1. What is SeaPort?
What innovations are part of the SeaPort program?
What version of browser do I need to view the SeaPort portal?
What is an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract?
What is the length of the SeaPort MAC contracts?
What is the contract structure of the SeaPort MAC contracts?
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1. What is SeaPort?
In response to declining budgets, the Naval Sea Systems Command (NAVSEA) and its Warfare Centers, which are responsible for the acquisition of all US Navy ship and shipboard systems, targeted a reduction in the cost of services for its headquarters Directorates, Program Executive Offices (PEOs) and field activities. As the first major step towards achieving this goal, NAVSEA embarked on a business process re-engineering effort to maximize the efficiency and economy of support service procurement. This effort, collectively referred to as SeaPort, took a three pronged approach: 1) the award of
multiple award contracts (MAC) with innovative contracting provisions, 2) the launch of a web based commercial
e-procurement portal solution, and 3) the development of a web site (www.seaport.navy.mil) to serve as the entry point to portal. These three efforts converged on 2 April 2001, when NAVSEA awarded the multiple contracts and launched the market place and the web site.
On 5 April 2004, a new set of MACs were awarded to 151 new MAC holders in a program called SeaPort Enhanced (SeaPort-e). While available to the all NAVSEA activities, SeaPort-e is geared to satisfy the mission and requirements of the Surface and Undersea Warfare Centers. SeaPort-e uses the same successful business model of SeaPort, including the streamlined acquisition procedures, e-procurement portal, and innovate contracting provisions.
SeaPort Multiple Award Contracts (MAC)
When the SeaPort and SeaPort-e initiatives began, NAVSEA had the formidable task of demonstrating savings in Service Acquisitions in order to meet various strategic sourcing cost reductions. NAVSEA had more than 350 Support service contracts supporting its Directorates, PEOs, and field activities at the Headquarters activities and even more in the various Warfare Centers. These contracts were not integrated and inconsistent processes were used to obtain the services through the various Directorates, PEOs, and field activities. Quality, although specified in the individual contracts, was not leveraged to the extent that it should have been. Additionally, NAVSEA had no central mechanism to facilitate meeting the OSD requirement that 50% of service contracts be procured using performance specifications by 2005.
Under SeaPort and SeaPort-e, NAVSEA service requirements can now be covered under these central vehicles in which prequalified
contractor teams compete for NAVSEA work. This new structure represents a partnership between NAVSEA and industry to provide services while demonstrating savings. These two sets of indefinite delivery, indefinite quantity (IDIQ), MAC contracts provides for a NAVSEA wide, consistent procurement process which allows NAVSEA to leverage quality control and work requirements for its Directorates, PEOs, and field activities. The MAC contracts provide a guaranteed savings clause that will enable NAVSEA to achieve cost savings and a mechanism for the automatic conversion to performance-based requirements. In addition, an issue resolution desk (IRD) has been developed to facilitate resolution of problems relating to performance, delivery of services and other contractual issues to ensure that quality remains consistently high. Finally, seven (7) of the twenty-one (21) SeaPort MACs and 68% of the SeaPort-e MACs awarded were awarded to small business firms, providing excellent small business participation.
SeaPort E-procurement Portal
The SeaPort e-procurement portal, whose core is a commercial off the shelf (COTS) system, provides a secure automated procurement process that improves processing time, provides the ability to take advantage of numerous acquisition reform initiatives, including award term contracting, reverse auctioning, and electronic signatures, while still allowing Program Managers (PM) the ability to select solutions that meet their PSS requirements. At the core of this portal is the fundamental concept that any PM can use the portal with minimal training in an intuitive "amazon.com"-like environment.
The private SeaPort e-marketplace provides end-to-end government to contractor support for the acquisition of services from the definition of requirements to contract close-out in a completely paperless and secure environment. The portal is web-based allowing requirements to be defined and proposals to be solicited, submitted, and evaluated from any location. Legally binding digital signatures, which have been defined by the electronic processes, are used to execute task orders. Modifications to task orders are generated in SeaPort by re-using the data captured from the current version of task orders, improving both the processing time and accuracy of modifications. Finally, solicitations, task orders and other contract documents are captured in an electronic resource library to provide models for future procurements. This move from segregated "paper" processes, to fully integrated "electronic" processes, dramatically reduces the time and cost associated with the acquisition of support services. Service acquisitions, which used to take months, now take days. To facilitate continuous improvement, the e-procurement portal captures data on each step of the process providing current performance metrics.
