Key Acquisition Initiatives for Federal Government Agencies

1. Key Acquisition Initiatives for Federal Government Agencies Joanne WoytekNASA SEWP PM April 2014

2. Agenda • SEWP Overview / Highlights • Leadership and Innovation • Major Initiatives • Industry Involvement • Q and A

3. SEWP Solutions for Enterprise-Wide Procurement • Indefinite Delivery / Indefinite Quantity (IDIQ) Contract Vehicle for purchase of IT, Telecommunications, and AV Product Solutions and related Technologies and Services • Government-Wide Acquisition Contract (GWAC) • Authorized by Office of Management and Budget (OMB) • Available to all Federal Government Agencies • All Federal Agencies have utilized SEWP • SEWP IV ends Oct 31, 2014 • SEWP V starts Nov 1, 2014

4. SEWP OverviewSolutions for Enterprise Wide Procurement • 38 Competed Prime Contract Holders (SEWP IV) • 4,600+ Providers including Cisco, Apple, NetApp, EMC, APC, Microsoft, Oracle, etc. • 2,500,000+ Unique Products & Product Based Services • 25,000 Orders Processed Annually * $100K Average Order Size * $2.5 Billion / Annually • KEY ACQUISTION SUPPORT OBJECTIVES • Give agencies ability to quickly procure the latest technology • Focus on standards, information flow, tracking, and ease of use • Provide a wide range of hardware and software solutions • Embrace innovative procurement processes for easier acquisition • “PRICE AND CUSTOMER SERVICE” • cited as the major reasons customers use SEWP

5. What Sets SEWP Apart… • CUSTOMER SERVICE: Pre-Order Assistance, Order Processing, Post-Order Support, and issue resolution help reduce the burden on the acquisition workforce • LOWPRICES:Contracted discount structure plus Fair Opportunity competition provides Agencies major savings • LOW FEE:SEWP Fee is 0.45%, capped at $10,000 • ROBUST ONLINE TOOLS:Intuitively built for customers • NEW PRODUCT AVAILABILITY: Items based on customer requests • SPEED WITH QUALITY:Everything is Handled with Care… in One Business Day • FREE TRAINING:Request On-Site training, attend live WebEx trainings, or watch our helpful 20 minute online training video • SMALL BUSINESS USAGE: Nearly 50% of the business in SEWP is directed to Small Business Contracts

6. What can be procured through SEWP? • Computer Hardware • • Tablets, Laptops, Desktops, Servers, Supercomputers • • Accessories • Networking and Communications • • Network Appliances: Routers, Modems, etc. • • Telecommunication Devices • Security Hardware • • Control and Authentication Devices • • Computer Anti-Theft Hardware • • Surveillance Systems • Supporting Hardware • • Scanners, Printers, Copiers, Shredders • • Associated Supplies • Specialized Hardware • • Computer Room Monitoring • Storage Hardware • • Backup and Recovery • • Storage Accessories • AV/Conferencing • • AV Equipment and Accessories • • TVs, Display Monitors, Projectors and Screens • Software and Virtualization • • Commercial software packages, SaaS • • Cloud Computing and Virtual Storage • Services Fully In Scope • • Maintenance / Warranty / Help desk support • • Installation of in-scope Products • • Site Planning; e.g. determining required products • • Product Based Training • • Product Based Engineering Services • Services Limited In Scope • Submit SOW for scope review for these services: • • Software development • • On-site operational labor • • Consulting (unless part of in scope services) • • Staff Augmentation • If uncertain: • • Stop • • Send SOW (Statement of Work), BOM (Bill of Materials), and/or Requirements Statement to help@sewp.nasa.gov • • SEWP will review and get back with any scope issues

7. “Leadership is the capacity to translate vision into reality.” - Warren G. Bennis • NASA SEWP Program has always been more than a set of contracts – it is viewed as an innovative experiment in IT acquisition • One of the 4 Acquisition objectives embrace innovative procurement transactions and processes • 3 Godfathers of SEWP • Set the objectives, goals and frameworks the Program continues to strive to meet

8. “The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams.”— W. Arthur Porter

9. Keys to SEWP’s Innovation Part I • Understanding the difference between administering a contract and managing an acquisition program • Bringing together disparate parts • Technical, procurement, policy • Government and Private Industry • Willingness to experiment • Hands-off upper management • Started as a non-entity / under the radar • Self-contained financially • Mutual trust and respect must be earned and maintained

10. Keys to SEWP’s Innovation Part II • Accept responsibility for failures and move on • Staff: dedication to mission; willingness to listen, observe and recommend • Mission is to provide the best customer service and the best contract program possible • No mandatory customers • Managed as if the Program is a Small Business not a Government Program • Understand what drives the IT private sector

11. Dilbert Comic Strip

12. “Management is doing things right; leadership is doing the right things.” - Peter Drucker • First Government-Wide Acquisition Contract • Implicit goal for the initial program – be the best program possible while keeping as low a profile as possible • Past 3-5 years have been a paradigm shift • Increased size • Increased visibility of GWACs and SEWP • Outreach is working • No longer under the radar • Viewed as a leader and need to fill that role • Leadership not confined to SEWP Contracts – Acquisition issues in general • Quality along with speed

13. Paradigm Shift Image

14. “The price of greatness is responsibility.” — Winston Churchill SEWP Vision Statement SEWP will solidify its reputation as an innovative, customer focused program as it seamlessly transitions to SEWP V and will be a visible, leading contributor to NASA and the Federal IT Acquisition Community. SEWP Mission Statement As an established and agile leader in the Federal Acquisition Community, the SEWP Program Office manages a suite of government-wide IT product solution contracts that provide NASA and all Federal Agencies with timely access to mission critical technologies. The Program provides best value and cost savings for the Federal Government and American taxpayer through innovative procurement tools and processes; premiere customer service and outreach; and advocation of competition and cooperation with industry.

