new acquisition processes in DoD Instruction 5000.02

TA K I NG T H E SHOW ON T H E ROA D Some of the workshops JPEO-CBD is conducting in collaboration with DAU focus on understanding contracting in order to achieve superior contract vehicles and contractor performance, while others seek ways to reduce administrative burden. With the program now in its second year, the curricula were recently offered to other PEOs. (SOURCE: JPEO-CBD)

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“Opportunities multiply as they are seized.” – Sun Tzu

As the Trump administration completes its transition, Better Buying Power may be replaced with something di�erent, but the tenets and goals of acquisition reform will remain largely the same. All program executive o�ces within the O�ce of the Assistant Secretary of the Army for Acquisition, Logistics and Technology (OASA(ALT)) will be seeking ways to reduce administrative lead time while �elding and maintaining the best-quality equipment and services possible within resource constraints.

�e Joint Program Executive O�ce for Chemical and Biological Defense (JPEO-CBD) has partnered with Defense Acquisition University (DAU) Mission Assistance to sponsor a series of workshops designed speci�cally to improve acquisition timelines. �e curricula are intended for pre-milestone A or B program teams of Acquisition Category (ACAT) III programs but can be tailored to any e�ort. �ey focus on understanding contract- ing and applying that understanding to achieve superior contract vehicles and contractor performance. Other workshops allow credentialed DAU instructors and program teams to immerse themselves in developing exceptional solicitation documentation and �nding ways to reduce the administrative burden. �is is achievable by eliminating oversight that is appropriate for ACAT I programs but overkill for the ACAT III e�orts that make up the bulk of the JPEO-CBD’s portfolio. �e JPEO-CBD is in the second year of this program and recently o�ered the curricula to other PEOs across ASA(ALT).

by Mr. Jeff Megargel

JPEO - CBD seeks to reduce acquisition lead time through tailored professional training workshops with DAU.

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NO MORE ‘CONTRACT OF THE DAY ’ Douglas Bryce, joint program executive o�cer, is convinced that program managers (PMs) must have more than a fundamental knowledge of contracting to in�uence contracting-related deci- sions that impact their programs. “Far too often, the program management team throws their input over the wall to the con- tract team, and 24 months later we have a contract,” Bryce said.

“�is leads to the ‘contract of the day’ approach. �e key is to use the right contract type and incentives for the program.”

With this goal in mind, Bryce directed his sta� to reach out to DAU to create a “Contracting for Program Managers” workshop that orients newly assigned program management personnel to the art and science of government contracting. �e topics include contracting strategies, types of contracts, incentivizing contractor performance, the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement,

and how they all relate to “DOD Instruction 5000.02, Opera- tion of the Defense Acquisition System.” �e intent is not to create contracting experts, but to establish a level of understand- ing that facilitates proactive engagement with the contracting community as the program management team plans acquisition strategies.

�e JPEO-CBD also has assigned former civil service con- tracting professionals to each program o�ce. �ey assist in developing acquisition packages and liaise with their peers in the supporting contracting activities. �is enables the program teams to collaborate with contracting subject matter experts who are also fully vested in program acquisition strategies. �e result of this collaboration is acquisition packages that require far less rework between the acquisition and contracting shops, as well as procurement strategies that are more tailored to a spe- ci�c requirement versus one size �ts all.

WOR K I NG S T E P BY S T E P In partnership with DAU Mission Assistance, the JPEO-CBD has tailored its workforce development sessions to the various segments of the procurement cycle, such as the workshop on building a request for proposal (RFP) and the contracting officer’s representative (COR) course on awarding contracts. (SOURCE: JPEO-CBD)

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�e JPEO-CBD also has sponsored several workshops on contract incen- tives, with a DAU subject matter expert providing a comprehensive review of contract incentives and their appropri- ate use in acquisition programs. After completing the workshop, participants should understand the fundamentals of how and when to incentivize contractor performance, when cost or �xed-price incentive contracts are appropriate and, most importantly, how to discuss con- tract incentives with the contracting professionals during the formulation of acquisition and procurement strategies.

Bryce requires new-start programs to com- plete a streamlined acquisition strategy development workshop well before mile- stone A. �e workshop brings together program teams, functional sta� and user community stakeholders to address major topic areas for development and potential streamlining of their program acquisition strategy. �e DAU instruc- tor tailors the workshop to one program and encourages optimal participation

from the stakeholder community. �is always includes the contracting o�cer and specialist, but also can include bud- get analysts, legal advisers, small business advocates and technical specialists who might only engage for selected topics.

