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The Contract Holder Model Darlene Coen / Al Marshall

The Contract Holder Model Darlene Coen / Al Marshall. SEWP Contract Structure. 5 Groups of contracts 4 Competed Groups (Groups A through D): 38 Companies => referred to as Contract Holders 21 Small businesses; 7 SDVOSB’s; 6 8(a)s Limit of $5.6 Billion per contract

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The Contract Holder Model Darlene Coen / Al Marshall

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  1. The Contract Holder ModelDarlene Coen / Al Marshall

  2. SEWP Contract Structure 5 Groups of contracts • 4 Competed Groups (Groups A through D): • 38 Companies => referred to as Contract Holders • 21 Small businesses; 7 SDVOSB’s; 6 8(a)s • Limit of $5.6 Billion per contract • Grouping is based on initial contract competition and selection • Set-aside vs. Full and Open • Minimum mandatory requirements • 1 Non-Competed 8(a) set-aside contracts (Group E) • 4 Contract Holders • Limit of $3.5 to $4 Million per contract

  3. Groups A through D • Group A: OEMs and Value Added Resellers (VARs) • 9 Contract Holders • Award based on Full and Open Competition focused on computer systems • Group B: SDVOSB VARs • 6 Contract Holders • Award based on Service Disabled Veteran Owned Small Business Set-aside focused on Supporting Technology • Group C: Small Business VARs • 12 Contract Holders • Award based on Small Business Set-aside focused on Supporting Technology • Group D: VARs • 15 Contract Holders • Award based on Full and Open Competition focused on Supporting Technology

  4. Significance of Groups - Scope • Scope of Groups A through D • Products and product based services • No Group level scope distinction. From the SEWP SOW: “Regardless of the mandatory items defined, proposed and provided by each class, the scope of all contracts is the same” • Scope of Group E • Fixed price support services along with product solutions • Limited by contract ceiling

  5. Significance of GroupsFair Opportunity • Groups A through D – FAR Part 16.505(b) • Fair Opportunity MUST BE provided within at least one Group • Opportunity may be provided across multiple Groups • Group E – non-competed 8(a) set-asides • Fair Opportunity requirements do not apply • However it is strongly recommended that all Group E Contract Holders be solicited

  6. Fair Opportunity and Notices • All contract holders in at least one Group must be solicited unless: • Order is under $3000 • Follow-on to a previous process in which Fair Opportunity was performed and documented • National Emergency • Conflict of Interest • Posting Notices to all Four Groups • Brand Name Requirement - Justification and Approval document must be posted to all 4 Groups • New FAR Requirement – Notice must be posted for any order over $25,000 • SEWP Quote Request tool will provide mechanism to post notices

  7. Small Businesses and Fair Opportunity • Groups B and C can be solicited separately or together • If inadequate responses, re-open RFQ to other Groups • Groups A & D can be included in solicitation: • Selection is based on Best Value as determined by the issuing agency • Recommendation for small business usage: Utilize business size preferences in selection process • Group E • Particularly for support service requirements • Check the current cap limit

  8. Quote Request Tool The SEWP Quote Request tool is the only recommended method to apply Fair Opportunity and solicit quotes.

  9. SEWP Fee • Fee is based on a non-profit budget • Goal is to provide the best service at the lowest possible cost • Average fee charged is 0.37% (due to cap)

  10. Fee: Payment and Quotes • Fee paid by the Contract Holder after Issuing Agency pays the invoice for the order including the fee • Fee may be quoted as separate line item or included in product price • Issuing Agency is responsible for listing the fee as quoted • If fee quoted separately, order should list the fee separately • If fee is not listed on the quote (and the quote is a SEWP quote) do not include the fee as a separate line item • During order processing, Government Customer and Contract Holder are notified of the calculated fee associated with the order • Contract Holder cannot increase invoice if fee was mis-quoted

  11. Applying the Fee • Fee is applied on the original order and any subsequent mods including exercising options • For example an order with a base total of $2 Million and 2 options of $1 Million each will have a fee of $18,000 inclusive of all options • If an order is canceled, no fee is applied • If the amount of an order is decreased, the fee is also decreased • If the amount of an order is increased, the fee is increased

  12. We Work For You • Pre-Award Assistance • Scope Questions • Assist with Getting RFQ Responses • CLIN Management • Orders • Data Validation • Delivery Tracking • Post Award Issues • Assistance with Issue Resolution • Debriefs • Protests • Program Performance

  13. Pricing – Catalog Price SEWP catalog price is fair and reasonable based on: • Contract Discount Structure • Based on a set discount off of list price • Discount structure tied to initial competition and award • Pricing compared against other contract prices • Other contracts do not necessarily compare against other contracts • If pricing is not comparable, justification is required • “I cannot sell at that price” is not a justification • “The warranty is for 2 years instead of 1” is a justification • Price must be lower than Contract Holder’s GSA price (lower fee) • Variable priced CLINs not allowed

