Forecast Slides 7-19-22 by Professional Services Council

NIH Reverse Industry Day Professional Services Council July 19, 2022

Session I: Attributes of a Successful Federal Business Forecast Panelists: • Mark Day, Director of Growth, Health and Civilian Market, LMI (Large, retired Federal SES), mark.day@lmi.org • Kathy Lentz, President, Federal Insights (Small WOSB), klentz@federalinsights.com

• Todd Pantezzi, Chief Strategy Officer, CVP (Mid-size), toddpantezzi@cvpcorp.com • Ksheeraja Velangulam, Vice President, CGI Federal (Large), Ksheeraja.N.Velangulam@cgifederal.com

Industry’s Approach to Procurements • Each contract bid is an INVESTMENT of company funds to cover the hours that each employee expends to pursue and respond to a proposal. • Firms commonly expend between $100K to $1M on each proposal. • Companies often require 12-24 months of “capture” work in advance of an RFP release to understand the requirement, build a team of subcontractors, vet technology solutions, draft a technical approach, and recruit Key Personnel. • Firms cannot create an innovative, compliant, competitive proposal using only the 2-4 weeks typically allocated for response.

• Companies have limited resources (both people and funding) and use an objective process to compare and choose between competing investments. • Companies make a “Bid or No Bid” decision, choosing the opportunity that offers the highest probability of return on investment (ROI.) o Small businesses can make decisions quickly but have limited funds for new bids o Large, especially public companies require formal “Step Reviews” to approve bid decisions and commit Bid & Proposal funds o Decisions are largely driven by what information is known or unknown. • Proposals require significant time and effort from technical, contracts, compliance, and financial experts. o Small businesses are especially limited in staff resources for proposals as they are often already committed on project work.

Industry Pre-Award Actions Along Program Lifecycle 1. 2. 3. 4. 5. 6. 7.

Understand the Need Define Requirements Market Research/RFI Response Formulate Team Solutioning Industry Day/Objective Prepare Proposal

How Do Companies Use Forecasts? • Small Business

• Forecasts are key to the SB’s ability to grow. Opportunities in an agency’s forecast in which a SB has existing work, and for which a SB is eligible and qualified, immediately become a new business opportunity. • Instead of looking at the entire government sector, a SB can quickly build a sales pipeline, set targets and goals, and begin pre-RFP work. • May inform a SB on which Large Businesses to approach for teaming and mentoring

• Large Business

• Forecast is one of many data sets used to build a long-term pipeline of opportunities across an agency. • SB opportunities are usually only of interest if the LB has existing work in the same agency, or if the firm has a strategic interest in entering an agency for a future, larger opportunity.

Why Government Should Care About Quality Forecasts?

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Attract Industry Investment and Competition - Industry chooses which agencies and opportunities to invest limited $ based upon the level of detail provided and time to prepare. Early communication increases likelihood that industry invests in your agency’s mission needs, particularly for small businesses with limited resources.

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Quality Bids /Better Solutions - Forecasts give industry time to work with government to understand requirements, determine which solution is best, and to develop innovation if asked for during market research/RFI phase. Early information allows companies to determine if they are the right fit for the opportunity, to provide the most responsive solution, and reduces poor quality/fit proposals and bids.

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Right Solution Team - Early forecasts allow companies to assess and meet teaming needs. Project description, timing of the RFP, contract vehicle, socioeconomic status and award date are critical data points that industry needs to find the right team and prepare a bid with the best key personnel. Teaming is competitive and the best teams are sought after early.

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Pricing – The more information provided in advance via market research or industry day will improve industry’s ability to solution and accurately price according to the governments needs and budget.

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Reduce Inquiries, Bids, and Investment by Wrong Bidders - Early forecasts with clear descriptions, contract vehicle, and acquisition strategy allow companies to stop pursuing opportunities that are a poor fit or that they cannot bid. This results in fewer low-quality bids for the gov’t to review and fewer calls to gov’t COs, CORs, and Program Sponsors.