SeaPort Web Site
The SeaPort website provides a comprehensive location for information on processing and awarding task orders. It encompasses
training information from both the Government and industry perspective on the execution of task orders. It also provides access to the individual web sites of the MAC holders, provides a sharing of
success stories and lessons learned among Government activities and between the Government and industry. The SeaPort web site is the single entry site to the portal.
2. What innovations are part of the SeaPort program?
- Potential for a fifteen (15) year contract - Each indefinite delivery, indefinite quantity (IDIQ) multiple award contract (MAC) is for a base of five (5) years with two five (5) year options which allow for long-term partnerships.
- Award term provisions - Award term provisions allow a task order to be as long in duration as the IDIQ contracts themselves, provided specific criteria, which may include prices remaining reasonable and quality being maintained, are met. The award term provisions can be issued at the task order level to allow for long term partnerships between the customer and industry.
- Guaranteed savings clause - A guaranteed savings clause which guarantees a minimum savings rate for those task orders for repetitive services that extend beyond one (1) year and convert from cost type to fixed price are included in the contract of each of the twenty-one (21) MAC teams. This provides an excellent tool for headquarters Directorates, Program Executive Offices (PEOs) and field activities to demonstrate quantifiable cost savings.
- Pass through escalation and profit on cost contracts caps - Each of MAC team has agreed to a maximum pass through escalation and profit for CPFF task orders. The actual bid on a task order is likely to be less than the maximum offered due to the competition of the task orders.
- Conversion to performance based task orders - Contractors may propose the accomplishment of the effort in performance-based terms in the option years of a task order. The performance-based plan submitted by the contractor will ensure the same or higher quality level of support at reduced prices.
- Focus on quality - Through the establishment of an electronic "issue resolution desk" (IRD) within the SeaPort e-procurement portal, quality is measured on a real time basis and contractor quality issues are immediately addressed.
- Fully electronic Task Order Process (including electronic signature) - From the desktop, managers can initiate a Task Order, accept and evaluate proposals and award a task order through the web-based Seaport portal.
- Ombudsman for resolving disputes - In an effort to maintain partnerships and to keep disputes out of the court system, an Ombudsman has been established to objectively and expeditiously evaluate and resolve complaints of fairness from the contractors.
3. What version of browser do I need to view the SeaPort portal?
In order to view the SeaPort portal properly, it is recommended that you view it using either Microsoft Internet Explorer version 5.5 (or later) or Netscape Navigator version 4.7 (or later).
To find out which version of Microsoft Internet Explorer you have, follow these steps:
- 1. Open Internet Explorer.
- 2. Click on "Help" on the dropdown menu bar.
- 3. Click on "About Internet Explorer".
- 4. The version of Internet Explorer will then be displayed.
To find out which version of Netscape Navigator you have, follow these steps:
- 1. Open Navigator.
- 2. Click on "Help" on the dropdown menu bar.
- 3. Click on "About Navigator".
- 4. The version of Navigator will then be displayed.
You can download a new version of Internet Explorer at http://www.microsoft.com/downloads or a new version of Navigator at http://home.netscape.com/download.
4. What is an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract?
An Indefinite-Delivery, Indefinite Quantity (IDIQ) contract is a type of contract that provides for an indefinite quantity of supplies or services during a fixed period of time. The Government places delivery orders (for supplies) or task orders (for services) against a basic contract for individual requirements. Minimum and maximum quantity limits are specified in the basic contract as either number of units (for supplies) or as dollar values (for services). The Government uses an IDIQ contract when it cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the Government will require during the contract period.
5. What is the length of the SeaPort MAC contracts?
The SeaPort MAC contracts have a five-year base contract period with two five-year option periods. The period of performance of a task order awarded under the SeaPort-e Multiple Award IDIQ contracts may not exceed 5 years, including all options and award terms.
6. What is the contract structure of the SeaPort MAC contracts?
Each SeaPort MAC contract includes three main contract line item numbers (CLINs). CLIN 0001 is the line item that is used to accommodate the procurement of services on a cost-plus fixed fee (CPFF) basis, a cost-plus award fee basis (CPAF), and/or a cost-plus incentive fee (CPIF) basis. CLIN 0002 is the line item used to accommodate the procurement of services on a fixed-price basis. CLIN 0003 is the line item that is used to accommodate the procurement of associated other direct costs (ODCs) such as travel on a "Cost Only" basis. Option CLINs corresponding to CLINs 0001, 0002, and 0003 also exist in the MAC contracts. In some cases, with options and various types of money, sub-line item numbers (SLINs) may be used under a CLIN.