In This Week’s Newsletter: 02/23/24
- Opportunity Spotlight of the Week: ITES-4S Update
- AI Corner: AI & Public Sectors
- Culture Corner: How to be Human in a Technology Driven World Part IV: Curiosity
- Competitive Intelligence & Pricing: Should We Bid FFP or CPFF?
- Four To Follow: Get the lowdown on four interesting pursuits!
ITES-4S Update
Contact Len: len.miller@hinzconsulting.com
Embark on the next chapter after the triumph of ITES-3! The Army’s PEO/EIS/CHESS is gearing up for ITES-4S, building on 135 successful contracts. With an estimated $12.1B acquisition, this recompete will be open for both large and small businesses. CHESS recently released an RFI questionnaire and responses are due NLT 2 March. CHESS conducted an Industry Virtual Roundtable on 13 Feb.
The draft RFP is not anticipated to be released sometime this Summer with the Final RFP potentially being released in the Fall of 2024. Keep in mind that the contract awards are estimated for Sept 2027, as that is because incumbent contracts are set to expire on 27 Sept 2027. This may give the Government some leeway on when the final RFP is released.
Generative AI use by the Public Sector is right around the corner
Contact Josh: josh.thiel@hinzconsulting.com
The integration of generative AI into public sector procurement processes will introduce a level of automation that will simplify and streamline the creation of complex documents. These documents, such as Requests for Proposals (RFPs), are foundational pieces to the procurement process and require considerable amounts of time and expertise to formulate correctly.
RFPs contain highly specific information about the products or services a public sector entity is seeking. They outline the bidding process, lay down rules for proposal submission, define selection criteria, technical specifications, contractual terms, and other mandatory requirements. Because of their complexity, RFPs are prone to errors or oversights if not carefully prepared.
Benefits of Generative AI in the Procurement Process:
- Generative AI can automate the preparation process for requests for proposals (RFPs)
- AI can ensure accurate inclusion of required components to avoid errors or oversights
- Machine learning can be leveraged to continuously improve the RFP generation process
- AI can learn from past documents to make future RFPs more precise and effective
How to be Human in a Technological World: Part IV
Contact Angela: angela.marsh@hinzconsulting.com
Albert Einstein once said, “I have no special talent. I am only passionately curious.”
What does he have in common with the likes of Oprah, Richard Branson, and Jeff Bezos? They are all known for their curious nature and have used that trait to inspire teams and drive change. Curiosity or the desire to learn, explore, and understand new things, can help leaders foster a culture of innovation and growth within their organizations.
Since curious leaders are more open to feedback and new perspectives, they can adapt quickly to change and find more creative solutions. They easily build trust and relationships with stakeholders due to their natural interest in other people’s experiences (remember our old friend “empathy”?). Leaders like this tend to be likable and optimistic which inspires teams to perform better.
Curious Questions to Ask:
- What’s your take on this subject? I’d love to hear your perspective.
- In your view, what are the pros and cons of this issue? Let’s compare our lists.
- How did you come up with that idea? I’m interested in how you thought of it.
“Should We Bid FFP or CPFF?” – A Strategic Pricing Conundrum
Contact Chris: chris.placzek@hinzconsulting.com
For companies, choosing between Firm Fixed Price (FFP) and Cost-Plus-Fixed-Fee (CPFF) pricing, when given the option in a public sector procurement, hinges on project scope, risk allocation, and market dynamics. While FFP offers potential performance incentives for the company and cost predictability for the government, CPFF allows much more flexibility for complex projects. Strategic assessment of project needs and market conditions will help inform the right decision.
Three Key Takeaways
1. Project Scope and Complexity: The choice between FFP and CPFF pricing should be guided by the project’s well-defined scope and complexity. FFP is typically better suited for projects with well-defined requirements deliverables, while CPFF is preferable for projects with uncertain or evolving scopes.
2. Risk Management and Budgetary Implications: FFP will transfer cost overrun risks to companies, promoting budget certainty for the government and performance incentives to underrun the projected costs. The CPFF option offers flexibility with the risk of potential budget overruns, requiring robust oversight.
3. Strategic Fit and Market Conditions: The selection between FFP and CPFF must consider the strategic alignment with project goals and the prevailing market conditions, ensuring the chosen pricing type fosters efficiency, quality, and innovation within the procurement process.
Four to Follow:
- Navy SeaPort NxG Rolling Admissions 2-The Naval Sea Systems Command is planning to release an RFP for the 2nd Rolling Admission to the SeaPort NxG IDIQ contract. This RFP is expected to be released sometime in March 2024 with awards being made in August 2024.
- OUSD (I&S) Technical Administrative and Professional Support Services-This potential $1B program is a recompete/consolidation of the current IDIQ and Task Orders currently being performed by 11 incumbents. The Sources Sought Notice was released back in December and the follow-on requirement is in the market research and acquisition planning phase. Appears this will be a consolidation of several contracts/task orders and several planned awards on the IDIQ are not yet disclosed. RFP is expected in late March and awards in September. Appears to be for small businesses but the competition type is also undetermined at this point.
- DHS Regional Multiple Award Construction Contracts III (RMACC III)-This DHS MA/IDIQ is estimated at $1.3B program value and is to be awarded across 8(a), HUBZone, and SDVOSB categories for a base year plus 6, 1-year option periods. This is a recompete of the existing 93 contracts with some expiring in mid-2025 and others in fall of 2026. RFP is expected in Feb 2025 and contract awards are expected in Mar 2026. Awards are to be made across ten regions with the CONUS, Alaska, Hawaii, and the U.S. territories.
- Veteran and Family Member Programs Claims Processing Service and Centralized Authorizations for Emergency Care Contract-The VA has an ongoing requirement for Claims Processing, Customer Services, and Centralized Authorizations for Emergency Care. This is a potential recompete of the existing $550M contract with Signature Choice. It is believed this effort is final planning and an RFP could be released in Mar 2024 and awards could potentially occur in July 2024 given the incumbent contract is currently set to expire in May 2024. The existing contract is SDVOSB but it is unknown what competition type any follow-on will be at this point.
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