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   United States
   Marine Corps




Competitive Sourcing
 Program Manual
       September 2005




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                                United States Marine Corps
                            Competitive Sourcing Program Manual

                                     Table of Contents

Chapter 1—A-76 Program Overview

1. Purpose                                                                1
2. Roles and Responsibilities                                             1

Chapter 2—Inherently Governmental/Commercial Activity (IG/CA) Inventory

1. Purpose                                                                5
2. Procedure                                                              5

Chapter 3—DoD Commercial Activity Management Information System (CAMIS) and Special
Reporting Requirements

1.   Purpose                                                              6
2.   Procedures                                                           6
3.   Description                                                          7
4.   Reporting                                                            7

Chapter 4—Communication Plans

1.   Purpose                                                              8
2.   Procedure                                                            8
3.   Description                                                          8
4.   Miscellaneous Considerations                                         10

Chapter 5—Preliminary Planning

1.   Purpose                                                              12
2.   Requirements                                                         12
3.   Acquisition Strategy                                                 15
4.   Reports                                                              15
5.   Congressional Notification                                           15
6.   Public Announcement                                                  16

Chapter 6—Solicitation Considerations

1. Purpose                                                                17
2. Special Considerations                                                 17




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Chapter 7—Performance Work Statement/Performance Assessment Plan

1. Purpose                                                                 20
2. Performance Work Statement (PWS)                                        20
3. Performance Assessment Plan (PAP)                                       21

Chapter 8—Agency Tender Development

1.   Purpose                                                               23
2.   Standard Competition                                                  23
3.   Streamlined Competition                                               23
4.   Special Considerations                                                23
5.   Roles and Responsibilities                                            25

Chapter 9—Performance Decision

1.   Purpose                                                               26
2.   Performance Decision                                                  26
3.   Contests                                                              26
4.   Protests                                                              26
5.   Congressional Notifications of Performance Decision                   27
6.   Performance Decision Implementation                                   27
7.   Special Considerations                                                27

Chapter 10—Post Competition Administration and Accountability

1.   Purpose                                                               29
2.   Post Competition Accountability                                       29
3.   Option Years of Performance                                           30
4.   Terminations                                                          30



Chapter 11—Expansions, New Requirements, and Conversions from Contract to In-house

1. Purpose                                                                 33
2. In-house Expansions and New Requirements                                33
3. Conversions from Contract to In-house Performance                       33

                                           Appendices

Appendix A, Definition of Terms                                            37

Appendix B, Acronyms                                                       41

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Appendix C, Principal Statutes Governing Commercial Activities   44

Appendix D, Ethics Issues                                        47

Appendix E, Template--MEO Letter of Obligation (LOO)             49

Appendix F, DCAMIS Major Milestone Events                        50

Appendix G, Template--Economic Impact Statement                  51

Appendix H, Template--Competition Approval Request Letter        53

Appendix I, Non-Disclosure Agreements                            54

Appendix J, Post Competition Performance Assessment Guide        57




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                                           Chapter 1

                                 A-76 PROGRAM OVERVIEW

1. Purpose. A primary goal of the competitive sourcing program is to optimize Marine Corps
resources in support of warfighting excellence by increasing business effectiveness and
efficiency. To meet this goal and to enhance the quality, economy, and performance of Marine
Corps processes, the Marine Corps will rely on competition via Office of Management and
Budget (OMB) Circular A-76. Through competition, the Marine Corps will determine the best
provider, government or contract, for Commercial Activities (CAs), while enhancing business
processes and reducing costs. The Marine Corps will continue to operate all core functions and
inherently governmental activities with government personnel minimizing the use of military
personnel in non-core functions wherever possible.

2. Roles and Responsibilities.

  a. Office of the Secretary of Defense. The Deputy Under Secretary of Defense (Installations
and Environment) (DUSD I&E) serves as the Competitive Sourcing Official (CSO) for the
Department of Defense (DoD). As the CSO, DUSD I&E oversees the implementation of OMB
Circular A-76 across DoD. The CSO‘s role includes several non-delegable responsibilities
outlined in OMB Circular A-76, such as conducting liaison with OMB for all A-76 matters,
providing the DoD with A-76 implementation tools such as DCAMIS and COMPARE,
approving cancellations of announced competitions and time limit waivers for standard
competitions, and approving extensions under high performing organization designation.

   b. Office of the Secretary of Navy. The Assistant Secretary of the Navy (Installations and
Environment) (ASN I&E) serves as the Component Competitive Sourcing Official (CCSO) for
the Department of the Navy (DON). As the CCSO, ASN I&E oversees the implementation of
OMB Circular A-76 across the DON. The CCSO‘s role includes several non-delegable
responsibilities outlined in DoD policy, such as conducting liaison with the CSO for all matters
requiring CSO and/or OMB approval, ensuring public announcements occur for all competitions,
approving time limit waivers for streamlined competitions, and ensuring the DON‘s inventory
complies with DoD policy.

  c. HQMC (LR). HQMC (LR) serves as the USMC‘s Program Management Office for
Competitive Sourcing, reporting to DC, I&L, and shall:

    (1) Chair the Performance Work Statement Board of Directors (PWS-BOD).

    (2) Identify functional areas for competition.

    (3) Prepare Congressional notifications.

     (4) Coordinate the nomination of all competition officials. These individuals perform key
roles and have essential responsibilities for the successful completion of an A-76 competition.

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     (5) Review and endorse transition funding requirements and all requests for approvals
required by MCO 4860.3E and by DoD and DON policies.

   d. PWS Board of Directors (PWS-BOD). The PWS-BOD will bridge DON Strategic
Sourcing Acquisition Center of Excellence (SSACOE) and USMC interests in the development
of each A-76 PWS. The PWS-BOD will work in conjunction with the SSACOE to ensure
department-wide consistency in preliminary planning, PWS development, and solicitation
requirements. PWS-BOD primary responsibilities include:

     (1) Identifying specific A-76 competition candidates.

     (2) Approving the preliminary planning project plan.

    (3) Approving the preliminary planning report that includes the Plan of Action and
Milestones (POA&M) for the competition.

     (4) Approving the final draft PWS and Performance Assessment Plan (PAP).

     (5) Securing higher headquarter approvals.

    (6) Ensuring the chain of command monitors the cost and performance of all completed
competitions.

     (7) Coordinate with HQMC program and occupational field advocates, and intermediate
commands, to assist in benchmarking, sharing lessons learned, developing or sharing best
business practices, identification of initiatives within the functional community, and evaluating
performance and effectiveness of business units.

Any correspondence to the PWS-BOD shall be submitted through the chain of command to
HQMC (LR).

   e. Strategic Sourcing Acquisition Center of Excellence (SSACOE). The DON has chartered
the SSACOE to provide process controls, standardization and procedures for A-76 contracting
within the DON. The SSACOE, established under the Naval Facilities Engineering Command,
will act as the single source for A-76 contracting actions for standard and streamlined
competitions within the Marine Corps. The SSACOE will provide input into the
recommendation of competition officials and will monitor upcoming studies in order to provide
support in a timely manner. SSACOE responsibilities include:

     (1) Facilitating the preliminary planning effort, conducting market research to evaluate
scoping and grouping of function(s), identifying the Contracting Officer and Source Selection
Authority (SSA) competition officials, defining the acquisition strategy, and providing contractor
support services.

   (2) Providing PWS templates, PWS team members, and consulting support. Approving the
PWS for contractibility and issuing a draft PWS for public comment.
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     (3) Conducting source selections, completing cost comparisons, litigating contests and
protests, making performance decisions, and awarding contracts or Most Efficient Organization
(MEO) Letters of Obligation (LOOs).

   f. Agency Tender Official (ATO). The ATO will provide the necessary tools, resources, and
guidance for the MEO Team to develop the agency tender including the MEO and agency cost
estimate. The ATO shall ensure the agency tender is complete and is priced appropriately to
ensure performance by the MEO. Specific ATO responsibilities are outlined in chapter 8.

  g. Intermediate Commands. Intermediate command responsibilities include:

     (1) Execution of the competitive sourcing program across their chains of command,
including participating in preliminary planning, solicitation actions, and post competition
accountability.

     (2) Providing the Preliminary Planning Team Leader where required. The Preliminary
Planning Team Leader will provide the necessary tools, resources, and guidance for the
preliminary planning team to develop the action required during preliminary planning including
the preliminary base cost estimate. The Preliminary Planning Team Leader shall ensure the
preliminary planning report is complete. Specific Preliminary Planning Team Leader
responsibilities are outlined in chapter 5.

     (3) Providing the PWS Team Leader where required. The PWS Team Leader will provide
the necessary tools, resources, and guidance for the PWS team to develop the PWS and PAP
including the adjusted baseline cost estimate. The PWS Team Leader shall ensure the PWS and
PAP is complete and reflects performance requirements of the function. Specific PWS Team
Leader responsibilities are outlined in chapter 7.

     (4) Providing membership to the PWS-BOD.

     (5) Maintaining the DCAMIS database for each competition.

  h. Host Commands. Host commands will use competitive sourcing in designated commercial
activities in order to accomplish their primary mission in the most efficient means possible. Host
commands responsibilities include:

     (1) Providing necessary support in executing competitive sourcing initiatives.

    (2) Participating actively and substantially in preliminary planning, solicitation
development, and post competition accountability.

     (3) Providing a local coordinator to assist with preliminary planning and PWS development.

     (4) Providing preliminary planning and PWS team members as required.

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    (5) Providing an MEO Team Leader and MEO team support to assist the ATO in
developing a competitive agency tender.

   (6) Developing a communication plan, making local public announcements and
communicating with affected employees.

     (7) Implementing transition to the awarded service provider, either MEO or contract.

   (8) Implementing a PAP to ensure the MEO complies fully with the requirements in the
PWS.

    (9) Providing qualified Contracting Officer‘s Representatives (COR), Quality Assurance
Evaluators (QAE), and other necessary administrative positions to effectively monitor daily
MEO or contract award performance.

     (10) Providing a sufficiently staffed and trained Business Performance Office (BPO) that is
responsible for the oversight of either MEO or contract award implementation to include:

     (a) Coordinating with the Administrative Contracting Officer (ACO), COR, QAE, and
MEO to ensure compliance of all performance requirements stated in the PWS.

       (b) Monitoring QC and QAE results and overall QC/QA program effectiveness.

       (c) Coordinating with the comptroller, ACO, COR, and host command in monitoring to
ensure actual costs to reflect PWS changes, inflation and wage rate increases.

        (d) Evaluating whether the adjusted actual costs remain within the costs thresholds
projected during the competition and advising the ACO and the host command of the need for
corrective action if costs exceed the threshold.

       (e) Conducting periodic assessments of post competition performance ensuring both
performance and costs are consistent with the criteria in the original competition.

       (f) Identifying high performing MEOs for potential nomination for a 3-year performance
period extension.

   i. Marine Corps Regional Contracting Office (RCO). The RCO will act as the Administrative
Contracting Officer (ACO), where required, and is responsible for administering either the MEO
or the contract award, which includes:

     (1) Monitoring implementation of the phase-in plan.

    (2) Retaining the solicitation, supporting documentation, and modifications as part of the
competition file.


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    (3) Managing PWS changes, making final determination on change requests, maintaining
documentation for all changes, and ensuring adequate funding is available to execute the change.

    (4) Collecting past performance information.

    (5) Making option year determinations in accordance with FAR Part 17.2.

     (6) Notifying service providers of poor performance through cure notices and show cause
notices consistent with FAR Part 49.

    (7) Maintaining currency of the contract file.




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                                            Chapter 2

       INHERENTLY GOVERNMENTAL/COMMERCIAL ACTIVITIES (IG/CA)
                           INVENTORY

1. Purpose. OMB Circular A-76 and Department of Defense Directive 4100.15 require
executive agencies to maintain a complete inventory of all activities that are performed by
government personnel as either commercial or inherently governmental.

   a. The IG/CA Inventory is an annual reporting requirement to the Office of the Secretary of
Defense (OSD) and the Office of Management and Budget (OMB) identifying all military and
civilian labor authorizations throughout the Marine Corps. The IG/CA Inventory is one of the
principal documents for assessing manpower mixes and identifying potential functional areas for
competition and military realignment. It is also the primary data source for the Federal Activities
Inventory Reform (FAIR) Act inventory reported to the OMB and the Congress.

  b. DoD is committed to maximizing competition of commercial activities performed by its
military and civilian employees. The Marine Corps uses core/non-core criteria to identify
candidates within the IG/CA Inventory for competition and military conversion. The core/non-
core determinations for each functional area are identified and approved by the Marine Corps
Requirements Oversight Council (MROC). Coding must be accurate and consistent with the
MROC‘s core/non-core determinations.

