1 Michael Davis, CPCM, MBA, PMP Davis Business Group, LLC
2 OVERVIEW 1. Introduction 2. Training Objectives 3. Definition 4. Current Federal Government Landscape 5. Contracting Workforce Challenges 6. Common Government Perceptions/Realities 7. Common Industry Perceptions/Realities 8. Best Practices 9. Summary Recommendations
3 DBG, LLC Providing Advisory Services at the Tactical and Strategic Level Tactical Program Management Contractual Issue Resolution Senior Staff Augmentation Outsourcing Strategies Acquisition Planning Risk Analysis Cost Analysis Proposal Support Requirement Development Process Re-engineering Performance Measurement Price/Cost Realism Analysis CPSR Assistance/Reviews Make versus Buy Analysis STAFFING TRAINING PRIME/SUB CONTRACT CONSULTING Strategic Policy Development Staff Development Agreement Templates Contracts Management Business Development Project Management Knowledge Base Audit Preparations Team-building Executive Coaching Personnel Mentoring Executive Briefs/Orals Process Documentation Strategic Plans Veteran Owned, Women Owned Small Business
4 OBJECTIVES 1. Understand how complexities of the current federal contract market drive perceptions 2. Become familiar with common perceptions by both Government and Industry personnel 3. Be able to identify misconceptions 4. Become familiar with Best Practices for overcoming flawed perceptions 5. HAVE FUN!!
5 DEFINITION Perception: Organization, identification and interpretation of information. Reality : State of things as they actually exist, rather than as they may appear or might be perceived/imagined.
6 Perceptions and Realities There are things known and there are things unknown, and in between are the doors of perception. Aldous Huxley
7 CURRENT FEDERAL GOVERNMENT LANDSCAPE Annual Estimated Contract Dollars: $6B/year Average Contract Action: $500K Average Contract Award: 16.4M/day Increased Fixed-Price Contracting Current Sequestration/Fiscal Cliff Increased Government Oversight Contracting Workforce Challenges Increased Contract Reporting and Compliance
8 CONTRACTING WORKFORCE CHALLENGES (GOVERNMENT AND INDUSTRY) Demographics and Budget Challenges: 17 % of the workforce is eligible for full retirement today 19 % is eligible within five years Workforce gains decreased 32 % between FY2010 and FY2011 Workforce losses spiked up 32 % between 2010 and 2011 Lack of consistent career path and contract training in industry Training capacity has risen by 19,000 resident and 100,000 online seats annually
9 COMMON GOVERNMENT PERCEPTIONS/REALITIES
10 COMMON GOVERNMENT PERCEPTIONS/REALITIES Perception: Meetings are discouraged with potential offerors Reality: Government officials can generally meet one-on-one with potential offerors -no vendor receives preferential treatment. Perception: Discussions require disclosure of any communications with contractors Reality: Disclosure is required only in certain circumstances, such as for meetings with registered lobbyists. Perception: Limit communications to avoid potential protest Reality: Restricting communication won t prevent a protest, and might actually increase the chance of a protest. Perception: Limiting RFP response times is acceptable Reality: Short response time leads to less competition, lower response quality, and drives other perceptions.
12 COMMON GOVERNMENT PERCEPTIONS/REALITIES Perception: Industry days are of low value to both parties Reality: Well-organized industry days, as well as pre-solicitation and pre-proposal conferences are valuable opportunities. Perception: Technical/PM discussions with industry is all that is necessary during pre-solicitation Reality: Technical requirements are only part of the acquisition process (award/performance). Perception: Including numerous vendors in procurement process is too difficult Reality: The government loses when limiting companies-limits competition, decreases performance potential. Perception: Large businesses can turn on a dime and are more capable to perform Reality: Large businesses turn much like a Navy fleet due to internal business requirements.
