Tammy SheltonTammy SheltonActing Associate Staff Chief, HRODActing Associate Staff Chief, HROD

ORD Manager’s MeetingORD Manager’s MeetingJanuary 24, 2006January 24, 2006

The Competitive Sourcing The Competitive Sourcing ChallengeChallenge

Presentation ObjectivesPresentation Objectives

• Overview of competitive sourcing initiative and process

• Raise awareness and add basic knowledge about the process

• Update current status of competitive sourcing activities

• Provide reassurance – the Government is winning over 90% of the competitions

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Presentation Limitations Presentation Limitations (The Official Disclaimer)(The Official Disclaimer)

• Will not answer all of your questions

• Will not provide specific information on which positions will be competed

• Will not provide a list of employees whose jobs are included in competitive sourcing studies

• Will not tell you whether your job is going to be studied

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Competitive Sourcing – BasicsCompetitive Sourcing – Basics

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• One of 5 initiatives in the August 2001 President’s Management Agenda

• Based on OMB Circular A-76; first developed during the Eisenhower Administration

• Competitive process to determine whether a commercial function is performed more cost efficiently by the private sector.

• Two types of studies: streamlined and standard

• Ensures that customers, stakeholders, and citizens are provided services at the best possible value

Standard Competitions - highlightsStandard Competitions - highlights

• Private Sector proposals are requested

• Government develops a ‘most efficient organization’ proposal that is compared with private sector bids In most cases, Government organizations are

reorganizing and downsizing functions to be competitive

• More than 35 positions are typically involved

• Government is winning 90% of standard competitions

• Study Duration: 12 months (can be extended to 18 months with OMB approval)

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Streamlined Competitions - highlightsStreamlined Competitions - highlights

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• Streamlined process allows Government to compete ‘as is’ and compare costs against current Agency contract price schedules: Public announcement is made – without request for

proposal Bid determination is completed in-house

• Can only use if competing less than 35 positions

• Government is winning 97% of these competitions

• Study Duration approximately: 90 - 120 days

FY05 Status of Competitive FY05 Status of Competitive Sourcing ActivitiesSourcing Activities

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• ORD successfully completed 5 streamlined competitions

• Studied 22 clerical support positions (GS-7 and below) in DC, RTP and Cincinnati

• All work was retained in-house

• Quarterly performance reporting on work generated by these positions began January 1, 2006

Agency-wide Competitive Sourcing Agency-wide Competitive Sourcing Activities FY06 – FY08Activities FY06 – FY08

2006: Studies of up to 325 Information Technology services positions will be initiated

- 170 positions in HQ - includes some ORD positions

- 155 positions in Regions – studies of 43 positions is underway

2007: 25 Financial Services positions will be studied- All in OCFO

2008: 450 Administrative Services positions will bestudied

- ORD will receive credit for clerical support positions studied in 2005

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Next Steps: Close HorizonNext Steps: Close Horizon

• Approach for IT competitions will be determined by EPA Competitive Sourcing Executive Council (DAA/ARA) – most likely on FEB 21

• Questions to be answered by the Competitive Sourcing Executive Council: Conduct nationwide studies? Regions study individually? All Program Offices included in one large study? Geographically based studies?

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Other Options/ Decisions to be Other Options/ Decisions to be MadeMade

• Competitive Sourcing Executive Council may decide to allow EPA organizations to build “High Performing Organization” submissions in lieu of competitive sourcing studies

• EPA would have to get to “green” on the President’s Management Agenda for Competitive Sourcing before Dave O’Connor may authorize this approach

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Questions? Questions?

Alka-Seltzer Alka-Seltzer

or or

Tums anyone?Tums anyone?

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Preliminary Planning StepsPreliminary Planning Steps• Scope: Determine the activities and FTE positions to be

competed

• Grouping: Conduct preliminary research to determine the appropriate grouping of activities as business units (e.g., consistent with market and industry structures)

• Workload Data and Systems: Assess the availability of workload data, work units, quantifiable outputs of activities or processes, agency or industry performance standards, and other similar data. Establish data collection system as necessary

• Baseline Costs: Determine the activity’s baseline costs as performed by the incumbent service providers

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Preliminary Planning Steps Preliminary Planning Steps (continued)(continued)

• Type of Competition: Determine the use of a streamlined or standard

• Schedule: Develop preliminary competition and completion schedules

• Roles and Responsibilities: Determine roles and responsibilities of participants in the process and their availability for the duration of the streamlined competition.

• Work Statement and Agency Cost Estimate: Develop performance work statement, private sector proposal evaluation & agency cost estimate

• Inform: Inform incumbent service providers (employees) & union representatives

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Standard CompetitionsStandard Competitions

• Announcement: Announcement in FedBizOps (initiates start)

• Finalization: Finalize performance work statement (PWS) and quality assurance surveillance plan

• Cost Estimation: Develop cost of agency performance by building a Most Effective Organization (MEO) response to the PWS – completed by a separate team from those building the performance work statement

• Private Sector Proposals: Government MEO package including costing must compete against private sector proposals to complete the same work.

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Standard Competitions (cont.)Standard Competitions (cont.)

• Cost Estimate Firewalls: Ensure agency cost estimate preparation and determination of private sector costs are done by different people and that no sharing of information takes place

• Public Announcement: Public announcement in FedBizOps of winner (stops process)

• Challenges: Results of a standard competition may be challenged with appropriate justification

• Award: Award contract in accordance with FAR

• Execute: Execute letter of obligation to official responsible for performing the activity – Government or private firm

• Transition: There is a period of transition as the work transfers from current Government organization to the new Most Efficient Organization (MEO) or from the Government to private sector

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Streamlined CompetitionsStreamlined Competitions• Announcement: Announcement in FedBizOps

(initiates start) – no “requests for proposal” are allowed

• Finalization: Finalize performance work statement and quality assurance surveillance plan

• Cost Estimation: Develop cost of agency performance based on either “as-is” or Most Effective Organization (MEO)

• Conduct Realism Analysis: Contracting Officer performs cost realism analysis

• Private Sector Performance Estimation: Cost of private sector performance based on documented market research or past solicitation

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Streamlined Competitions (cont.)Streamlined Competitions (cont.)

• Cost Estimate Firewalls: Ensure agency cost estimate preparation and determination of private sector costs are done by different people and that no sharing of information takes place

• Public Announcement: Public announcement in FedBizOps of results (stops process)

• No Challenges: Results of streamlined competitions may not be challenged

• Award: Award contract in accordance with FAR

• Execute: Execute letter of obligation to official responsible for performing the activity – Government or private firm

• Transition: There is a period of transition as the work transfers from current Government organization to the new Most Efficient Organization (MEO)

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Post-Award ActivitiesPost-Award Activities(both competitions)(both competitions)

• Track actual costs and performance against estimated costs and performance standards

• Quarterly reports are provided to EPA Office of Competitive Sourcing for submission to OMB

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What does it take to get What does it take to get a competitive sourcing a competitive sourcing

study completed?study completed?

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