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WHITE PAPER | Modular Microbusiness Sourcing using Simplified Agile Acquisition

Table of Contents

  1. Executive Summary
  2. Problem Statement
  3. Introduction
  4. Key Objectives
  5. Detailed Problem Analysis
  6. Proposed Solution
  7. Program Workflow Diagram with Selection Process
  8. Assumptions
  9. Operational Model
  10. Expected Benefits
  11. Conclusion
  12. Appendices

Executive Summary

This white paper proposes a dedicated acquisition portal leveraging the Simplified Acquisition Threshold (SAT) specifically for Small Disadvantaged Businesses (SDBs) or companies with an Annual Average Revenue (AAR) under $1 million. By using SAT exclusively and integrating program management company (PMC) oversight, the program supports agile, inclusive, and high-quality procurement solutions. Through competitive bidding, SDBs can access segmented, manageable project scopes, while PMCs offer program management and ensure compliance.

Problem Statement

Government procurement faces challenges in adapting to modern demands for agile acquisition, particularly in sourcing specialized expertise from small and disadvantaged businesses. Our solution targets three core needs:

  1. Agile Acquisition: With a move towards segmented acquisitions, projects require more adaptable and responsive procurement approaches with smaller, more specialized pieces.
  2. Simplified Acquisition Threshold Exclusivity: This SAT-based portal will be accessible only to SDBs or companies with <$1 million AAR, ensuring reduced competition from larger entities and promoting equity.
  3. Capacity Control: To ensure quality and avoid overextension, each business will be limited to bidding on up to 3 Full-Time Equivalents (FTEs) per contract bid.

This structure fosters an inclusive, efficient, and agile procurement process for sourcing from smaller, specialized businesses.

Introduction

Traditional, large-scale government acquisition is often incompatible with agile, modular, and segmented projects. Smaller, disadvantaged businesses, particularly those with niche expertise, struggle to participate effectively due to complex procurement processes. By focusing on SAT-based opportunities exclusive to SDBs, the proposed portal promotes agility, inclusivity, and efficiency.

Key Objectives

  • Enable Agile Acquisition: Address the need for responsive acquisition through manageable, smaller-scale procurements.
  • Exclusive SAT-Based Portal: Provide a procurement pathway under the SAT, accessible solely to SDBs and companies under $1 million in AAR.
  • Capacity Control: Establish an FTE limit per bid to maintain manageable workloads for smaller businesses.

Detailed Problem Analysis

1. Agile Acquisition Requirements

Large, monolithic acquisition approaches are incompatible with projects needing modular, flexible structures. By facilitating smaller acquisitions through segmented SOOs (Statements of Objectives), this model encourages agile project management practices.

2. Simplified Acquisition for SDBs

Focusing on SAT allows for streamlined, accessible procurement. Reserving this SAT-exclusive portal for:

  • Small Disadvantaged Businesses (SDBs), and
  • Businesses with an AAR under $1 million,

promotes inclusivity and gives small businesses fair opportunities to engage in federal contracts without competition from larger entities.

3. Capacity Control and FTE Limitation

Limiting each business to bidding for up to three FTEs prevents overextension and ensures quality. This encourages firms to focus on roles they can fully meet, delivering higher-quality results.

Proposed Solution

1. SAT-Exclusive Bidding Portal

  • Purpose: Design and implement a procurement portal exclusive to SAT opportunities for qualifying SDBs.
  • Functionality: Offers streamlined RFQ-style bidding, self-certification, and exclusive access for companies with <$1 million in AAR.
  • Benefits: Supports small business growth, ensures equity, and provides a low-barrier pathway to federal contracts.

2. PMC Rate Setting and SOO/LOE Development

  • Rate Setting: PMCs set rates for Labor Categories (LCATs) across various verticals, establishing costs for project management and other roles.
  • SOO & LOE Development: Using base LCATs, PMCs create Statements of Objectives (SOOs) and Levels of Effort (LOEs), defining project scope and workload requirements.

