By Lou Kelly Director, SDADT

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1 San Diego Advanced Defense Technologies Cluster Workshop #5 Winning: Proposal Compliance, Proposal Content Development, Selection Criteria & Evaluation Tuesday May 22 nd, 2012 By Lou Kelly Director, SDADT

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3 Focus Areas General Focus Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) High Priority Focus Areas Cyber Security, Autonomous Systems, Renewable Energy

4 Cluster Strategy and End Goal Goal: to surround each small business with many elements of support in order to help the company grow and rapidly transition the company s technology into high priority needs in Department of Defense. This support includes: 1. Assistance in obtaining additional product development funding 2. Introductions to large DOD Primes for integration of technologies and partnerships 3. Inclusion in periodic showcase and demonstration events in front of government and industry customers 4. Access to customized business services to support the path and strategy to bring the technology to the market, e.g. market analysis, license agreements, IP assistance, mentoring by business entrepreneurs, etc.

5 SDADT Process for Support of Small Businesses 1. Complete a very simple application form available on line at the web site. The application requests a short description of your technology, your company, and the types of support that you request. Application submitted through 2. After receiving your application an initial session will be scheduled with your CEO to discuss your technology, your company, and create an initial plan for customized support to your company. 3. Your customized support could include: Assistance in obtaining additional development funding Business Model and business plan review and/or development support Government and commercial market assessments Intellectual property and export control training and assistance DoD marketplace training (funding vehicles, positioning, contracting) Networking, mentoring, and other collaborative assistance facilitation Each small business can be assigned a business entrepreneur to work with the company as an advisor throughout the process, if appropriate. 4. Each company will be included in major events such as showcases and demonstrations

6 Results of Support In the first 12 months of operations, the Cluster : Recruited and is providing customized business support to 31 clients Assigned business consultant/entrepreneur in residence for B&P services Assigned University Business School faculty student teams for market research Sponsored showcase demonstrations to primes and DoD agencies for 11 clients Supported ~80 small businesses through business oriented workshops Results included: 15 new contracts valued at $3, with Cluster support $2,000,000 in private investments $5,177,023 of new funding received by SDADT clients

7 Small Business Oriented Programs Operated by SDSU 1. San Diego Advanced Defense Technology (SDADT) Cluster 2. Network Enabled Small Business Teaming (NEST) 3. Center for Commercialization of Advanced Technology (CCAT) DHS TechSolutions DoD Domestic Preparedness Support Initiative NAVEOD See

8 Doing Business with Space and Naval Warfare Systems Command (SPAWAR) (SPAWAR - Procurement and Non-Procurement Vehicles, Source Selection Methodologies and Contract Types) 22 May 2012 Presented at: SD ADT San Diego, CA Faye Esaias Director, SPAWAR Office of Small Business Programs Statement A: Approved for public release, distribution is unlimited (21 May 2012)

9 Agenda Who is SPAWAR? Where we are and what we buy Doing Business with SPAWAR Procurement vehicles, source selection methodologies, and contract types e-commerce Central website Resources and POC s Office of Small Business Programs (OSBP) Initiatives and focus areas FY12 Small business targets and accomplishments to date Future Opportunities 2

10 Who We Are Navy s Information Dominance Systems Command Navy s Technical Authority and acquisition command for C4ISR,* business IT, and space systems Provide advanced communications and information capabilities to Navy, joint and coalition forces More than 8,000 employees deployed globally and near the fleet *Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance 3

11 SPAWAR HQ SPAWAR Locations in CONUS SPAWAR Space Field Activity Washington, D.C. PEO Space Systems PEO EIS HI Norfolk VA Guam Japan San Diego CA Systems Center Pacific (FY 09) PEO C4I JPEO - JTRS New Orleans LA Charleston SC Systems Center Atlantic (FY 09) 4

12 Where We Are Cont. Germany England Everett San Diego Hawaii SSC Pacific Washington D.C. Norfolk Spain Charleston New Orleans SSC Atlantic Italy Bahrain Japan Guam SSC Pacific REGION TERRITORY NUMBER 5

13 Meeting Current and Future Needs of the Fleet Consolidating Networks Cyber Operations Research, Engineering & Development Internet Cafes C4ISR Technology Unmanned Vehicle Systems 6

14 Who is SPAWAR? COMMANDER RADM Pat Brady Vice Commander Vacant Deputy Commander Rod Smith PEO C4I RDML Jerry Burroughs PEO EIS RADM "Grunt" Smith PEO Space Systems RDML Jerry Burroughs Fleet Readiness Directorate RDML Chuck Rainey JPEO JTRS BG Williamson 1.0 Comptroller Steve Dunn 2.0 Contracts Tim Dowd 3.0 Office of Counsel Harold Cohn 4.0 Logistics & Fleet Support Martin Brown 5.0 Chief Engineer RDML James Rodman 6.0 Program Management Les Hubbard 7.0 Science & Technology Robert Wolborsky 8.0 Corporate Operations Gary Wang SPAWAR Space Field Activity CAPT Boris Becker, CO (Acting) Echelon III Activities SPAWAR Systems Center Pacific CAPT Joe Beel, CO Carmela Keeney, TD SPAWAR Systems Center Atlantic CAPT Mark Glover, CO Christopher Miller, TD

15 Procurement Vehicles, Source Selection Methodologies and Contract Types Purchase Cards Simplified Acquisition procedures Large Contract processes Nonprocurement vehicles

16 First of all How Do We Get There? In order to understand how sources are identified and source selection strategies are determined you first need to have an awareness of the general procurement processes!