As an example, the workshop conducted for the Enhanced Maritime Biological Detection (EMBD) program included participants from the U.S. Naval Sur- face Warfare Center Dahlgren Division. Representing the Navy user community, they provided insight concerning the challenges of upgrading a legacy sensor system on a surface platform, including compatibility with other shipboard sys- tems and �elding the systems in line with deployment schedules.

Over several iterations, the program teams have universally praised the workshops for facilitating an immersive environment where the team can work collaboratively and develop critical thinking skills and ideas that are directly relevant to reduc- ing the administrative burden as they develop and gain approval for ACAT III program acquisition strategies. �e lec- tures cover multiple topics that must be addressed in acquisition plans, including risk management, a�ordability, should- cost and supportability.

Immediately following the lecture, the teams “murder board” each topic as it relates to their program: Small teams address each topic and document any assumptions, constraints, risk mitiga- tions and proposed solutions on a big sheet of butcher block paper. At the end of the session, each team briefs its �nd- ings to the workshop as a whole. �e program team members can tear o� the page and carry their brainstorming back to their workspaces to re�ne and include in formal documentation.

“�e workshop is very helpful in breaking down the components of the acquisition strategy into manageable parts,” said Michele Parrish, EMBD team lead. In some cases, the workshops have revealed the need for additional market research or more detailed analysis of data rights provisions. In others, the teams have identi�ed how contracting methodolo- gies can have a major impact on reducing documentation requirements.

For instance, using existing multiple- award contract vehicles often is more e�cient than creating a new contract vehicle speci�c to one requirement. �e assumed duration to complete all the steps necessary to award the typical stand-alone single award contract today is 18 to 24 months. But many program teams are unaware that they have access to existing contract vehicles that can reduce procurement schedules by months. �ey just need this input early enough to incorporate it into the acquisition strat- egy. Workshops can make teams aware of this bene�t.

AN INTRODUCTION TO NONTRADITIONAL METHODS JPEO-CBD’s portfolio contains a number of programs that are suited for procure- ment within the commercial marketplace, including vaccines and specialized tex- tiles. As a result, the JPEO-CBD has established an other transaction authority (OTA) consortium in procuring vaccines and therapeutic drugs. “Companies that have never participated in a FAR-based procurement are now in line to support multiple Joint Vaccine Acquisition Pro- gram requirements,” said Gary Wright, director of the JPEO-CBD Contracting Management O�ce. �e Joint Project Manager for Protection is also using an OTA to work with manufacturers of specialty fabrics and materials. �e proj- ect o�ce is seeking advanced chemical

The OTA training “was perfect to help expand our horizons and develop a full acquisition tool set.”

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and biological protection ensembles and design concepts that might be used in handwear, footwear and respiratory pro- tection systems.

Companies that produce cutting-edge technologies might not be willing to conform to accounting practices or other regulations that are mandatory for participation in DOD programs. For instance, maintaining a compliant accounting system is extremely expen- sive, and the revenue that results from a given DOD program may be immaterial in a company’s overall income stream. OTA agreements allow such companies to provide prototypes for the JPEO- CBD programs without having to meet the many regulatory requirements of an arrangement governed by the FAR.

To implement and sustain the consortium, the JPEO-CBD created two workshops that enabled potential program teams to leverage OTAs. �e training is divided into an introductory workshop that allows program teams to test the waters and an advanced workshop that goes through the detailed process for estab- lishing and managing an OTA program.

In January, DAU conducted two basic workshops at U.S. Special Operations Command using the JPEO-CBD spon- sored curriculum. One was tailored to the contracting community and the other to the program managers. �e OTA training “was perfect to help expand our horizons and develop a full acquisition tool set,” said Col. John Reim, program executive o�cer for Special Operations Forces – Warrior. “I suspect that you

will be hearing more from SOF AT&L [Special Operations Forces Acquisition, Technology and Logistics] in the near future for additional information and les- sons learned.”

�e JPEO-CBD also o�ers workshops focused on developing high-quality solicitation documentation and on train- ing government personnel to serve on source selection evaluation boards. �e RFP development workshop capitalizes on the work already completed by acqui- sition teams but blends in best practices as presented by DAU. �e DAU instructors have the bene�t of observing program teams across DOD and can o�er lessons learned as they lead the team through re�ning its documentation.

