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Performance Based Statements of Work

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Title: Performance Based Statements of Work


1
Writing
  • Performance Based Statements of Work
  • for
  • Any Contract Requirement
  • Robert Knauer, CPCM, NCMA

2
Performance-Based Contracting
  • OBJECTIVE
  • To illustrate how to write a
  • PWS
  • Performance Work Statement
  • QASP
  • Quality Assurance Surveillance Plan
  • for any service contract

3
Performance-Based Contracting
  • Performance Based Contracting has been with
    us since the early 1980s, the Office of Federal
    Procurement Policys Pamphlet 4 (one of the best
    documents ever written on the subject). OFPP 4
    has not been canceled, and is still valid. It
    thoroughly demonstrates how to
  • 1. LOOK AT THE CONTRACTING QUALITY
  • 2. COLLECT AND ANALZE DATA FOR SERVICE
  • 3. WRITE A QUALITY PWS
  • 4. DEVELOP AND WRITE A QA PLAN

4
Performance-Based Contracting
  • Performance Based Contracting has many
    benefits, they include
  • Increased likelihood of meeting mission
  • Focus on intended results-not process
  • Better value and performance
  • Less performance risk
  • No more detailed SPECS
  • Contractor flexibility with solutions
  • Better competition, not just KTRS but solutions
  • KTR buy-in and shared interests
  • Fewer protests
  • Surveillance is more meaningful and less frequent
  • Results documented for GPRA reporting
  • Many solutions from which to chose

5
Performance-Based Contracting
  • The OFPP has rescinded the suggested use of the
    DoD Guidebook for Performance Service Acquisition
    and adopted the
  • Treasurys Seven Steps

6
Performance-Based Contracting
  • A different approach to the analytical process
    was described in the guidebook for PBSA in the
    Department of Defense.
  • It describes three "analysis-oriented steps that
    are "top down" in nature.

7
Performance-Based Contracting
  • The OFPP currently suggests using Treasurys
    Seven Steps to Performance Based Service
    Acquisition
  • 1. Establish an integrated solutions team (IST)
  • 2. Describe the problem that needs solving
  • 3. Examine private and public-sector solutions
  • 4. Develop a Performance Work Statement (PWS) or
    a Statement of Objectives (SOO)
  • 5. Decide how to measure manage performance
  • 6. Select the right contractor
  • 7. Manage performance
  • NOTE the Seven Steps to PBSA was created by
    an interagency industry team guided by
    Acquisition Solutions inc.

8
Performance-Based Contracting
  • The OFPP suggests using Treasurys Seven Steps
    which are reflected throughout this presentation
  • 1. Establish an integrated solutions team

9
1. Establish an integrated solutions team
  • Performance-based acquisition is a collective
    responsibility that involves representatives from
    budget, technical, contracting, logistics, legal,
    and the program office.
  • Thus an Integrated Team!

10
1. Establish an integrated solutions team
  • The IST needs to identify the essential inputs,
    processes, and outputs during Job Analysis.
  • INPUT-PROCESS-OUTPUT
  • Resources-Actions-Results

11
1. Establish an integrated solutions team
  • FAR 1.102 states
  • The Acquisition Team consists of technical,
    supply, procurement, customers and contractors

12
1. Establish an integrated solutions team
  • Is the mission of your office is to support
    another activity within your agency (i.e.,
    internal client).
  • Is the worth of your value-added services
    determined by that clients opinion of what you
    deliver?
  • If so, and your office is seeking assistance from
    an outside contractor then

13
1. Establish an integrated solutions team
  • that internal client has the right to understand
    what you are doing and have the opportunity to
    discuss or review your statement of work we will
    call the PWS.
  • Get Your Client Involved

14
Performance-Based Contracting
  • The OFPP suggests using
  • Treasurys Seven Steps
  • 2. Describe the problem that needs solving

15
2. Describe the problem that needs solving
  • Determine..
  • What is the problem the agency needs to solve?
  • What results are needed?
  • Will it meet the organizational and mission
    objectives?