Common “No Bid” Indicators Public information not readily available on incumbent contract

Inability to have direct interaction with the agency to understand program requirements

CO responses to requests for this information with, “look for the SAM.gov announcement for more information”

COR or Project Officer responds to inquires with “I only meet with incumbent contractors”

Answers to RFP questions are, “refer to RFP Section…”

Solicitation is released without (or with minimal) notice

Solicitation released shortly before a holiday weekend with short proposal due date

Asking for innovation without evaluation criteria that scores it

Lack of transparency, communication, and clarity on requirements suggests incumbent preference 9

Attributes of a Quality Forecast Forecast Attribute

What Happens Without the Info

5. Project Description (no Acronyms)

To focus on opportunities that companies have capabilities to support, sort closest to RFP date for More difficult to review and might miss new planning prioritization, and sort to understand what opportunities to bid which limit solutions and price is new competition for the CO. To determine the reliability of the data and if opportunity is still in competition or market research phase. Reach out to CO to get update or no bid To determine the reliability of the data. A single annual forecast will require new research as the Reach out to the CO to get update or not bid as requirement might already be procured or company may not have resources to check old cancelled; older than 1 month requires an update data Might miss an opportunity where the description Helps company narrow search for opportunities does not clearly align with NAICs code company they can pursue that match their capabilities encompasses Reach out to CO and COR to get information update or request data through FOIA of prior SOW To determine nature of requirement and if scope or RFP. Companies will choose other opportunities allows company to prime or requires a team to invest funds without this information.

6. Existing Contract No and Task or BPA no.

7. Award Length

Companies want to understand the length of the period of performance so they can assess Reach out to the CO and COR to get information resources, timelines, and the value of the contract. but may not bid without this information.

1. Searchable Excel Format 2. Date Modified Listed

3. Frequency Updated and Published 4. NAICS and PSC codes

Why Industry Needs It

Forecast Attribute

8. Existing Contract No and Task or BPA no.

9. Dollar Value and Base Options

10. Program Office, POC (i.e. COR) and Contact Info

11. Current Incumbent Name

12. Set-aside Type 13. Contract Vehicle and if GSA MAS, what SIN 14. Estimated RFP Date 15. Action/Award type (sole source, competitive, etc.) 16. Estimated Award date

Why Industry Needs It

What Happens Without the Info

Used to research former RFP and search FPDS.gov for contract spending, current contract vehicle, expiration date, major subcontractors for teaming Reach out to the CO/COR to get info and last discussions, current mods, and current CO. SOW/RFP and possibly FOIA if that does not work Can we bid this? Is this too small for us to be competitive or too large and would require a Reach out to the CO to get info. Company cannot team? Can we propose like past performance of successfully compete without this information and like size? Is there a return on investment? may not bid. To establish and/or determine level of customer Reach out to CO to get info. Companies will make intimacy and fit. Prior to RFP release, company will all attempts to contact and get to know all want to meet with program office to discuss value potential involved parties. Companies may “no add or innovation. Companies will seek teaming bid” if there is not customer intimacy because of partners with knowledge of this customer. reduced probability of win. Companies may reach out to incumbent for teaming especially if they can no longer bid due to change in set-aside. Companies also research Reach out to CO. Companies may not bid without incumbent to assess impact on probability of win. information on incumbent. Reach out to the CO. Companies cannot form teams and develop quality solutions without this Understand whether can company can prime it or info. If announced at RFP release, company will no has to team bid as there is not time to form or join. Reach out to the CO. If announced at RFP release, Understand whether company can prime it or has company may not bid as there is not time to form to team or join a team. Helps company know when it must allocate resources and monies to respond and how soon to Reach out to CO. Company may not bid if they formulate bid team cannot plan or have enough time to prepare. Reach out to CO. Company cannot bid without Can we bid this as a prime or sub? this information. Company can determine if it has the resources to Might not have key personnel to respond to the deliver; also helps understand how soon RFP might RFP and contract award so CO does not get the be released best proposal.

Examples 1 and 2:

Class Code

Description

Approximate Procurement Procurement Method Dollar Range Vehicle

FY22: CBOC Services

Greater than $5,000,000

Indefinite Delivery Indefinite Quantity Open Market

SocioForecast Economic Quarter Category Competitive not 2022Q4 set aside

Example 3:

Example 3 Continued…

Impacts of Missing or Changing Information • Missing information: Increased calls and emails to CO so company can accurately assess opportunity, understand requirements, find resources, develop solution, analyze risk, and determine bid/no bid decision. • Lack of transparency = industry assumes incumbent preference. This limits competition as new companies do not want to bid. • Change in acquisition strategy: Company may no longer be able to prime or sub. Requires new teaming partner and agreement. This is time and resource intensive. • Unexpected change in scope, requirements, timeline, or evaluation criteria: Company may have the wrong team and wrong solution. When timeline changes, industry may no longer have ability to access and commit the best resources so government receives poor quality proposals.

Questions Krista Sweet Vice President of Civilian Agencies PSC ksweet@pscouncil.org