Hungarian Acquisition Analysis SOW (v2)

8/8/2019 Hungarian Acquisition Analysis SOW (v2)

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STATEMENT of WORK

for

ASSESSMENT OF MINISTRY OF DEFENSE (HM FL) ACQUISITION STRUCTURE

1.0 OBJECTIVE AND SCOPE

The Contractor shall provide analysis support as the Ministry of Defense (MOD) assesses and develops a

new approach to acquisition. This includes a high-level, qualitative assessment of the strengths and

weaknesses of the current acquisition function to identify areas needing greater attention and enable

accountability while identifying areas that require more focused follow up. In addition, a recommended

approach to automating, documenting and electronic records management for archiving acquisition

efforts will support openness and transparency. This effort includes analysis of the MODs acquisition:

Organization Alignment and Leadership Structure

Policies and Processes

Human Capital

Knowledge and Information Management

Automation in Support of Acquisition the development of a software based system forcontinued use

The goals of this effort are to determine:

Decision 1: Do opportunities exist to improve acquisition operations and information

management? Where do the discrepancies/corruption actually occur?

Decision 2: Is there a clear link between modernization opportunities and meaningful cost

savings, performance gains and accountability and transparency in the acquisition process?

Based on what is available, how do we streamline costs and save money?

Decision 3: Can performance gains be achieved within the current organizational structure,

within a reasonable time frame and with available funds? What can we do with what s currently

available?


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In simplest terms, a detailed review will be conducted a random sampling of tenders over the last

36 months for the purpose o identifying corrupt practices.

2.0 BACKGROUND

With hundreds of billions of forints spent each year on military products and services, it is essential that

acquisition be handled in an efficient, effective, and accountable manner. Most government agencies

around the world have identified systemic weaknesses in key areas of acquisition. Hungary is committed

to establish a roadmap with the transformational goal to implement a process which provides a

managed approach to acquisition. This managed approach must meet the nations needs, improve the

visibility into the process and increase the speed with which items are delivered while integrating best

business practice and transparency. Fast Acquisitions, Save Money, Streamline Process , Get Whats

Needed As Quikly As Possible.

Implementation of a managed approach to providing capability to defense forces is complex and

requires consideration of a countrys strategic goals, economic constraints, political will and actual

needs. Most pressing, from a military perspective, is answering the question of what is needed to

accomplish the defense strategy. Furthermore, it is necessary to establish an appropriate management

structure and division of responsibility to carry-out acquisitions. A Capabilities Based Approach with

Capabilities Based Planning will lead to the development and delivery of solutions that provide value to

the nation and those charged with defense of the nation. This is more robsut and dependable that the

processes already in use by HM FL .

3.0 GENERAL REQUIREMENTS

To support the analysis of the MOD and their current approach to acquisition it is necessary for the

contractor to work with MOD representatives and identify responsible organizations, personnel and the

processes in place to maintain effective internal control, which includes the plans, methods, and

procedures used to meet MOD acquisition goals and objectives.

This is a preliminary Statement of Work, which can be augmented as necessary. It will commence with atwo (2) week study/review of the Hungarian acquisitions, procurement, and tender process; this will

occur before execution of the formal work and at no cost to the government.

The contractor* shall evaluate the presence of internal controls used to safeguard the integrity of the

requirements and acquisition process, delivery of capability and preventing and detecting errors and


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fraud. Using the five standards of internal control control environment, risk assessment, control

activities, information, and communications the contractor shall identify critical elements and critical

success factors or lack thereof across; Organization Alignment and Leadership Structure; Policies and

Processes; Human Capital; Knowledge and Information Management. The results will be used by the

MOD to conduct Business Process Engineering (BPR) and recertify or restructure the acquisition process.

*The contractor must be ultimately familiar with the Hungarian procurement process.

4.0 SPECIFIC ANALYSIS AND SUPPORT TASKS

4.1 Task 1 - Organizational Alignment and Leadership Structure

Organizational alignment is the appropriate placement of the acquisition function in the agency, with all

stakeholders having clearly defined roles and responsibilities. The contractor shall review and analyze

the MOD acquisition framework and organization to determine if it optimizes the ability to acquire and

deliver capability most efficiently to ensure that leaders within the process are able to make strategic

decisions that achieve MOD-wide acquisition outcomes more effectively and efficiently.

Look for places where potential discrepancies/corruption can occur.