17 Authority/Policy Regulations Federal Acquisition Regulation (FAR) Defense FAR Supplement (DFARS) Navy - Marine Corps Acquisition Regulation Supplement (NMCARS) Policies Federal Government Department of Defense Department of Navy SPAWAR

18 Authority/Oversight Delegation of procurement authority SECDEF SECNAV ASN(RD&A) COMSPAWAR CO, SSC Pacific/Atlantic Procurement Contracting Officer (PCO) Non-compliance can have serious consequences, can include but are not limited to: Reversal of PCO decision Suspension or loss of procurement authority Civil or criminal penalties

19 Overview of Large Contract Process Major steps in the acquisition process Identification of requirement Identification of type of contract Deciding what type of solicitation Procurement methodologies Source selection strategies RFP issuance Source selection decision Notification of contract award Debriefings Typically divided in 5 phases

20 Identification Of Requirement And Nature Of The Requirement Commercial off the shelf (COTS) Services or supplies Research & Development Sources of supply sole source vs. competitive small business set-aside vs. unrestricted competition

21 Identification of Appropriate Procurement Type And Pricing Structure Completion Contract vs. Indefinite Delivery Type Contract (can be single or multiple award) Cost type vs. Fixed Price type Inclusion of incentives, etc. CRADA, Grant, Cooperative Agreement, Other Transactions Awards from Broad Agency Announcements SBIR s Contracts, etc.

22 Procurement Methodologies Simplified Acquisition Procedures (SAP) Commercial (combined synopsis/solicitation) Formal (major systems) Informal (can include Best Value, low price technically acceptable, anything not using formal source selection methodologies)

23 What are the Procurement Processes? Dollar driven based upon estimated costs Micro purchases Purchase card $3,000 * Simplified Acquisition (FAR Part 13) COTS (FAR Part 12) Contingency (FAR (e) Up to $150K Up to $6.5M Up to $12M Large contracts Up to unlimited authority as delegated 6/1/

24 Contract Types (FAR Part 16) FAR (a) - A wide selection of contract types is available to the Government and contractors in order to provide needed flexibility in acquiring the large variety and volume of supplies and services required by agencies. Contract types vary according to (1) The degree and timing of the responsibility assumed by the contractor for the costs of performance; and (2) The amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals. (b) The contract types are grouped into two broad categories: fixedprice contracts (see Subpart 16.2) and cost-reimbursement contracts (see Subpart 16.3).

25 Mandatory Sources Required Sources of supplies and Services Before we decide to process a requirement as a set-aside or on a full and open competitive basis we must check.. Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulations (DFARS) which specify mandatory sources and priorities. FAR Part 8 - This part deals with the acquisition of supplies and services from or through Government supply sources and also states priorities for Use of Government Supply Sources such as the Ability One Program Agencies may also designate other required sources such as: NMCI Continuity of Services Contract NGEN SeaPort e

26 Sole Source vs Competitive Demonstration of Contractor s Unique Qualifications. Justification must contain sufficient facts and rationale to justify the use of the specific authority cited. Contracting without providing for full and open competition shall not be justified on the basis of lack of advance planning by the requiring activity or concerns related to the amount of funds available (e.g., funds will expire). Only One Responsible Source (FAR Subpart ) - In the case of a follow-on contract for continued development or production of a major system or highly specialized equipment/services, the rationale must first justify the supplies/services as being highly specialized. The rationale must then justify either substantial duplication of cost to the government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency s requirements, whichever situation applies. If both of these situations apply, the rationale can be based on either one of the two situations, or both.

27 Examples of Source Selection Methodologies for Competitive Actions Lowest price Low Price Technically Acceptable Best Value Oral vs. Written Proposals Past Performance information Multiple vs. single awards I need to find the simplest approach to meet my needs!

28 Source Selection Plan (SSP) The SSP is the key document which specifies how the source selection activities will be organized and conducted. It is the blueprint for conducting the source selection and it serves as the guide for conducting the evaluation and analysis of proposals, and the selection of sources(s). In order to be successfully executed, the SSP must clearly express the Government s minimum needs (evaluation factors) & their relative order of importance. DoD Source Selection Guide became effective 1 July 11

29 Identification of Potential Sources Market research & analysis Posting of contract actions on the e-commerce central web site Publicizing contract actions over $25K through the Federal Business Opportunities (FedBizOps), Government-wide Point of Entry (GPE) Note- posting is required for SAP actions also Sources Sought or Request for Information (RFI)

30 Small Business Considerations SPAWAR policy is to provide maximum practicable opportunity in its acquisitions to small business concerns as both prime contractors and subcontractors Efforts to ensure small business participation in each acquisition above $10K is documented on the DD2579 (Small Business Coordination Record). SAP actions are automatically reserved for small businesses unless justified otherwise. SeaPort e are approved via the portal. Rule of 2: Need 2 or more qualified SB s to set the action aside.

31 NAVSEA Multiple Award Contract (MAC) IDIQ vehicle with CPFF and FFP pricing SeaPort-e The Navy s electronic platform for acquiring support services in 22 functional areas Individual task orders competed in one of seven geographic zones No sole source orders 2,792 prime contractors (rolling admissions currently closed) nearly 85% of its contract holders are small businesses Competitive 8(a) Set-asides SPAWAR vehicle of choice for services Caps on pass-through costs, labor escalation, and fee/profit Streamlined evaluation process Web portal for electronic commerce: 24

32 Issuance of the RFP Uniform Contract Format Part I -- The Schedule A B C D E F G H Solicitation/contract form. Supplies or services and prices/costs. Description/specifications/statement of work. Packaging and marking. Inspection and acceptance. Deliveries or performance. Contract administration data. Special contract requirements. Part II -- Contract Clauses I Contract clauses.

