HHS OCIO IT Policy for Networx Program Designated Agency Representatives (DARs)

Policy for Networx Program Designated Agency Representatives (DARs)

January 14, 2009  HHS-OCIO-2009-0001

1 Purpose

The purpose of this Department of Health and Human Services (HHS) Policy is to identify and provide supplemental information in the establishment of titles, roles and responsibilities of Designated Agency Representatives (DARs) for the Networx transition program.  This Policy provides an overview of the applicable rules and regulations that govern the Networx service ordering process.  The information provided is applicable to individuals who are appointed as DARs and become authorized telecommunication service ordering officials for the Department or their Operating Division (OPDIV).  For further policy guidance or specific questions regarding ordering requirements, the DARs should contact the responsible agency Contracting Officer (CO) for assistance or clarification.

This Policy is a first issuance.

2 Background

 HHS

In January 2007, the FTS-2001 contract used by HHS for most of its telecommunications voice, video, and data services expired.  A 42-month bridge contract has been put into place by GSA to allow for planning and execution of a transition from FTS-2001 to its replacement contract, Networx Universal and Networx Enterprise.  The Health and Human Services (HHS) Office of the Chief Information Officer (OCIO) is managing the agency’s transition to Networx and participates in the GSA Transition Working Group, Security Working Group and OPS Working Group.  The OCIO senior telecommunications manager serves as the HHS Transition Manager and chairs the HHS Telecommunications Council which will serve as the HHS Transition Team.

Transition is expected to take approximately 3 years from the date of the Networx contract awards:  Universal (03/29/07) and Enterprise (05/31/07).

Networx

The Networx contracts provide comprehensive, best-value telecommunications and networking services and technical solutions to all Federal Agencies.  The Networx program serves as the primary replacement for the expiring FTS2001 and FTS2001 Crossover contracts and Federal wireless contracts.

Networx introduces new technologies, new industry partners, and new ways to achieve a more efficient and effective Government.  It will allow Agencies to focus resources on building a seamless and interoperable operating environment while GSA ensures Agency access to the best technologies that industry has to offer.  Also, the Networx contract is designed to leverage the

Government’s buying power to obtain highly competitive prices from the Networx vendors.

The Networx program consists of two parallel acquisitions:  Networx Universal and Networx

Enterprise. Both Networx Universal and Enterprise are broadly scoped acquisitions that provide a comprehensive suite of services.  Networx includes current services and addresses anticipated future needs of Agency customers.  These new services have been determined based on extensive market research and technical analysis; have been reviewed by Agency customers to ensure an adequate market exists; and, have been adjusted based on industry best practices. HHS will utilize the Universal contract.

GSA FAS

The General Services Administration (GSA) Federal Acquisition Service’s (FAS) Networx contracts are multiple-award, indefinite delivery vehicles; their implementation and the ordering procedures established are subject to the regulatory requirements of the Federal Acquisition Regulation (FAR) Subpart 16.5.

Pursuant to FAR Subpart 16.5, and with limited exceptions, all orders over $3,000 must have a Fair Opportunity assessment documented by an agency Contracting Officer (CO).  Since agencies may place thousands of network services orders that exceed $3,000, they must have a mechanism that will enable them to manage and administer the workload associated with this large volume of telecommunications orders.  In order to ensure the ordering process is timely, efficient, follows procurement regulations, and allows the agencies to meet mission requirements, additional-trained individuals may be identified who can assist the agency contracting officers and telecommunications managers to responsibly meet their day to day requirements.

3 Scope

This Policy applies to all HHS organizational components (i.e., Operating Divisions [OPDIVs] and Staff Divisions [STAFFDIVs]) and organizations conducting business for and on behalf of the Department through contractual relationships when using HHS information technology (IT) resources.  This Policy does not supersede any other applicable law, higher level agency directive, or existing labor management agreement in effect as of the effective date of this Policy. 

Department officials shall apply this Policy to employees, contractor personnel, interns, and other non-government employees.  All organizations collecting or maintaining information, or using or operating information systems on behalf of the Department, are also subject to the stipulations of this Policy.  The content of and compliance with this Policy shall be incorporated into applicable contract language or memoranda of agreement under separate cover (e.g., Interim HHSAR FISMA policy), as appropriate.

