Teaming Slides 7-19-22

NIH Reverse Industry Day Professional Services Council July 19, 2022

Session II: Dynamics of Industry Teaming Agreements Panelists: • Jackie Everett, Chief Growth Officer, DLH (Mid-size), Jackie.Everett@dlhcorp.com • Tricia Iveson, CEO, 10novate (Small, WOSB, EDWOSB), tricia.iveson@10novate.com • Deak Jenkins, Health Account Lead, Capgemini Government Solutions (Large), deak.jenkins@capgemini-gs.com • Zhen Xiao, Senior Director of Partnership and Strategy, NIH and Life Sciences, Leidos (Large), Zhen.Xiao@leidos.com

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Why Should NIH Care About Teaming?

• Teaming arrangements directly impact: o o o o o o o

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Contract performance and timely delivery of the NIH’s mission Competition Cost Bid quality Innovation Fulfillment of small business goals Ability to attract new entrants

Why Do Companies Team?

• Ensure ability to meet all contract requirements and strengthen solution so company can win and successfully deliver on contract • Build capacity and competency (fill capability gaps).

• Create a larger workforce or higher volume of services/products than one company can produce.

• Create cost efficiencies / Share and allocate resources - companies spend on average between1-2% of entire contract value to pursue and bid on opportunities.

• Build relationships • Gain exposure and experience with an agency • Fulfill NIH’s small business goals

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Difference Between Prime / Sub Prime

Advantage

Disadvantage

Direct contractual relationship with government and greater control over the solution and profit

Bears all risk of contract performance

Ability to claim past performance in future bids

Resource intensive

Allows companies to gain capacity building, skills, and experience in new areas Ability to grow revenue, business, infrastructure, and capabilities

Sub

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Reduced risk

Work share may be limited, reduced, or not honored by the prime

Access to capital and resources from Prime that Sub could not fulfill (e.g., payroll for a large contract)

Limited control over solution and ability to talk directly with government

Opportunity to build relationships, knowledge, and experience with an agency

Low rates make it difficult find personnel

Ability to fulfill small business goals

Sub-contract work usually not eligible for use as past performance in future proposals

When Do Companies Form Teams?

• Teams start to form as soon as requirements are known formally or informally. In some cases, this is often 18-24 months in advance but can be 5+ years prior to RFP release. The more complex the program, the more time that is needed. o Recompete schedule is known o Procurement forecasts o Market surveys o Conferences and working groups o Review articles / journals o Strategic plans and budget priorities • Companies do NOT wait for draft-RFPs and RFPs to start forming teams.

• Late changes to acquisition strategy drives up the cost of bids and decreases bid quality.

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Criteria and Factors that Determine Teaming Partners • Size, complexity, and scope of requirement • Required certifications and key personnel • Past performance requirements • Contract vehicle and type • Acquisition strategy (SB set aside, full and open) • NAICS and PSC codes for capabilities needed

• Knowledge and experience with customer, program, incumbent • Ability to draft proposal documents and/or participate in orals or demos • Pricing strategy and cost competitiveness

• Trust 7

Importance of Early Communication to Teaming Decisions ✓Procurement Forecasts – Meaningful project description, acquisition vehicle, and acquisition strategy (SB set aside, SB category, or full and open), POCs, are critical information points to teaming decisions. ✓Release Draft-RFP with Sections B, C, L, and M – Companies need ability to understand requirements, evaluation criteria, and determine which parts of contract terms and conditions will flow down to teaming partners.

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Impact of Changing Information • Teaming agreements are written based upon what you know at the time. They can be amended but when there are surprises in the final RFP, it may require a company to find a new teaming partner.

• When requirements, evaluation criteria, or acquisition strategy change, a company may no longer be able to bid, may have the wrong team, or may no longer have a solution that meets NIH’s needs.

• Last minute changes add substantial time and cost to industry while NIH loses out on quality bidders and the best solutions.

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Teaming with Small & New Businesses • A joint effort between government, small and large businesses to provide continuous innovation.

• Government can facilitate communication between large and small/new businesses for better teaming.

• Promote awareness of diverse mechanisms that NIH uses to support small businesses (e.g., SBIR/STTR, SEED, REACH, consortiums, subcontract to FFRDC)

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Teaming with HBCUs and Academic Institutions • Challenges o Culture shift between working on grants v. contracts o Different motivations to support NIH o Different internal infrastructure o Different timelines, schedules, and process o Lack of experience with drafting and reviewing NDAs, TAs, capability statements, and subcontracting plans o Relationship building and trust takes time and requires a multi-level approach o Value proposition and ability to determine fit for an opportunity • How NIH can help o Clear communication of NIH’s goals for incorporating HBCUs and other academia on a program o Incentives – more multiple awards to entice companies to participate and partner o Training and workshops that help align capacity building towards contracts o Promote match making and other mentor-protégé programs EARLY to help build relationships. o Release draft RFP at least 3 months in advance of final RFP o Longer response timeline needed on RFPs to ensure competitive proposals o Awareness of holidays and academic calendar / schedule when putting out RFPs o NIH Path to Excellence & Innovation Initiative to improve HBCU contracting infrastructure 11

How Can NIH Help Promote Successful Teams?

• Provide as much information as possible during the pre-RFP phase via industry days, working sessions, Q&A pre-RFP drop

o Sections B, C, L, M o Past performance and key personnel requirements o Contract vehicle/acquisition strategy o List of interested participants/potential primes and subs from industry day participation

• Provide goals and pain points for a program to help companies identify the best team structure to support the government’s requirements • Share incumbent information on NIH procurement forecast • Share program POCs for requirements 12

Questions Krista Sweet VP of Civilian Agencies ksweet@pscouncil.org

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