33 Uniform Contract Format cont. Part III -- List of Documents, Exhibits, and Other Attachments J List of attachments. Part IV -- Representations and Instructions. K Representations, certifications, and other statements of offerors or respondents. L Instructions, conditions, and notices to offerors or respondents. M Evaluation factors for award.

34 Section L Instruction to Offerors Section L tells vendors how the Government expects them to put their proposal together (e.g., how many volumes, what to put into those volumes, how many pages, etc.) Should include clear instructions for vendors to ensure they provide sufficient information to facilitate a thorough evaluation of any criteria (experience, resumes, past performance, etc) and cost information that is needed to ensure the cost/price proposal is a reasonable reflection of the technical proposal This is particularly important for any cost type contract where the Contracting Officer must make an affirmative determination that the cost proposal(s) are a REALISTIC representation of the technical approach and a determination the prices are fair and reasonable.

35 Section M Evaluation Factors For Award Understand the ground rules! Government evaluators may only evaluate the proposal against the criteria listed in Section M (the grading system) Federal regulations require the acquiring activity to inform all offerors of the criteria, and their relative importance, that will be used to evaluate proposals Government evaluators may only evaluate the proposal against the criteria listed in Section M Government evaluators may only evaluate a proposal using the information provided within the proposal itself The only exception is information relating to past performance

36 Process After Receipt and Evaluation of Proposals Source Selection Decision: Must be based on strengths/weaknesses and differences of proposals vs. price differential, i.e., not a mathematical calculation Must be consistent with the stated evaluation criteria Award without discussions or conduct discussions Notification to offerors of award decision Debriefing of offerors (primarily based upon the Technical Evaluation Report) SeaPort e Debriefings not required but can be requested

37 How To Identify Opportunities Within DOD Posting of contract actions: Federal Business Opportunities (FedBizOpps) is a web-based system for posting solicitations and other procurement-related documents to the Internet. FedBizOpps was designated by the Federal Acquisition Regulation as the mandatory "government wide point of entry for the posting government business opportunities greater than $25,000. For more information visit: 30

38 How To Locate Information on SPAWAR Opportunities On the SPAWAR website (www.spawar.navy.mil) click on For Industry Partners which will direct you to our e- commerce site. A list of our future opportunities, open solicitations, and contract awards is available for the SPAWAR Headquarters, as well as for SSC Atlantic and SSC Pacific. 31

39 SPAWAR e-commerce Website https://e-commerce.sscno.nmci.navy.mil 32

40 How to Locate a Specific Business Opportunity On the left side of the Main Menu there is an option Read Me First SPAWAR has a secure website, you can register, identify opportunities and submit proposals. Once you subscribe for a specific solicitation you will be sent a notification when there is a change. Follow the instructions in the solicitation and contact the Contract Specialist if you have any questions! Refer to the detailed step-by- step instructions in the Vendors Users Guide. 33

41 How To Locate a Specific Contract Opportunity cont. 6/1/

42 OSBP Organizational Overview RADM Patrick Brady Commander, SPAWAR Mr. Rod Smith Deputy Commander SPAWAR CAPT Joseph Beel Commanding Officer SPAWAR Systems Center Pacific CAPT Glover Commanding Officer SPAWAR Systems Center Atlantic Ms. Faye Esaias Director, SPAWAR / PEO Office of Small Business Program s (OSBP) Mr. Robert Zack Zaccaria Small Business Deputy Mark McLain Small Business Deputy Mr. Aubrey Lavitoria Small Business Advisor Dean Dickau Deputy OSBP SSC Pacific Mr. Kevin Gomer Assistant Ms. Robin Rourk Deputy OSBP SSC Atlantic Mr. Tim Wiand Deputy, OSBP SSC Atlantic 35 35

43 New DOD/DON Office of Small Business Programs Initiatives Increase opportunities for SB participation on SPAWAR acquisitions at both the prime and subcontractor levels New Subcontracting Task Force (DoD, led by DoN) Subcontracting Performance Team - Establish DON Small Business Subcontracting Program administration standards and recommend methods of reporting subcontracting program performance for deeper insight to small business participation. Performance Measurement Team - Establish best practices for measuring small business subcontracting during contract performance to include who should measure performance, what should be measured, how it should be measured and enforced. This includes small businesses meeting the Limitations in Subcontracting during contract performance

44 SPAWAR Office of Small Business Programs Initiatives Improving forecasting tool for future contract opportunities posted to the OSBP website Working group to improve market research techniques and responses Intended outcome: to have standardization across Team SPAWAR, increase opportunities for Small Business Concerns and to promote competition. Working group to implement WOSB Contracting Program Intended outcome: to determine how to implement the WOSB - 8(m) Contracting Program at SPAWAR Ongoing meetings between SPAWAR, Contracting personnel, SBA, local PTAC and WOSB s 37 37

45 Top 10 NAICS Awarded by Dollars - FY11 NAICS SB Size Standards in $M SB Size Standards in # Employees Description Action Obligated $27M N/A Engineering Services $3,601,634, N/A 750 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing $1,532,623, $25M N/A Other Computer Related Services $678,979, $15M N/A Satellite Telecommunications $268,054, N/A 500 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) $209,386, N/A 750 Other Communications Equipment Manufacturing $186,708, N/A 1,000 Telephone Apparatus Manufacturing $165,690, $25M N/A Custom Computer Programming Services $159,097, N/A 1,500 Wired Telecommunications Carriers $125,705, $25M N/A Computer Systems Design Services $121,973,

