Understanding SEWP and SCRM in Government Acquisition

Supply Chain in a Government Acquisition 08.17.2017JW

What is SEWP? What is SEWP? SEWP is: Solutions for Enterprise Wide Procurement Multi-award suite of contracts 140+ Contract Holders 5300+ OEMs Government-Wide Acquisition Contract (GWAC) Authorized by OMB Utilized by every Government Agency Contract Vehicle for ICT (Information and Communication Technology) and Audio/Visual Solutions Program Management Office (PMO) to provide support and information throughout the Acquisition Process 2

SEWP PMO Role SEWP PMO Role The NASA SEWP Program Management Office performs many roles in support of Government Acquisition staff: Manage 140+ contracts Mediate issues between Government and Industry Facilitate the Acquisition process Recommend best approaches to Acquisition issues Inform the Government customer on both overall Contract use and specific policy-related aspects of their acquisition 3

SCRM Standards Standards and guidelines under development Over 100 groups Indicates both level of interest and degree of difficulty NIST NIST Special Publication 800-161. Supply Chain Risk Management. Practices for Federal Information. Systems and Organizations Workshops Open Trusted Technology Provider Standard: O-TTPS Industry led with DoD and NASA SEWP participation http://www.opengroup.org/ (Open Group site) http://opengroup.org/subjectareas/trusted-technology ISO/IEC International Standard (ISO/IEC 20243:2015) CDW-G first SEWP Contract Holder to be certified 4

SCRM Issues 100% Assurance impossible to achieve Risk should be identified and assessed There is a cost associated with lowering the risk Acquirer needs to do a risk/benefit analysis Many manufacturers do not have Authorized Reseller Programs or do not distinguish between an Authorized Reseller and Distributor Resellers can be authorized for specific product lines SEWP handles/verifies partial authorization SEWP also allows for a single instance authorization 100% reliance on Authorized Reseller can have negative connotations Small business effect Reduced competition Decision making as to which companies succeed or fail is fully in the hands of the manufacturer 5

Authorized Reseller For some large Manufacturers, authorized reseller Is a defined program/process that often requires technical knowledge and/or money Has repercussions if non-authorized reseller is used Manufacturer may not warrant the item Provenance cannot be established Some companies allow resellers to officially resell their products without being an official authorized reseller Many manufacturers and resellers utilize approved distributors 6

Supply Chain Information Supply Chain Information Contract Holder/Provider Relationship provided in the Verification file that accompanies Quotes Customer does not need to request an LOA (Letter of Authorization) SEWP verification is more controlled and monitored than LOAs Utilize the info in the Verification file to check relationships Supply Chain Level of Provider Authorization Authorized reseller* (verified with OEM) Using an Authorized Distributor but not directly an Authorized Reseller Unverified relationship *Authorized Resellers are defined as: A reseller who is known by the OEM and the OEM has verified that the reseller is considered by them to be an authorized or approved reseller. 7

Steps for Assurance Verification 1. Contract Holder indicates relationship 2. Provides POC for company or distributer 3. POC receives email from SEWP to verify relationship 4. Provider relationship is removed if not valid Ways customers can find information: Provider Lookup Tool Market Research Tool (MRT) Verification File 8

Established Authorized Established Authorized Reseller Program (EARP) Reseller Program (EARP) Established Authorized Resellers are a subset of Authorized Resellers for products and services where Reseller/Provider relationships are most critical. EARP applies when a Provider (OEM or Service Provider) meets the following: There is a program for companies to be designated as Authorized Resellers; There is a documented process to designate Authorized Resellers; There is a Point of Contact who verifies Federal Authorized Resellers; and There is a benefit/consequence for the Government when purchasing or not purchasing from an Authorized Reseller. A SEWP Contract Holders is an Established Authorized Reseller: For a Provider meeting the above criteria When that Provider has verified the Authorized Reseller relationship. 9

EARP EARP Implementation Implementation By default, SEWP will only allow quotes to include: Items from Established Authorized Resellers when the Provider / OEM meets the EARP requirements Items from non-EARP providers will be allowed and the relationship will be documented in the SEWP verification file Government customers can allow for quotes from other than Established Authorized Resellers by turning off the default 10

Order Fulfillment and Contract Adherence Regardless of Authorization level: Contract Holder must fulfill order as quoted All items must be authentic All items must be warrantable/maintainable Items must be new unless noted on Quote and allowed on RFQ Additional proof of SCRM mitigation such as O-TTPS certification or other ISO/IEC International Standards can be part of Best Value determination Customer can indicate requirements in RFQ SEWP provides a Verification file with Contract Holder/Provider (OEM) Relationship with each Quote 11