13 COMMON GOVERNMENT PERCEPTIONS/REALITIES
14 COMMON GOVERNMENT PERCEPTIONS/REALITIES Perception: Corporations are always in competition with each other Reality: Today s competitor is tomorrow s teaming partner Perception: Industry B&P money is infinite and they want to bid on every RFP Reality: Industry works to a B&P budget along with the probability of a win. Perception: Industry has deep pockets Reality: Industry is metrics driven and works to tight budgets defined well in advance of the fiscal year. Perception: Industry would rather deal with inexperienced/untrained COs Reality: The better the contracting officer -the better the chances of a success
15 COMMON GOVERNMENT PERCEPTIONS/REALITIES
16 COMMON INDUSTRY PERCEPTIONS/REALITIES
17 COMMON INDUSTRY PERCEPTIONS/REALITIES Perception: Marketing directly to the COs is the best approach Reality: COs/PMs inundated with marketing materialvendors should take advantage of the various outreach sessions. Perception: Bring only BD and marketing people to meetings with Government Reality: Far more valuable to bring subject matter experts rather than focusing on the sales pitch. Perception: Government debriefs are unnecessary when you win Reality: Industry learns what really made their proposal shine and how to improve next time. Perception: Only industry has sandboxes / swim lanes. Reality: All organizations have some degree of stove piping.
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19 COMMON INDUSTRY PERCEPTIONS/REALITIES Perception: Contract evaluators don t make mistakes Reality: People author the proposals; people evaluate the proposals; people evaluate performance. Perception: Government only wants low cost/ price. Reality: Government wants/needs successful contract performance/price. Perception: Industry days/outreach events not valuable Reality: Industry days/outreach events are increasingly being used to leverage scarce staff resources. Perception: Industry impact during the pre-rfp phase is negligible Reality: Agencies spend a great deal of effort collecting and analyzing information about the market.
20 COMMON INDUSTRY PERCEPTIONS/REALITIES Perception: Agencies are obligated not to disclose /protect industry information Reality: External-Yes; Internal-No. Perception: Debriefings of lost proposal is not valuable Reality: Unsuccessful offerors should try to understand the award decision and to improve future proposals. Perception: Due to emphasis on oversight DCAA is often confrontational with contractors Reality: Recent independent surveys- 83% of contractors indicated their DCAA relationship was good or excellent and improving. Perception: Accounting Software vs. Accounting System is the same Reality: Government does not approve accounting software - the two are not synonymous. Perception: Socio-Economic status guarantees a Government Contract Reality: SBs must leverage resources, understand the market, focus strengths and target agencies-most likely to succeed.
21 COMMON INDUSTRY PERCEPTIONS/REALITIES
22 Best Practices Respect the Differences Maintain Communication Be Interested and Engaged No Defensive Posture Builds trust Anchors relationships Enhances collaboration Drives problem resolution Drives project success Raise issues early Working together Check the Pulse; don t communicate only when There is a problem It s time for re-compete At performance evaluation time Respect the professional passion of your counterpart Offer creative ideas and most importantly, take time to listen! Let s work together Try to understand the position of the other party Carefully phrase statements to be nonargumentative Take a positive approach to problem resolution
23 Keep Your Sense of Humor! Solicitation Number: RFI-BPD Agency: Department of the Treasury Office: Bureau of the Public Debt (BPD) Location: Division of Procurement This is a sources sought notice and not a request for quotations. The purpose of this announcement is to seek qualified contractors with the capability to provide presentations for The Department of Treasury, Bureau of the Public Debt (BPD), Management Meeting with experience in meeting the objectives as described herein. The Contractor shall conduct two, 3-hour, Humor in the Workplace programs that will discuss the power of humor in the workplace, the close relationship between humor and stress, and why humor is one of the most important ways that we communicate in business and office life. Participants shall experience demonstrations of cartoons being created on the spot. The contractor shall have the ability to create cartoons on the spot about BPD jobs. The presenter shall refrain from using any foul language during the presentation. This is a business environment and we need the presenter to address a business audience. Upon completion of the course, participants shall be able to: Understand the importance and power of humor in the workplace in a responsible manner How to use talents in a creative way that adds humor to everyday experiences Alleviate stress in home and the office Know how and why humor is important to communication Improve work-place relationships Prevent burn-out
24 SUMMARY RECOMMENDATIONS Study your Craft Read, Read, Read Take Educational Webinars/Seminars Join Toast-Masters or other Speech Training Learn and Understand Basic Human Interactions Positive Communication- not always the best Mentor Someone Seek Out Mentor(s) Volunteer for the Tough/New Jobs Try to Understand the Strategic Picture HAVE FUN!!!
25 THANK YOU!!