46 Trend Comparison as of 8 May 2012 Team SPAWAR Small Business Overall Small Disadvantaged Service Disabled Veteran Owned Women Owned HUBZone FY 11 Targets Achievements 20.00% 21.45% 5.50% 8.55% 1.60% 1.97% 3.00% 4.25% 1.10% 0.92% FY12 Targets 20.25% 6.25% 1.70% 3.30% 0.90%

47 Have a Marketing Strategy! Develop a strategy and a plan: Determine who procures the services and/or commodities you provide Find out as much as you can about their programs/needs (e.g. public websites, networking, etc. ) Determine your role and limits (prime, subcontractor, capabilities, etc.) Respond to RFI s & Sources Sought! Identify contract requirements & potential team members Develop strategy for responding to a solicitation 40

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49 x.htm

50 SPAWAR Website Homepage 6/1/

51 SPAWAR OSBP Website Information 6/1/

52 DoN Office of Small Business Programs 45

53 SPAWAR OSBP Resources and Contact Information Faye Esaias, Director for Small Business Programs Phone: (619) or Robert Zack Zaccaria, Deputy for Small Business Phone: (619) or Mark McLain, Deputy for Small Business Phone: (619) or Dean Dickau, Deputy for Small Business for SSC Pacific Phone: (619) or Robin Rourk, Deputy for Small Business for SSC Atlantic Phone: (843) or Timothy Wiand, Deputy for Small Business for SSC Atlantic Phone: (843) or 46

54 Developing a Commercialization Plan for SBIR and STTR Proposals Elizabeth Altmann SBIR Program Manager (Acting) Space and Naval Warfare Systems Command Statement A: Unlimited Distribution; Other requests must be referred to COMSPAWAR or the cognizant SPAWAR code

55 Commercialization The process of developing marketable products or services and delivering products or services for sale (whether by the originating party or by others) to Government or commercial markets. For Phase III Awards, the term commercialization means the process of developing products, processes, technologies, or services; and the production and delivery of products, processes, technologies, or services for sale (whether by the originating party or by others) to or use by the Federal Government or commercial markets. Distribution Statement A 2

56 Evaluation Criteria Phase I A. The soundness, technical merit, and innovation of the proposed approach and its incremental progress toward topic or subtopic solution. B. The qualifications of the proposed principal/key investigators, supporting staff, and consultants. Qualifications include not only the ability to perform the research and development but also the ability to commercialize the results. C. The potential for commercial (Government or private sector) application and the benefits expected to accrue from this commercialization as assessed utilizing the criteria in Section

57 Assessing Commercial Potential of Proposals Section 4.4 A Phase I or Phase II proposal's commercial potential will be assessed using the following criteria: a. The proposer's commercialization strategy (see Section 3.5) and, as discussed in that strategy: (1) any commitments of additional investment in the technology during Phase II from the private sector, DoD prime contractors, non-sbir/sttr DoD programs, or other sources, and (2) any Phase III follow-on funding commitments; and b. The proposer's record of commercializing its prior SBIR and STTR projects, as shown in its Company Commercialization Report (see Section 3.5). If the "Commercialization Achievement Index" (CAI) shown on the first page of the Report is at the 20th percentile or below, the proposer will receive no more than half of the evaluation points available under evaluation criterion (c) in Sections 4.2 and 4.3 ("potential for commercialization"). A Company Commercialization Report showing that the proposing firm has no prior Phase II awards will not affect the firm's ability to win an award. Such a firm's proposal will be evaluated for commercial potential based on its commercialization strategy in item a, above. 4

58 Commercialization Strategy Why is your technology important to the market; what need is being satisfied? What is the first product that this technology will go into? Who will be your customers, and what is your estimate of the market size? Will your technology meet the market s requirements? When can the market accept your technology? Who is responsible for buying in that market? How much money will you need to bring the technology to market, and how will you raise that money? Who will manufacture your technology? Does your company contain marketing expertise and, if not, how do you intend to bring that expertise into the company? 5

59 Commercialization Strategy Who in your company is responsible for achieving a Phase III transition? What is the cost of the technology to the market? Who are your competitors, and what is your price and/or quality advantage over your competitors? What approach does the Navy currently use to address this need and what benefit does your technology have over other approaches? The commercialization strategy must also include a schedule showing the quantitative commercialization results from the Phase II project that your company expects to report in its Company Commercialization Report Updates one year after the start of Phase II, at the completion of Phase II, and after the completion of Phase II (i.e., amount of additional investment, sales revenue, etc. (see Section 5.4). 6

60 Transition of SBIR Technologies Ultimate goal is to transition technology to military and/or commercial applications Often technologies are useful to other services or agencies in support of joint operability Successful commercialization reduces costs to the military Success stories are published on the Navy SBIR website (http://www.navysbir.com/navsuccess) Distribution Statement A 7

61 Tips for Succeeding Just Getting Started? Research topics consistent with your business strategy. Current and past solicitations identify Navy technology needs Submit proposals for solicitations your company can solve. Prepare to be innovative Utilize pre-solicitation period Plan transition early and often Already have a Phase I? Know your target platform/system of insertion Build strategic partnerships (Resource Sponsors, Acquisition Managers, Program Managers) Plan commercialization path early Distribution Statement A 8

62 Tips for Succeeding 9

63 Current/Upcoming Solicitations Navy Pre-Release Open Close Apr May Jun Jul Aug Sep B 26 Jul Aug Sep

64 Resources U.S. SBIR: DoD SBIR: Input Proposals Search Topics View Awards Navy SBIR: Defense Contract Audit Agency (DCAA): Defense Contract Management Agency (DCMA): Defense Technical Information Center (DTIC): SPWAR SBIR Program Office: Distribution Statement A 11