  14. Pricing – Quoted Price • SEWP catalog price is the highest price allowed • Discounting at the quote level is highly encouraged • On average, quoted price is 27% lower than catalog price • Strong internal competition • Consolidation of requirements maximizes discounts • Prices may be negotiated • If the quoted price seems questionable, notify help@sewp.nasa.gov • Most common question: I found the same item on the web for half the price • Upon further research most common reasons for price discrepancies: • Technically comparing apples to oranges (or Apples to PCs) • Item is end of life • The required solution requires customization

  15. Contract Holder Relationship Manager 2 Full-time staff serve as CHRMs (Contract Holder Relationship Managers) • Liaison between SEWP Program Management Office (PMO), Contract Holders (CH), Industry, and Users • Daily if not hourly interactions between CHRMs and Contract Holders • Annual one-on-one meetings with each Contract Holder • Discuss past issues • Promote good communication • Quarterly Program Manager Meetings • Assist Government Customers with Issue Resolution • Provides mediation, research, recommendations, and/or a sympathetic ear • Objective is to provide a balanced perspective

  16. CHRMing Activities • Industry Events • Semi-annual Industry Forums • Please encourage any company you work with who wants to know more about SEWP to attend one of these events (send email to help@sewp.nasa.gov) • Sales Training • Sales forces at all Contract Holders are required to be trained on SEWP Contracts • Manufacturer Training • Track Program Performance • Assist in review and approval of product catalog updates: • Technology Refreshments (TR) • Statement of Work and scope reviews • Oversight of Contract Holder Only Page (CHOP) • Web site used to provide Contract Holders with a suite of tools • Manage the Contract Holder Reports

  17. Contract Holder Reports SEWP provides Contract Holders with an array of periodical reports Contract Holder is fully informed of all SEWP-related activities, actions, and issues in a timely fashion • Agency and Contract Holder Total Usage – Monthly • Delivery Order and Quote Request Summary – Weekly • Pending Quote Requests – Daily • Orders With Upcoming or Overdue Delivery Times – Daily • Order Receipt and Order Summary Issue Report - Daily

  18. SEWP Notification Recipients

  19. Program Performance SEWP Program Office tracks the performance of each Contract Holder in the following categories: • Reports • Customer Satisfaction • Information Distribution • Contract Adherence • Delivery

  20. Program Performance Ratings • Ratings are based on 4 levels • Blue = Excellent • Green = Very Good • Yellow = Fair • Red = Poor • In general, multiple problems in a given area within a 3 month window causes a downgrade • After a downgrade, 3 months without any issues results in an upgrade

  21. Program Performance Page

  22. Program Performance Categories (1 of 2) • Reporting Category • Timeliness • Accuracy • Surcharge Payments • Customer Satisfaction • Response to Customer Complaints • Quality of Products and Services • Information Distribution • Correct Information • Website • Marketing Materials • Quotes • Follow Customer Contact Guidelines

  23. Program Performance Categories (1 of 2) • Delivery Category • Orders Delivered by Expected Delivery Date • CH Follows SEWP Procedure for Delivery Delays • CHOP Used to Update Order Status • Customer Properly Notified • Contract Adherence Category • Quote in Accordance with SEWP Rules • All Quoted Items on contract • All Quoted Items included in Verification File • Quote Submitted Through SEWP Quote Interface • Attend Required Meetings • Follow SEWP Delivery Order Policy • Reporting Accuracy

  24. Program PerformanceWhat it Means • Program Performance does not constitute the official Past Performance ratings based on FAR Part 42.15. Customer Satisfaction • Annual past performance ratings may be obtained upon request • Goal is to have everyone rated Excellent • Contract Holders were awarded a contract in part based on evaluation of program level capabilities • Best use of the Program Performance ratings is to encourage Contract Holders to resolve issues quickly and with minimum delay • SEWP Program Office would rather have a satisfied customer than a downgraded Contract Holder

  25. Program PerformanceWhat a Low Rating Means If a rating is Good or Poor: • Check the category: • Reporting and Information Distribution are unlikely to affect an individual order performance as these tend to be Program level issues; • Contract Adherence issues may be Customer related – typically related to Quoting or Program level issues • Delivery and Customer Satisfaction may indicate an issue with past order fulfillment • Contact the SEWP Program Office, especially for Poor Ratings in Delivery and/or Customer Satisfaction • Program Office can provide more details on the meaning of the rating • Next version of the Quote tool will flag Contract Holders with low program performance ratings

  26. Program PerformanceWhat You Can Do to Help • Send information about any Contract Holder issues to help@sewp.nasa.gov • CC help@sewp.nasa.gov on any correspondence with Contract Holder concerning an issue • If we do not know about the problem, we cannot assist • If we do not know about a problem, we cannot prevent it from happening again

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