2. Procedure. The inventory is conducted annually in accordance with OSD and USMC
guidance published in the first quarter of the fiscal year. DC, I&L (M&RA) is responsible for
issuing inventory guidance.

   a. Preparation of the IG/CA Inventory commences with the Marine Corps Combat
Development Command (Total Force Structure Division) (MCCDC (TFSD)) providing DC, I&L
(M&RA) with an initial inventory based on current Table of Organizations (T/Os) for each
Marine Corps organization. This inventory is consolidated and formatted to capture proposed
changes from the field. The inventory is then forwarded to the organizations listed in the T/Os
via the intermediate command, if applicable, for update.

  b. Once they have updated the T/Os, the host commands will forward the completed, updated
inventory via their chains of command to DC, I&L (M&RA) per published guidance. DC, I&L
(M&RA) coordinates a review of the inventory by HQMC functional sponsors for consistency,
impact on Military Occupational Specialties (MOSs), and overall implications on USMC
manpower and force structure. Function Code and Criteria Code changes arising from this
review should ultimately be transferred to the official T/Os; however, this pending transfer
should not take the place of the affected organizations continuing to submit and track all T/O
changes via routine submissions to MCCDC (TFSD).




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                                        Chapter 3

     DOD COMMERCIAL ACTIVITIES MANAGEMENT INFORMATION
     SYSTEMS (DCAMIS) AND SPECIAL REPORTING REQUIREMNTS

1. Purpose. DCAMIS data is required to be accurate and current on a continuing basis.
All data is required to be entered as it becomes available. The database is real time with
direct visibility to OSD and provides the basis for reporting on A-76 competitions to
OMB and Congress from the start of the competition through completion of the all
performance periods. The data contained in DCAMIS is required to comply with 10
United States Code (USC) 2461a and 10 USC 2463.

2. Procedures. The following guidelines have been adopted by the Marine Corps to
maintain the system as currently and accurately as feasible. DCAMIS contains internal
controls that are aimed at ensuring the accurate presentation of data. Features for this
control are Update, Validate and Review. These features provide for the identification of
those users who are entering, validating and reviewing the data. Individuals who validate
a record will not review the same record.

   a. Update capability is the ability to enter new data into the DCAMIS. Update
capability resides with all DCAMIS managers and administrators within their scope of
access. The intermediate commands have been delegated this capability and may, at their
discretion, re-delegate this capability to lower echelon command representatives.
Commands conducting or managing competitions will be required to provide input for
updates to the system, whether or not they have been delegated update capability by their
intermediate command. If they elect not to delegate update capability, the intermediate
commands should request ―read only‖ access for all participating commands to ensure
that they can view the updated DCAMIS data and ensure it is as accurate and up to date
as possible. DCAMIS records shall be updated in a timely matter after the information is
available.

  b. Validation of records ensures that the record provides an accurate account of the
competition as supported by written documentation. The documentation will remain
available for potential audit as required by OMB Circular A-76. The intermediate
commands, non-delegable, are responsible for validating all DCAMIS records. All data
entries (updates) will be validated as soon as feasible, at a minimum, on a monthly basis.
Users responsible for validating data can print a report on the 1st of each month
identifying the sections in each initiative that have been updated but not subsequently
validated. Any required data corrections or inputs should be made and validated by the
15th of each month.

    c. All records and validated sections will be reviewed, at a minimum, on a quarterly
basis. Reviews will be conducted by HQMC (LR) personnel to ensure all announced
initiatives are recorded in DCAMIS, the data entered has been examined for compliance
with DoD and Marine Corps DCAMIS policy, and the required information relating to

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the specific A-76 initiative reflects content that is accurate, complete, reasonable, and
consistent.

3. Description. DCAMIS is divided into records based on each competition. The
records are structured based on the status or phase of the competition. Within these
phases either managers or administrators provide input. Once sections within these
phases are complete only an administrator may go back and edit errors. The milestone
and document sections, however, are always available to update.

4. Reporting. Many of the reports required previously are no longer required as they are
now integrated into the DCAMIS database, making prompt completion of data entry
following every milestone event essential. DCAMIS major milestone events and major
item uses are listed in appendix F. DCAMIS should be immediately reviewed for update
when these milestones are achieved.

  a. The Preliminary Planning Team Leader conducting the competition must submit a
preliminary planning report to the PWS-BOD before a new DCAMIS record is created.
See chapter 5 for additional details regarding preliminary planning.

   b. After any performance decision the Marine Corps may be required to provide
notification of the results to Congress. To facilitate the determination whether or not a
Congressional notification is required and to facilitate prompt notifications, intermediate
commands will update the applicable decision sections of DCAMIS, including expected
transition actions, immediately after the information becomes available.

   c. Decisions to convert to contract and decisions resulting in over 50 civilian
personnel subject to a reduction in force must have an economic impact statement
submitted with the Congressional notification describing the results of the competition,
per 10 USC 2461. The economic impact statement should be attached to the DCAMIS
record at the time of the performance decision to provide a single, consolidated source of
required data. See appendix G for format.




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                                        Chapter 4

                              COMMUNICATION PLANS

1. Purpose. Developing and implementing effective communications early in the A-76
process is critical to establishing and maintaining the tone for the competitions as well as
aiding in the development of requirements and best business practices. The guidance in
this chapter discusses these considerations and is not intended to replace keeping the
chain of command informed. It is important that everyone affected is informed of the
purpose of the competition, the competitive sourcing process and timelines, and the
potential impact upon employees, the organization, and the services being provided.
Communicating effectively with affected employees or labor representatives at the start
of the preliminary planning process with an all-hands meeting and throughout the actual
competition by means of a kick-off meeting and continued monthly meetings may
minimize or solve many problems encountered.

2. Procedure. This chapter discusses those instances where internal or external
communication is required. The details of specific reporting requirements are addressed
in their pertinent chapters.

3. Description. Each command is responsible for developing and executing its own
communications plan. Each plan should include the following items, as well as any other
items dictated by local needs. Plans shall be coordinated with the ATO, Human Resource
Advisor (HRA), and the PWS Team Leader.

   a. Courtesy Congressional Notification Prior to Starting Preliminary Planning. As a
courtesy, HQMC (LR) will ensure that Congress is notified prior to the first preliminary
planning meeting. Formal Congressional notification will occur later following the PWS-
BOD‘s receipt and approval of the preliminary planning report.

  b. Initial All-hands Meeting. This meeting should be conducted as early in the
preliminary planning process as possible to inform all affected employees of the potential
that an A-76 study is being considered and what that would mean for them. This meeting
will normally occur after a courtesy Congressional notification has advised key
Congressional committee chairmen that preliminary planning will be commencing.
HQMC (LR) will advise the chain of command once this notification has occurred.

  c. Preliminary Planning Project Plan. This report is submitted to the PWS-BOD as
soon as the preliminary planning team has developed a project plan outlining the tasks
and timeline for completing the preliminary planning process. The affected employees
should be briefed on the project plan after approval by the PWS-BOD.

  d. Preliminary Planning Report. This report must be submitted to the PWS-BOD at
the end of preliminary planning as detailed in chapter 5. It details the findings of
preliminary planning in order to obtain any approvals required prior to Congressional
notification and public announcement in FEDBIZOPPS. The report will nominate
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competition officials by name, describe the scope of competition, recommend use or non-
use of Government Furnished Property (GFP), and provide a proposed timeline for the
competition.

  e. Congressional Notification of Decision to Conduct an A-76 Competition. HQMC
(LR) will initiate Congressional notification after the PWS-BOD has reviewed and
approved the preliminary planning report.

  f. Public Announcement of Decision to Conduct an A-76 Competition. As required by
OMB Circular A-76, the decision to conduct an A-76 competition will be announced in
the FEDBIZOPPS and at a local public announcement after HQMC (LR) has advised all
concerned that the Congressional notification has occurred. The SSACOE will publicly
announce the competition in FEDBIZOPPS, which constitutes the official start of the
competition.

   g. Monthly Consultations with Affected Civilians. As required by 10 USC 2467 and
OMB Circular A-76, the command will consult monthly with the civilian employees who
will be affected by the performance decision or with their labor organization. This
mandatory consultation shall include, at a minimum, a consideration of the views of such
employees on the development and preparation of the PWS and the government‘s agency
tender. This monthly consultation is required after the public announcement in the
FEDBIZOPPS through the close of the solicitation, but consultation is recommended
before and after this period to keep employees apprised of any pertinent developments.
The command will coordinate these efforts with the PWS Team Leader, the ATO, and the
Human Resource Advisor (HRA).

  h. Customer Interface. Routine customer briefings should be conducted to ensure that
the customers‘ needs are fully considered in the development of the PWS. An
understanding of customer requirements and customer involvement is helpful during
source selection.

   i. Public Announcement of Performance Decision. The Contracting Officer shall
announce the performance decision in the FEDBIZOPPS, and the affected command
shall announce the results of the performance decision locally. The Contracting Officer
will also notify each offeror, including the ATO, of the decision and specify contest
procedures. At the announcement of the performance decision, the Contracting Officer
will make the certified Standard Competition Form (SCF), agency tender, and public
reimbursable tenders available only to legal agents of directly interested parties until after
the expiration of time for contests or protests to be filed. As a condition of this release,
the legal agents shall be required to sign a non-disclosure statement.

   j. Debriefing. The SSA shall ensure that the Contracting Officer offers debriefings of
the performance decision to all private sector offerors, public reimbursable sources, the
ATO and directly affected government personnel and their representatives as directed by
the Federal Acquisition Regulation (FAR). The briefing to all affected employees should
also discuss contest and protest procedures.
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  k. Congressional Notification of Performance Decision. HQMC (LR) will initiate
Congressional notifications, when required, after the expiration of the time for filing
contests or protests and the resolution of any contests or protests challenging the
performance decision. At this time, the affected command shall immediately update
DCAMIS, including an Economic Impact Statement (appendix G) if the performance
decision is to contract or if it results in a reduction in force of 50 or more civilians,
regardless of outcome. See chapter 3. Notification to employees or other interested
parties need not be delayed, pending the Congressional notification of the performance
decision. The command must, however, receive approval from HQMC (LR) before
initiating the transition to the new organization/provider.

   l. Press Releases. Press releases may be made at any time, usually to coincide with
employee notifications. Avoid any press release of information that has not been released
to affected employees. The Public Affairs Officer (PAO) should ensure the affected
employees and all offerors are notified prior to the issuance of a press release.

   m. DoD Commercial Activities Management Information System (DCAMIS)
Reporting. Prompt updating of DCAMIS is required to ensure that study progress and
performance data is available to meet the data submission requirements of 10 USC 2461.
Intermediate commands are responsible for maintaining the currency of DCAMIS data,
either directly or through delegation via their chains of command. This responsibility
includes updating required sections as actions are completed and keeping the milestone
data up to date. Host commands should either be delegated updating capability or be
provided access to the information contained and required in DCAMIS to permit them to
provide their chains of command with the information required to keep DCAMIS up to
date. See chapter 3.

4. Miscellaneous Considerations.

  a. Any contact between the ATO and the Contracting Officer prior to the performance
decision shall be in writing to maintain a proper record of all such contacts, consistent
with procedures specified in the FAR and DFARS for contacts between the Contracting
Officer and any other potential offeror.

  b. The HRA shall provide assistance to directly affected employees and their
representatives from the date of public announcement until full implementation of the
performance decision.

   c. After public announcement and prior to the performance decision, the agency tender
being developed is considered proprietary. Access to sensitive data such as efficiencies
developed and manpower identified to meet the PWS requirements (other than historical
staffing and workload data), will be restricted to the ATO team as far as is practicable.
The release of any information related to the agency tender is the responsibility of the
ATO.

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  d. Information regarding the requirements contained in the PWS during its
development may not be released to any potential governmental or commercial offeror
until that information is made available to all offerors. Counsel for the SSACOE or
Counsel for the Commandant (Code CL) shall be consulted when any potential conflict
may exist. To alleviate a potential conflict, the draft PWS or solicitation should be
posted for public comment as early in the process as possible.




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                                                     Chapter 5

                                          PRELIMINARY PLANNING

1. Purpose. Preliminary planning (Fig. 5.1) is conducted to determine the optimal
business grouping for competitions with the private sector. Preliminary planning should
result in market information and facts that lead to a defined business unit that will
maximize opportunities for competition. Previous competitions used precious time
determining work requirements to be included in the competition. Late additions and
deletions to the scope of work complicated the process, disrupting the time needed to
write the PWS or adequately conduct source selection. By setting aside a specific period
called preliminary planning, OMB intended that an agency better finalize the business
grouping prior to the onset of the competition. Once the public announcement occurs all
efforts are focused on the competition steps.