65 INTELLECTUAL PROPERTY (IP) RIGHTS IN DOD PROCUREMENTS Arthur K. Samora SSC Pacific Patent Office May 22, 2012 Distribution Statement A: Unlimited

66 Purpose of This Presentation Provide An Overview Of The Government Perspective on Basic Data Rights And Other Intellectual Property (IP) Concepts. To Root Out And Eliminate Small Business FUD* When Doing Business With The Federal Government. * Fear, Uncertainty and Doubt Distribution statement A 2

67 Perspective and Disclaimer Brief Is Largely Given From A Government Perspective. DISCLAIMER: THE OPINIONS IN THIS PRESENTATION ARE MY PERCEPTIONS AS A GOVERNMENT PATENT ATTORNEY, AND NOT THE OFFICIAL POSITION OF THE GOVERNMENT, DOD, OR ANY DOD ORGANIZATION. Distribution statement A 3

68 Overview Why Does The Government Worry About IP in a DoD Acquisition? Why Contractors Should Worry About What the Government is Worrying About. Miscellaneous IP/Data Rights Issues. Distribution statement A 4

69 Why Does the Government Worry About IP? Sea Stories The Government Does Not Like Being Over a Barrel. NMCI. SPY-3 (DDG 1000). It s The Law. 10 USC It s DoD Policy Under Secretary of Defense (AT&L) Memorandum. DFARS , (f) for Technical Data, (e) for Computer Software. Distribution statement A 5

70 The Law 10 USC 2320(e). For Major (ACAT I And II) Weapon Systems Or Their Subsystems. Program Managers Shall Assess Long-term Technical Data Needs. Establish Acquisition Strategy Providing For Needed Technical Data (TD) Rights. Before Solicitation. Priced Options. Address Changes In Sustainment Plan Over Life Cycle Of The System. 10 USC 2320(e) Has Been Extended To Computer Software (CS). Statutory Policy is Routinely Extended To Smaller Procurements. Distribution statement A 6

71 What Are Data Rights? Data Rights Are A License For The Government To Do Certain Things With Technical Data (TD)/Computer Software (CS). Categories Of Data Rights. Unlimited Rights. Government Purpose Rights. SBIR Data Rights. Limited Rights (TD). Restricted Rights (CS). Specifically Negotiated License Rights. Commercial License Rights. Except In Rare Cases, The Contractor Always Retains Ownership Of Copyright of TD/CS. Data Rights Cheat Sheet Is In Backup Slides. Distribution statement A 7

72 Allocation of Data Rights Non-commercial Identify The Non-commercial TD/CS To Which The Rules Apply. Identify Sources Of Funding For The Development Of Item, Component Or Process To Which TD Pertains. Allocation Of Data Rights Is Based On Who Funded Development In The TD/CS, Except For SBIR Data Rights. SBIR Data Rights Are Temporal In Nature. There is Government FUD WRT SBIR Data Rights. Distribution statement A 8

73 Government Purpose Rights Use, Modify, Reproduce, Release, Perform, Display, Or Disclose Within The Government Without Restriction. Release Or Disclose Outside The Government And Authorize Persons To Whom Release Or Disclosure Has Been Made To Use, Modify, Reproduce, Release, Perform, Display, Or Disclose That Data For United States Government Purposes, Including Reprocurement. Must Have Recipient Sign A Non-disclosure Agreement (NDA). No Prior Notification Of Developing Contractor Required. DFARS (TD), (CS). Distribution statement A 9

74 SBIR Data Rights Issue (Government View) SBIR Data Rights. Use Data For Government Purposes Only. No Disclosure Outside The Government Without Prior Written Permission Of The SBC Contractor. Duration of 4 Years (Longer If Extended). DFARS , Rights In Data SBIR Program Policy Directive Trumps 7018 Clause And Allows You To Reset The Clock. Allows for Reset of Protection Period Reason for Government FUD. Cannot Negotiate With SBIR s Until After Award of Phase III s. policy_directive.pdf. Distribution statement A 10

75 DoD Non-commercial Data Rights Policy DoD Policy Is To Acquire Only The TD and CS, And The Data Rights In TD/CS, Necessary To Satisfy DoD Needs (DFARS , Policy). Offerors Shall Not Be Required, As A Condition Of Being Responsive To A Solicitation Or As A Condition For Award, To Sell Or Otherwise Relinquish To The Government Any Rights In Technical Data Related To Items, Components, Or Processes Developed At Private Expense (Some Exceptions, e.g., FFF Data). Distribution statement A 11

76 Commercial TD/CS DFARS Clauses Only Address Non-Commercial TD/CS. Must Address Through Local H-Clauses, K-Provisions. Can Use Local Language Modeled After Noncommercial DFARS Clause. Commercial 7017 List. Addresses OSS As a Special Case of Commercial CS. Delivery of OSS by Offeror. Use, But Not Delivery, of OSS by Offeror. Use Carries Out Government 10 USC 2320(e) Obligations. Distribution statement A 12

77 DoD Commercial TD/CS Policy DoD Policy is To Accept Under The Same Licensing Terms As The Public Unless The License is: Inconsistent With Federal Procurement Law; Or, The License Terms Do No Meet Government User Needs. DFARS , Policy. Common Commercial License Legal Pitfalls. Indemnification by the Government. Disputes and Remedies. Choice of Law/Venue. Terminations. Operational Considerations/Time Bombs. OSS Issues (Viral Licenses). You Should Review Your Commercial License For These Issues. Distribution statement A 13