Agencies shall use this Policy or may create a more restrictive OPDIV/STAFFDIV policy, but not one that is less restrictive, less comprehensive, or less compliant with this document.

Specifically, this Policy applies directly to individuals who have been officially appointed as Designated Agency Representatives (DARs), who have been authorized, in accordance with agency regulations and policies, to place orders for telecommunications services under a Networx contract.  The Networx contracts specify that the vendor may only accept orders from authorized personnel.   In addition, these guidelines apply to the agency’s appointing authority and the agency’s DAR Administrator.

4 Policy

This Networx DAR Policy establishes and outlines relevant guidance related to the acquisition, management, use, and disposition of telecommunications resources within the Department of Health and Human Service.  This Policy applies to all operating divisions of the Department of HHS, including the Office of the Secretary, and including contractors who are authorized to use HHS resources.  The Policy provides fundamental guidance and important resources for all HHS Designated Agency Representatives (DARs), and establishes and defines Fair Opportunity decision methods, award methodology, and criteria for documenting selection analysis.  The Policy identifies the available telecommunication service types and ordering guidelines applicable under the Networx—Universal and Enterprise—contracts.

4.1 Fair Opportunity

This section describes the Fair Opportunity process and identifies, as a reference to the DARs, the methods and criteria necessary for the Department to arrive at an award decision for the Networx contract. 

 The HHS CIO council agreed to a OneHHS Fair Opportunity strategy:

-  All OPDIVs will order from a single voice or data contract

-  In exchange for the consideration of one contract award the vendor will agree to provide usage and/or quantity discounts

-  The usage and quantity levels in which orders will be placed is the sum of the OPDIVs requirements

-   Award is made on a best value basis

HHS will conduct Fair Opportunity utilizing the Networx Universal contract.

HHS will perform Fair Opportunity by evaluating vendor’s Networx:

-           Contract technical and management sections

-           Answers and responses to HHS-specific questions and information requirements

-           Pricing proposals.

The HHS Fair Opportunity voice and data solicitations include requirements that require pricing on an Individual Case Basis (ICB). The voice solicitation, in particular, includes ICB requirements that can be definitized only with the awardee. Once definitized, GSA will accordingly modify the awardee’s Networx contract.  Consequently, ICB CLINs will not be available for order immediately after award.

HHS Fair Opportunity will conclude with an identification of CLINs for award and their prices.

DARs will be authorized to order only from the CLINs awarded by HHS to the Networx vendors.  Agencies requiring CLINs not on the HHS-awarded Networx contracts must request the HHS Networx Program Management Office (PMO) to have them placed on the vendor’s Networx contract.  The HHS Networx PMO, in conjunction with the HHS Networx Contracting Officer, will either obtain addition by negotiation or by performing another Fair Opportunity, or authorize acquisition with an exception to Fair Opportunity.

Exceptions to Fair Opportunity

The DAR may issue service orders without the fair opportunity process whenever circumstances warrant the exercise of any exception set forth in FAR 16.505(b)(2).  In the event that any of the exceptions to fair opportunity are employed, the rationale must be thoroughly documented.  If the logical follow-on exception is used, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value). In accordance with FAR 16.505(b)(2), fair opportunity does not apply to orders that are under $3,000, although to the extent practicable, such micro-purchases shall be distributed equitably among qualified suppliers.  Fair opportunity also does not apply to service orders above $3,000 where the Contracting Officer determines that:

1)      The need for the equipment or services ordered is of such unusual urgency that providing such opportunity to all vendors would result in unacceptable delays in fulfilling that need;

2)      Only one vendor is capable of providing the equipment or services required at the level of quality required because the equipment or services ordered are unique or highly-specialized;

3)      The delivery or task order should be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued on a competitive basis; or

4)      It is necessary to place the order with a particular vendor to satisfy a minimum revenue guarantee.

For additional compliance information or procedural questions, please reference the Networx DAR Procedures or contact your Networx contracting officer for guidance.