     Management                                    Execution                                    Closeout
                                                        Cost Data
                                                        Collection
                                                         Systems




                                 4.Baseline                                   3.Workload
                                   Costs                                   Collection Systems


                                                                                                       5.Type of
                                                                               Requirements
 Project Plan                   1.Scope                Iterative               Identification
                                                                                                      Competition
                                                        Process
                                                                                                       6.Schedule
                                                                              2.Grouping
                            Preliminary
                              Market                                                                    7.Roles &
                             Research                                                                Responsibilities
                                                                                                     of Participants

                                                        Preliminary                                   8.Competition
                                                       Labor Market                                      Officials
                                                         Research
                                                                                                      9.Incumbent
                                                                                                         Service
                                                                                                       Providers

      OMB Circular A-76                         The project plan and preliminary
    required steps are shaded                 planning report must be approved by
         and numbered                                    the PWS-BOD                                     PP
                                                                                                        Report


Figure 5.1. Preliminary Planning Process

2. Requirements and Responsibilities. Preliminary planning is required by OMB
Circular A-76, should not be initiated until Congressional notification has been made and
should be accomplished in a timely fashion. Size and complexity of the effort may affect
this timeline, but, typically, preliminary planning should take approximately six months
to complete. See the Marine Corps‘ Preliminary Planning Guidebook, enclosure (2), for
more detailed guidance for completing the tasks outlined in this chapter. The Preliminary
Planning Team Leader and team members are responsible for completing the following
tasks and coordinating their final products with the PWS-BOD:
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  a. Project Plan. Managing the preliminary planning process requires a detailed project
plan. A main component of this plan is the preliminary planning milestone schedule that
identifies major project goals/sub-goals with deadlines and associated resources. Once
complete, the Preliminary Planning Team Leader shall forward the project plan to the
PWS-BOD for approval.

   b. Project Scoping and Grouping. Determine the activities to be competed. Identify
and analyze all in-house and contract requirements supporting the functional activity (ies)
to ensure all other activities directly related to the functional activity (ies) are included in
the grouping. The initial project scope and grouping may be refined throughout the
preliminary planning process based on continued research.

  c. Preliminary Market Research. Investigate how industry organizes business
functions and determine the appropriate activity grouping, as business units, consistent
with market and industry structures. Determine the existence of viable commercial
source(s) capable of providing the necessary services, and their applicable labor rates.
This investigation should be coordinated with the SSACOE.

   d. Preliminary Labor Market Research. Assess the availability or capability to recruit
personnel, including recruiting cost, in the local labor market. Determine if the
appropriate workforce pool will be available, considering government and private sector
resources.

  e. As-Is Requirements Identification. Document quantifiable outputs of activities or
processes, and agency or industry performance standards. Requirements identification is
the basis for workload data collection and PWS development.

  f. Workload Collection Systems. Assess the availability and accuracy of workload
data and work units, and establish data collection methodologies and systems.

   g. Cost Data Collection Systems. Assess the availability and accuracy of cost data and
establish data collection methodologies and systems consistent for use with the OMB
Circular A-76 Cost Comparison software (COMPARE).

   h. Baseline Costs. In accordance with DoD Baseline Costing Policy, use COMPARE
to determine the activity‘s total baseline costs as performed by the incumbent service
provider. The Preliminary Planning Team Leader will designate a Baseline Costing
Official in writing. The Baseline Costing Official submits the signed COMPARE form,
certifying the Preliminary Planning Baseline Costs as of the start date of the competition
and Adjusted Baseline Costs as of the end date of the competition. The Baseline Costing
Official may not participate in the development of the agency tender in any capacity.




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Figure 5.2. Standard Competition




Figure 5.3. Streamlined Competition

  i. Type of Competition. Determine which type of competition will be used, Standard
(Fig. 5.2) or Streamlined (Fig. 5.3).

     (1) Use standard competition if, on the public announcement (start date), a CA is
performed by an aggregate of more than 10 civilian Full Time Equivalents (FTEs), or a
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private sector or public reimbursable source and the agency tender will include an
aggregate of more than 10 civilian FTEs. While OMB Circular A-76 permits the use of a
streamlined competition for 65 or fewer FTEs, constraints in recurring language in the
annual DoD Appropriations Act effectively limit the use of streamlined competitions in
DoD to competitions involving 10 or fewer civilian employees. Use of streamlined
competitions for 11-65 FTEs will be limited on an exception basis to cases approved by
the PWS-BOD. Any exceptions will require an MEO in the streamlined competition.

      (2) Use either a streamlined or standard competition if, on the public announcement
(start date), a Commercial Activity (CA) is performed with an aggregate of 10 or fewer
civilian FTEs with any number of military personnel. Either competition may be used if
the CA is performed by a private sector or public reimbursable source and the agency
cost estimate (for streamlined) or the agency tender (for standard) will include an
aggregate of 10 or fewer FTEs.

     (3) Streamlined competitions conducted on CAs with 10 or fewer civilian FTEs do
not require the preparation of an MEO.

   j. Competition Schedule. Develop a preliminary milestone schedule for completing
either a streamlined or standard competition.

   k. Participant‘s Roles and Responsibilities.Determine prospective participant‘s roles
and responsibilities in the process and their availability for the duration of the streamlined
or standard competition. The PWS-BOD will request nominations for the following
competition officials (include these recommendations in the preliminary planning report):
Agency Tender Official (ATO), Contracting Officer, Performance Work Statement
(PWS) Team Lead, Human Resource Advisor (HRA), and Source Selection Authority
(SSA), as required by OMB Circular A-76, attachment B. In addition to the competition
officials, identify roles and responsibilities of key non-competition officials, to include
local counsel (Code CL).

  l. Incumbent Service Providers. The host command and/or the Contracting Officer
shall notify incumbent service providers (internal or contract workforce) on the planned
competition and possible effects concurrent with FEDBIZOPPS announcement.

3. Acquisition Strategy. The preliminary planning team in coordination with the host
command, its chain of command and the SSACOE shall decide on an acquisition strategy
consistent with OMB Circular A-76, attachment B.

4. Reports. The preliminary planning report must address, at a minimum, the outcomes
of all nine preliminary planning steps required by OMB Circular A-76, the USMC
Preliminary Planning Guidebook, and any other outcomes resulting from additional
actions. The preliminary planning report and accompanying letter (Appendix H) shall be
forwarded to the PWS-BOD for approval.


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5. Congressional Notification. HQMC (LR) will coordinate Congressional notification
of intention to conduct preliminary planning and a decision to conduct a streamlined or
standard competition with the CCSO and the chain of command after the preliminary
planning report is approved by the PWS-BOD.

6. Public Announcement. HQMC (LR) will advise the chain of command after the
preliminary planning report has been approved by the PWS-BOD and the CCSO, and
Congressional notifications have been made. At that time, host commands will make a
local public announcement, and the SSACOE will announce the A-76 competition in
FEDBIZOPPS. The date of the FEDBIZOPPS announcement serves as the official start
of the competition for OMB Circular A-76 and statutory time limit purposes. The official
end date of the competition is the date when the performance decision is reached.




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                                         Chapter 6

                         SOLICITATION CONSIDERATIONS

1. Purpose. This chapter identifies specific considerations that must be addressed during
the development and execution of solicitations involving A-76 competitions. This
chapter is not intended to circumvent any procurement regulation or to fully describe the
A-76 procurement process but instead is intended to provide guidance concerning
specific requirements, which may impact solicitation actions as they relate to the A-76
process involving Marine Corps commands.

2. Special Considerations.

  a. Government Furnished Property (GFP). The use or non-use of GFP must be
approved by the CCSO, or as delegated. Any GFP used, must be clearly identified in the
solicitation. Recommendations concerning GFP will be submitted to the PWS-BOD for
review and approval prior to being forwarded to the CCSO. See the expanded discussion
on GFP in paragraph 7.2.2.

   b. Award Fees. The CCSO, or delegate, will make the determination as to whether
award fees may be used. If so, they must be applicable to all prospective providers,
including the agency tender. If award fees are applicable, the solicitation must include a
requirement that the offeror propose a target cost and target profit or fee for the award
fee. Because award fees incur additional costs, regardless of outcome, and add additional
complications to the competition process, they will only be approved on an exception
basis. Requests to use an award fee in a standard competition should be sent to the PWS-
BOD. Requests should describe the proposed award fee structure; discuss the anticipated
benefits of using an award fee; explain how the award fee will be funded, evaluated, and
awarded; and describe how it will be distributed across the MEO if the agency tender
wins the competition.

   c. Performance Periods. Commands desiring to use performance periods other than
five years (excluding any transition period) shall submit a request outlining their rationale
to the PWS-BOD for review and approval prior to the release of the solicitation.

  d. Fiscal Issues. Funding a full year of performance at contract award when the
performance periods cross fiscal years proves problematic in today‘s funding
environment. The solicitation must either align performance periods to fiscal years, or
provide for incremental funding if a performance period crosses fiscal years, or contain
the ability to adjust performance periods to fiscal years in order to alleviate this problem.

  e. Bonds. The CCSO or delegate must approve the use of performance bonds. If
performance bonds are used, they must be identified in a separate Contract Line Item
Number (CLIN) to permit the contracting officer to exclude the cost of the performance
bond before entering the contract price on the SCF. Requests to use performance bonds
should be submitted to the PWS-BOD. The request should describe the specific
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circumstances that require the use of the performance bond and identify the risks if a
bond is not used. It should describe how the current organization ameliorates these same
risks, what specific factors in private sector performance would increase the risks of
nonperformance, and how the use of a performance bond would significantly reduce any
risks associated with a change to private sector performance.

   f. Health Care Costs. The following information is required to ensure compliance
with language concerning the costs of contractor provided health benefits in Section 8014
of PL 108-287:

     (1) Require commercial offerors to certify whether their offer includes an employer-
sponsored health care insurance plan that requires the offeror to contribute the same or
more towards the premium or subscription share than the amount paid by the DoD for
health benefits for civilian employees per section 8014 of P.L. 108-287 and to identify
the total amount of employer costs associated with providing these benefits to their
permanent employees.

     (2) Require that commercial offerors provide the amount of employer contribution
provided for health care insurance by category of employee (self and family), the
percentage of employer contribution by category of employee, and the number of
employees expected to be covered in the proposed contract by category of employee.

   g. Section L (Instructions, Conditions and Notices to Offerors) and section M
(Evaluation Factors for Award). Sections L and M of the Solicitation shall clearly
identify what applies/does not apply to each offeror (agency tender, private sector, or
public reimbursable source). Specifically an agency tender is not required to include (a)
a labor strike plan; (b) a small business strategy; (c) a subcontracting plan goal; (d)
participation of small disadvantaged businesses; (e) licensing or other certifications; and
(f) past performance information unless it involves a previous MEO implemented under
the current or previous OMB Circular A-76. (OMB Circular A-76, attachment B, para
D.3.a.) Section L shall include a requirement for all offerors, including the agency
tender, to submit a cross-referenced compliance matrix.

  h. Quality Control Plan. A quality control plan is required for all proposals to A-76
solicitations.

   i. Appropriated Fund (APF) and Non-Appropriated Fund (NAF) Work. When a
combination of APF and NAF work is included in a solicitation, both APF and NAF
funding sources will be allocated to their respective areas in the PWS. To determine
funding requirements the PWS must clearly identify the work associated with each type
of funding category. The solicitation must have offerors provide a separate line item bid
for each fund type.

  j. Right of First Refusal. This clause is included in the solicitation in accordance with
the FAR Part 52.207-3.

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  k. Common Costs. Costs that are directly associated with the commercial activity that
will be incurred by the government regardless of the outcome of the competition, shall be
identified in the solicitation.

   l. Draft PWS. The Contracting Officer will post a draft of the PWS on FEDBIZOPPS
for public review and comment. In the interest of having an open procurement, this
posting will allow input into the process by all interested parties--employees, the ATO,
prospective commercial offerors, and the command.

 m. Source Selection Evaluation Board. Directly affected government personnel and
MEO Team Members shall not sit on the Source Selection Evaluation Board.

   n. Debriefings and Release of Information. The Source Selection Authority (SSA)
shall ensure that the Contracting Officer offers a debriefing to all offerors, public or
private, including directly affected employees as soon as possible after the initial
performance decision. Release of information to interested parties requires signature of
non-disclosure agreements, appendix I, as specified by OMB Circular A-76, attachment
B, para. D.6.e.

   o. Letter of Obligation. In the case of a performance decision for agency performance,
the Contracting Officer shall execute a Letter of Obligation (LOO) with an official
responsible for performing the commercial activity. See example LOO in appendix E.

  p. Receipt of No Offers. The Contracting Officer will report to the CCSO via the
chain of command in coordination with HQMC (LR) if no offers are received other than
the agency tender and will recommend a course of action. The CCSO will make the final
determination on the course of action.




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                                       Chapter 7

PERFORMANCE WORK STATEMENT/PERFORMANCE ASSESMENT PLAN

1. Purpose. This chapter provides policy and procedures regarding the development of
the Performance Work Statement (PWS) and the Performance Assessment Plan (PAP),
also known as the Quality Assurance Surveillance Plan (QASP).