78 Data Rights Considerations Before Award Solicitations Must Comply With DoD Policy. What Does the Program Really Want/Need? How Many TD/CS Users? TD/CS Support? Who Will Maintain TD/CS? Ability To Modify TD/CS? Distribution? For What Purpose? Incorporate into Solicitation Language. Distribution statement A 14

79 The Government s Goal So.On the One Hand, There Are 10 USC (e) Obligations. OTOH, There Are DFARS Considerations. 99% of the Time, The Government Will Attempt to Contract For Government Purpose Rights (GPR) Data Rights In Government Procurements. Distribution statement A 15

80 Contractor Pre-Offer IP Considerations What Is The Best Way To Protect Your IP? Patents? Data Rights Assertions? What Is The Type Of Contract Under Which The Effort Will Be Performed? R&D Contracts? SBIR/STTR Contracts? FAR Part 12 Contract? Has The R&D Effort Already Commenced Using Private Funding Prior To Entering Into Business With The Government? Distribution statement A 16

81 Contractor TD/CS Data Rights Considerations Is The Contract For Commercial Or Non-commercial Items? If Non-commercial, What Was The Funding Source Used To Develop The Non-Commercial Technical Data/Computer Software (TD/CS) To Be Delivered Under DoD Contracts? Is There Documentation Of The Funding Source? If Your Noncommercial CS Deliverable Will Include Commercial CS Modules Subject To Commercial Licenses, Will Those Licenses Be Accepted By The DoD End-user (Open Source Software)? Distribution statement A 17

82 OSS Effects GPR VIRAL OSS Distribution statement A 18

83 Solicitation and Offer Language A Well-Written DoD Solicitation Will Incorporate the Data Rights Concepts Articulated Above. A Successful Offer Will Account for and Address the Data Rights Considerations Articulated Above. Data Rights Concerns (Govt)/Assertions (Offeror) Are Addressed in Sections K (Representations and Certifications), L and M of the Solicitation. Distribution statement A 19

84 Section K Reps & Certs Filled Out By Offeror. Data Rights Assertions List (DFARS ). List of Noncommercial TD/CS to be Delivered With Less than Unlimited Rights. Included in Section J After Award. Example 7017 List in Backup Slides (Pre- and Post-Corrected). Commercial 7017 List. Submitted in Response to Local K-Provision. Format is Based on 7017 List Format. Must Include Commercial CS/TD Licenses in Proposal, For Review by Government. Distribution statement A 20

85 Naval Open Architecture (OA) Considerations Naval Open Architecture Contract Guidebook. Version Apr DoD Version In Draft. https://acc.dau.mil/oa. Data Rights and Interfaces. Good OA May Offset Less Than Optimal Data Rights Posture. How To Communicate Good OA to Govt? Distribution statement A 21

86 Stadium Chart DAP DAP DAP DAP Integrated (External) Communications Control Imagery D AP AGS HF Array MF Array MF Towed Array Towed Torpedo D AP Countermeasure D AP D AP D AP DAP DAP DAP Acoustic Sense Suite Sensor and Vehicle Control SA OA-TM Command, Control & Intelligence (C 2 I) Weapon Control DAP DAP 2 D AP MK 57 VLS CIGS 57MM Decoy System ES Suite Nav Radar EO/IR IBS D AP DAP DAP DAP EO/IR Integrated Bridge Navigation E-O Surveillance Ship Control Engineering Control System (ECS) Display Training Mission Readiness TSCE CORE Legend Restricted Rights GPR To Be Negotiated COTS Distribution statement A 22

87 Considerations After Award New Data Rights Assertions After Award. DFARS (e)(3) for TD, -7014(e)(3) for CS. When Based On New Information Or Inadvertent Omissions Unless Inadvertent Omissions Materially Affected Source Selection. Proprietary Markings on TD/CS Deliverables. Nonconforming Markings. Copyright Notices Letter. Distribution statement A 23

88 Proprietary Markings Nonconforming Legends. Legends Such As PROPRIETARY Or COMPANY CONFIDENTIAL Are Nonconforming Legends. 60 Day Notice Letter From The Contracting Officer. Tone Of Letter Can Vary Depending On Level Of Abuse. Deficient Deliverables ( 7030 Clause). Must Have 7030 Clause In Section I. Must Have Ordered (Preferably Via A CDRL). Copyright Notice YYYY. A Copyright Notice By Itself On TD/CS Deliverables Is No Problem. DFARS (d), -7014(d). However, It Must Be Limited To Owner s Name, Year, And Term Copyright Or Its Symbol YYYY. Contractors Sometimes Add Nonconforming Markings In This Notice, Such As All Rights Reserved. Distribution statement A 24

89 Miscellaneous Issues Government Control of Distribution. Generally, Enforcement of Distribution Rights is Based on Copyright Act. Contractor Retains Copyright in TD/CS, Even Unlimited Rights TD/CS. Government Employees Cannot Obtain Copyright in Government Works, But Government Can Accept Assignment of Copyright From A Contractor. Use Special Works Clause, DFARS Software Escrow Clause. SBIR Phase III Contracts. Government Cannot Negotiate Data Rights Until After Award of Phase III SBIR Policy Directive trumps the DFARS. Distribution statement A 25

90 Other IP Categories Patents. Commercial vs. R&D Procurements. License Offeror s Patents in a Government Procurement? Copyrights. Covered by Data Rights Issues. Trademarks. Rare in Government Procurements. Trade Secrets. Covered by Data Rights Clauses (at least WRT TD/CS). Distribution statement A 26

