteria – higher competition at the contract level to truly “vet” bidders.



∎ GatesDevelop more pools or lots focused on business size

Large Small Business

▻8(a)▻SDVOSB▻VOSB▻WOSB▻HUBZone

Functional Area Pools Allow proposals for selected tasks rather than all tasks.



∎ GatesDevelop clear criteria based on technical capability in each

task with proven past performance Corporate Experience Past Performance Program Management Small Business Participation Price

Use team-based past performance versus prime-basedHave minimum number of tasks rather than all tasks



∎ Use a two-step process with scoring so offerors know where they stand.

∎ Ensure that NAICS code on small business does not discourage small business from competing.


DHA’s Plan …… Gates

∎ Limiting the pool has not been decided. However, there will be certifications to attain “jacks or better”

∎ required such as:CMMI Level 2 or higher ISO 9003, 10004 and 27001ITIL Foundation and ITIL V3Facility Clearances (Secret or Higher)Helpdesk/Service Desk Institution (HDI/SDI)CAS compliant for services (if offering)CAS Approved Purchasing System (if offering)



∎ Award to responsible biddersCan provide all capabilitiesHave recent and relevant past performanceReasonable prices by localityReal competition at the task order level



∎ PoolsStandard pool:

All contracts will have subcontracting goals (only needed if graduated to large)

Provide all capabilities, will not break down into functional areas – industry should know their team members

All contract holders can see all requirements.



∎ PoolsInnovation/Maintenance

Can subcontract to any vendor as long as ostensible subcontracting/small business goals are met.

Must have low OEM mark-up fee


Industry Say ….Gates (Technical Evaluation)

∎ No Technical EvaluationTwo step evaluation process with defined section criteria

at each gate to limit to serious biddersHow others did it:

Awarded to bidders demonstrating strengths. No real technical proposal – based on corporate experience, software development plan, past performance and price.

Two gates – no technical proposal. Bidder had to demonstrate past performance in each functional area. Top 40 went through an acceptable review. If acceptable with fair and reasonable pricing, award was given.


DHA’s Plan ….Gates (Technical Evaluation)

∎ Minimal Technical at the Contract level∎ Structure of Technical mapped to:

3 NAICS codes: 541511 NAICS = Custom Computer Programming Services 541512 NAICS = Computer Systems Design Services 541513 NAICS = Computer Facilities Management Services

Innovation /maintenance

∎ Must demonstrate past performance for prime and subcontractors

∎ Must demonstrate organizational experience


DHA’s Plan ….Gates (Technical Evaluation)

∎ Must be able to identify and mitigate risk∎ Must be able to subcontract successfully∎ Prices/Costs must be reasonable


Industry Say ….Gates (Teaming)

∎ TeamingNeed ability to team at the task order levelInclusion of subcontractors in past performance and key

personnel evaluation factorsAcceptance of SBA-approved joint ventures or contractor

team arrangements as prime contractorsAbility of primes and subcontractors to subcontract on

multiple teams to increase the odds of winning bid, options for task level bid/no bid decisions.


DHA’s Plan….Gates (Teams)

∎ Can cross-team at the task order level for the innovation/maintenance pool.

∎ Past performance for subcontractors will be required but so will the prime.

∎ Joint ventures/teaming arrangements approved through SBA by the date proposals are due.

∎ For the Standard Pool, teams must be set.∎ One team only for Standard Pool, cross teams for

innovation/maintenance pool.


DHA’s Plan….Gates (Teams)

∎ Small Business primes will have exclusive teaming arrangements with large businesses.

∎ Large Business primes will have exclusive teaming arrangements at award;Small Businesses who are primes or subcontractors can

cross team after award at the task order level.


Industry says ….. Other

∎ Responsiveness – Customer ServiceRapid response TO solutionsHighly qualified primes with proven performanceShort PALT (make it easier for both contracting and

contractor) with efficiencies – NMT 3-4 monthsOffer Turn-Key Acquisition Solutions (Government-to-

Government customer service)Task Order Ordering GuideAllow prime to “market” vehicle.Advance notice of RFP (Post PWS, etc.)


DHA’s Plan …… Other

∎ We want rapid response but until we have a “PWS” building tool, our time is spent helping write the requirement.

∎ We want, really, really want highly qualified primes with proven performance

∎ Shorten PALT – Who wants to call Congress? Again, better requirements shorten the PALT

∎ Offer Turn-Key Acquisition Solutions – we do, that’s why it’s so slow……..