2. Performance Work Statement (PWS). A well-prepared PWS is key to the successful
completion of a streamlined or standard competition. It is critical the PWS be
sufficiently comprehensive to permit objective verification that in-house, ISSA, or
contract performance satisfies government requirements. The PWS team shall develop a
PWS in accordance with the FAR, OMB Circular A-76, and Contracting Officer direction
for all activities being competed. Both government and contract personnel may assist in
developing a PWS as long as this assistance does not result in a conflict of interest, as
outlined in the FAR. All governmental and contractual personnel working on the
development of the PWS are prohibited from participating in the development of the
agency tender and must sign a non-disclosure agreement.

   a. The PWS shall specify desired outputs or performance measures. The PWS should
not be overly prescriptive regarding how procedures are performed and should permit use
of innovations, which can lead to increases in efficiency and quality. If changes in
performance requirements emerge during the source selection process, it is essential that
the SSA, the PWS Team Leader and the Contracting Officer coordinate to incorporate
these changes within the PWS. Requirements that exceed current performance levels can
only be incorporated into the PWS if the command certifies that funding is available to
meet these new requirements. The use of existing PWS templates is encouraged.

   b. Any decisions to provide Government Furnished Property (GFP) should take into
account the costs over the life of the contract, including disposal. The PWS team shall
use a cost benefit analysis as a basis for determining if providing government property to
a contractor is, or is not, in the best interest of the government. This analysis will not
consider either advantage or disadvantage to the competitors. Each case concerning
GFP will be evaluated on its own merits by the PWS-BOD. Recommendations to the
PWS-BOD should examine relative costs and benefits of all feasible alternatives. The
PWS team should maintain complete information justifying the cost-benefit
determination. Final recommendations concerning use of GFP with appropriate rationale
will be submitted via the affected command‘s chain of command to the PWS-BOD for
review prior to forwarding to the CCSO or delegate for a final decision. All use or non-
use of government furnished property must be approved by the CCSO, or as delegated,
and must be accurately listed in the PWS. Fiscal availability to fund GFP is a
consideration of approval. The ATO, MEO team and any individual assisting in the
development of the agency tender shall not be involved in the determination to provide
GFP.


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   c. Workload in support of the Marine Corps through support agreements or other
arrangements (e.g., MOA and MOU) will be included in the PWS and coordinated with
all affected components and agencies. Existing agreements will be evaluated to
determine any potential impacts. Requirements for the receivers‘ level of service must be
addressed and documented in the PWS.

   d. At least monthly, during the development of the PWS, management solicits the
views of employees and/or their representatives for inputs to the PWS (10 USC 2467).
Labor organizations, on behalf of directly affected civilian employees, may only provide
technical support to the PWS team members who actually develop the PWS. Employees
or their union representatives may also participate in meetings with members of the PWS
team, in an advisory capacity, except where management decisions are made or source
selection information is discussed. Directly affected employees not represented by labor
unions, may appoint a representative(s) to consult with the PWS team. Employees
participating as members of the MEO team cannot participate on either the PWS team or
the source selection team. Final decisions regarding the requirements contained in the
PWS remain at the discretion of the PWS-BOD and SSACOE.

   e. After the PWS-BOD and SSACOE have approved the draft PWS, it shall be issued
on FEDBIZOPPS, for review by the public and private sector, in order to solicit inputs
from any potential offerors. Early exchanges of information such as pre-proposal
conferences, site visits, and others, as discussed in FAR Part 15.201, are highly
encouraged. All offerors, to include the ATO, MEO Team, and any individual assisting
in the development of the agency tender will not have access to the PWS prior to its
release by the Contracting Officer.

   f. When a combination of APF and NAF work is included in a solicitation, both APF
and NAF funding sources will be allocated to their respective areas in the PWS for the
cost of the contract. Therefore, the PWS must clearly identify the work associated with
each type of funding category. The solicitation must have all offerors provide a separate
line item bid for each fund type.

3. Performance Assessment Plan (PAP). The PWS Team Leader shall be responsible for
developing the PAP, also known as the Quality Assurance Surveillance Plan (QASP). A
PAP:

  a. Is required to be developed for every standard competition and every streamlined
competition where a solicitation is prepared.

  b. Describes inspection methods, performance metrics, required reports, and resources
needed to assess service provider‘s performance as measured against PWS requirements.
The PAP is implemented after the phase-in plan has been executed.

  c. May use assistance in its development from government or contractor personnel as
long as this assistance does not result in a conflict of interest, as outlined in the FAR.

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  d. Must be submitted to the PWS-BOD in final draft format at the same time the final
draft of the PWS is submitted for approval.




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                                       Chapter 8

                        AGENCY TENDER DEVELOPMENT

1. Purpose. This chapter provides policy for developing the agency tender. The agency
tender serves as the agency‘s equivalent of a private sector bid/offer. As such, it must
clearly demonstrate the government‘s capability to perform the requirements of the PWS
within the staffing of the MEO and within the costs provided in the agency cost estimate.
The quality control plan and the phase-in plan are key elements of the agency tender
addressing the government‘s ability to perform to the PWS within the cost estimate and
MEO.

2. Standard Competition. In accordance with OMB Circular A-76, the Agency Tender
Official (ATO) will develop an agency tender that responds to the solicitation and
include:

   a. Most Efficient Organization (MEO). Develop an MEO that reflects a competitive
in-house organization that meets the requirements of the PWS using business process
reengineering principles, business case analysis techniques, and job or organizational
analysis.

  b. Quality Control Plan (QCP). Describe how the MEO will meet the quality,
quantity, timeliness, responsiveness, customer satisfaction, and other performance level
requirements in the PWS.

  c. Agency Cost Estimate. Determine cost of agency performance in accordance with
OMB Circular A-76, attachments B and C and the DoD A-76 Costing Manual interim
guidance.

  d. Phase-In Plan. Develop a plan addressing timeline and logistical matters to replace
the incumbent service provider with the MEO.

  e. MEO Subcontracts. Copies of any existing awarded MEO subcontracts if they are
continued in the MEO solution.

3. Streamlined Competition. For streamlined competitions where there is no agency
tender, the ATO shall verify the cost of agency performance, SLCF lines 1, 2, 3, 4, and 6,
in accordance with OMB Circular A-76, attachment B.

4. Special Considerations.

   a. Preliminary efforts associated with the development of the agency tender may begin
prior to completion of a PWS based upon the incumbents‘ general knowledge of the
overall budget, resources, processes, and procedures that have historically been
associated with the provision of products and services in the commercial activities
undergoing competition. Such preliminary efforts may explore process improvements
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and other innovative ways of reducing costs below historical norms, recognizing,
however, that actual requirements and workload will not be available until they are
explicitly outlined in the final PWS once a solicitation is issued.

  b. The MEO must:

     (1) Be developed by the MEO Team.

     (2) Follow the PWS performance standards, technical exhibits, and other applicable
solicitation requirements and demonstrate its capability to do so by submitting a cross-
reference compliance matrix in accordance with OMB Circular A-76, attachment B,
Figure B3.

    (3) Be based on PWS requirements and PWS workload estimates, not on the current
workload, staffing, or work methods.

     (4) Explore and exploit new, innovative, and creative ways to provide the required
services in a cost-effective manner. There is no requirement to apply existing manpower
standards or standard manpower calculation methodologies.

   c. Develop the agency cost estimate using COMPARE software and in accordance
with attachment C of OMB Circular A-76, Department of Defense (DoD) Costing
Manual, and any supplemental DoD guidance. This guidance may be accessed on the
HQMC (LR) website. Any request for deviations from using the DoD Costing Manual
must be submitted to HQMC (LR). The OSD Competitive Sourcing and Privatization
Office COMPARE software may be downloaded from http://compareA76.com. This
website also provides useful information concerning related A-76 costing and software
issues.

  d. The ATO makes all final decisions regarding the agency tender at his/her discretion.

   e. The ATO must submit the agency tender to the Contracting Officer by solicitation
close date. If the ATO anticipates exceeding the closing date, he/she must notify the
Contracting Officer as soon as possible. The Contracting Officer, in consultation with
the PWS-BOD, will approve amending this date. Exceeding OMB timelines requires
higher-level approval. Any requests for these deviations will be forwarded to the PWS-
BOD.

  f. Directly affected government personnel may participate on the MEO Team. MEO
Team members, to include the ATO, Human Resource Advisor (HRA), advisors and
consultants, shall not be members of the PWS team or participate in any manner on the
Source Selection Evaluation Board (SSEB).

  g. At least monthly, the host command‘s management solicits the views of employees
and/or their representatives for input to the MEO (10 USC 2467). Representatives may

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participate in meetings with the MEO team in an advisory capacity except where
management decisions are made or source selection information is discussed.

   h. Contract consultants may assist in developing the agency tender as long as their
company or any subsidiary will not be submitting an offer in response to the solicitation
for the A-76 competition. In addition, contractor employees participating in agency
tender development may not participate in PWS development and must sign a non-
disclosure agreement, see appendix I.

5. Roles and Responsibilities.

  a. Agency Tender Official (ATO) shall:

     (1) Be an inherently governmental agency official with decision-making authority
and independent of the Contracting Officer, SSA, Source Selection Evaluation Team
/Board, and PWS team.

     (2) Be organizationally separate from the command performing the competition.

     (3) Appoint an MEO Team, after public announcement, comprised of technical and
functional experts.

    (4) Have access to available resources (e.g. skilled manpower, funding) necessary to
develop a competitive agency tender. In this regard, the host commands and HQMC
(LR) will ensure the ATO is resourced accordingly.

     (5) Make all final management decisions regarding the agency tender.

     (6) Develop, certify and represent the agency tender.

     (7) Certify the agency cost estimate.

     (8) Make authorized changes to the agency tender.

     (9) Submit any contests to the agency and/or any protests on behalf of the agency
tender and/or affected employees to the Government Accountability Office (GAO).

  b. MEO Team shall:

     (1) Consist of individuals with expertise in; the function being competed, cost
analysis, human resources, COMPARE, management analysis, work measurement, and
industrial engineering, which will assist the ATO in preparing the agency tender.

   c. Counsel to the Commandant (code CL) field offices shall assist the ATO and MEO
team, as required.

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  d. Human Resource Advisor (HRA) shall:

     (1) Be an inherently governmental agency official and human resource expert.

     (2) Be independent of the CO, SSA, PWS team and the SSEB.

     (3) Participate on the MEO team to include:

         (a) Advising ATO/MEO team on position classification processes, timelines and
restrictions.

         (b) Performing labor market analysis to determine availability of sufficient labor
to staff the MEO and implement the phasing plan.

       (c) Classifying position descriptions.

       (d) Assisting in the development of the agency cost estimate by providing labor
costing information.

       (e) Assisting in the development of the phasing plan based on MEO staffing
requirements.

       (f) Developing an employee transition plan.

      (4) Be responsible for ensuring employee and labor relation requirements are
satisfied.




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                                        Chapter 9

                             PERFORMANCE DECISION

1. Purpose. This chapter provides policy regarding performance decisions and
subsequent actions involving standard and streamlined competitions.

2. Performance Decision. The Source Selection Authority (SSA) reviews all offerors
and certifies the performance decision by signing the Standard Competition Form (SCF).
The performance decision or end date of a standard or streamlined competition is when
all SCF or Streamlined Competition Form (SLCF) certifications are completed. Both
competition forms require three certifications by different individuals. The SCF requires
certifications by the ATO, Contracting Officer, and SSA. The SLCF requires
certifications by the ATO, Contracting Officer and an individual appointed by the
SSACOE to certify the performance decision.

   a. The Contracting Officer, working with the host command, will ensure a formal
public announcement is made once a performance decision for a standard (using FAR
14.4 for sealed bid acquisitions and FAR 15.503(b) for negotiated acquisitions) or a
streamlined competition has been reached. For standard competitions, debriefings shall
be offered to all private sector offerors, public reimbursable sources, directly affected
government personnel, and the ATO, in accordance with the FAR. The Contracting
Officer will also announce the performance decision in the FEDBIZOPPS.

  b. The host command will work with the chain of command to ensure DCAMIS is
promptly updated with performance decision information on the end date (or immediately
thereafter) of a standard or streamlined competition.

3. Contests. Pursuits and resolutions of contests for standard competitions are governed
by FAR Subpart 33.103.

  a. Interested parties should exhaust efforts to resolve their concerns at the Contracting
Officer‘s level prior to formally contesting a performance decision.

  b. All contests filed directly with the agency will be addressed by the Contracting
Officer or designated representative.

  c. No party may contest any aspect of a streamlined competition.

4. Protests. The ATO being an interested party under 31 USC 2551 may file a protest
with the GAO in connection with a public-private competition where the activity or
function is performed by more than 65 FTEs.

   a. At the request of the majority of the agency‘s affected employees, the ATO shall
file a protest in connection with the competition unless the ATO determines that there is

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no reasonable basis for the protest. Such a determination requires written notification to
Congress.

 b. A representative of the agency employees may intervene in a protest filed by the
ATO.

5. Congressional Notifications of Performance Decision. HQMC (LR) will initiate
Congressional notifications, when required, after the expiration of the time for filing
agency contests or GAO protests and after the resolution of any contests or protests
challenging the performance decision. DCAMIS managers must ensure performance
decision updates are promptly reflected in DCAMIS. The host command must submit
additional information not contained in DCAMIS needed for Congressional notifications.
To expedite the notification process, the following information should be submitted via
email or fax to HQMC (LR) with copies to the chain of command:

    a. Final decisions to convert to contract or final decisions to convert to the MEO that
result in over 50 civilian personnel subject to a reduction in force must have an Economic
Impact Statement, which includes current community information and anticipated impact
of the performance decision. The economic impact statement describes the results of the
competition, per 10 USC 2461. The economic impact statement should be attached to the
DCAMIS record to provide a single, consolidated source of required data. See appendix
G for a reporting template for the economic impact statement.

  b. Anticipated dates for contract or LOO award and for conversion to contract or
MEO performance.

      c. The estimated number of DoD civilian positions that are vacant, transferring,
retiring, or being hired by the contractor.