91 Patent Rights - R&D Contracts For R&D Contracts, The Contractor May Elect Title To Subject Inventions, But Must Grant The Government: A Nonexclusive, Nontransferable, Irrevocable, Paid-up License To Practice, Or Have Practiced For Or On Its Behalf, The Subject Invention Throughout The World; In Contractor Does Not Elect Title, It Must Assign Title Of The Subject Invention To Government. A Nonexclusive, Nontransferable, Irrevocable, Paid-up License To Practice, Or Have Practiced For Or On Its Behalf, The Subject Invention Throughout The World. Joint Inventorship Situations. Distribution statement A 27

92 Subject Inventions If a Contractor Elects Title to a Subject Invention. Must Report to Government (Usually Via a DD 882). FAR Patent Rights-Small Businesses. Are Patent Preparation Costs Allowable? FAR , Patent Costs. Try To Avoid the Wince of Pain. Distribution statement A 28

93 Conclusion Questions? Arthur K. Samora, Government Patent Attorney. (619) Kyle Eppele, Patent Counsel. (619) Distribution statement A 29

94 Backup Distribution statement A 30

95 Example Section K 7017 Data Rights Assertions List With Errors Individual assertions must be made at the lowest practicable component level. Identification and Assertion of Restrictions on the Government s Use, Release, or Disclosure of Technical Data or Computer Software. Technical Data Computer Software to be Furnished with Restrictions Basis for Assertion Asserted Rights Category Name of Person Asserting Restrictions Typical Corp. Proprietary Product Designs including Cesium Beam Tube and Optical Systems, Hydrogen Maser Physics data, Gas Cell Physics, Atomic Frequency Standard Algorithms and Quartz Crystal Oscillators per Attachment A Developed partially at private expense Government Purpose Rights Typical Corp. Inc. United States Patent No 7,215,213 May 8, 2007 Developed partially at private expense Government Purpose Rights Typical Corp. Inc. Noncommercial Computer Software Super Widget Needs a Version # Developed at private expense Limited Typical Corp. Inc. Compact systems for Saturated Absorption and Dichroic-Atomic-Vapor-Laser- Locking spectroscopy Developed at private expense Proprietary Typical Corp. Inc. The Government has unlimited rights in publicly available documents. TD is defined by the DFARS as recorded information of a scientific or technical nature. (emphasis added) As such, in the first column, the contractor must identify an item, the TD that pertains to it, and where the TD is recorded (i.e. What is the drawing number? What is the document titled?) Distribution statement A Not valid for CS Should be Restricted. This is not a valid rights category. exclusively or partially? it makes a difference. 31

96 Example Section K 7017 Data Rights Assertions List --Corrected Identification and Assertion of Restrictions on the Government s Use, Release, or Disclosure of Technical Data or Computer Software Technical Data Computer Software to be Furnished with Restrictions Basis for Assertion Asserted Rights Category Name of Person Asserting Restrictions Method and timing sequence for collection and interrogation of a laser-cooled atomic sample in a single cell as recorded in Typical Corp. document No dated 12/25/2008. Developed partially at private expense Government Purpose Rights Typical Corp. Inc. Alkali metal vapor chamber drawings as exemplified by Typical Corp. Drawing No dated 06/13/2008. Developed partially at private expense Government Purpose Rights Typical Corp. Inc. Noncommercial Computer Software Super Widget Version # 1.1 Developed exclusively at private expense Restricted Typical Corp. Inc. Methods and design of related to reducing helium penetration into a high-vacuum cell as recorded in Typical Corp. document No dated 14/18/2006. Developed exclusively at private expense Limited Typical Corp. Inc. Distribution statement A 32

97 Non-Commercial Data Rights Categories Rights Category TD or CS? Criteria for Applying Rights Category Permitted Uses Within Government Permitted Uses Outside Government Unlimited Rights (UR) TD and CS TD that is: 1) Developed exclusively at Government expense; 2) test data; 3) form, fit and function data; 4) necessary for operation, maintenance or training; 5) corrections or changes to TD previously delivered to the Government; or, 6) otherwise publicly available. Unlimited; no restrictions. Note: If a third party copyright is asserted in TD/CS that is delivered with UR, under DFARS the delivering contractor must grant or obtain for the Government license rights that permit the Government to reproduce, perform or display the software or documentation; distribute copies; and, through the right to modify data, prepare derivative works. If the contractor does not obtain an appropriate license for the Government, then the contractor should not incorporate the unlicensed copyrighted material into the deliverable TD/CS without the Contracting Officer's written approval. Government Purpose Rights (GPR) TD and CS Development with mixed funding. Unlimited; no restrictions. For Government Purposes, including reprocurement; no commercial use. Must have recipient sign a Non-Disclosure Agreement (NDA). No prior notification required. Limited Rights (LR) TD only Development exclusively at private expense. Unlimited; except may not be used for manufacture. Emergency repair/overhaul; evaluation by foreign government; may also disclose subject to a prohibition on any further disclosure after notifying the asserting contractor. Distribution statement A 33