4.2 Task 2 Policies and Processes

Implementing strategic decisions to achieve desired government outcomes requires clear and

transparent policies and processes that are implemented consistently. Policies establish expectations

about the management of the acquisition function which is complex and requires consideration of a

countrys strategic goals, economic constraints, political will and actual needs . Processes are the means

by which management functions will be performed and implemented in support of the MODs ability to

implement a managed approach to providing capability to Hungarian defense forces. The contractor

shall review and analyze current Policies and Processes and make recommendations to improve the

governance, planning, award, administration, and oversight of acquisition efforts, with a focus on

assuring that these efforts achieve intended results. Tender audit where are the problems? Who

influences the process? Bureaucracy is not bad but there needs to be a way to reduce or

eliminate parliamentary influence in regards to what firm gets the contract.

4.3 Task 3 Human Capital


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The value of an organization and its ability to satisfy customers depends heavily on its people. Within

the MOD and its leadership the goals are defense of a nation and its people. Successfully acquiring

goods and services and executing and monitoring contracts to help meet its missions requires valuing

and investing in the acquisition workforce. The contractor shall evaluate the personnel, training and

education structure in place to support the acquisition process and recommend strategic changes to

attract, develop, and retain talent, and creating a results-oriented culture within the acquisition

workforce.

4.4 Task 4 - Knowledge and Information Management

Effective knowledge and information management provides credible, reliable, and timely data to make

acquisition decisions. Each stakeholder in the acquisition process need meaningful data to perform their

respective roles and responsibilities.

Those identifying government requirements, program and acquisition personnel who decide

which goods and services to buy Who influence what to buy?

Project managers who receive the goods and services from contractors Is the project

management timeline legitimate?

Commodity managers who maintain supplier relationships

Contract administrators who oversee compliance with the contracts and the

Finance department, that pays for the goods and services

The contractor shall identify shortfalls or gaps in the ability to provide knowledge and information

enabled decisions and recommend changes or establishment of new information management

capabilities.

4.5 Task 5 Automation in Support of Acquisition

The MODsexisting acquisition environment is perceived to be fragmented from both a system and

process perspective. It is perceived to have manual, duplicative business processes and external

influence providing limited visibility, limited integration with government/MOD strategy, limited budget

controls, and delivers limited lifecycle support. As a result of the previous four (4) tasks and using the

five standards of internal control the contractor shall make recommendations to establish an approach

to automating, documenting and electronic records management for archiving acquisition efforts. The


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automation in support of acquisition should be documented in the form of workflow/system diagrams in

the context of the current capabilities with recommended improvements. Whenever possible, reuse of

existing capabilities/assets that reflect MOD-wide standards and government-wide standards (or

recommended updates) shall be considered. The goal is to have an understanding of a system with

processes applied to achieve management/control, performance goals, fulfill business and technical

requirements, and increase knowledge management and information sharing.

4.6 Task 6 - Project Management

4.6.1 Work Breakdown Structure (WBS)

The Contractor shall establish a program control process to ensure mitigation of risks and minimal

schedule variances. A draft schedule/WBS shall be created to include the Tasks in this SOW. Both the

program control process and schedule/WBS shall be provided with the proposal. The schedule/WBS shall be finalized and submitted for review and approval within ten (10) workdays after the contract

award kick-off meeting. The WBS will be updated monthly or as directed by the MOD lead. Figure (1)

provides an overview of the program schedule.

Figure (1) Project Schedule

4.6.2 Monthly Status Report (MSR)

The Contractor shall provide a Monthly Status Report (MSR) via electronic mail to the MOD Lead to

assist the Governments ability to monitor performance in accordance with the WBS. Format for these

reports shall be Contractor provided, but in concurrence with the MOD Lead. These reports shall

include, at a minimum:

(a) Description of work accomplished for the month and its relation to the Tasks and WBS

(b) Concerns or issues that may impact performance, schedules, functionality or cost, etc. and

discuss proposed resolutions (Note: Providing notification of a potential impact to the contract

on the MSR does not alleviate the requirement to formally notify the MOD Lead of possible

contract issues)

(c) Other significant issues (schedule, technical, etc.) with proposed resolutions


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(d) Details of any cost reimbursable expenses (Travel/ODCs) to include the purpose, general costs,

remaining CLIN funded balance, and any planned expenditures for the following reporting

period and

(e) Additional reporting, as defined and required in the Task statements

4.6.3 Program Reviews and Meeting Attendance

The Contractor team shall provide a weekly informal Program Review (PR) with the MOD Lead at the via

teleconference. The objective of the PR is to brief the Government on general program status and to

discuss requirements, issues, risk assessment, and action items as required. The Contractor shall

electronically provide meeting minutes to the MOD Lead for each weekly PR, capturing discussion

points, issues, risk assessment, assignment of action items and status of previously assigned actions.

Additionally, the Contractor may be requested to attend various program meetings related to the effort.

