Industry Panel - Jan 2011 Ref

7/30/2019 Industry Panel - Jan 2011 Ref

1/21

PM TRADEAcquisition Development Seminar

Understanding Our Industrial Base

Unintended Consequences inDeveloping and Releasing RFPs

21 January 2011

PM TRADE Acquisition Transformation: Process / Product / Organization


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PM TRADE Ac uisition Trans ormation: Process / Product / Or anization

Panel Discussion Objectives

2

2. Recognize the need for PM TRADE RFPproduct and process consistency resultingin higher quality RFPs.

1. Have an appreciation for our Industry BaseProcesses, Timelines, and Constraints inresponding to our RFPs.

3. Take individual ownership in every step ofthe process to improve our products


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Rules of Engagement

3

No Knives No Guns No Hand Grenades No Attitudes No Slimy Contractor Jokes

Panel will be blunt, passionate, and respectfulin their discussion to convey key points.

Yes, Please Ask Questions!


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Industry Survey of PM TRADE Issues

4

Tiger Team Interviewed 11 Major PM TRADE contractors

9 large business and 2 small business

Not Surprisingly - Consistent message from all contractors interviewed

Level of Frustration Higher than Anticipated

Industry's Major Areas of Concern:

1. Consistency: Unpredictable timelines and process across programs

2. Information: Not enough / inconsistent Industry interface during Sources

Sought & Requirements Development3. Business Decisions: Sources Sought/Draft Requirements Docs. do not

include Business Case information

4. Industry Base: Cost of Proposals, impacts growing an Industry Base


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Project Teams. do these sound familiar?

5

Ever feel rushed to put a draft or final RFP on the street? Ever have to change your Acquisition Strategy?

Ever have major RFP changes from Draft to Final?

Ever postpone release of a draft or final RFP?

Ever have requirements changes mid-stream?

Ever release a draft and final RFP back to back?

Ever release a draft and final several months apart?

Ever have weeks on end before releasing answers to RFP questions?

Ever provide vague or delayed answers to industry questions?

Ever have key team members reassigned. new team = new ideas?

Ever publish your contract ceiling as the program budget?

Ever ask for CLINs or CDRLs you really didnt need?

Ever release a draft or final RFP before the holidays?

Ever provide/brief inaccurate or incomplete TSIS slides?


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Industry Business Rhythm

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Program X RFP Expected

Q2 Q3 Q4

Line Forecast- Annual Revenue- Annual Profit- IR&D Objectives

Line Execution- Quarterly Revenue Goals- Quarterly Award Goals- IR&D Progression

FY Planning Guidance(Corporate)- Revenue Targets

- Profit Targets- IR&D PrioritiesPlanAllocating resources, budgets, and schedules for next years work

ForecastIdentifying Future Business Opportunities 2-5 years in Future

Execute Current year programs

Revenue Drives- Staffing Levels- Indirect Generation

- Bid & Proposal Funding- IR&D Funding

QUARTERLY REPORTS- To Corporate- Corporate to Wall Street

Program X RFP Slips

B&P Package X B&P Package X + Y

Q1Revenue Revenue

6


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Schedule Planning is Paramount

Industry must meet quarterly and annual plans reductions causereduction to quarterly and annual reports or projections to Wall Street

- De-rate opportunities substantially based on percentage of win

- Qualify the customer

Changes to anticipated RFP releases, award delays, protests all

equal delays in revenue and additional costs to maintain staff

- Over time these costs are added back into rates more cost to theUSG assuming the industry member survives

- Resource planning becomes chaotic

- Impacts organizational credibility

- Ultimate concern becomes reduction of industry base lesstechnology and less competition

7


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Industry Business Planning- Proposals

Timing is linked to Revenue and Award goals Value linked to pipeline growth

- De-rated by Probability of Win (pWin)

- pWin established by team, technology, customer relations, overall fit

- As RFP slides right, revenue slides right and B&P increases

-

As Award slides right, award goals are adjusted right Track (opportunity not yet qualified; no RFI, no defined requirements, no

funding)

Pursue (only after approval at BSC with B&P requirements andanticipated ROI presented and approved)

Capture (after RFP authorized expenditure of B&P)

Proposal Costs Vary

- Fixed Price Reviews must go to higher for above $30 million (Delta BARSrequired if the proposal varies by 5%)

- Cost reimbursable not as stringent

8


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Industry Proposal Processes

Phase 3: Pre-Proposal

Phase 6: Orders Received

Phase 2: Strategy

Phase 1: Assessment

Phase 4: Proposal

Phase 5: Post Submittal

Customer Discriminators

(Evaluation Factors)

Gap AnalysisStrategy

Feature

ThemeCustomer Issue

Benefit

Customer Requirements

Competitive Analysis

Customer

Focus

Industry:

- is strategically focused withdeliberate business planning cycles

- has a disciplined businessdevelopment processes

- uses gate controls just like ArmyAcquisition Milestones

- needs to make the right staffingdecisions to meet Customers needs

Typical Opportunity Gate Controls

Open & Consistent Communications are a Must !

