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ACQUISITION EXCELLENCE Acquisition Innovation in ACQUISITION EXCELLENCE Acquisition Innovation in

ACQUISITION EXCELLENCE Acquisition Innovation in - PowerPoint Presentation

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ACQUISITION EXCELLENCE Acquisition Innovation in - PPT Presentation

Action March 12 2019 Grand Hyatt DC ACQUISITION EXCELLENCE Acquisition Innovation in Action ChallengeBased Acquisition and Incentive Prize Competitions March 12 2019 Grand Hyatt DC Igniting Innovation Through Challenges ID: 814890

acquisition challenge prize based challenge acquisition based prize innovation solutions competitions ability mitre gov solution potential challenges capability chba

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Slide1

ACQUISITION EXCELLENCEAcquisition Innovation in Action

March 12, 2019Grand Hyatt DC

ACQUISITION EXCELLENCE

Acquisition Innovation in

Action

Challenge-Based Acquisition and Incentive Prize CompetitionsMarch 12, 2019Grand Hyatt DC

Slide2

Igniting Innovation Through Challenges

and Prizes!

Ryan M. Novak, Senior Acquisition Principal, The Center for Acquisition Management Sciences (CAMS), The MITRE CorporationTammy White, Sr. Challenge.gov Analyst, General Services Administration (Contractor), Principal, Potomac Haven Inc.

Slide3

Challenge-Based Acquisition (ChBA)Using challenges to communicate needed capability, encourage innovation in a minimally prescriptive environment, assess candidate offerings, and purchase solutions.

Ryan Novak,

rnovak@mitre.org

, 703.983.1819

The Center for Acquisition Management Sciences

The MITRE CorporationApproved for Public Release; Distribution Unlimited. Case Number 18-4455©2018 The MITRE Corporation. ALL RIGHTS RESERVED.   https://www.mitre.org/publications/technical-papers/challenge-based-acquisition-4th-edition

Slide4

ChBA requires the right team and mindset …The Federal Acquisition Regulations (FAR) encourage approaches such as ChBA: “…absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions are sound…”

FAR 1.102-4 Role of the Acquisition Team

Slide5

Crossing the Innovation and Acquisition Chasm

Innovative IdeasMarket Research

Directs R&DEncourages Collaboration

Prototyping

Challenge-Based Acquisition

Field SolutionUpgrade SolutionMaintain the SolutionProcuring QuantityThe Innovation andAcquisition Chasm… where good ideas fail to reach their full potential! Challenge-Based Acquisition Is the Bridge

Slide6

Get me a faster horse…”

Implies a solution type

Limited to offering only horses

Ask the sponsor what they want

Requests a capability

Free to innovate

Distillation of sponsor needs

“Ge

t me there faster…”

Asking the Question Differently …

“I’ll buy the fastest horse that competes in the race?”

“I’ll buy the capability that gets me there fastest?”

Traditional

Challenge-Based

Traditional vs. Challenge-Based Acquisition

Defined Solutions and Paper Promises or Proven Innovation

Slide7

COMPETES Act

Draws attention to excellence

Encourages vendor networking

Winner earns a “prize”

Innovative solutions identified

Verified in relevant environment

Winner earns contract/agreement

FAR and OTA

Gets Different Results …

Market Research

Products Acquired

Prize Competitions

Challenge-Based

Prizes vs. Challenge-Based Acquisition

Market Research or Acquisition of Solution

Slide8

So, what exactly is ChBA?ChBA is based on the concept that Government agencies can best perform acquisitions if they present the solution to be acquired as a need (the challenge), which empowers potential providers to propose innovative solutions that fill the need.

Challenges are issued in terms of operational needs and are accompanied by mechanisms for evaluating proposed solutions and contractual terms for provider participation.Typically, solutions take the form of simplified implementations, and evaluations assess how well a solution satisfies the need.

A well-crafted challenge, accompanied by clear, transparent, and effective assessment methodologies and appropriate contracting vehicles, leads to successful acquisitions

.

ChBA

is

a

FAR- or OTA-based

acquisition approach that communicates the needed capability,

encourages innovation

in a minimally prescriptive environment,

assesses

candidate offerings, and

purchases solutions

.

Slide9

Potential Benefits of ChBAFOCUSEncourages understanding of sought capability gapsINNOVATIONCommunicates needs without constraining solution spaceRISK MANAGEMENT Understand range of solutions without major commitment of resourcesVERIFICATION

If you don’t see it you don’t buy it … not just paper “proposal” promisesSYNERGY Incentivizes industry participation and engages user communityFAIRNESS Levels the playing field for small, innovative companiesBUY PRODUCT At the end, you can buy the sought capability!