Much of this to TBD

Ref Deliverables Due Date Government POC

4.1Organizational Alignment & LeadershipFindings

Draft -Final -

MOD Lead

4.2 Policy & Process FindingsDraft -Final -

MOD Lead

4.3 Human Capital FindingsDraft -Final -

MOD Lead

4.4Knowledge & InformationManagement Findings

Draft -Final -

MOD Lead

4.5 Draft Proposed System DiagramDraft -Final -

MOD Lead

4.6 Program Control Process With ProposalContracting OfficerMOD Lead

4.6.1 WBS (MS Project Schedule)Draft with proposalFinal -

Contracting OfficerMOD Lead

4.6.2 MSR MonthlyContracting OfficerMOD Lead

4.6.3 Ad Hoc Meeting MinutesNLT 2 workdays aftermeeting

MOD Lead

5.0 CONSTRAINTS

The Government anticipates the support of no more than two full time equivalents to support this effort

over a period of 10 months. Two (2) bodies x ten (10) months (20 months total).

6.0 KEY PERSONNEL


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The personnel listed below are considered essential to the work being performed under this contract.

Before removing, replacing, or diverting any of the listed or specified personnel, the Contractor must: (1)

Notify the MOD Lead reasonably in advance; (2) submit justification (including proposed substitutions)

in sufficient detail to permit evaluation of the impact on this contract; and (3) obtain the MOD Lead's

written approval. Notwithstanding the foregoing, if the Contractor deems immediate removal or

suspension of any member of its management team is necessary to fulfill its obligation to maintain

satisfactory standards of employee competency, conduct, and integrity. The Contractor may remove or

suspend such person at once, although the Contractor must notify MOD Lead prior to or concurrently

with such action. The list of personnel may, with the consent of the contracting parties, be amended

from time to time during the course of the contract to add or delete personnel.

Key Personnel: Chris Griffin, PMP PhD; Imola Destek, PMP

7.0 PLACE OF PERFORMANCE

Work is to be performed at Contractor facilities or on-site performance at the MOD or various

Government sites or other locations with travel as indicated per the table below.

# Site Location

Duration

Per Trip

(Days) No. Trips

No.

Travelers

TBD As proposed

8.0 ACCEPTANCE OF DELIVERABLES

One soft copy of all deliverables shall be provided to the MOD Lead and the designated Functional Lead,

where specified. The soft copy of all documents shall be provided in both a Microsoft Office 2003

compatible format and Portable Document Format (PDF). Deliverables will become the property of the

Government. Deliverables must incorporate Government review comments for acceptance. The

Government shall have a minimum of ten (10) working days to review deliverables and provide

comments. Products and deliverables found unacceptable shall be corrected and resubmit ted within

ten (10) days of initial rejection.

9.0 SECURITY REQUIREMENTS - TBD


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The Contractor will have access to unclassified and classified data. For access to classified information,

the Contractor shall ensure that all personnel having access to classified information have the necessary

security clearances. Contractor personnel visiting any Government facility in conjunction with this

contract shall be subject to the standards of conduct applicable to Government employees. Site-specific

approval regarding access to sensitive materials, computer facility access, issue of security badges, etc.

shall be coordinated with the PO as required. All members of the U.S. team currently posses NATO

SECRET clearances and this can be verified via JPAS.

10.0 TRAVEL AND OTHER DIRECT COSTS (ODCs)

Travel and other direct costs (ODCs) will be preapproved as needed to support the requirements of this

statement of work and shall be provided on a reimbursement of cost basis. Travel shall be handled in

accordance with the Joint Federal Travel Regulations (JFTR), at the direction of the MOD Lead.Unauthorized travel, or travel not coordinated with the MOD Lead, shall not be reimbursed.

Additionally, travel or other direct costs in excess of the approved funded value shall not be reimbursed.

Purchase of materials and equipment necessary to accomplish the requirements contained in this SOW

will be coordinated with and approved by the MOD Lead, or the designated representative, prior to

purchase and become the property of the Government. All travel and ODC requests must be sent

electronically in advance of purchase to the MOD Lead.

11.0 GOVERNMENT FURNISHED EQUIPMENT, INFORMATION, FACILITIES & SERVICES

The Contractor shall receipt for and maintain custody and accountability of any Government Furnished

Equipment (GFE) including hardware, software and Government Furnished Information (GFI) provided

during the course of performance of this effort. All GFE will be returned to the customer in as is

condition at the end of the period of performance.

12.0 PERIOD OF PERFORMANCE

The period of performance for this effort is 10 months, from XXXX through XXXX for the base period.

There is one (1) six month and one (1) twelve month option periods of performance, to be exercised if

and when needed.