6. Performance Decision Implementation. Before the host command can initiate the
transition to the awarded service provider, Congressional notifications in accordance with
paragraph 5 above must be made. For private sector selection, the Contracting Officer
will award a contract in accordance with the FAR after a Congressional notification has
been made. To implement the agency tender, the Contracting Officer must establish an
MEO Letter of Obligation (LOO) with the ATO, see appendix E. For public
reimbursable selection, the Contracting Officer will develop a fee-for-service agreement
with the public reimbursable source. The HRA shall be responsible for coordinating
employee transition to the selected service provider in accordance with OMB Circular A-
76, attachment B, paragraph A.8.d(1).

7. Special Considerations.

   a. Upon a private sector decision, incumbent government personnel are given the right
of first refusal for employment. The HRA shall provide a list of adversely affected
employees to the contracting office as soon as possible after the performance decision is
made to ensure prompt implementation of right of first refusal procedures.
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  b. The performance decision cannot be implemented if the decision is a contract
decision and the provisions of section 8014 of P.L. 108-287 or subsequent statutes
regarding health care insurance costs have not been met. See chapter 13 for specific
details on procedures required to make the determinations required by section 8014.




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                                      Chapter 10

     POST COMPETITION ADMINISTRATION AND ACCOUNTABILITY

1. Purpose. This chapter provides policy for conducting and reporting post competition
accountability, awarding option years of performance, and terminations in accordance
with OMB Circular A-76, attachment B.

2. Post Competition Accountability.

   a. Regardless of the outcome of the competition, the Administrative Contracting
Officer (ACO) will work with the host commands through the host command‘s
Contracting Officer Representatives (CORs) and Quality Assurance Evaluators (QAEs)
to monitor performance of the service provider for all stated performance periods.

   b. The ACO will retain the solicitation, supporting documentation, and modifications
as part of the competition file, maintain currency of the contract file, and collect
information on past performance for each performance period for evaluation in a follow-
on competition.

  c. The COR is responsible for the implementation of the PAP and communicating to
the ACO where there are performance issues.

  d. The QAE is responsible for surveying, monitoring, and reporting on service
provider performance by executing and maintaining the PAP. Quality Assurance (QA) is
the Government‘s inspection of goods and services ensuring outputs meet PWS
requirements, and is linked to the PAP. QA is not to be confused with Quality Control
(QC), which is the service provider‘s responsibility ensuring that their outputs meet the
quality, quantity, timeliness, responsiveness, customer satisfaction, and other service
delivery requirements in the PWS. QC actions are outlined in the service provider‘s
Quality Control Plan (QCP) submitted in response to the RFP.

  e. The BPO shall oversee implementation of either the MEO or the contract award to
ensure compliance with the provisions in OMB Circular A-76, attachment B, Paragraph
E.4 that fall within the responsibility of the host command. The BPO will rely on the
ACO, COR, QAE, and MEO for performance information and the local comptroller for
cost information. Additional guidance on conducting post competition performance
assessments is listed in appendix J.

     (1) The BPO will monitor the implementation of the QCP and assess QA results to
ensure that either the MEO or the contract complies with all performance requirements
stated in the PWS.

     (2) For MEOs, the comptroller shall collect actual MEO costs to include labor,
equipment, materials, and MEO sub-contracts for each performance period. This

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information shall be provided to the BPO for analysis which shall include adjustments for
allowable changes, such as PWS changes, inflation, save pay, wage rate changes, etc.

         (a) The BPO shall document any overall cost increases that are not allowed and
will work with the COR and the ACO to determine the most appropriate remedial action.
Isolated cost increases shall not be reviewed out of context to other MEO costs which
might compensate isolated cost increases.

          (b) The BPO shall document any overall cost decreases and review that
performance is being met. If there are overall cost decreases with no performance
degradation, those funds can be reverted to the comptroller for reallocation to other
priorities. Isolated cost decreases shall not be reviewed out of context to other MEO
costs which might compensate isolated cost decreases.


        (c) The BPO will work with command interests, the COR and the ACO to ensure
that the ACO updates the PWS to reflect a reduction in performance requirements
consistent with the reduced funding capabilities.

  f. The chain of command will ensure that DCAMIS is kept updated to track the
execution of standard and streamlined competitions. Refer to chapter 3.

   g. The chain of command and PWS-BOD may conduct periodic assessments to ensure
that completed competitions maintain performance and costs consistent with the criteria
in the original competition as adjusted for PWS changes, inflation, save pay, and
increases in wage rates, etc.

3. Option Years of Performance. The ACO shall make option year determinations in
accordance with the FAR Part 17.2 and shall not approve performance periods that
exceed the total number of years stated in the solicitation, except as delineated for a high
performing organization.

  a. The ACO will renew option years as specified in the solicitation based on whether
the service provider meets the performance requirements of the solicitation within the
costs of the contract or Letter of Obligation (LOO). The host command will forward an
annual summary of performance and recommendations to the ACO reporting the
performance and costs of the service provider. The ACO will forward any substandard
reports to the PWS-BOD with recommended remedial action, if warranted.

  b. The decision not to exercise an option year does not require the contract or LOO to
be in default. Doing so, however, may result in either a new commercial competition, if
contract, or a new A-76 competition, if under a LOO.

   c. For agency or public reimbursable performance decisions, another streamlined or
standard competition of the activity shall be completed by the end of the last performance
period. Re-competition schedules will be coordinated with the PWS-BOD. For private
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sector performance decisions, the Contracting Officer will comply with the FAR for
follow-on competitions.

   d. OMB Circular A-76, attachment B, section E.5.b allows the CSO to extend the
performance period for a high performing organization. To be eligible, the MEO must
have demonstrated the ability to provide sustained cost savings while achieving or
exceeding the annual performance requirements of the PWS. Such an organization shall
have completed a total organizational assessment with the BPO or higher authority
validating the MEO as high performing by monitoring and documenting performance and
costs. Existing MEOs meeting this criteria will receive not more than three years of
additional performance beyond the last performance period included in the SCF/SLCF.
The CSO may extend the performance period for a high performing organization, if the
CSO (1) determines that continued cost savings justifies the extension, (2) documents
these cost savings through the use of a COMPARE-generated SCF or SLCF, (3) limits
the extension to no more than 3 years after the last performance period, and (4) makes a
formal announcement of the extension via FEDBIZOPPS. During the extension, BPO‘s
will continue to monitor cost and performance.

     (1) The host command must submit the application packet to nominate its MEO as
high performing to the PWS-BOD. The application packets for high performing MEOs
should be submitted approximately eighteen months, but not later than one year, prior to
the end of the last performance period listed in DCAMIS. The application packet for all
high performing MEO candidates must include:

       (a) A copy of the DCAMIS record and the MEO‘s LOO with all revisions.

        (b) Documentation that the MEO, PWS, and cost estimate are current and take
into account changes to requirements and cost factors since the performance decision was
determined. Documentation shall include a summary of changes to the PWS and cost
estimate. If changes to requirements have not been documented in the PWS, the MEO
will not be considered high performing and will not be eligible for the 3-year
performance period extension.

        (c) A memo stating that the MEO was implemented in accordance with the
agency tender, that regular (i.e. daily, weekly or monthly) performance assessments have
been conducted using the PAP by the QAE, that regular MEO self-assessments have been
conducted using its QCP. The memo should also state the areas in the PWS for which the
MEO exceeds requirements thru overall performance and/or with additional cost savings
realized.
        (d) Copy of SCF or SLCF to include the period of the request. The form should
be certified to attest that COMPARE procedures and costing were utilized for the
government‘s portions.

      (2) If extending the performance period for a high performing organization is
approved by the CSO, the Contracting Officer will ensure that any change in status is
reflected in the current MEO‘s LOO and that the new performance period is stated.
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Performance period extensions for existing MEOs will begin with the completion of the
last performance period included in the competition. The Contracting Officer will make
an announcement in FEDBIZOPPS, notifying the public of the extension of the MEO.
After this announcement is made, the host command will provide input for update to
DCAMIS.

4. Terminations. The ACO shall notify a service provider of poor performance through
cure notices and show cause notices consistent with FAR Part 49. If the service provider
fails to perform to the extent that a termination for default is justified, the Contracting
Officer shall issue a notice of termination consistent with the FAR. For MEO
terminations, the inventory coding must be updated to reflect that the activity is no longer
performed by an MEO, and a new streamlined or standard competition shall be
performed. Commands may use interim contracts, public reimbursable sources, or
government personnel as a temporary remedy for no more than one year from the date of
termination. Request for terminations for reasons other than failure to perform shall be
submitted to HQMC (LR) for submission to the CSO. For high performing MEOs under
an extension, failure to meet the requirements outlined in its LOO could result in the
MEO becoming eligible for a public-private competition.




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                                      Chapter 11

     EXPANSIONS, NEW REQUIREMENTS, AND CONVERSIONS FROM
                    CONTRACT TO IN-HOUSE

1. Purpose. This chapter provides policy for in-house expansions, new requirements,
and conversions from contract to in-house performance in accordance with OMB
Circular A-76, Attachment C, paragraph D.

2. In-house Expansions and New Requirements.

   a. An expansion of an existing commercial activity based on modernization,
replacement, upgrade, or increased workload is determined by an increase of 30 percent
or more of the activity‘s operating costs or total capital investment. Government
personnel may perform an expansion of greater than 30 percent only if a standard or
streamlined competition on the entire activity including the expansion or on the
expansion alone, if it is segregable, demonstrates that government performance is more
economical.

   b. A new requirement is a newly established need for a commercial product or service
that is not performed by government personnel, by a fee for service agreement with a
public reimbursable source, or by a contract with the private sector. Agency performance
that is reengineered, reorganized, modernized, upgraded, expanded, or changed to
become more efficient, and retains essentially the same service characteristics, is not
considered a new requirement. Using new ways of doing existing work is also not a new
requirement. Government personnel may perform a new requirement only if a
streamlined or standard competition demonstrates that government performance is more
economical.

  c. A public-private competition is not required for private sector performance of a new
requirement or a segregable expansion.

3. Conversions from Contract to In-house Performance.

  a. When changes to mission or requirements necessitate in-house performance by
military personnel, conversion from contract to in-house performance requires approval
by the CSO. Requests for such conversions, documenting the requirement for
performance by military personnel, should be submitted to HQMC (LR) .

  b. When an existing contract price appears unreasonable or performance quality
becomes unsatisfactory, efforts should first be made to resolve the issues by negotiating
with the contractor. If the contracting officer cannot resolve the issues through
negotiation, re-soliciting the requirement should be considered. If re-soliciting does not
solve the issues, a competition may be conducted on the contracted commercial activity.
Requests to conduct a competition should be submitted to HQMC (LR) via the chain of
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command. The requests must include, at a minimum, (a) a description of the commercial
activity and its location(s) of performance; (b) a description of the current or most recent
contract(s) and the specific scope of work; (c) identification of requiring or customer
organizations; (d) a statement that Government personnel and resources necessary to
perform the commercial activity will be available; and, (e) the rationale for competition
including a specific statement of the benefits of conducting a competition. All such
requests must be approved by the CCSO before preliminary planning efforts may
commence.

   c. The same policies and procedures apply for conducting competitions that may result
in a conversion from contract to in-house performance as for a standard competition
involving in-house performance, except the conversion differential is applied to the cost
of the in-house performance.

   d. Contracts slated for conversion to in-house performance following a standard or
streamlined competition should be allowed to expire at the end of the contract period,
unless exceptional circumstances mandate a termination before the expiration date.



                                      Appendix A

                               DEFINITION OF TERMS

(Additional clarifying definitions can be found in OMB Circular A-76, Attachment D.)

DoD Commercial Activities Management Information System (DCAMIS). The
automated system is used to track, collect, and maintain data for standard and streamlined
competitions. CAMIS is required for compliance with 10 USC 2463, Executive Order
12615, Performance of Commercial Activities, OMB Circular A-76, and DODI 4100.33,
9 September 1985.
Federal Acquisition Regulation (FAR). The FAR provides contracting policy for the
Federal Government. The FAR is the primary regulation for use by all Executive
Agencies in their acquisition of supplies and services.

Host Command. Command responsible for base operations.

Labor Market Research. Assessment of the availability or capability to recruit (including
recruiting costs) personnel in the local labor market to determine if there is an appropriate
workforce pool.

Negotiated Acquisition. A type of acquisition strategy where contractors submit offers in
response to a request for proposals, followed by negotiations prior to conducting the cost
comparison.