Industry needs open, honest, consistent, predictable, and frequentcommunications to identify gaps in solution space that drives teaming decisions

to make effective decisions on resources, people, investments and teaming9


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Initial Capture Plan Activities That SupportTeaming & Bid Decisions

DocumentCapture

Plan

Opportunity

Assessment

Opportunity

Assessment

Customer

Interaction

Assessment

Customer

Interaction

Assessment

Initial

GDAIS SWOT

Assessment

Initial

GDAIS SWOT

Assessment

Initial AssessmentsInitial

Competitive

Assessment

Customer Absolute Musts(CAMs)

Competitive TeamingAnalysis

Potential Teaming Strategies

Customer

Capture

Themes

Customer

Capture

Themes

Teammate

Capture

Themes

Teammate

Capture

Themes

Teaming

Execution

Plan

Teaming

Execution

Plan

Competitors

Teaming

Plans

Competitors

Teaming

Plans

Initial WinStrategy

Initial WinStrategy

Refined Win Strategy Statement

Potential Past

Performance

Approach

Potential Past

Performance

Approach

Potential

Management

Approach

Potential

Management

Approach

Potential

Technical

Approach

Potential

Technical

Approach

Overall

Political

Assessment

Overall

Political

Assessment

Competitor

Ghosts/Mitigation

Plans

Competitor

Ghosts/Mitigation

Plans

Customer Call

Plans

Customer Call

Plans

Factors and

Objectives

Factors and

Objectives

DMPChartDMPChart

KDM Personal

Profiles

KDM Personal

Profiles

Competitors

Potential

Capture Plans

Competitors

Potential

Capture Plans

Potential Risk

Identification

Price to Win

and EBIT

Identification

Price to Win

and EBIT

Identification

IR&D

Requirements

IR&D

Requirements

CR&DPotentialCR&D

Potential

COTS/GOTS

Requirements

COTS/GOTS

Requirements

Potential

Team Feedback

Potential

Team Feedback

Specific HotButton IssuesSpecific Hot

Button Issues

Acquisition Problems

And OCI Issues


And OCI Issues

Competitive DifferentiationAssessment


Customers Need to Buy

Customers Funding

DocumentCapture

Plan

Opportunity

Assessment

Opportunity

Assessment

Customer

Interaction

Assessment

Customer

Interaction

Assessment

Initial

GDAIS SWOT

Assessment

Initial

SWOT

Assessment

Initial AssessmentsInitial

Competitive

Assessment

Initial

Competitive

Assessment

Customer Absolute Musts(CAMs)

Competitive TeamingAnalysis

Potential Teaming Strategies

Customer

Capture

Themes

Customer

Capture

Themes

Teammate

Capture

Themes

Teammate

Capture

Themes

Teaming

Execution

Plan

Teaming

Execution

Plan

Competitors

Teaming

Plans

Competitors

Teaming

Plans

Initial WinStrategy

Initial WinStrategy

Refined Win Strategy Statement

Potential Past

Performance

Approach

Potential Past

Performance

Approach

Potential

Management

Approach

Potential

Management

Approach

Potential

Technical

Approach

Potential

Technical

Approach

Overall

Political

Assessment

Overall

Political

Assessment

Competitor

Ghosts/Mitigation

Plans

Competitor

Ghosts/Mitigation

Plans

Customer Call

Plans

Customer Call

Plans

Factors and

Objectives

Factors and

Objectives

DMPChartDMPChart

KDM Personal

Profiles

KDM Personal

Profiles

Competitors

Potential

Capture Plans

Competitors

Potential

Capture Plans

Potential Risk

Identification

Potential Risk

Identification

Price to Win

and EBIT

Identification

Price to Win

and EBIT

Identification

IR&D

Requirements

IR&D

Requirements

CR&DPotentialCR&D

Potential

COTS/GOTS

Requirements

COTS/GOTS

Requirements

Potential

Team Feedback

Potential

Team Feedback

Specific HotButton IssuesSpecific Hot

Button Issues


And OCI Issues


And OCI Issues



Customers Need to Buy

Customers Funding

Industry conducts a gap analysis from understanding the problemand their potential baseline solutions to identify pursue / no-pursue,

bid / no-bid make / buy, IRAD, and teaming strategies

- Industrys businessdevelopment processesprovide a disciplinedmethodology for qualifying theopportunity

- Prior to building a team,

Industry must understand thecustomer needs

- Must haves and hot buttonsprovide Industry the insightthey need to developtechnical, management, cost

and support baselines

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11/21PM TRADE Ac uisition Trans ormation: Process / Product / Or anization

Teaming Considerations

What is teaming?