98 Non-Commercial Data Rights Categories (Cont.) Rights Category TD or CS? Criteria for Applying Rights Category Permitted Uses Within Government Permitted Uses Outside Government Restricted Rights (RR) CS only Development exclusively at private expense. Government may: 1) Use on one computer at a time; 2) transfer to another Government entity (transferor must destroy all copies); 3) make minimum backup copies; and 4) modify, provided there is no release or disclosure outside Government. Emergency repair/overhaul (w/nda). Support contractors may use (w/nda). Prior Government Rights (DFARS ) Both TD and CS Whenever Government has previously acquired rights in the deliverable TD/CS. Same as under previous contract. Specifically Negotiated License Rights (SNLR) Both TD and CS Mutual agreement of the parties; use whenever the standard categories do not meet both parties needs. As negotiated by the parties; however, must not be less than LR in TD and must not be less than RR in CS. SBIR Data Rights Both TD and CS Whenever TD/CS is generated under a SBIR contract, regardless of funding. SBIR Data Rights expire five years after completion of the SBIR project from which such TD/CS were generated. NOTE: Award of a contract that requires delivery of SBIR data is considered an extension of the SBIR project and restarts the clock!! Within Government, use and disclosure is unlimited. Cannot release or disclose SBIR data outside of Government without prior written permission of the Small Business Concern, other than support services contractors, except: 1) as expressly permitted by the Contractor; 2) for evaluation purposes; or, 3) for emergency repair or overhaul. When disclosed outside Government, an NDA is required. (DFARS ). Distribution statement A 34

99 SDADT Small Business Workshop Developing Realistic and Compelling Technical Solutions and Pricing and Management Approaches for Proposals Bruce D Roberts 22 May 2012

100 Background 50 Years Experience in Aerospace & Defense 25 years with GE 10 years with Unisys Came to San Diego with SAIC 13 years with Cubic before retirement Active in the region While with Cubic EDC Partnership for the Global Economy, Advisory Board The Security Network NDIA Trustee, SDMAC Board, member AFCEA, AUSA, Navy League, others Since retirement Mentor at EvoNexus, Advisor to SDADT and other small businesses Cyber Security Institute of San Diego, Securing our ecity,

101 Business Development Pre Proposal Processes The most critical phase Evaluation before allocation of resources Proposal Process Disciplined and intense Post Proposal Process Lessons learned for integration into next effort

102 Pre Proposal Process Self Evaluation Strengths and weaknesses Customers and relationships Partners; primes, peers and subcontractors Competition Build files on each with information in same areas as for you Maintain them on a regular basis Opportunity Identification Get in front, don t wait until it s announced Interact with customer and assess your opportunity, shape the RFP Ensure the opportunity is consistent with business objectives

103 Proposal Process Proposal Development Process Proposal Analysis and Strategy Disciplined Process (color teams, schedules) Competitive Analysis Identify likely competitors Assess their strengths and weaknesses, project strategy Develop counters and ghosts, integrate into proposal Pricing Customer budget, likely competitor price Strategy (risk, investment, target changes, etc.)

104 Post Proposal Process If We Lost Get a debrief and update information on competitors If We Won Get a debrief and update information on competitors EVERY PROPOSAL IS A LEARNING EXPERIENCE, TAKE ADVANTAGE

105 John S. Yi, Founder, Chairman & CEO x212 SDADT May 22, 2012

106 Introduction KES Inc. Defense contractor (SDB) Founded 1994 Fastest growing in SD 1999 Deloitte Fast50 High Tech Firm 2003 to 2008 Inc to 2008 John S. Yi Founded 3 companies Duane Morris Entrepreneurial Award Business Leadership Award, ABA Entrepreneur of the Year by Ernest & Young 2008/2009* Most Admired CEO by SDBJ & Vistage 2008 & 2010** *semi-finalist, **nominee

107 Technical Solutions Pre-RFP Plan & Prepare Teaming Understanding customer s requirement Post-RFP Section L&M PWS Highlight relevant qualification ISO/CMMI/LEAN SIGMA/etc

108 Management Solutions Pre-RFP Plan & Prepare Transition Plan Staffing Plan Management Plan Understand customer s requirement Post-RFP Section L&M PWS

109 Cost Proposal Type of cost proposal T&M FFP CPFF DCAA Compliant/certified cost accounting Low Cost Technical Acceptable Best Value Dial-a-Rate Cost realism

110 Questions? KES Inc. An Employee Owned Company 9325 Sky Park Ct. Suite 300 San Diego, CA (858) , John S. Yi, Founder & CEO (cell)

111 1 Technologies and Partnerships to Achieve Information Dominance Stephen Russell, Ph.D. 7.1 National Competency Lead for Research & Applied Sciences Space and Naval Warfare Systems Command (SPAWAR) 22 May 2012 San Diego Advanced Technology Defense Cluster Workshop (Distribution Statement A: Unlimited Distribution)

112 2 Outline Information Dominance What is SPAWAR Technologies at SPAWAR Collaborating with SPAWAR

113 3 Information Dominance 1,268,391,679,350 It is estimated that 4 x bytes of unique information will be generated this year this is greater than the prior 5,000 years!

114 CNO Vision: Information Dominance Navy is prominent and dominant in the fields of ISR, Cyber Warfare, C2, Information & Knowledge Management Information becomes a main battery of US Navy warfighting capability Information dominance means freedom of action to maneuver and act -- conduct offensive and defensive actions, kinetically and non-kinetically -- at the intersection of maritime, information and cyberspace domains... to deliver warfighting options and effects with: Every platform carrying multiple sensors Every sensor and processor adaptively connected to the network Every shooter and weapon capable of seamlessly using target data derived from any collector or sensor 4

115 Our Organization 5

116 SPAWAR: Who We Are Navy s Information Dominance Systems Command Navy s Technical Authority and acquisition command for C4ISR,* Business IT, and Space Systems Provide advanced communications and information capabilities to Navy, joint and coalition forces More than 8,000 employees deployed globally and near the fleet SPAWAR supports the entire acquisition lifecycle of C4ISR products and services building affordable future Information Dominance capability Operations and Support Production and Deployment Engineering and Manufacturing Development Functional Solution Analysis Material Solution Analysis Technology Development * Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance Distribution A: Approved for public release, Distribution unlimited 6

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