13.0 POINTS OF CONTACT


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The MOD point of contact and person responsible for approving work (MOD Lead) incorporated by this

SOW is: DR Keszthely Gyula, Director HM FLU


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14.0 APPENDIX

QUALITY ASSURANCE SURVEILLANCE PLAN

1. Objective. This QASP serves as the principal basis for assessing overall performance quality

associated with the effort. This document will be used by the Government to assess the effectiveness of

the Contractors management and technica l services. This QASP provides the methodology by which the

Contractor's performance will be monitored to determine compliance with established performance

objectives and to establish performance benchmarks that ensure a quantifiable basis for measuring

effectiveness. The plan is designed so that surveillance is limited to that which is necessary to verify the

Contractor is performing management and technical services satisfactorily and relates directly to

performance objectives of the performance objectives delineated in the SOW.

2. Government Surveillance. The contractor lead will identify an individual to function as the Technical

Representative for this task, and her/his authority will be limited to administering specific technical

aspects of the contract. The Technical Representative will not provide direction that is outside the

scope of responsibilities delineated under this task order. The designated individual will:

Maintain a detailed knowledge of the technical requirements of the contract;

Document Contractor performance in accordance with the QASP;

Identify and immediately forward notifications of deficient, or non-compliant performance to

the Contracting Officer;

Approve priorities of support, resources, and associated schedules.

3. Surveillance Methods. Surveillance of Contractor performance is the method used by the

Government to determine whether the Contractor is effectively and efficiently complying with all terms

and conditions of the task order. In addition to statistical analysis, the functional expertise of the

Technical Representative plays a critical role in adequately evaluating Contractor performance. The

below listed methods of surveillance shall be used in the administration of this QASP. The PRS contains

the performance objectives that are being measured.

Demonstration. A qualification method that is carried out by operation and relies on observable

functional operation. It does not require the use of instrumentation or special test equipment;

Inspection. A qualification method that is carried out by visual examination of software code,

data captured in special test equipment, documentation, or hard copy printouts. The government

will inspect software drops for bugs and content; and


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Analysis. A qualification method that is carried out by examining and assessing the application of

techniques in order to determine if they are appropriate and sufficient.

4. Performance Requirements/Factors of Performance The performance requirements set forth in this

section correspond to the SOW paragraphs delineated in the table. Enclosure (1) of this document

provides standards for performance for specific requirements:

4.1 Organization Alignment and Leadership Structure: The contractor shall be evaluated on their

ability to deliver and assessment of how the MOD aligns acquisition with strategy, missions and

needs and documents the commitment from leadership.

4.2 Policies and Processes: The contractor shall be evaluated on their ability to identify how the MOD

establishes, maintains or manages against documented policies and procedures, effectively

manages the acquisition process and promotes successful outcomes of major acquisitions and

documents recommended changes.

4.3 Human Capital: The contractor will be evaluated on the analysis of the current acquisition

workforce, the planning development and training of the workforce and documenting

recommended changes.

4.4 Knowledge and Information Management: The contractor will be evaluated on the identification

of information and technology that support acquisition and management decisions, the integrity of

the data and the ability to store, retrieve and mind data for knowledge and information transfer.

4.5 Automation in Support of Acquisition: The Contractor will be evaluated on the quality of their

engineering and technical efforts to document the process and capability to automate, document

and perform electronic records management to archiving acquisition efforts.

4.6 Project Management: The Contractor will be evaluated on the quality of their overall technical

acquisition and management strategy, ability to preclude, or resolve issues, ability to execute a

comprehensive program management schedule, and effectiveness of their use of resources to

meet planning goals and schedules.


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Enclosure 1 Evaluation Criteria

PERFORMANCE REQUIREMENTS SURVEY (PRS)

Performance

Objective

SOW Performance StandardQuality

Level1

Method of

Surveillance

Organization

Alignment and

Leadership Structure 4.1

Acceptable performance has been met

when the quality of the information

gathered and recommendations

support has been determined to meet

the program objectives.

Excellent

Acceptable

Poor

Analysis

Demonstration

Policies and

Processes

4.2






Excellent

Acceptable

Poor

Analysis

Demonstration

Human Capital

4.3






Excellent

Acceptable

Poor

Analysis

Demonstration

Knowledge and

Information

Management4.4






Excellent

Acceptable

Poor

Analysis

Demonstration

Automation in

Support of

Acquisition 4.5


when the quality of the engineering

and technical support has been

determined to meet the program

objectives..

Excellent

Acceptable

Poor

Inspection

Demonstration


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Performance

ObjectiveSOW Performance Standard

Quality

Level 1

Method of

Surveillance

Project Management 4.6


when the quality of technical

acquisition and management strategy


the program objectives using optimal

resources, compliant with prescribed

schedules.

Excellent

Acceptable

Poor

Inspection

Demonstration

Hungarian Acquisition Analysis SOW (v2)

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