Why you want to team Fill void or eliminate inadequacy

Domain knowledge Experience (at least good!) with customer Cost-effective

Enhance your capability Niche/unique expertise Fill holes or offset weaknesses Successful past performance Future relationships

Why you dont want to team

Makes things more complicated Restricts flexibility and eliminates options Discloses company propriety data and

processesOrganizational conflicts of interest Cost driver

11



Teaming Window of Opportunity

12

TYPICAL PROPOSAL TEAM on $200-$250M RFP 25-30 People (Prime + Partners) Proposal Manager, PM, Engineers, SMEs, Finance, Contracts, etc FULL TIME! 2-3 Partners

Teaming Issues of Requirement Flux Proposal cost increases Teammates/Subs may be reluctant to

commit to Prime Prime reluctant to commit work share Work share changes impacting teaming

arrangements

May require changes to team structure

Prime

- Fill Gaps based onRequirements- Supplement Resources- Capture/Share/Manage

Risks

Teammates/Subs

- Support in accordanceto work share

- Furthering teamscapabilities

Proposal Team

Government releasesDraft RFP

Teaming Issues of Schedule Flux Proposal cost increases Proposal team key personnel

availability affected (Challenge to holdPersonnel, both for Prime and Subs)

Team disappointment

Government releasesRFP

Industry Stands up FullProposal Team

Advertised RFPrelease

TeamingWindow


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Typical Proposal Team Organization

IntegratedProductTeam Leads(IPT)

Technical Manager

Program Manager

Proposal Coordinator Admin Assistant

EngineeringBOELead

CostVolumeLead

Contracts Lead

ManagementVolumeLead

TechnicalVolumeLead

Cost Strategist

Admin Assistant

Pricing Lead

Review Team Lead

SubcontractAdministrator

Program Scheduler

ManufacturingBOELead

SubcontractManager

ManagementBOELead

PastPerformanceVolume Lead

Proposal Manager

CaptureManager

Manufacturing Lead

As process progresses,personnel assigned to

the Program Managermight also work for theProposal Manager

Defines Solution

Develops:Win StrategyCapture PlanPrice to Win

Prepares Proposal

On smaller efforts, oneperson might fill severalroles within theOrganizational Chart

Production Team

CaptureManagement Support

and ProposalLeadership Group

BusinessDevelopmentManager

OperationsDecisionManager

Critical to provide Industry with stable and predictable milestone dates to avoid falsestarts, wastes resources, and provide ability to assemble and sustain quality team

Predictable Draft to Final RFP Content and Timelines are Paramount!



Industry Opportunity Process

TargetIdentification Pursue Prelim-B/L Review Bid

PreparingProcess

Submit Award

PostSubmittal

ProposalProduction

OpportunityPositioning

StrategyDevelopment

TargetQualification

ExtendingProcess

OpportunityAssessment

Interest

Strategic Tactical Operational

Award DecisionTarget Identification

New Derivatives Follow-On Growth

CapturingIdentifiable

New Business

ExtendingCurrent

Business

Preparing forFuture NewBusiness

Industry day RFPDraft RFP Black hat gold redpinkstoryboard

Potential Programsin the Pipeline

14



Types of Reviews/Review Discipline

TargetQualification

Capture Planningand StrategyDevelopment

OpportunityPositioning

ProposalProduction

Post-SubmittalSubstantiation &

Transition

Interest Pursue Bid Submit Pre-AwardMid-Course

Decision Tracking

Black Hat Blue TeamGold TeamPinkTeam

RedTeam

Black Hat - External review ofcompetitors that helps us predict andunderstand competitor strategy, ourvulnerabilities, and appropriate actions

Blue Team - External review ofWin Strategy implementation includingKey Messages (Themes),Discriminators, and Our Solution. BlueTeam and Storyboard review are oftenidentical

Gold Team - Internal or externalvalidation of our Win Strategy includingKey Messages (Themes),Discriminators, and Our Conceptual

Solution. Recently decomposedinto Value Prop Workshop andTechnology Workshop, leadingto Gold Milestone

Pink Team - Internal review of the initialdraft of our proposal to ensure effectivecommunication of win strategies andcompliance with customer requirements