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Non-appropriated Fund Instrumentality (NAFI). An integral DoD organizational entity
that performs government functions. It acts in its own name to provide or assist DoD
Components in providing morale, welfare, and recreational programs for military
personnel and authorized civilians. It is established and maintained individually or jointly
by the heads of the DoD Components. As a fiscal entity, it maintains custody of and
control over its non-appropriated funds. It is also responsible for the reasonable care to
administer, prudently safeguard, preserve, and maintain those appropriated fund
resources made available to carry out its function. With its non-appropriated funds, it
contributes to the morale, welfare, and recreational programs of other authorized
organizational entities. It is not incorporated under the law of any state or the District of
Columbia, and it enjoys the legal status of an instrumentality of the United States.

Performance Assessment Plan (PAP). The government‘s inspection plan. The
performance assessment plan documents methods used to measure performance of the
service provider against the requirements in the PWS. The agency relies on the service
provider to monitor daily performance using its own quality control plan, but retains the
right to inspect all services. When the agency makes a performance decision, the agency
re-evaluates and modifies the existing performance assessment plan, based upon the
service provider and the service provider‘s accepted quality control plan. The PAP is
also known as the Quality Assurance Surveillance Plan (QASP).
Preferential Procurement Program. These are special commercial source programs such
as Federal Prison Industries and the workshops administered by the Committee for
Purchase from the Blind and Severely Disabled under the Javits-Wagner-O‘Day Act.

Preliminary Planning. The process of determining whether competitive sourcing
(standard or streamlined competition) is the optimal methodology for sourcing an
organization by ensuring factors that impact competitive sourcing (i.e., wartime
requirements, workforce availability, commercial viability, career-field sustainability,
workload documentations, etc.) are reviewed prior to initiating the competition.

Procurement Integrity Act. The Procurement Integrity Act (41 USC 423) generally
establishes prohibitions, restrictions, and requirements relative to disclosing or obtaining
procurement information, reporting employment contacts, and post-government
employment.

Sealed Bid Acquisition. A type of acquisition strategy in which contractors submit bids in
response to an invitation for bids and no negotiations are conducted prior to conducting
the cost comparison.

Standard Competition. The OMB Circular A-76 formalized process where the Marine
Corps defines minimum requirements to compete a commercial activity. After
solicitation is issued, competition with the private sector, another component provider
known as a public reimbursable, and the Marine Corps (public sector) takes place. The
basis for the government bid is an agency tender. A standard competition may be
performed on any size commercial activity.

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Streamlined Competition. The OMB Circular A-76 formalized process that may be
conducted for commercial activities performed by 10 or fewer civilians or with an
aggregate of 65 or fewer civilian FTEs and/or any number of military personnel.




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                                      Appendix B

                                    ACRONYMS

(Additional clarifying acronyms can be found in OMB Circular A-76, Attachment D.)

ACO           Administrative Contracting Officer

ADA           Anti-deficiency Act

AT            Agency Tender

BPO           Business Performance Office

CA            Commercial Activity/Activities

CAMIS         Commercial Activities Management Information System

COR           Contracting Officer Representative

CCSO          Component Competitive Sourcing Official

DCAMIS        Department of Defense Commercial Activities Management Information
              System

DFARS         Defense Federal Acquisition Regulation Supplement

DoD           Department of Defense

DON           Department of the Navy

FY            Fiscal Year

HR            Human Resources

IG/CA         Inherently Governmental/Commercial Activity

ISSA          Interservice Support Agreement

IT            Information Technology

JWOD          Javits-Wagner-O'Day Act

LPTA          Low Price Technically Acceptable


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LOO       Letter of Obligation

MOA       Memorandum of Agreement

MOS       Military Occupational Specialty

MOU       Memorandum of Understanding

MROC      Marine Corps Requirements Oversight Council

NAO       Native American Organization

NAF       Non-appropriated Fund

NAFI      Non-appropriated Fund Instrumentality

NIB       National Industries for the Blind

NISH      National Industries for the Severely Handicapped

OSD       Office of the Secretary of Defense

PAO       Public Affairs Officer

P.L.      Public Law

PAP       Performance Assessment Plan

PWS-BOD   PWS Board of Directors

POA&M     Plan of Action and Milestones

QAE       Quality Assurance Evaluator

QASP      Quality Assurance Surveillance Plan

QCP       Quality Control Plan

RCO       Regional Contracting Office

SSACOE    Strategic Sourcing Acquisition Center of Excellence

SSET      Source Selection Evaluation Team

T/O       Table of Organization

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TFSD   Total Force Structure Division

USC    United States Code




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                                      Appendix C

      PRINCIPAL STATUTES GOVERNING COMMERCIAL ACTIVITIES

Commands should first consult with the Office of Counsel for the Commandant‘s Field
Counsel on any questions concerning the statutes governing commercial activities.

1. Title 10 USC (various sections--2461-2475).

  a. Sec. 2461. Commercial or industrial type functions: required studies and reports
before conversion to contractor performance. Requires MEO certification, cost
comparisons, & Congressional notification prior to start of competition and prior to
contract conversion. Certifies contracting actions are not solely to avoid personnel
ceilings

   b. Sec. 2461a. Development of system for monitoring cost savings resulting from
workforce reductions. Requires annual report to Congress on savings estimated and
requires system for monitoring performance for each area subject to workforce review
resulting in a reduction exceeding 50 FTE.

  c. Sec. 2462. Contracting for certain supplies & services required when cost is lower.
Allows contracting if costs are fair and all inclusive.

  d. Sec. 2463. Requires collection of cost information data on converted functions.
Creates requirement for DCAMIS database.

  e. Sec. 2464. Limits contracting core logistics capability under A-76, unless waived
by the Secretary of Defense.

  f. Sec. 2465. Limits contracting of firefighting and guard services.

  g. Sec. 2467. Requirements with respect to retirement costs and consultation with
employees. Requires monthly consultation with employees on PWS & MEO.

  h. Sec.'s 2466 & 2469. Limits contracting of depot maintenance functions to 50%.
Exempts competitions of depot maintenance functions from A-76.

  i. Sec. 2470. Authorization for Depot Level activities to compete for maintenance and
repair workloads of other agencies.

   j. Sec. 2475. Requirement with respect to reporting any restructuring or
reengineering of functions or activities, which will result in a manpower reduction
affecting greater than 50 personnel. Mandates a 30-day waiting period after
Congressional notification before implementing the decision.


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2. FY 05 Defense Appropriations Act (P.L. 108-287).

   a. Sec 8014. MEO must be prepared for comparison purposes with certification to
Congress prior to converting any function or activity affecting greater than 10 DoD
civilian personnel. Also requires that 10 percent differential be applied to all DoD
studies with over 10 Civilian FTE and that the decision ensures that the contractor does
not receive any advantage because of lower contributions into an employer-sponsored
health insurance plan.

  b. Sec 8022. Requires that multi-function study must be performed within 30 months
and single-function studies within 24 months. Effective 1 October 2004.

  c. Sec 8032. Competition allowed for depot maintenance work but A-76 does not
apply.

3. FY 04 National Defense Authorization Act (P.L. 108-136). Section 337 establishes
opportunity for eight military installations and facilities to participate in pilot programs
initiating or documenting existing Business Process Reengineering to be credited for
competition goals.

4. FY 05 National Defense Authorization Act (P.L. 108-375).

   a. Sec 326. Provides employees with the right to request the agency tender official to
file a protest on their behalf and provides employees with the right to intervene in a
protest.

   b. Sec 327. Codifies A-76 10 percent conversion threshold and prohibits modification
of CAs to permit use of streamlined competitions.

5. Other Laws and Regulations.

   a. P.L. 105-270 "Federal Activities Inventory Reform (FAIR) Act‖. Requires all
executive agencies to submit to Congress an annual inventory of activities that are not
inherently governmental, and to make this inventory available to the public. The FAIR
Act defines all activities that are not inherently governmental, as commercial activities
and requires them to be included in this inventory.

  b. Title 16, Sec. 670a 'Sikes Act'. A-76 does not apply to implementation and
enforcement of natural resources policy.

  c. Title 40, Sec. 541 ‗Brooks Act‘ (Title 31, Sec. 1105). Sets limits and conditions
concerning the contracting of architectural and engineering services by the federal
government.

  d. Title 41, Sec. 351 ‗Service Contract Act‘. When contracting for specific services,
the Federal Government must pay minimum monetary wages to those service employees
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as determined by the Secretary of Labor. Specific requirements for fringes and working
conditions are also specified.




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                                          Appendix D

                                     ETHICS ISSUES

Ethics issues related to participation in OMB Circular A-76 competitions and exercise of
right of first refusal of employment.

1. It is the policy of the Marine Corps to seek, where possible, to minimize the potential
restrictions on the post-government employment of employees whose positions may be
affected by a competitive sourcing cost comparison. As a general matter, employees are
not restricted from post-government employment opportunities if they are simply
involved in providing information, such as workload data, to A-76 performance work
statement and management teams or contract source selection or technical evaluation
teams. Participating actively as a management plan or performance work statement team
member will not normally restrict a government employee from accepting post-
government employment. Such participation may, however, limit the nature of the
activities in which a former employee may engage on behalf of their new employer, i.e.,
representing that new employer before the Government on that same contract. The mere
provision in a solicitation of a right of first refusal for vacancies for affected government
employees does not create a disqualifying interest for any employee.

2. Employees participating personally and substantially in the A-76 process will be
required to disqualify themselves from further participation in the event that they are
negotiating or seeking employment with a company competing on the source selection.
The Procurement Integrity Act imposes specific reporting and disqualification
requirements on employees who contact or are contacted by competing contractors
regarding potential future employment. Also, serving in certain positions or making
specified decisions with respect to a procurement exceeding $10 million may prohibit a
former employee from accepting compensation from the contractor for one year.

3. Employees should be advised of the basic ethics laws and regulations early in the
competition process. Except for limited individuals under the Procurement Integrity Act,
government ethics rules will not generally preclude an employee from accepting post-
government employment with a contractor should the function under study be converted
to contract performance. Certain factual circumstances may result in the imposition of a
restriction or prohibition. Therefore, employees should be advised to seek specific
guidance from an ethics counselor early in the process, particularly should they seek
employment with or be contacted by a contractor expressing interest in the function under
study.

4. Employees should be advised of the conflict of interest restrictions in:

  a. Title 18 of the United States Code 207 and 208 (these are criminal provisions)

  b. Title 41 United States Code 423 – Procurement Integrity


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   c. Title 5 Code of Federal Regulations 2635. These provisions, in certain
circumstances, may affect an employee‘s or former employee's ability to:

     (1) Seek and negotiate for post-government employment.

     (2) Work for a particular company.

     (3) Represent the company before the Government on certain matters.

5. Any concerns about what is ethical behavior during the entire OMB Circular A-76
process should be raised with the Office of Counsel for the Commandant (Code CL)
Ethics Advisor.




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                                      Appendix E

                     MEO LETTER OF OBLIGATION (LOO)

Agency Letter of Obligation Under Solicitation N************

In my capacity as **********, I am the agency official responsible for performing the
commercial activity described in the performance work statement at Section C of the
subject solicitation at _________. Upon a performance decision favoring the agency
tender, I acknowledge the agency is responsible to perform the services described in the
performance work statement, and any modifications, with the most efficient organization
and resources as set forth in the agency tender at_________, including all options when
exercised. [Break down by CLIN or tender sections in preceding sentences if there are
multiple LOOs]. This obligation will become effective upon the signature of the
contracting officer accepting this letter of obligation.


Signature ____________________________ Date ________, yyyy

Name
Title
Organization


Acceptance

Signature ____________________________ Date _________, yyyy

                                  Contracting Officer




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                                     Appendix F

      DCAMIS MAJOR MILESTONE EVENTS AND MAJOR ITEM USES

              Milestone Event                                      Uses
Study Start (FEDBIZOPPS Ann.)                   Begins DCAMIS file
                                                Completes preliminary planning
                                                Documents competition officials
                                                Establishes competition timeline
                                                Establishes preliminary planning
                                               baseline costs
Make Public Draft Solicitation                 Achieves input from potential offerors
                                               including the Agency Tender Official and
                                               current employees.
Issue Solicitation                             Provides timeline-tracking info
Close Solicitation                             Provides timeline-tracking info
Initial Performance Decision                   Provides chain of command notification
                                               and prep for Congressional announcement
Final Performance Decision*                    Provides info required for CMC reporting
                                               and Congressional announcement
Transition Actions                             Provides info required for CMC reporting
                                               and Congressional announcement
Economic Impact Statement                      Provides info required for Congressional
                                               announcement
Dispute Submitted                              To adjust timelines as necessary
 Contest
  Protest
Annual Performance                             Used in annual and ad hoc reports to
                                               Congress and to track performance
                                               achievement

Note: All data elements are required to be entered into DCAMIS as soon as they are
known. Validation and review requirements are detailed in chapter 3.

*At final performance, decision information contained in DCAMIS up to and including
―Transition Actions and Economic Impact Statement‖ are required to prepare the
Congressional announcement of the decision. This information should be provided direct
to HQMC (LR) regardless of DCAMIS accessibility.