4.2 Service Types

The information contained in the below diagrams are as of Universal contract award and are subject to change.  Hyperlinks to each of these files are also provided at the end of this section.  For more information, please contact the OPDIV’s GSA FAS Technology Service Manager (TSM) .

Networx – Universal Services: Awarded March 29, 2007

Web Links

http://www.gsa.gov/gsa/cm_attachments/GSA_BASIC/Universal%20Services_R2-k-bV_0Z5RDZ-i34K-pR.ppt

5 Roles and Responsibilities

For this effort, HHS will utilize a role-based structure with each role having specific responsibilities, authority, and/or oversight.  The role-based structure ensures that Department-, Division-, and Service-level DAR responsibilities are clearly defined and focused.  Adherence to the role-based structure will help ensure a successful transition.

The HHS DAR roles are as follows:

• DAR Authority – Has the ability to appoint DARs
• DAR Administrator – Has policy and organizational oversight responsibilities
• OPDIV DAR Coordinator – Has division-level service ordering authority
• Service DAR – Has service-level ordering authority within the OPDIV 

The HHS DAR Administrator will authorize the GSA Federal Acquisition Service (FAS) Office of Integrated Technology Services (ITS) Billing Systems Manager as a DAR for placing Networx Long Distance (LD) orders.  The authority for the GSA Regional Services Manager to place LD will be for all Agency Hierarchy Code (AHC) 75XX and is limited to those locations where HHS obtains its local services from a GSA owned switch. 

Combined with DAR procedures, the role-based structure has inherent checks and balances to ensure that DAR processes are adhered to, and that service orders are compliant with regulatory and policy requirements.

5.1 DAR Authority

The DAR Authority is a department representative who has been empowered to appoint DARs, including DAR Administrators.  The DAR Authority reviews all nominees for compliance with eligibility.  No single, specific classification series or grade level is required for DAR responsibility.  It is left to the discretion of each OPDIV to appoint the DARs based upon that OPDIV’s own requirements and the technical expertise deemed necessary to fulfill the OPDIV’s needs.

All DARs must be appointed in writing by the individual with commensurate authority, in accordance with Department regulations and policies.  Appointments shall be in writing and the appointment letter for each DAR must be addressed to the selected Networx vendor with a copy to the GSA Program Management Office (PMO).  The appointment letter shall specify the OPDIV’s name, the name of the DAR Administrator, the DARs’names, phone numbers and email addresses, the Networx contracts under which each DAR is authorized to place orders, agency hierarchy codes or billing account codes for which each DAR is authorized to place orders, and any restriction of the type, dollar value, geographic location or other limitations placed on the DAR by the Department.

During the application process, the DAR Authority must ensure all candidates for DAR selection have received the appropriate level of training and have a sufficient level of experience.

5.2 DAR Administrator

As with all appointed representatives, a DAR Administrator must be an employee of a government agency, and cannot be a contractor.  Networx vendors can prepare (draft) service orders for the approval and a disposition by a DAR.  However, DARs must be government employees.  DAR Administrators must be appointed in writing by the agency appointing authority, and given specific oversight responsibilities and limitations as the administrator.  DAR Administrators may also be appointed to function in dual roles as a DAR. 

The DAR Administrator responsibilities include:

• Compile, track, disseminate, and maintain an up-to-date listings of DARs and their ordering authority
• Provide listings and any updates to the vendor and to GSA
• Establish and maintain agency hierarchy codes, and/or oversee responsibility for them
• Provide instructions to DARs on the ordering procedures and their authorities and limitations
• Ensure all Records Management activities are completed in accordance with the General Records Schedules.  Of particular importance are the Networx LD orders and FTS2001 disconnect orders placed by the HHS-appointed GSA FAS ITS Billing Systems Manager DAR.

Based upon an agency’s structure, there may be more than one DAR Administrator.  DAR Administrator alternates perform the same duties as DAR Administrators on an as-needed basis.

