40 U.S.C. § 1492 (changes) — Solutions-based contracting pilot program

Current — October 30, 2000

As of February 10, 1996

(a) In general

The Administrator may authorize the heads of any of the executive agencies, in accordance with subsection ~~(d)(2)~~ of this section, to carry out a pilot program to test the feasibility of using solutions-based contracting for acquisition of information technology.

The Administrator may authorize the heads of any of the executive agencies, in accordance with subsection (d) of this section, to carry out a pilot program to test the feasibility of using solutions-based contracting for acquisition of information technology.

(b) Solutions-based contracting described

For purposes of this section, solutions-based contracting is an acquisition method under which the acquisition objectives are defined by the Federal Government user of the technology to be acquired, a streamlined contractor selection process is used, and industry sources are allowed to provide solutions that attain the objectives effectively.

The Administrator shall require use of a process with the following aspects for acquisitions under the pilot program:

(1) Acquisition plan emphasizing desired result

Preparation of an acquisition plan that defines the functional requirements of the intended users of the information technology to be acquired, identifies the operational improvements to be achieved, and defines the performance measurements to be applied in determining whether the information technology acquired satisfies the defined requirements and attains the identified results.

(2) Results-oriented statement of work

Use of a statement of work that is limited to an expression of the end results or performance capabilities desired under the acquisition plan.

(3) Small acquisition organization

Assembly of a small acquisition organization consisting of the following:

(A) An acquisition management team, the members of which are to be evaluated and rewarded under the pilot program for contributions toward attainment of the desired results identified in the acquisition plan.

(B) A small source selection team composed of representatives of the specific mission or administrative area to be supported by the information technology to be acquired, together with a contracting officer and persons with relevant expertise.

(4) Use of source selection factors emphasizing source qualifications and costs

Use of source selection factors that emphasize—

(A) the qualifications of the offeror, including such factors as personnel skills, previous experience in providing other private or public sector organizations with solutions for attaining objectives similar to the objectives of the acquisition, past contract performance, qualifications of the proposed program manager, and the proposed management plan; and

(B) the costs likely to be associated with the conceptual approach proposed by the offeror.

(5) Open communications with contractor community

Open availability of the following information to potential offerors:

(A) The agency mission to be served by the acquisition.

(B) The functional process to be performed by use of information technology.

(6) Simple solicitation

Use of a simple solicitation that sets forth only the functional work description, the source selection factors to be used in accordance with paragraph (4), the required terms and conditions, instructions regarding submission of offers, and the estimate of the Federal Government's budget for the desired work.

(7) Simple proposals

Submission of oral presentations and written proposals that are limited in size and scope and contain information on—

(A) the offeror's qualifications to perform the desired work;

(B) past contract performance;

(D) the costs likely to be associated with the proposed conceptual approach.

(8) Simple evaluation

Use of a simplified evaluation process, to be completed within 45 days after receipt of proposals, which consists of the following:

(A) Identification of the most qualified offerors that are within the competitive range.

(B) Issuance of invitations for at least three and not more than five of the identified offerors to make oral presentations to, and engage in discussions with, the evaluating personnel regarding, for each offeror—

(i) the qualifications of the offeror, including how the qualifications of the offeror relate to the approach proposed to be taken by the offeror in the acquisition; and

(ii) the costs likely to be associated with the approach.

(C) Evaluation of the qualifications of the identified offerors and the costs likely to be associated with the offerors’ proposals on the basis of submissions required under the process and any oral presentations made by, and any discussions with, the offerors.

(9) Selection of most qualified offeror

A selection process consisting of the following:

(A) Identification of the most qualified ~~source, and ranking of alternative~~ sources, primarily on the basis of the oral proposals, presentations, and discussions, and written proposals submitted in accordance with paragraph (7).

(A) Identification of the most qualified source or sources, primarily on the basis of the oral proposals, presentations, and discussions, and written proposals submitted in accordance with paragraph (7).

(B) Conduct for 30 to 60 days of a program definition ~~phase (funded, in the case of the source ultimately awarded the contract, by the Federal Government)—~~

(B) Conduct for 30 to 60 days (or a longer period, if approved by the Administrator) of a program definition phase—

(i) during which the selected ~~source,~~ in consultation with one or more intended users, develops a conceptual system design and technical approach, defines logical phases for the project, and estimates the total cost and the cost for each phase; and

(i) during which the selected source or sources, in consultation with one or more intended users, develops a conceptual system design and technical approach, defines logical phases for the project, and estimates the total cost and the cost for each phase; and

(ii) after which a contract for performance of the work may be awarded to ~~that~~ source on the basis of cost, the responsiveness, reasonableness, and quality of the proposed performance, and a sharing of risk and benefits between the source and the Government.

(ii) after which a contract for performance of the work may be awarded to the source whose offer is determined to be most advantageous to the Government on the basis of cost, the responsiveness, reasonableness, and quality of the proposed performance, and a sharing of risk and benefits between the source and the Government.

(C) Conduct of as many successive program definition phases ~~with alternative sources (in the order ranked)~~ as is necessary in order to award a contract in accordance with subparagraph (B).

(C) Conduct of as many successive program definition phases as is necessary in order to award a contract in accordance with subparagraph (B).

(10) System implementation phasing

System implementation to be executed in phases that are tailored to the solution, with various contract arrangements being used, as appropriate, for various phases and activities.

(11) Mutual authority to terminate

Authority for the Federal Government or the contractor to terminate the contract without penalty at the end of any phase defined for the project.

(12) Time management discipline

Application of a standard for awarding a contract within 105 to 120 days after issuance of the ~~solicitation.~~

Application of a standard for awarding a contract within 105 to 120 days after issuance of the solicitation, except that the Administrator may approve the application of a longer standard period.

(d) Pilot program ~~design~~

(d) Pilot program projects

(1) Joint public-private working group

The Administrator, in consultation with the Administrator for the Office of Information and Regulatory Affairs, shall establish a joint working group of Federal Government personnel and representatives of the information technology industry to design a plan for conduct of any pilot program carried out under this section.

(2) Content of plan

The plan shall provide for use of solutions-based contracting in the Department of Defense and not more than two other executive agencies for a total of—

The Administrator shall authorize to be carried out under the pilot program—

~~(A)~~ not more than 10 projects, each of which has an estimated cost of ~~between~~ $25,000,000 and $100,000,000; and

(1) not more than 10 projects, each of which has an estimated cost of at least $25,000,000 and not more than $100,000,000; and

~~(B)~~ not more than 10 ~~projects,~~ each of which has an estimated cost of ~~between~~ $1,000,000 and ~~$5,000,000, to be set aside for small business concerns.~~

(2) not more than 10 projects for small business concerns, each of which has an estimated cost of at least $1,000,000 and not more than $5,000,000.

(3) Complexity of projects

(A) Subject to subparagraph (C), each acquisition project under the pilot program shall be sufficiently complex to provide for meaningful evaluation of the use of solutions-based contracting for acquisition of information technology for executive agencies.

(B) In order for an acquisition project to satisfy the requirement in subparagraph (A), the solution for attainment of the executive agency's objectives under the project should not be obvious, but rather shall involve a need for some innovative development and systems integration.

(C) An acquisition project should not be so extensive or lengthy as to result in undue delay in the evaluation of the use of solutions-based contracting.

(e) Monitoring by GAO

The Comptroller General of the United States shall—

(1) monitor the conduct, and review the results, of acquisitions under the pilot program; and

(2) submit to Congress periodic reports containing the views of the Comptroller General on the activities, results, and findings under the pilot program.