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                                       Appendix G

                       ECONOMIC IMPACT STATEMENT FOR
                         COMPETITION NR _____________

Current status for entire community:

       Location:
       Population:
       Employment:
       Business Volume:
       Tax Base:
       Personnel Income:

Anticipated impact of proposed action:

       Location:
       Population:
       Employment:
       Business Volume:
       Tax Base:
       Personnel Income:

Prepared by:

       Name:
       Position:
       Activity:
       Contact Info:

                        Economic Impact Statement Directions

1. General. Nearly all the information discussed below can be obtained from the local
Chamber of Commerce. Differences in how the data are reported dictates that the data
should be reviewed carefully with the goal of showing what effect the decision to convert
to contract will have upon the local economy. Section 1 describes the as-is local
community and Section 2 reflects the change as the result of the decision. Care should be
taken when dealing with county-wide figures to ensure county-wide averages are used in
their proper context. Everything on this sheet refers to annual figures. Use the latest full
year provided. If that information is not available, annual figures may be estimated based
on quarterly, monthly, or weekly averages but not on extrapolation from a specific month
or quarter as this ignores seasonal variation.




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2. Current Status for Entire Community - Section 1.

   a. Location. Determine the area in which the majority of the affected employees
reside. Natural subdivisions would likely include a city or county. If the location
affected is two or more adjacent counties, adding the data for each is permissible.

  b. Population. Total population of the location.

  c. Employment. The total number employed within the location defined above.

   d. Business Volume. Usually described as ―gross retail sales‖ expressed as an annual
figure.

   e. Tax Base. Since property is unaffected by the decision, wages are the primary
factor affecting the tax base. Multiply the total number of employees in the location
times the average annual wages for the location to compute the tax base.

  f. Personal Income. Average annual wages per employed location worker. Use the
same average annual wages used to compute the Tax Base.

3. Anticipated Impact of Proposed Action - Section 2.

  a. Location. Same as above

  b. Population. Enter any known change to the population due the decision. In most
cases, the number will be zero. It is highly likely that any changes due to reductions in
government employees will be offset by increases in contract employees.

   c. Employment. Use the number of employees of the MEO who are anticipated to be
included in the Reduction in Force (RIF). With Right of First Refusal hiring, retirements
and unknown hiring by the contractor, the best predictor is that we will have fewer people
doing the work. The worse case impact is the total RIF estimate for the location. Use
this worst-case impact unless data that is more precise is readily available.

  d. Business Volume. Use the difference between the government bid and the
contractor‘s bid (not the difference after the 10% differential). This difference represents
the estimated decrease of dollars into the local economy. Even if funding base-wide
remains constant, use this amount of reduced costs related to this decision for the
purposes of this report.

  e. Tax Base. Multiply the number of proposed MEO employees expected to be
included in the RIF as the result of the decision times the average annual salary within the
economic area. This decrease to the Tax Base represents the worse case if all these
employees move out of the area. The reality is that many will be hired under the

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contract‘s right of first refusal clause. This impact plus the retired income of many others
may in fact lead to a potential plus up of the tax base as the result of the decision.

  f. Personal Income. Take the Tax Base decrease calculated above and divide by total
number of employees in the location to identify the worst-case impact on average annual
wages in the location.




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                                        Appendix H

                COMPETITION APPROVAL REQUEST LETTER


                                                                            4860
                                                                       (Enter date)


From: (Enter Command)
To: PWS Board of Directors
Via: (Enter Chain of Command)

Subj: A-76 Competition Approval Request

Encl: (1) Preliminary Planning Report

1. We have completed preliminary planning and request approval to conduct an A-76
competition for the (Enter business unit(s), location, Congressional district, and
function code).

2. See the enclosure for a detailed discussion of the proposed competition, including the
following data:

  a. Number of military and civilians in the business unit(s)

  b. Baseline costs.

  c. Proposed competition type and competition schedule.

  d. Estimated cost to conduct the competition.

  e. Competition milestone schedule.

  f. Recommended competition officials.

3. The (Enter command) POC for this initiative is: (Enter Name, DSN Number, and
email address).



                                             (Enter signature block)



Copy to:
                                            52                              ENCLOSURE (1)

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                                        Appendix I

                         NON-DISCLOSURE AGREEMENTS

    U.S. MARINE CORPS NON-DISCLOSURE AGREEMENT (INDIVIDUAL—
                     GOVERNMENT EMPLOYEES)

1. In the course of performing my duties related to Activity Based Costing, Activity
Based Management, Strategic Sourcing, A-76 competitions, or other productivity
enhancing initiatives, I may be given access to or entrusted with Source Selection
Information (as defined in Federal Acquisition Regulation (FAR) 2.101), other sensitive
government data such as data identified as ―Business Sensitive,‖ and/or data belonging to
or marked or considered as ―proprietary‖ (e.g., restrictive legend per FAR 52.215-1) that
may be associated with the development of the agency tender in an ongoing or future A-
76 competition. These data include all data, information and software, regardless of the
medium, e.g. electronic or paper, and/or format in which the data exist, and includes data
which are derived from, based on, incorporate, include or refer to such Source Selection,
Business Sensitive and/or proprietary data (collectively referred to herein as ―the data‖).

2. As a condition to receiving access to the data, I agree not to discuss with, disclose,
release, reproduce or otherwise provide or make available the data, or any portion
thereof, to any other government or non-government employee unless and until such
person has executed a copy of an individual non-disclosure agreement like this one. I
also agree not to discuss with, disclose, release, reproduce or otherwise provide or make
available the data, or any portion thereof, to any other government or non-government
person or entity, unless the local ABC/M or A-76 Program Manager in coordination with
the Office of Counsel for the Commandant‘s Field Counsel has given prior written
approval, AND the person receiving the data has executed an individual non-disclosure
agreement similar to this one. Furthermore, I agree to safeguard the data and to use the
data solely for the purpose of job-related duties. I understand that any other use,
disclosure, release or reproduction is unauthorized and may result in substantial criminal,
civil and/or administrative penalties to me or to those persons or organizational entities to
whom I have provided unauthorized access.

3. Appropriate restrictive legends will be included by me on any copies and reproductions
made of all or any part of the data and any data that is derived from, based upon,
incorporates, includes or refers to the data. I agree that these obligations not to use,
discuss, disclose, release, reproduce or otherwise provide or make available the data
continue, even after completion of any associated tasks and/or my employment with the
Government. I will promptly (within one business day) report to local ABC/M or A-76
Program Manager any actual or suspected unauthorized use, disclosure, release, or
reproduction of such data or violation of this agreement of which I am now or may
become aware.


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4. I agree that when the USMC determines that my need for such data no longer exists or
my government employment ends, I shall return such data promptly within five business
days to the local ABC/M or A-76 Program Manager.

PRINTED NAME: ___________________
POSITION/TITLE: ___________________
SIGNATURE: ___________________ DATE: _____________


    U.S. MARINE CORPS NON-DISCLOSURE AGREEMENT (INDIVIDUAL—
                       CONTRACT EMPLOYEES)

1. In the course of performing Contract/order # _____________, I may be given access
to or entrusted with Source Selection Information (as defined in Federal Acquisition
Regulation (FAR) 2.101), other sensitive government data such as data identified as
―Business Sensitive,‖ and/or data belonging to or marked or considered as ―proprietary‖
(e.g., restrictive legend per FAR 52.215-1). Data includes all data, information and
software, regardless of the medium (e.g. electronic or paper) and/or format in which the
data exists, and includes data which is derived from, based on, incorporates, includes or
refers to such Source Selection, Business Sensitive and/or proprietary data (collectively
referred to herein as ―the data‖).

2. As a condition to receiving access to the data, I will not discuss with, disclose, release,
reproduce or other wise provide or make available the data, or any portion thereof, to any
employee of ___________________________ unless and until such person has executed
a copy of this individual non-disclosure agreement. I also will not discuss with, disclose,
release, reproduce or otherwise provide or make available the data, or any portion
thereof, to any non-government person or entity (including, but not limited to any
subcontractor, joint venture, affiliate, successor or assignee of the Contractor), unless the
Contracting Officer (and any company claiming the data as proprietary) have given prior
written approval, AND the person receiving the data has executed an individual
nondisclosure agreement similar to that at attachment to the subject contract.
Furthermore, I agree to safeguard the data and to use the data solely for the purpose of
performing duties under the subject contract. Any other use, disclosure, release or
reproduction is unauthorized and may result in substantial criminal, civil and/or
administrative penalties to me or _____________________.

3. Appropriate restrictive legends will be included by me on any copies and
reproductions made of all or any part of the data and any data that is derived from, based
upon, incorporates, includes or refers to the data. I agree that these obligations not to use,
discuss, disclose, release, reproduce or otherwise provide or make available the data
continue, even after completion of the contract and/or my employment with
_____________________.

4. I will promptly (within one business day) report to my Program Manager any actual or
suspected unauthorized use, disclosure, release, or reproduction of such data or violation
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of this agreement of which I am now or may become aware. I agree that when the USMC
or my employer determines that my need for such data no longer exists or my
employment with _____________________, ends, I shall return such data promptly
(within five business days) to my Program Manager.

PRINTED NAME: ____________________ POSITION/TITLE: ___________________
SIGNATURE: ________________________ DATE: _______________




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                                       Appendix J

         POST COMPETITON PERFORMANCE ASSESSMENT GUIDE

1. Purpose. Provide additional guidance for conducting post competition performance
assessments of the Most Efficient Organization (MEO) or selected contractor, COR, and
QAE personnel.

2. Background. Regardless of the selected service provider, after implementing a
performance decision, OMB Circular A-76 (Revised), May 29, 2003 requires that the
Agency:

  a. Monitor performance for all stated performance periods.

  b. Implement the Performance Assessment Plan (PAP).

  c. Retain the solicitation and all other competition documentation.

  d. Maintain the currency of the contract file.

  e. Record actual cost of performance adjusted for scope, inflation, and wage rate
adjustments.

  f. Monitor, collect, and report performance information for purposes of past
performance evaluation in a follow on competition.

3. General Instructions.

   a. The Business Performance Office (BPO) shall oversee implementation of either the
MEO or contract award and will rely on the Administrative Contracting Officer (ACO),
COR, QAE, and the MEO for performance information and the local comptroller for cost
information.

   b. This guide provides contractor assessment criteria, MEO assessment criteria, and
MEO review checklists for transition and implementation, performance, costs, and
management and business practices. There are three MEO review checklists (required
information, assessment, and summary) for transition and implementation, performance,
costs; and one (assessment) for management and business practices.

  c. Based upon the outcome of the assessment the BPO will recommend one of three
actions:

    (1) Satisfactory or higher level of performance. The ACO will consider
documenting the contract file and award an option year for the contract or LOO, as
appropriate.

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     (2) Unsatisfactory cost or performance amenable to corrective action. The ACO
will consider issuing a cure notice and contingent upon the results of the corrective action
taken will either award an option year or recommend termination and a re-competition to
the PWS-BOD.

    (3) Unsatisfactory cost or performance. The ACO will consider recommending
termination and a re-competition to the PWS-BOD.

4. Contractor Assessment Criteria. The ACO assesses contractor performance using the
procedures outlined in the FAR/DFAR. The ACO is assisted in this task by the BPO,
COR, and QAE.

   a. Performance. The ACO assesses the contractor‘s performance using the criteria
outlined in the PAP. The BPO serves as the host command‘s point of contact for all
A-76 implementation issues and will provide the ACO with the command‘s
recommendations concerning the exercising of options, changes to the PWS and other
related issues. The COR and QAE will assist the ACO in evaluating the contractor‘s
compliance with the technical performance outlined in the PAP.

   b. Costs. The BPO will provide the ACO with cost data from the comptroller‘s office
to assist the ACO in determining if any cost increases that may occur are reasonable and
consistent with the costs projected in the original competition.

5. MEO Assessment Criteria. The BPO assesses the MEO on the following criteria
using the checklists provided in this appendix. MEO assessments should cover a period
of one year.

   a. Transition and Implementation. Evaluate if MEO implementation was complete,
and the necessary resources to satisfy the requirements in the PWS were in place. For
assessments pertaining to the first year of MEO implementation, ensure the MEO
transition was in accordance with the transition plan.

   b. Performance. Assess MEO performance by comparing actual and historical
workload and monitoring and evaluating QC and QA results to ensure performance
standards are being met and/or exceeded.

   c. Costs. Assess MEO‘s actual costs, less saved pay, ensuring it does not exceed the
total ACE adjusted for inflation, wage rate and PWS changes.

   d. Management and Business Practices. Assess management and business practices
by evaluating the COR, QAE, MEO performance management, PWS administration,
technology enhancements, and the overall business environment.

6. MEO Review Checklists. The use of these checklists will facilitate conducting MEO
post competition assessments for the criteria mentioned above. These checklists are not
all-inclusive and should be modified as necessary to meet the needs of each review.
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a. Transition and Implementation.

        (1) Required information.