∎ Task Ordering Guide will be included∎ No need to “market” vehicle at this time. There is no

fee associated with it.∎ Post PWS, RFIs, etc. is a good practice.


Industry says …. Other

∎ DHA needs to save money!Shorter proposalsSavings clause

Business improvement processes Innovations Cost Saving Initiatives

Pass through rates identified at base contract level with no fee on ODCs.

Minimize Bridge Contracts


Industry says …. Other

∎ LPTA – CO not allowed to award any contract valued at 10% over the lowest, technically-acceptable offeror’s bid without the approval of the Commanding Officers.

∎ ODCs over 10% of contract value requires higher approval (why not procured on their own?)

∎ Labor Rates: Any fully burdened labor rate over $260,000 needs higher level approval.

∎ Subcontracts after award requires approval.


DHA Plan ….. Other

∎ Would love shorter proposals however it is a trade-off between getting the award in place to assist the rationalization and cost savings versus a long technical evaluation. Maybe next time?

∎ Savings Clause – we are considering∎ Pass through rates identified at based contract level

with no fee on ODCs.∎ This vehicle should assist us in minimizing bridge

contracts. Bridge contracts cost us in:Credibility, time, and money.



∎ Subcontract adjustments after award requires approval∎ ODCs and 10% over LPTA is being considered.∎ Overhead rates restrictions are being considered.


LUNCH BREAK


DHA Industry Day

Summary Draft Structure of DHITS GEN 1

Based on Industry Input andDHA Review


DHITS Gen 1 Structure Beginning to Look Like

∎ Multiple Award IDIQ∎ Duration: 5 years with 5 year Ordering Period (like GSA Alliant)

∎ Ceiling: $10 Billion∎ 1 RFP (both SB and LB awardees)∎ Ample vendor and socio-economic participants to meet DHA

SB goals∎ 42% Sub-contracting plan for unrestricted vendors∎ Technical structure based on NAICS∎ Teaming: No Cross-teaming on 4 basic NAICS/Cross Teaming

on Innovation and HW/SW Maintenance“Medically Ready Force…Ready Medical Force” 99

DHITS Gen 1 Structure Beginning to look Like…

∎ Past Performance


2 sets of Past Performance 1 for the 3 NAICS Codes

1 specific for the innovation pool

High Level Objectives


Hardware Requirement

∎ 3-year on site warranty∎ Warranty tracking∎ DHA standard desktop/applications pre-loaded∎ Direct ship to ordering activity w/in 30 days∎ Added to DHA inventory w/ required labeling


Hardware Incentives

∎ Fewer order but larger value: potentially 4 orders/year >$5M

∎ Prompt Payment - Net 15 from receipt of tracking information WAWF and credit card payments

∎ Standardization of HW configuration (examples) 1 laptop HW configuration 1 clinical configurations 1 non-clinical configuration


Software Requirements

∎ Enterprise Software Initiative (ESI) at no pass-thru∎ Added to DHA inventory∎ Added to DHA standard configuration (if required)∎ Licensing∎ 3 year software maintenance

If required Annual pre-priced CLIN

∎ Software Licenses or any sort of commercial licensing agreements are required up front and will be evaluated during the tradeoff process.


Software Incentives

∎ Prompt Payment – net 15 WAWF and credit card payments

∎ Fewer order but larger value: Potentially 4 orders per year Minimum of 100 seats (if seat licensing required)


Vendor Pools Core Services (HLOs 1-4)

Small Business Pool∎ Provide all capabilities

May team with large or small Team members must all be

unique (no cross teaming within pool)

∎ Number: 4-5 competitors for each FAR 19 designation SB, SDVOSB, WOSB, 8(a),

HUBZONE

∎ Subcontractor mgt plan

Unrestricted Pool∎ Provide all capabilities∎ Robust SB subcontractor

management program Team members must all be

unique (no cross teaming within pool)

∎ 40% SB subcontracting goal Includes 1% AbilityOne


No Restrictions on HW and SW Partnering (HLO 6 & 7)

Innovation Pool (HLO 5)

Definition∎ “Foster a culture that embraces

innovative approaches to protect, support and advance the health and welfare of military personnel by accelerating medical technologies and new standards that can be applied in theater or in the clinical facilities that support the MHS’s mission” DHA Health IT Directorate Initiative

Competitors (applies to HLO 5 only) ∎ 5-10 teams∎ Can cross team from either

pool (small, unrestricted) Rapid teaming capabilities CMMI level 4 cert min

∎ Demonstrated capability of fielding novel HIT in 1-2 yrs HR: MHS-wide R: Service-wide or commercial SR: MTF unique NR: Initiatives older than 4 yrs