The DAR Administrator maintains a list of DARs authorized to place orders on Networx contracts, the hierarchy code(s) or billing account code(s) against which they can order, types of service(s), dollar limits, and any other limits placed on their ordering authority.  The DAR Administrator will specify to the Networx vendor (in writing) the authority granted to each DAR and provide the vendor any changes to that authority.  The DAR Administrator performs this administration through the DAR List and User Registration (instructions and training will be provided by the Networx vendor upon award of task order following Fair Opportunity), in accordance with procedures outlined in the applicable Networx contract.

The DAR Administrator provides agency hierarchy codes or billing account codes for the Agency to their Networx vendors.

DAR Administrators provide necessary instruction or training to DARs to (1) ensure that DARs are fully aware of the Agency’s requirements and those limitations placed upon their ordering authority and (2) understand the ordering procedures specific to the contracts for which DAR authority has been provided them.

The DAR Administrator must be appointed in writing by the agency appointing authority, in accordance with agency regulations and policies.  Appointments shall be in writing and the appointment letter for each DAR Administrator must be addressed to the selected Networx vendor with a copy to the GSA Program Management Office (PMO).  The appointment letter shall specify the DAR Administrator’s name, phone number and email address, the same information for any Alternate DAR Administrator(s), the agency hierarchy codes or billing account codes for which the DAR Administrator is authorized to appoint DARs, the Agency and Bureau name for whom the DAR Administrator has authority, and the Networx vendor to whom the Agency sent the appointment notification.

The appointment of the GSA FAS ITS Billing Systems Manager as an HHS DAR will be made by the HHS DAR Administrator.

5.3 OPDIV DAR Coordinator

Agencies have authority to designate individuals who are authorized to place orders under Networx contracts for their agency, consistent with the Fair Opportunity Decision made by the Agency Contracting Officer.  The Networx contracts refer to these individuals as Designated Agency Representatives (DARs).  HHS has elected to further classify DARs as being OPDIV- or Service-DARs, with each having a specific role and responsibility within the organization.

The OPDIV DAR Coordinator is responsible for:

• Performing in accordance with the terms and conditions of the contract
• Adhering to any rules, regulations, and conditions promulgated and enforced by their agency
• Complying with any limitations/authorities specified in the DAR appointment document.

Within the Department of HHS, each operating division will have an OPDIV DAR Coordinator and perhaps an alternate designee.  An OPDIV DAR Coordinator is appointed in writing by an authorized individual (DAR Authority) in accordance with agency regulations and policy, and in consideration of necessary training, skills, and technical expertise.  OPDIV DARs are authorized to place telecommunication service orders on behalf of their operating division only, unless otherwise authorized in the appointment document.

The OPDIV DAR Coordinator responsibilities include:

• Prepare, submit, and track orders with vendors and the GSA FAS ITS Billing Systems Manager consistent with the contracting officers’ fair opportunity decision
• Other functions specified in appointment document

The OPDIV DAR Coordinator must issue orders in accordance with:

• The fair opportunities decision
• Terms and conditions of the contract
• Rules, regulations, and policies of their agency
• Limitations/authorities specified in the appointment document

5.4 GSA FAS ITS Billing Systems Manager as an HHS DAR

GSA currently provides local and long distance services to HHS OPDIVs throughout the country. GSA Networx Contracting Officers have determined that if an Agency wants GSA to continue ordering long distance services on the Agency’s behalf, the Agency DAR Administrator must appoint the GSA FAS ITS Billing Systems Manager, as a DAR for the Agency with authority to order Voice Service for the Agency Hierarchy Codes designated by the Agency.  HHS will comply with this requirement.

HHS OPDIV DARs will place orders for Networx LD services with the GSA DAS ITS Billing Systems Manager designated by the HHS DAR Administrator. The GSA Billing Systems Manager responsibilities include:

Accepting LD orders from OPDIVs DARs in accordance with the OPDIV DAR’s authorization by service and/or AHC.

• Configuring the vendor’s Networx Operational Support System (OSS) to send a copy of the Service Order Completion Notice (SOCN) to the address designated by the OPDIV DAR.
• Placing on behalf of the OPDIV FTS2001 DAR the FTS2001 disconnect orders and ordering the FTS2001 vendor to copy the FTS2001 disconnection SOCN to the the address designated by the OPDIV DAR.