For instance, despite the best e�orts of contracting and program management personnel, some solicitations require mul- tiple amendments following release as a result of industry feedback and questions regarding the documentation. Borrow- ing from industry practice, the Joint Project Manager for Nuclear, Biological and Chemical Contamination Avoid- ance adopted a process in which a senior contracting expert performs a formal cross-check of the draft solicitation sec- tions, including the Statement of Work (Section C), Instructions to O�erors (Section L) and Evaluation Criteria (Sec- tion M). �e emphasis is on ensuring that statements of work re�ect performance speci�cations and that instructions to o�erors and evaluation criteria are opti- mized so that the government procures the right solutions for its acquisition needs.

Using this process, the program team corrects the draft documentation before it goes to the contracting activity. Normally, these major sections of a solici- tation are prepared by two completely

D OU BL E T E A M I NG TO DE L I V E R S OLU T ION S The workshops developed by JPEO-CBD and DAU empower program teams to accelerate schedules and reduce costs while maintaining high standards of capability delivery. (SOURCE: U.S. Army Acquisition Support Center/chipstudio/iStock)

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di�erent interests: �e acquisition team generates the statement of work and the performance speci�cation, but the contracting o�cer generates sections L and M—often weeks if not months later. �e workshop seeks to complete all major sections in a deliberate and fully integrated environment. �e result is less confusion among o�erors when they prepare proposals; more realistic cost proposals, as o�erors are less likely to mitigate risks through management reserves; and better-performing programs post-award because the government and the winning o�erors have a clearer understanding of what the program really needs to provide the capability to the war�ghter.

After the solicitation is released and before receipt of proposals, the JPEO-CBD’s source selection evaluation boards conduct a practice evaluation of the proposals using the actual solicitation documentation. �e source selection workshop (DAU Course WSC 005) covers the roles of each board member, drafts practice source-selection decision documentation and has the team con- duct mock debriefs for unsuccessful o�erors.

Finally, the JPEO-CBD and DAU are providing the Acquisition Program Transition Workshop (DAU course WSM 011), which brings together the program teams from the government and the winning o�eror to reach a common understanding of the government’s expectations and how the contract will be man- aged. According to Ashton B. Carter, former secretary of defense,

“�e bene�ts of this workshop include early alignment of gov- ernment and industry team organizations, publication of road maps to integrated baseline review and other near-term plan- ning events, agreement on management of scope and processes, and resolution of issues including di�erences in interpretation of contracts and other documents.”

�roughout the workshop, DAU instructors highlight best prac- tices they have observed across DOD. In nearly all cases, there are opportunities to improve the quality of deliverables—such as monthly cost reports or administrative processes—simply by

demonstrating how a company uses automated tools and skilled employees to accomplish the same tasks on other contracts. �ere is opportunity for open dialogue that enables the com- pany to demonstrate the value-added aspects of its reporting and to tailor the soft deliverables—e.g., monthly cost reports or government-furnished property inventories—based upon what the COR can really use. �is workshop provides a forum in which the government can meet face to face with its counter- parts. It is an opportunity to emphasize the need to manage program risks and establish an e�ective methodology to lever- age the contractor’s capabilities while meeting the government’s expectations.

CONCLUSION Although Better Buying Power may be replaced with new direc- tion for achieving acquisition objectives, the basic tenets are likely to remain the same. �e JPEO-CBD has demonstrated that PEOs can tailor DAU expertise to achieve material results at the program level. �e key is to leverage the knowledge resi- dent at DAU to tailor training for each program team depending upon where it is in the acquisition cycle, and then conduct the workshops in an immersive environment where teams can concentrate on producing quality results in collaboration with functional sta� and technical experts.

�e JPEO-CBD is planning a full calendar in FY18, including workshops for all PEOs across ASA(ALT). It is the JPEO- CBD’s desire to conduct multiple iterations of the training in the �ve geographic areas where the PEOs are concentrated. �e Program Executive O�ce for Combat Support and Combat Service Support has requested a streamlined acquisition strategy development workshop in the Warren, Michigan, area this sum- mer. Some of the curricula, including the OTA workshops, are appropriate for any agency within DOD and beyond.

For more information, contact the author at je�rey.w.megargel. [email protected], or go to https://www.jpeocbd.osd.mil/ or https:// www.dau.mil/consulting-services/.

MR. JEFF MEGARGEL is a former Marine Corps contracting o�cer and vice president with Science Applications International Corp. He is currently supporting the JPEO-CBD Contracting Management O�ce as an employee of Moss Cape LLC. He holds an M.S. in contract and acquisition management from the Naval Postgraduate School and a B.A. in history from �e Pennsylvania State University. He specializes in helping program teams develop contracting strategies.

“The workshop is very helpful in breaking down the components of the acquisition strategy into manageable parts.”

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