 Item        Document/Data           Source                                       Instructions
1        Agency tender                        Obtain the final agency tender including the MEO and transition plan.
2        Final decision date                  Determine when the MEO final decision was announced.
3        Implementation                       Obtain any additional transition and implementation schedules, along with
         schedules and milestone              milestones and dates on which they were achieved.
         completion dates
4        DCAMIS                               Obtain DCAMIS printout for the MEO.
5        Staffing history                     Obtain a human resources report of all names, grades, steps, position titles, series
                                              and employment dates of MEO personnel for the assessment period.
6        Personnel source                     Obtain access to MEO personnel files, including position descriptions, notification
         documents                            of personnel actions and licenses and training certifications.
7        Position management                  Obtain all MEO position change documentation, whether approved or submitted for
         records                              approval.
8        COR and QAE                          Obtain current staffing.
         personnel
9        Equipment, facilities                Obtain a listing of all equipment, facilities and services acquired by the MEO for its
         and service acquisition              implementation, including that from the Agency Cost Estimate (ACE) which has
                                              since been disposed.
10       Property records                     Obtain the current inventory of government furnished property transferred to the
                                              MEO, including shared property. Obtain documentation of shared property usage.
11       MEO subcontracts                     Obtain documentation identifying the types and quantities of PWS work performed
                                              by contractors during the performance period.


     (2) Assessment. Analyze and evaluate MEO implementation. Determine if the
MEO was implemented according to the transition plan (1st performance period
assessments only) and with the necessary resources to satisfy the requirements in the
PWS.

Item         Document/Data           Source                                Review                                    Comments
                                                                         Instructions
1        DCAMIS report for                      Determine the date implementation was completed, and
         MEO                                    reported in DCAMIS.
2        Agency tender                          Identify the MEO positions and FTEs in the agency tender.
3        MEO staffing                           Review the HR report of MEO positions and personnel
                                                and/or the personnel files and determine whether the MEO
                                                have been staffed per the agency tender and subsequently
                                                approved position changes, during the performance period.
                                                Determine position vacancy percentages, contributing
                                                factors and mitigating actions (addressing labor shortfalls)
                                                at start, mid-point and end of performance period.
4        Acquisition of                         Compare the MEO planned acquisition of equipment,
         equipment, facilities and              facilities and services necessary for MEO implementation
         services                               with actual acquisition of these items and services.
5        GFP records                            Was custody of Government Furnished Property, identified
                                                in the current inventory, transferred to the MEO?
6        MEO subcontracts                       Compare actual contracts to contracts listed in the agency
                                                tender for the performance period. Document the rationale
                                                for variations in the list of planned MEO subcontracts.
                                                Determine how contracts NOT included in the agency
                                                tender may have impacted FTE requirements and total
                                                actual cost. Compare actual and estimated contract
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                                                      administration support.
7         Licenses and Training                       Determine if licensing and training requirements per PWS
          Certifications                              and agency tender have been met. Document variations
                                                      from requirements and any mitigating actions.


       (3) Summary.

                           Item                                                                     Results
Amendment canceling solicitation and MEO Letter of                  Dates:
Obligation (LOO).
Assessment perid                                                    Dates:
MEO positions (# authorized and % filled)                           Start:
                                                                    Mid-year:
                                                                    End:
Position changes
Licenses, certifications and training
Acquisition of facilities, equipment and services
MEO subcontracts
Contingency services
GFP inventory
Discussion and recommendations:




     b. Performance.

         (1) Required information.

Item          Document/Data            Source                                            Instructions
1         PWS                                       Obtain the PWS with all solicitation amendments.


2         Workload – historical                     Obtain the technical exhibits of historical workload.
          exhibits
3         Actual workload data                      Obtain actual workload data for each functional area at the level of detail it is
                                                    generated for management information by the MEO.
4         PAP & PRS                                 Obtain the updated PAP and Performance Requirements Summary (PRS).


5         Performance                               Obtain records of all changes to the PWS/work requirements, workload estimates,
          requirements changes                      and performance standards that have been approved or submitted for approval since
                                                    the solicitation was cancelled.
6         QA reports                                Obtain QA surveillance results covering each functional area and samples of
                                                    inspectors‘ reports.
7         QC plan                                   Obtain the current QC plan developed by the MEO.
8         Performance data                          Obtain samples of work process performance data (e.g., response and completion
                                                    times) for each functional area.
9         Customer satisfaction                     Obtain records of customer complaints and results of customer surveys. Schedule
                                                    customer interviews with managers and users to further assess customer perspective.
10        Improvement                               Obtain records of improvement opportunities identified and improvement actions
          actions/results                           taken by the MEO.


      (2) Assessment. Analyze, evaluate, and rate MEO performance. Determine if the
MEO is performing the work described in the PWS, and if its performance is at least
satisfactory, per the Performance Assessment Plan (PAP) results and/or the measurement
and rating system in the MEO Assessment Plan.

Item          Document/Data            Source                                   Review                                      Comments
                                                                              Instructions
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1         Workload comparison                       Compare actual workload against historical workload
                                                    provided in the solicitation exhibits (Section J). Determine
                                                    whether there were any significant changes in workload.
2                                                   Ensure that services shown in the solicitation as
                                                    Government-provided services are not included in the MEO
                                                    workload.
3                                                   Ensure the actual work produced by the inherently
                                                    governmental activities is not included in the MEO
                                                    produced services.
4         Performance standards                     Evaluate whether any changes to the PAP have changed the
                                                    quality or timeliness standards.
5         Performance                               Compare actual performance against current performance
          comparison                                standards for each work requirement in the PRS. Determine
                                                    if a special inspection is required to measure performance
                                                    against standards.
6         Performance rating                        Determine an annual performance rating, using QA
                                                    surveillance results or the rating system in the MEO
                                                    Assessment Plan, and determine if the MEO‘s actual
                                                    performance rating is, at least, satisfactory.
7         QC data                                   Determine if the MEO‘s QC plan is implemented and how
                                                    and to what extent work process performance is monitored.
                                                    (E.g., response time and customer complaint data are
                                                    captured and analyzed and process descriptions are written
                                                    and used.)
8         Improvement actions                       Determine how and to what extent improvement
                                                    opportunities are identified and acted upon.


       (3) Summary.

                             Item                                                                 Results
PWS changes
Workload data
QC results
QA results
Performance data
Customer input (satisfaction, surveys and interviews)
Worker input (satisfaction, surveys and interviews)
Discussion and recommendations:




    c. Costs.

         (1) Required information.

Item          Document/Data           Source                                           Instructions
1         Management Plan                         Review the Management Plan for proposed MEO staffing and proposed equipment,
                                                  facilities and services acquisition.
2         Cost Comparison File                    Obtain the original cost comparison file, including the automated Cost Comparison
                                                  Form, accompanying worksheets, and individual line item records.
3         Position and personnel                  Obtain the HR documentation of positions and personnel, which was identified in
          lists                                   the Transition and Implementation section of this guide.
4         ACE matrix                              Develop a line item cost matrix (spreadsheet), which conforms to the ACE, to be
                                                  used for comparison of ACE and actual costs.
5         Labor Costs – Line 1                    Obtain SABRS obligation reports showing total review period labor costs.
          Obligation reports
6         Military labor                          Identify the cost of any military personnel used to cover labor shortfalls.
7         Payroll related reports                 Obtain payroll related reports identifying actual review period cost amounts for
                                                  salary pay, other entitlements, other pay (e.g., overtime, differential pay), and fringe
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                                          benefits.
8      Saved pay                          Obtain the calculated review period saved pay amounts; by each MEO position filled
                                          by personnel who received saved pay.
9      Material and Supply                Obtain SABRS obligation reports showing total review period material and supply
       Costs – Line 2                     costs.
       Other Specifically
       Attributable Costs –
       Line 3
10     Depreciation costs                 Obtain depreciation tables for property included in the ACE.
11     Rental property costs              Obtain source documents showing total review period rental property costs.
12     Maintenance and repair             Obtain SABRS obligation reports showing total review period maintenance and
       items costs                        repair costs.
13     Utilities items costs              Obtain source documents showing total review period utilities (items identified in
                                          the ACE) costs.
14     Travel costs                       Obtain SABRS obligation reports showing total review period travel costs.
15     Subcontract costs                  Obtain SABRS obligation reports showing total review period subcontract costs,
                                          including contracted labor costs.
16     Additional costs – Line            Obtain SABRS obligation reports and source documents showing total review period
       5                                  costs for line 5 items.


      (2) Assessment. Analyze and evaluate MEO costs. Determine if the actual cost of
MEO performance is within and/or exceeding the total cost in the ACE, adjusted for
inflation and PWS changes.

Item       Document/Data         Source                               Review                                   Comments
                                                                    Instructions
1                                         Use the ACE matrix (spreadsheet) to enter cost amounts and
                                          show the by-line comparison of the ACE and actual costs.
2                                           For all actual costs, evaluate the adequacy of audit trails and
                                            availability of supporting documentation. Verify that all
                                            assumptions, data, sources, and methods of cost
                                            accumulation are documented.
3      MEO staffing history                 Ensure that all personnel assigned to the MEO during the
                                            review period are accounted for in the actual labor cost.
4      Labor Costs – Line 1                 Determine the actual review period labor cost attributable to
                                            the MEO, including salary pay, other entitlements, other pay
                                            (e.g., overtime, differential pay), and fringe benefits. (Use
                                            actual fringe benefit costs, rather than applying the ACE
                                            fringe rate.)
                                            Determine difference between actual fringe rate and fringe
                                            rate used in the ACE. Adjust total ACE labor costs to
                                            reflect this difference.
5                                           Ensure that all actual direct labor and supervision costs
                                            necessary to accomplish the requirements of the PWS are
                                            included.
6                                           Ensure that the actual costs of government furnished
                                            services in the PWS are not included in the MEO costs.
7      Other pay and                        Review actual amounts of other pay and entitlements and
       entitlements                         compare to MEO estimates.
8      Saved pay adjustment                 Review saved pay for MEO personnel. Subtract this amount
                                            from the total review period labor costs to determine the
                                            adjusted actual labor cost.
9                                           Ensure the costs of providing quality assurance for the MEO
                                            are not included in MEO labor costs.
10     Material and Supply                  Determine the cost of goods and services actually acquired

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         Costs – Line 2               by the MEO during the review period.
11                                    Review the PWS and solicitation documents to determine
                                      which materials should be included in the actual cost.
                                      Government Furnished Material (GFM) and Government
                                      Furnished Equipment (GFE) should be excluded from the
                                      cost comparison since the costs were common to the MEO
                                      and other bidders.
         Other Specifically
         Attributable Costs –
         Line 3
12       Depreciation costs –         Determine review period depreciation costs of assets in use
         non-charges                  by the MEO. Ensure that assets depreciated for the ACE are
                                      the assets being used.
13       Rental property costs        Determine the MEO‘s cost of rental property for the review
                                      period. Verify that actual rental costs are for the same
                                      property estimated in the ACE. Any rental costs that would
                                      have applied to either in-house or contractor performance
                                      should be excluded.
14       Maintenance and repair       Determine the actual MEO cost of maintaining GFP during
         costs                        the review period. Ensure that capital expenditures for
                                      major improvements or asset enhancements are not shown
                                      as actual costs for maintenance and repair.
15       Utilities costs              Determine actual MEO review period costs for utilities
                                      (items identified in the ACE) that would have not been
                                      provided to the contractor/ISSA but were required for in-
                                      house performance.
16       Insurance costs – non-       Identify insurance cost estimates in the ACE to use as non-
         charges                      charged amounts for inclusion in the total MEO review
                                      period cost.
17       Travel costs                 Determine actual MEO review period travel costs.
18       Contract costs               Determine actual MEO review period contract costs,
                                      including contracted labor.
19                                    Document any actual costs of providing quality control to
                                      MEO subcontracts.
20       Overhead costs – Line 4      Determine MEO overhead costs by applying 12% to the
                                      adjusted (without saved pay) actual labor costs.
22       Additional costs – Line      Determine the review period costs for the additional cost
         5                            items identified in the ACE. Include ACE amounts for non-
                                      charged items.
23       ACE matrix                   Total the actual costs on the ACE matrix (spreadsheet) and
                                      compare by-line and total actual costs to the ACE amounts.


       (3) Summary.

                 ACE Lines         Original ACE               Adjusted ACE                          Actual Costs
1. Personnel
   Less save grade/pay
   Subtotal
2. Material & Supplies
3. Other Attrib. Costs
4. Overhead
5. Additional Costs
Totals
Deltas
Adjustments to the ACE:



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Actual cost variance from adjusted ACE:


Discussion and recommendations:




 d. Management and Business Practices Assessment. Evaluate the following
management and business practices.

                                                         Technology
Work order systems
Improvements/Innovation
                                                            QAE
Quality Assurance program—PAP execution
Performance assessment and reporting
                                                            COR
PAP implementation
Communication with the ACO
                                           MEO Performance Management
Quality Control Program
Selection and use of performance measures and data
                                              MEO-PWS Administration
PWS and cost change procedures and documentation
                                                     Business Environment
QAE roles
ACO roles
COR roles
MEO roles (manager, QC personnel, etc.)




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