5.5 Service DAR

Within each operating division, Service DARs may be appointed to place telecommunication services orders on behalf of the OPDIV.  Unlike OPDIV DAR Coordinators, Service DARs are individuals within the OPDIV who are authorized to place telecommunication service orders for specific services only.   Service DARs must meet the same training and experience criteria as other DARs.  Operating divisions may have multiple Service DARs with finite service ordering authority.

The Service DAR responsibilities include:

• Prepare, submit, and track orders consistent with the contracting officers’ fair opportunity decision
• Other functions specified in appointment document

The Service DAR must issue orders in accordance with:

• The fair opportunities decision
• Terms and conditions of the contract
• Rules, regulations, and policies of their agency
• Limitations/authorities specified in the appointment document such as placing LD orders with the HHS-authorized GSA FAS ITS Billing Systems Manager

Once certified, Service DARs are authorized to place telecommunication service orders directly with the Networx vendors – no further coordination or approval is required for pre-defined and fully-priced Contract Line Item Numbers (CLINs) within their authority.

5.6 DAR Working Group

The DAR Working Group (DWG) is an integrated team of project representatives who regularly meet to review, discuss and issue DAR policies and procedures.  The team is comprised of members from each operating division, as well as contracting officers, subject matter experts, and other interested parties. It is likely the Networx PMO will task the DWG to provide advice regarding Fair Opportunity strategy for services not awarded by HHS.

5.7 Contracting Officers

The HHS Contracting Officers (HHS CO) will serve as the primary contractual interface with all Networx vendors, service providers, and GSA representatives.  As required, the HHS CO shall issue fair opportunity solicitations to all vendors to petition for offers of telecommunication services.  A fair opportunity solicitation will only be issued when new agency requirements are identified that are not currently covered under the Universal or Enterprise contracts.  The HHS CO will receive and evaluate Networx vendor proposals, make “best value” decisions, and award contracts.  Following contractual negotiations, the GSA Contracting Officer (GSA CO) will modify or create associated CLINs as necessary for DAR service ordering.

Once the CLINs are identified, the DARs can order any of the CLINs that were part of the award.  If at a later date new requirements arise that were not part of the original award, and the estimated total amount for the items exceed $3000, a separate fair opportunity solicitation shall be conducted, unless one of the 4 exceptions to fair opportunity applies or if the HHS Networx PMO and CO determinine that the CLIN is a natural follow-on to the vendor’s Networx contract with HHS.  DARs are authorized to place service orders under $3000 as a natural follow-on to an existing Fair Opportunity decision.  Please see the Fair Opportunity procedures for additional information regarding the Statement of Work (SOW) determination and Fair Opportunity selection procedures. 

The HHS Contracting Officer responsibilities include:

• Negotiating directly with the Networx vendors
• Documenting Fair Opportunity selection process

The GSA Contracting Officer responsibilities include:

• Making scope determination for requirements
• Issuing Requests for Quotes (RFQs), SOWs, and Statement of Objectives (SOO)
• Executing contract modifications

5.8 DAR Training

It is the responsibility of each agency to ensure that each DAR has completed appropriate training, and has the necessary skills and technical expertise to carry out the duties assigned.  To be eligible for appointment, the required HHS training includes:

• HHS University course “Project Officer Training”
• Networx Vendor provided training (as necessary)

6 Applicable Laws/Guidance

Federal Acquisition Regulation (FAR) Subpart 16.5.

Reference GSA guidelines regarding Networx contacts, policies, and procedures.

GSA DAR Guidelines for Network Services Contracts of the Office of ITS FAA, August 28, 2008

7 Information and Assistance

Direct questions, comments, suggestions, or requests for further information to the Office of the Chief Information Officer (OCIO), at (202) 690-6162; or visit our web site at URL: http://www.hhs.gov/ocio/policy/

8 Effective Date/Implementation

The effective date of this Policy is the date the Policy is approved.

These policies and procedures will not be implemented in any recognized bargaining unit until the union has been provided notice of the proposed changes and given an opportunity to fully exercise its representational rights.

