Winning Bids Using TF!

An Innovative Application for TF!

A new approach being used by ASC's US Customers is the replacement of Firm Price Contracting with an Annual Task Authorization (TA) negotiation. This new approach allows scheduling of Amendment resources, virtually eliminates mid-year contract Amendments, and removes the need for variation in quantity tracking.

Here's how it Works:

A Structured SOW in row and column format, using a word processor:

CONTRACT AWARD

  • Bidders propose their best solution against the RFP-published SOW completing their first year only firm price, but modeling resources, costs and summaries for all years.

  • Winner is chosen in accordance with RFP.

  • If TF! was not a proposal requirement, the Winner’s solution is modeled in TF! to create the “TF! OFFICIAL COPY.”

  • If TF! was completed by bidders, the Winner’s final TF! submittal becomes the “TF! OFFICIAL COPY.”

ANNUAL RENEWAL

  • Customer and Contractor discuss and finalize SOW changes.

  • Customer models government estimate for the Annual Renewal SOW changes in the latest “TF! OFFICIAL COPY” and issues RFP.

  • Contractor models their proposal for the Annual Renewal SOW changes in the “TF! OFFICIAL COPY” provided by the Customer (which is the same version as the Customer used to start the Annual Renewal government estimate but not including the government estimate).

  • Annual Renewals are negotiated and finalized in TF! where TF! presents full details of all changes to resources, costs, and prices.

  • Customer issues a firm fixed price TA for the Annual Renewal.

  • The "Baseline" is reset in the Amendment TF! file to create the “TF! OFFICIAL COPY” ready for the next Annual Renewal or Amendment.

ADVANTAGES OVER FIRM PRICE

  • Planning, scheduling, and resourcing of the Annual Renewal is easy since Estimated Quantities and other SOW changes are updated on an annual basis.

  • No need for unit price tracking during the year or a variation in quantity negotiation at the end of the year. Contractor is responsible for executing the agreed upon SOW and is paid 1/12th of the TA Price per month (unless some other payment schedule is desired).

  • Usually only a single annual Negotiation. Any variation requiring significant change in cost can be addressed during the year using the standard Amendment process.

  • To further minimize annual Amendment items, Customer can still include the "SOW Estimated Quantity +/- 10% Rule” in their Terms and Conditions.

THE TF! ADVANTAGE

TF! supports the detailed negotiation and identification of any changes to the SOW that affect Resource, Cost, or Price Categories.

Once changes are negotiated and finalized, TF! automates incorporating the changes into a new "Total" version using the built-in “Baseline Reset” function. Now TF! is ready for the next TA/Amendment negotiation.

TF! can handle any type of Basis of Payment including hybrid approaches.

Anything Specific you want to look for?