3. Staff Selection and Competitive Bid Evaluation

  • Staff Selection: The government or BPA reviews resumes for each LCAT role to select the best-qualified individuals.
  • Bid Comparison: After selecting staff, competitive bids are evaluated on cost and proposed project plans, balancing quality and budget.

4. SDB Engagement and Project Execution

  • FTE Cap: Limits on FTEs per bid ensure SDBs maintain focus and quality.
  • Execution and Oversight: SDBs complete tasks with PMC oversight, while the government ensures compliance.

Program Workflow Diagram with Selection Process

+---------------------------------------------------------------+
|                  Government / BPA Party                       |
|                   (Oversight & Selection)                     |
+---------------------------------------------------------------+
                               |
                 Post RFQ      |-----------------------------------+
                               |                                   |
                               v                                   v
         +-------------------------------------------+       +---------------------------+
         |           RFQ Portal                      |       |   Program Management      |
         |      (SAT-Based Bidding)                 |       |    Companies (PMCs)       |
         +-------------------------------------------+       +---------------------------+
                    |                                      Set LCAT Rates & Mgmt Fees    |
                    |                                      Build SOO & LOE with LCATs    |
                    |                                         |
                    |                                         v
                    |                    +----------------------------------------------+
                    |                    |           SOO and LOE Submission            |
                    |                    | - PMCs submit SOOs and LOEs using LCATs     |
                    +--------------------------------->--------------------------------+
                    |
                    v
         +-----------------------------------------------+
         |        SDB Bid Submission (LCAT-Based)        |
         | - SDBs bid on specific LCAT positions         |
         | - Submit resumes, client specs for review     |
         +-----------------------------------------------+
                    |
                    |
                    |        Staff Review and Selection    (Government / BPA)
                    +------------------------------->------------------------+
                    |                                                        |
                    |                                                        v
         +---------------------------+                        +---------------------------+
         | Selected Team Review      |                        | Competitive Bid Comparison|
         | - Finalize selected staff |                        | - Compare costs & plans   |
         | - Move to final bid stage |                        | - Select best value       |
         +---------------------------+                        +---------------------------+
                    |
                    v
         +-----------------------------------------------+
         |   Project Execution and Program Management    |
         | - SDBs perform work; PMCs oversee             |
         | - Government/BPA ensures compliance           |
         +-----------------------------------------------+

Assumptions

  1. Sufficient SDB Participation: The portal is expected to attract enough qualified SDBs to maintain a competitive marketplace, ensuring ample talent for project roles.
  2. PMC-Driven Bid Fulfillment in Low-Response Scenarios: If no SDBs bid on a role, PMCs can fulfill the bid either by partnering with SDBs or directly staffing the role.

Operational Model

  1. Pilot Program: Launch a pilot for the SAT-exclusive portal targeting select agencies to test and refine this agile acquisition model.
  2. Stakeholder Engagement: Involve agencies, industry reps, and small business advocates to ensure portal functionality aligns with user needs.
  3. Compliance and Monitoring: Enforce self-certification and monitor eligibility, ensuring transparency and adherence to FTE and revenue caps.

Expected Benefits

For Small Disadvantaged Businesses

  • Access to Opportunities: SAT-exclusive access promotes business growth without competition from larger firms.
  • Support from PMCs: Program management oversight helps ensure successful project completion through clear SOOs and LOEs.

For Government and BPA Parties

  • Enhanced Agility: Smaller, manageable projects improve acquisition flexibility and responsiveness.
  • Cost Efficiency: PMC oversight provides predictable costs and quality assurance, maximizing value in procurement.

Conclusion

This SAT-based portal combines agility, inclusivity, and quality in federal procurement by empowering SDBs with streamlined access to smaller, focused opportunities. The addition of PMC oversight ensures effective project management, fostering a sustainable and scalable acquisition ecosystem.

Appendices

  • Appendix A: Simplified Acquisition Threshold Policies
  • Appendix B: SDB Eligibility Requirements
  • Appendix C: FTE Limitation Guidelines
  • Appendix D: Pilot Program Evaluation Metrics