Red Team - External review of theinitial draft of our proposal (orresponse to questions) to ensureeffective communication of winstrategies and compliance withcustomer requirements

Storyboard

Storyboard Review - Internalreview of section requirements,objectives, themes, and key graphicsPredecessor to full proposaldevelopment

EN ResponseRed

Team

Color Reviews 15


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InitialCost Estimates

Pre RFP Release Preparation 2-6 Months First 10 Days after Draft RFP Release

Timeline T-30/45 Days to RFP release

Day 11 Day 12 Day 13 Day 14 Day 15 Day 16 Day 17 Day 18 Day 19 Day 20

Analyze RFP,Strip RqmtsPrep for Kickoff- Outlines- Assignments- Proposal Sch- Program Sch

Pursue /No-Pursue

Print

Core Team Review

Author Cutoff

Final RFPRelease

Day 21 Day 22 Day 23 Day 24 Day 25 Day 26 Day 27 Day 28 Day 29 Day 30/45

Line-By-LineWord-by-Word

Review ofChanges

Book Check,Pack

DraftLayout

Print

FinalPrint

Mat Review/Corrections

Final

Draft ExecSum

Technical Approach

Incorporate Any Changes

BusArea

Draft RFPReleaseInitial Assessments - Sources Sought

Business Case Analysis - ROI

Bid /No-Bid

ProposalTeam

Identified-On Notice-

CoreProposal

TeamOn Site

ProposalStrategy

16

Business Case Analysis - ROI

Solidify Team Mates

Black HatReview

Draft Win Themes - Proposal Outlines

GoldTeam

Review

Proposal Development Schedule

Draft Proposal


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Set PTWDist. DTCs

Core Team Review

DTCCommit

InitialCost Rollup

FinalCost Rollup

AuthorCutoff


Typical 30-Day Proposal Due timeline

RFP


Analyze RFPStrip RqmtsPrep for Kickoff- Outlines- Assignments- Proposal Sch- Program Sch

KickOff

BidDecision

Q-Print Q-Print

Print

Print

ITA

Author Cutoff

Core Team Review

AuthorCutoff

PropDue


DeliverProposal

BookCheck &

Pack

Layout

Print

FinalPrint

Mat Review/Corrections

Final

Pink TeamReview

Exec Sum

Red TeamReview



BusArea

Core Team Review

storyboard

17

CoreProposal

TeamOn Site Proposal Win Themes, Technical

Approach, and Content Flow Complete

Write Proposal in 7 days

FullProposal

TeamOn Site

BlueTeam

Review



Independent Research & Development (IRAD)

18

IRAD What I thought about IRAD

What is IRAD? Research and development efforts are initiated, funded and conducted by defensecontractors, neither sponsored by a government grant nor required in performing a contract, and mustabide by certain Federal Acquisition Regulation and Defense Contracting Audit Agency regulations

Innovation Dilemma How to insert innovation when there are limited Army RDTE $s available in TRADE programs

DoD increasingly searches out COTS based solutions using mature, proven technology to meet theneeds of the end-users, thus driving decreases in research & development for training and simulation

IRAD funding is often hard to secure for training simulation

IRAD resources are limited within companies

Discussions and forums on solution gaps are limited

Defense contractors spend in excess of $3 billion annually conductingindependent research and development.

How can you leverage and influence this innovation?



19

Generic IRAD Selection Process

4. Project

Assumptions3. Define Strategic IRADThrusts

7. Strategic IRAD

Decisions IRADSelection Team 9. Product LineIRAD Decisions

10. IRAD KickoffGate withLeadership

Team

6. Target IRAD Budget andBudget Percentages

Aug Sept Oct Nov JanMar July

{Jan Feb Apr May June Dec

1619-21 23 224 4 15 10 16

Prepare StrategicIRAD Project

Decision Packages

IRAD ProjectDecision Packages

for approval

{

{

Selected IRADProject Kickoff Gate

BusinessGrowth Driver &Tech Innovation

Workshop

5

1. Growth Driver roadmapsfrom Tech InnovationWorkshop

2. Business Growth DriverTech Roadmaps withTech Gaps

5. Strategic IRADRequests

11. IRADChargenumbersavailable

8. Product LineIRAD Requests

13

{{

WarfighterNeeds

TechnologyAnalysis

ongoing



Generic IRAD Integrated Master Schedule

6-24 monthdeliverytimeline

12 monthplanning &approvalprocess

IRAD can deliver game changers andnext generation evolution which

government can leverage

but it takes time and needs

collaboration

20


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Documents

Industry Panel - Jan 2011 Ref