Pools Advantages/Disadvantages

Two Pools∎ Can set aside requirements for SB

pool or SB type easily∎ Different evaluation criteria for basic

contract award∎ Can contain different instructions

w/regard to subcontracting∎ Able to set different bid rate criteria

by pool∎ When SB recertify they are in limbo

Moving causes problems w/partnering structures

Can no longer get SB credit but they are still eligible to compete in SB pool

One Pool∎ All vendors see all requirements even

if set aside for SB∎ Difficult to differentiate contract

terms/evaluation criteria by size∎ Only two pools instead of 3 to

manage HLO 1-4 and HLO 5∎ Must open on-ramp to entire pool∎ Easier to deal with SB when they

recertify


Small Business – DHA’s Commitment

∎ DHA is committed to supporting the Federal policy to ensure small businesses have the maximum practicable opportunity to participate as prime contractors and subcontractors in DHA contracts:Small businesses are the heart of the U. S. economy and a

very critical part of the DHA procurement process

Small businesses, as both prime and subcontractors within the supply chain, are effective sources of innovation and positive influence on cost competitiveness


110

Office of Small Business Programs - Cassandra Martin

∎ Serves on the proposed Strategic IT Contract IPTAdvocate for SBWill work with IPT to identify optimal solutions to meet

mission goals and maximize SB participation Consider contract spend data Market investigation

Encourage the use of SBs to perform niche areas Cost efficiencies; Provide SB opportunity to prime

Establish SB Prime and Sub-contracting Goals Opportunities for Teaming and Joint Ventures


111

Small Business and AbilityOne Program Goals


*Small Disadvantaged Business awards include 8(a) awards

SB Prime Contracting Goals FY2015

Small Business 42.0%

HUBZone Small Business 3.0%

Service-Disabled Veteran-Owned Small Business 3.0%

Small Disadvantaged Business* 5.0%

Women-Owned Small Business 5.0%

SB Subcontracting Goals FY2015

Small Business 39.0%

HUBZone Small Business 3.0%

Service-Disabled Veteran-Owned Small Business 3.0%

Small Disadvantaged Business* 5.0%

Women-Owned Small Business 5.0%

AbilityOne Program 1.0%

112

Small Business – Be Prepared

∎ In preparation……a few tips: Focus on agility, flexibility, and responsiveness

Position company to accept various contract types (i.e., FFP, Cost Plus, or other)

Ensure security issues are met

OCI Mitigation – be prepared at the prime and sub level – err on the side of being more risk adverse


BREAK


DHA Industry Day

COL SvabekFinal RFI Survey

February 17, 2015


Final RFI Survey

∎ Requirements are going into procurementMore restrictive meetings with GovernmentAll meetings will halt once final RFP is released

∎ Final RFI Survey through Survey Monkey will solidify our market research


DHA Industry Day

Question & AnswerSession

February 17, 2015


DHA Industry Day

Way Ahead and Closing Remarks

February 17, 2015


Professional Services Council 2014 Acquisition Policy Survey

∎ We don’t need acquisition reform. We need budget stability and competent people to do acquisition and competent companies to do the work.

∎ Contract Structure, techniques and strategies is core element of a successful acquisition.

∎ Accessing technology innovations and solicitation is critical to reducing agency costs and improving performance.


Professional Services Council 2014 Acquisition Policy Survey

∎ The challenge comes from culture. We are trying to promote innovation but we send a message of regulation and oversight.

∎ The message from the top is clearly promoting communications but the workforce is still hesitant. The culture is still “we are the government, you are not.”


Strategic Sourcing Framework

We are here


= Milestone


121“Medically Ready Force…Ready Medical Force”


122

= Milestone


Goal for Today - Recap

Partner with Industry to Develop the Optimal Procurement Vehicle Supporting DHA Health IT By: Develop an agile vehicle that provides quicker

evaluation/award times to already vetted companies Access to Innovation quickly Grow together using lessons learned and better processes Looking to Industry Partners to provide input/feedback

to help shape an optimal and responsive contract vehicle Prepare Industry for final RFI Survey and end of current

market research“Medically Ready Force…Ready Medical Force” 123

…the “Why Not”


DHA HITS – Generation I

Thank You From the DHITS Team!

Documents

DHA Industry Day WELCOME COL Scott A. Svabek Acting Director of Procurement Defense Health Agency February 17, 2015 “Medically Ready Force…Ready Medical