15. Major Initiatives • Supply Chain Risk Management • Strategic Sourcing • Information Flow

16. Supply Chain Risk Management • Definitions are important • Counterfeit/tainting • Authorized reseller • Gray market • Risk management/levels of assurance • Standards and guidelines under development • Over 100 groups • Just released standard on Counterfeit / tainting: OTTP-S • Open Trusted Technology Provider Standard • Industry led with DoD and NASA SEWP participation • The Open Group Website https://www2.opengroup.org/ogsys/catalog/c139

17. SCRM Issues • 100% Assurance impossible to achieve • Risk can be identified and assessed • There is a cost associated with lowering the risk • Acquirer needs to do a risk/benefit analysis • SEWP V will include risk based info – product provenance • Manufacturer • Authorized Reseller • Partnered with an authorized reseller/distributor • Known provenance /no official authorization • Unknown/unidentified origin/supply chain • SEWP V will also include other mitigating data

18. How Strategic Sourcing Can Be a Good Fit for an Agency’s IT Solutions • Discounted Price on Products and/or Services • Set target price for supplier to meet • Use total annual spend to strengthen price negotiation • Greater Predictability in Acquisition Timetable • Consistency of Ordering Process and Product Supply • Improved Budget Planning • Increased Likelihood of Achieving Strategic Goals • Increased Standardization of Commonly-Purchased IT Solutions (Reduction in Acquisition Disparity)

19. Strategic Sourcing – OMB Goals • In 2012, as part of establishing crosscutting goals to improve management across the federal government, OMB called for agencies to strategically source at least two new products or services in both 2013 and 2014 that yield at least 10 percent savings. • In December 2012, OMB further directed certain agencies to reinforce senior leadership commitment by designating an official responsible for coordinating the agency’s strategic sourcing activities. In addition, OMB identified agencies that should take a leadership role on strategic sourcing. • Additionally, OMB directed these agencies to promote strategic sourcing practices inside their agencies by taking actions including collecting data on procurement spending.

20. Strategic Sourcing – SEWP • Member of OMB IT Strategic Sourcing group • Lead for laptop/desktop initiative • Work is progressing on common technical specifications and definitions • SEWP V will fully integrate locating, ordering, tracking and reporting of data related to strategic sourcing

21. Information Flow • As a central Program for decentralized Government Acquisition, SEWP is an information channel between Industry and Government • SEWP V increases the information provided during RFQ • Contract Holder Information • Past performance concerns • Business size / designation / set-aside opportunities • Supply Chain information • Product Information • Government initiatives (e.g. Energy Star) • Agency specific approval (option to provide pre-approved product list) • Strategic sourcing options

22. Item Level Tracking • Oversight Groups (Congress, OMB), CIOs, IT Managers want to understand, track and report on IT purchases • Government tracking reliant on multiple systems and data entry • Industry tracking is often commercial oriented; i.e. not detailed to Government level data • SEWP V – tracking will be handled by the Program Office • Data will be useful for: • Consolidating future buys • Determining organizational trends • Standardize requirements and purchases • Data Calls • Legal issues

23. Other Information Channels • Government Customers • What is available? • SEWP is a quote based contract – catalog dynamically built on customer requirements • SEWP V will have a product categorization structure and interactive website to provide a product lookup tool to feed RFQ process • Government Agencies • Ability to control / guide ordering process • Agency web page: List specific clauses and procedures • Agency Line Item Approval Flag

24. 4 Ways Industry Is Involved Place Products/Services Under Existing Contracts Align with Existing Contract Holders Purchase from Existing Contracts Win a SEWP Prime Contract

25. “Provider” of IT Products / Solutions Work with one or more Prime Contract Holders to request product addition Business case is negotiated between Prime and provider A Prime Contract Holder must first request acceptance of provider Check is made by SEWP to ensure products in scope After a provider is accepted Any Prime may add products from the provider Products added through Technology Refreshment process Authorized reseller information may be provided by provider only This is the best and easiest way to be involved in SEWP Place Products Under Existing Contracts

26. Align with Existing Contract Holders Form a business realtionship to fill gaps; for example: Geographic Coverage Technological Expertise Agency specific expertise Sales force augmentation While an available path, the relationship is purely Business to Business SEWP Program Office interacts at the Contract Holder level Orders remain between Government agency and Contract Holder

27. Purchase from Existing Contracts Authorized Support Service Contractors may Utilize SEWP Contracts as Part of Their Government Contract Authorization Letter from Support Service Contractor’s CO (Contracting Officer) Authorization required on an individual support service contract basis Appropriate FAR 51 requirements must be met List of Authorized Support Service Contractors available on SEWP website Over 100 companies with appropriate support service contracts have been authorized to use SEWP

28. Win a SEWP Prime Contract SEWP IV Contracts will end in Oct 2014 SEWP V RFP and Proposal period ended Dec. 2013 Government is evaluating submitted proposals New Contract Awards Planned by Nov 2014 All Official Information will be provided through FedBizOpps (www.fbo.gov) and the SEWP website (www.sewp.nasa.gov) Long, Costly Process Competitive Process Extensive Requirements Strong Competition No Guarantees (winners and losers) Next opportunity – 2024

29. Questions?