One Pass “The Way We Do Business” Purpose • Familiarize participants the “One Pass” process • The Objective of One Pass is to reduce rework, conduct executable programs and change culture into a Government/Contractor team approach to acquisition • The One Pass process is intended to be a guide, it can be adjusted to fit your circumstances. • It is not intended to be a “cookbook” whose recipe must be followed to the letter Objectives • Jointly make smart trade-off decisions early in the process • Drive discipline into the requirements definition process • Reduce costs associated with changing requirements & revised proposals • Achieve shorter cycle-time. Not only a contracting process - But a tool for PMs to manage program Objectives (cont.) • Parallel vice sequential activities • Applied to Program Management & Contracting Activity - All perspectives & needs considered - Integrated Team - Informed Trade-offs made Right the First Time = One Pass I.P.T. Pricing • Traditional Pricing – The purpose of noncompetitive actions, the serial process of the Government (1) defining the requirements; (2) requesting and receiving a proposal; and (3) reviewing and evaluating the proposal in order to establish an objective in preparation for negotiations. o For noncompetitive contract actions using traditional or commercial pricing, approval by the clearance authority to award a contract or contract modification/contract action. • One Pass Pricing – The process of concurrent requirements refinement, proposal development, fact-finding, and preliminary agreement between the Government and contractor in a noncompetitive acquisition. In this process, the Government and contractor IPT members communicate in an ongoing, structured manner from early planning stages through repetitive model contract development and review of related cost or pricing data o For actions using Integrated Product Team (IPT)/One Pass pricing method, approval to conclude negotiations and award a contract. Ref. AFFARS 5301.9000 Defense Acquisition I.P.T. Structure MDA DAB Overarching IPT Oversight Integrating IPT & Review COST/ TEST IPT PERFORMANCE CONTRACTING OTHER (DT Org, OT Org, HQ TE IPT (Svc Cost Agency, IPT (HQ Staff, IPTs (as needed) WIPTs OSD Testers) CAIG Rep, Indp Cst OSD Proc Staff) Estimators) Program teams are Program Management formed to Environment assist the Execution PMO and PMO and PCO, ACO, PM. Contractor Contractor DCMC and Test Orgs, EV personnel, Contractor May be by Test Range Fin Mgrs contracts WBS or support staff functions Background • Developed by AWACS Program Office in 1994 ─ MOA initially signed between AW/SPD, Prime Contractor, DCMC, & DCAA in Jan. 95 ─ Updated in 1998: o Prime Contractor Implemented One Pass agreements with Major Sub-contractors & IWA in „98 ─ Updated in 2002: o Identified earlier involvement by Contractor (team) o Improved process flows for ease of use and interactions through verification of existing phases Emphasis on Cooperation between all parties Purpose P E N R I A N • RSIP S H G – 95 People TH LE – Associate/Associate E G RSIP A E Y E – Award to IOC 11 Years E OF THE – Fixed Price at Ceiling – 58 Contract Changes – 2 PMRs/Month – 18 Month Schedule Slip • 30/35 ─ 70 People ─ Award to IOC 10 Years E-3 HAVE QUICK A-NET ─ Fixed Price at Ceiling GROUP B EQUIPMENT Trans m it Re ce ive Trans m it Re ce iv e ─ 123 Contract Changes Mu lti-Co u ple r (Xe tro n) ─ PMR/1 per Qtr Rad io Frequ enc y Os c illa to r (Ma g n avo x ) Tra ns c e ive r/ Filte r (Xe tro n) ─ 4 1/2 Years Schedule Slip Re c eive r Exc ite r Mo du le ag (M na v o x) Trans c eive r/Filte r Po we r S up ply (EG&G) Co n tro l Indica to r • Have Quick (Ma g na vox ) – 20 People Average Time to On Contract – Award to IOC 10 Years Across Programs: – Fixed Price at Ceiling • 6 Year PDM – 33 Contract Changes 459 Days – Operation Deficiency • 3 year Structural Integrity Check • Sustainment One Pass Process Reduced Cycle Time to: – 175 People – IWSM Process 1998 - 220 Days – Uncoupled with Acquisition – Multiple Contracts 2002 - 180 Days The Old Way Endless Iterations RFP Acquisition in Transition A Cultural Change... OLD WAY NEW WAY • Autonomous • Partners building teams • “Throw over the wall” • Joint preparation • Changing requirements • Early agreements • Multiple proposal • One submittal submittals • Technical & Management • Large Technical & Overviews Management Volumes One Pass The Way We Do Business “One Pass Process” Flow Key Features Key Features High Energy Preliminary Work Concurrent Proposal Development and Audit •Product Oriented •Dedicated Focused Team GOVT/CONTRACTOR STRATEGIC INTERACTION •SPO, DCAA, DCMC, Contractor –Better Contract IDENTIFY INITIAL NEED Program NEED ASSESSMENT Approval –Executable Program –Expedited Proposal Development –Common agreed to processes ACTIVITY Identify Need Understand Req. Review Req. & Potential Solutions –Incremental Audit, as required Conceptional Potential Solutions Provide Strategic Guidance –Reduced Cycle Time OUTPUT Definition –Capability to User earlier Non Iterative Joint Development of Requirements Proposal/Negotiation Proposal NEG & ACTIVITY Joint Develop Documents for a Clearly Development AWARD Understood and Executable Program OUTPUT Defined Technical Negotiations & Solution(s) Concurrent proposal Approvals development,, Audit Acceptable Proposal AWARD submitted. Notional One Pass Schedule Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Define Need Define Project SOO Jointly develop IMP/IMS or SOW for legacy programs Concurrent Tech Evaluation Tech Enablers • Agreed to FPRAs Boeing Proposal Major Contract • Agreed to T&Cs Subcontractor Approval • Standard WBS Involvement Authority • CERs, Pricing Models Award Phase I: Identify Need 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Identify need for new or upgraded capabilities Phase • User, System Program Office (SPO), or Contractor identify Summary: potential need • SPO lead team analyzes/discusses with originator • “Fit” with strategic plan & budget determined Output: • Execution team/person identified & chartered • Required documentation to identify need Phase II: Initial Need Assessment 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Develop information for Program Approval • Identify technical & contractual options Phase • Program manager assigned / “Core” IPT formed Summary: o Complete One Pass Core team training • Options / alternatives identified & analyzed • Recommended strategy developed Output: • Draft Statement of Objectives (SOO) • Coordinated Budgetary Estimates (SPO/Contractor) Phase III: Program Approval 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Generate decision and allocate resources needed to perform joint development of requirements. Phase • Team prepares & briefs appropriate acquisition approval Summary: authority: – Statement of problem – Recommended solution Implementation plan (Technical, business) • Decision Authority (DA) authorizes resource commitment or directs change Output: • Decision Memorandum / Guidance for next phase • Draft SOO developed Phase IV: Joint Development of Requirements 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Jointly develop and coordinate documents for a clearly understood and executable contract or change Phase • SPO & Contractor Team formed to work together to define: Summary: – SOO/IMP / Contract Data Requirements List (CDRL) • Funding / authorization for Contractor participation • Joint teams refine each alternative with detailed description: technical, schedule, budgetary estimate, advantages, risks, and recommendations. Output: • Draft documentation (contract, modification or delivery order): SOO / CDRL, WBS*, T&Cs, contract strategy. * Use of standard AWACS WBS recommended. Phase V: Proposal Development 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Government and Contractor work together to develop an acceptable proposal Phase • Full joint team training for One Pass process Summary: • Agree on Work Cost Estimate (WCE/BOE) • Involve DCMC/DCAA - integrate inputs • Contractor obtain internal authority to submit final Proposal Output: • Documented detailed DDC & WCE/BOE One Pass agreements • Finalized model contract Phase VI: Negotiation and Award 1 2 3 4 5 6 Identify Initial Need Program Joint Development of Proposal Negotiations Need Assessment Approval Requirements Development & Award Purpose: • Negotiate in accordance with One Pass principles and award contract / supplemental agreement Phase • Contract Clearance Approval Summary: • Negotiation • Final Reviews • Execute contract / modification Output: • Contract award A Successful One Pass Is... • A Mutual Commitment to Work Together • Built on Fact Based Rationale • Requires Meaningful Evaluation and Effort • An Integrated Process • A Flexible Process • Emphasizing a Business Partnership • Key Elements of Partnership Keys to One Pass Success Lessons Learned PROs CONs • Early Industry • Contractor Pushback Involvement/Buy-In • Staff Unavailability • DCAA Involvement (JA/Reviewer/DCAA) • Streamlined Contract Award • Resource Constraints Notional One Pass Schedule Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Define Need Define Project SOO Jointly develop IMP/IMS or SOW for legacy programs Concurrent Tech Evaluation Tech Enablers • Agreed to FPRAs Boeing Proposal Major Contract • Agreed to T&Cs Subcontractor Approval • Standard WBS Involvement Authority • CERs, Pricing Models Award One Pass Questions?