The HHS policies contained in this issuance shall be exercised in accordance with Public Law 93-638, the Indian Self-Determination and Education Assistance Act, as amended, and the Secretary's policy statement dated August 7, 1997, as amended, titled "Department Policy on Consultation with American Indian/Alaska Native Tribes and Indian Organizations."  It is HHS' policy to consult with Indian people to the greatest practicable extent and to the extent permitted by law before taking actions that affect these governments and people; to assess the impact of the Department's plans, projects, programs and activities on tribal and other available resources; and to remove any procedural impediments to working directly with tribal governments or Indian people.

9 Approval

__________________/s/   John Teeter for_____________           January 14, 2009_______

Michael W. Carleton

Deputy Assistant Secretary for Information Technology/                        DATE

HHS Chief Information Officer                                                             

Glossary

•        Contracting Officers (CO) – serve as the primary contractual interface with all Networx vendors, service providers, and GSA representatives.

•        Designated Agency Representative (DAR) – individuals who are authorized to place orders under Network Services contracts for their agency, consistent with the Fair Opportunity Decision made by the Agency Contracting Officer.  Individuals may be designated as OPDIV DAR Coordinators or Service DARs.

•        DAR Authority – a departmental representative who reviews all DAR nominees for compliance with eligibility, and has been empowered to appoint DARs, including DAR Administrators.

•        DAR Administrator – an employee of a Government agency (not a contractor) who compiles, tracks, disseminates, and maintains an up-to-date listing of all DARs and their ordering authority specific to their agency.

•        DAR Working Group – an integrated team of project representatives who regularly meet to review, discuss and issue DAR policies and procedures.

•        Guidelines – a documented statement of desired, good, or best practice that serves as a recommendation that leads or directs a course of action to achieve a certain goal.  Guidelines provide instructions and advice for performing a task and suggest possible approaches that may be taken.  Guidelines are generally voluntary, but the implication is that practitioners will use the concepts and principles in meeting their objectives.

•        HHS Information Technology (IT) Resources – includes but is not limited to: staff, facilities, data, documents, personal computers and related peripheral equipment, software, network and web servers, telephones, facsimile machines, photocopiers, Internet connectivity and access to internet services, e-mail and, office supplies. 

•        Information Technology (IT) – any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data.

•        Integrated Project Team (IPT) – cross-functional team of employees, contractors, interns, etc., that is temporarily established to share information and to produce a product or product(s)/deliverable(s) that reflects that focused collaboration, coordination and communication.

•        Policy – a document predicated on oversight (Congressional mandates; legislation; Office of Management & Budget (OMB); Government Accountability Office (GAO); General Services Administration (GSA); National Archives Records Administration (NARA); etc.-this is not an all-inclusive list) requirements or Department/Agency authority that describes the “what”, the “when” and in most instances the “by whom” certain actions must be taken in order to move an organization into compliance.  Policy requires a certain level of measurement to determine where the organization is and how far from the end-state goal/requirement one is starting. Policy describes the specific tasks that need to be accomplished, much like a work breakdown structure, without stating “how” those tasks will be accomplished. 

•        Procedures – a document that explains “how” policy shall be achieved by describing the specifics of the tasks, the steps needed to be taken to achieve the goal, to satisfy the end state requirement.

•        Subject Matter Expert (SME) – a person or persons in a functional area who presents content material regarding the policy subject area.

ATTACHMENT 1: GSA NETWORX INFORMATION

Contract Numbers

Note: HHS plans to award both Voice and Data as Universal contracts.

GSA Points of Contact

The table below lists contact information for obtaining assistance with service ordering or usage.  For the most expeditious and accurate assistance, you are encouraged to contact the Help Desk first.  The GSA staff at the Help Desk can place you in quick and direct contact with those who are best equipped to resolve your questions or issues.

Agencies for which a GSA Technology Service Manager (TSM) has been assigned can also obtain assistance by using the procedures in the table below for contacting their TSMs.

After award, Networx vendors will appoint representatives to assist DARs with service ordering and tracking.  The Networx vendors will provide contact information as appropriate.