Slide10

Ability to down-select and off-ramp vendors that are not viable

Ability to sustain competition throughout the life of the contract

Ability to pay vendors to compete in the challenge event(s)

Ability to acquire testing, refinement, and operational products

Ability to execute challenges that are singular, iterative, or graduated

Challenge-Based Acquisition Application

Slide11

Culvert Challenge:

JIDA in collaboration with ARL seeks innovative solutions for inspection of culverts and detection and identification of objects in or around roadway culverts.

Results:

Multiple Award IDIQ, 20 vendors participated, 10 in each event, Refinement of Solutions, Running the Challenge Event again…no protests.

SOCOM’s All-Source Analytical Environment (ASAE) Challenge:

SOCOM’s Distributed Common Ground Control System (DCGS) leveraged the challenge approach to acquire a COTS ASAE software tool using an integration challenge that took place on a Government-provided, commercially-hosted, virtual cloud environment “sandbox”. Results:

Contract awarded to viable offeror with proven ability to integrate seamlessly, user approved solution…no protests.

Army Cyber Innovation Challenge:

ASA(ALT), Army Cyber Command, Second Army, and TRADOC initiated a Cyber Innovation Challenge to investigate software-based prototype solutions. The Innovation Challenge requirements are released through an existing consortium community, utilizing OTA as the framework, allowing industry to engage with Government.

Result:

Limited quantity prototypes rapidly being evaluated and delivered.

Challenge-Based Acquisition Application

Source: Challenge-Based Acquisition Handbook v4

Source: Challenge-Based Acquisition Handbook v4

Source: Federal Business Opportunities (fbo.gov)

Slide12

So, what’s a prize competition?

Prize competitions, challenges, hackathons, data jams, map-a-thons – all crowdsourcing methods with potential incentives.

The most successful competitions:

Offer a discrete timeline

Provide a clear problem statement and parameters

Allow creative freedomAre structured for faster response, multiple resultsHave the potential to save time and money

Slide13

Potential Benefits of Prize Competitions

Pay only for success and establish an ambitious goal without having to predict which team or approach is most likely to succeed

Reach beyond the “usual suspects” to increase the number of minds tackling a problem

Bring out-of-discipline perspectives to bear

Increase cost effectiveness to maximize the return on taxpayer dollars

Inspire risk-taking by offering a level playing field through credible rules and robust judging mechanisms

Slide14

ITEM

CONTRACTS & GRANTS

CHALLENGES & PRIZES

Target Technologies

Available in commercial market or

via contract/grant.

Not available in market or by contract/grant.

Selection Process

“Crystal Ball” - Prejudges which competitor

has best chance of success.

“Darwinism” –

All competitors compete until end of contest.

Results

One possible.

Many possible.

Delivery

Depends on ability to select best competitor.

Depends on ability to formulate

achievable rules.

Open to…

Companies able to comply with

contracting regulations.

All U.S. citizens,

non-Federal employees.

Comparative Cost

Rarely less, and often more than 100% of costs.

A fraction of the total cost.

Payment of Funds

Most funding paid out before delivery of complete solution.

Payment ONLY after successful

demonstration of solution.

Prize Competitions

Slide15

Prize CompetitionsYes, They’re Legal

The America COMPETES Reauthorization Act grants broad prize authority to federal agencies to run prize competitions.

A small subset of agencies maintain their own authorities:

Space Act (NASA)

Direct Prize Authority (Defense, Energy, USAID)

Others use existing mechanisms to partner with industry, allow for rapid prototyping and advancement:Necessary Expense DoctrineOther Transaction AuthorityProcurement AuthorityPublic-Private PartnershipAgencies have been running prize competitions since the mid-2000s with hundreds documented in annual reports to Congress, available on www.challenge.gov

.

Slide16

Where Does Challenge.gov Come In?We’re Here to Help

The Challenge.gov program, maintained by the GSA, serves as the belly button for federally sponsored prize competitions. We coordinate with agencies across government to build capacity for incentive prizes by providing the following at no cost to our agency customers:

An official listing, ideation platform and data archive

Prize structure and design consultation

Training and resources

Communications and outreachReporting on impact, working closely with White House Office of Science and Technology Policy staff

Slide17

Questions?Ryan Novak, Senior Acquisition Principalrnovak@mitre.org

, 703.983.1819The Center for Acquisition Management Sciences (CAMS)The MITRE CorporationTammy White,

Sr. Challenge.Gov Analysttammyj.white@gsa.gov

, 703.915.3407

GSA (Contractor)Principal, Potomac Haven Inc.