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ASSESSMENT OF MINISTRY OF DEFENSE (HM FLŰ) ACQUISITION STRUCTURE
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 MOD’s acquisition:
Human Capital
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?
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 nation’s 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 What’s
Needed As Quikly As Possible.
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 a
two (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.
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.
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
country’s 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 MOD’s 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.
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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.
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?
Contract administrators who oversee compliance with the contracts and the
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.
The MOD’s existing 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.
(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
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).
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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.
Duration
Per Trip No.
# Site Location (Days) No. Trips Travelers
TBD – As proposed
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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.
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.
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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
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 Contractor’s management and technical 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:
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
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Performance Quality Method of
SOW Performance Standard 1
Objective Level Surveillance
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