16
2. Describe the problem that needs solving
  • An agency should be able provide a definitive
    link between a contracts performance objectives
    and the agency's overall mission and goals.
  • Outputs Agency Mission

17
2. Describe the problem that needs solving
  • FAR section 37.601
  • (a) Describe the requirements in terms of results
    required rather than the methods

18
2. Describe the problem that needs solving
  • The foundation for a successful acquisition
    involves a clear answers to these questions
  • What do I need,
  • when do I need it,
  • where do I need it
  • what level of performance is required
  • how do I know it's good when I get it

19
2. Describe the problem that needs solving
  • You Must Baseline Current Performance
  • Determining the current level of performance
    establishes the baseline against which future
    performance can be measured.
  • A valid measure of comparison

20
3. Acquisition Planning
  • Market research is the process of collecting
  • information on the commercial marketplace its
  • capabilities, technologies, and competitive
    forces.
  • Market research is essential to the government's
  • ability to buy best-value products and services
    that
  • solve mission-critical problems.
  • Market research is easy to do with links to
    catalogs, vendor websites, GOOGLE, etc

21
3. Acquisition Planning
  • Acquisition reform has opened the door to
    effective new approaches to market research that
    should be undertaken by the integrated
    solutions team long before attempting to write a
    performance work statement or PWS
  • Many templates already exist on the WEB, then
    there are the old standards

22
3. Acquisition Planning
  • Some of the traditional ways to do this include
    issuing "sources sought" type notices at
    FEDBIZOPPS Industry Days, Industry Conferences
    issuing Requests for Information (RFI) and
    holding pre-solicitation conferences.

23
3. Acquisition Planning
  • Contact with vendors and suppliers for purposes
    of market research is encouraged in todays
    government.
  • In fact, FAR 15.201(a) specifically promotes the
    exchange of information "among all interested
    parties, from the earliest identification of a
    requirement through receipt of proposals."

24
4. Develop a PWS or SOO
  • There are two ways to develop a specification for
    a performance-based acquisition by using
  • a Performance Work Statement (PWS)
  • or an emerging methodology built around
  • a Statement of Objectives (SOO).

25
4. Develop a PWS or SOO
  • PWS is a document that states the technical,
    functional and performance characteristics of the
    work to be performed or delivered
  • identifies essential functions to be performed
  • determines performance standards
  • including the location of the work, the units of
    work, the quantity of work units, and the quality
    and timeliness of the work units.

26
4. Develop a PWS or SOO
  • Developing the PWS begins with collecting and
    gathering data that defines the present
    operation.
  • In Competitive Sourcing, this can be done during
    the pre-planning phase
  • Sources of data can include information
    management systems (MIS), cost accounting
    systems, current and projected workload
    estimates, notes, log books, customer records and
    internal or external interviews with managers and
    workers

27
4. Develop a PWS or SOO
  • A thorough understanding of the organizational
    mission and a clearly worded mission statement
    will enable anyone to develop a Work Breakdown
    Structure for a PWS

28
4. Develop a PWS
  • The PWS should focus on defining desired results
    or outputs and acceptable levels of performance
    for all major top-level tasks

29
4. Develop a PWS or SOO
  • The ultimate purpose of this step is to develop
    the complete solicitation and execute a
    competitive procurement
  • RFPs and IFBs are used to solicit contractor
    and government proposals that will propose ways
    to accomplish work outputs

30
4. Develop a PWS or SOOUniform Contract
Format (UCF)
  • A- SF33
  • B- The Schedule including CLIN
  • C- The PWS (with Attachments)
  • D- Packaging Marking
  • E- Inspection Acceptance
  • F- Deliveries or Performance
  • G-Contract Administration Data
  • H-Special Contract Requirements
  • I-Clauses
  • J-List of Attachments
  • K-Representations Certifications
  • L-Instructions, conditions and notices
  • M-Evaluation Factor for Award

31
4. Develop a PWS or SOO
  • There is not a standard template or outline for a
    PWS. The FAR only requires that agencies
  • Describe requirements in terms of results or
    outputs, rather than process used.
  • Use measurable performance standards and
    quality assurance surveillance plans to measure
    performance results.
  • Provide for reductions of fees or price for
    failed performance, and...
  • Include performance incentives as appropriate.

32
4. Develop a PWS or SOO
  • Industry Best Practices has resulted in adopting
    the following PWS outline for Section C
  • Section C-1 Background
  • Section C-2 Acronyms and Definitions
  • Section C-3 Government Furnished
    Property
  • Section C-4 Contractor Furnished Property
  • Section C-5 Task Descriptions
  • Section C-6 Technical Publications
  • Attachments or Technical Exhibits

33
4. Develop a PWS or SOO
  • In terms of organization of information, a
    SOW-like approach is suitable for a performance
    work statement
  • C-1 Introduction,
  • Background information
  • Mission statement
  • Scope (Tasking)

34
4. Develop a PWS or SOO
  • The Attachments or Technical Exhibits should
    include
  • Performance Requirement Summary (PRS)
  • Historical and Project Workload
  • Required Reports, and possibly
  • Quality Assurance Surveillance Plan (QASP)

35
4. Develop a PWS or SOO
  • From the PWS Contractors can
  • Determine what needs to be done
  • Determine the skill sets (capabilities), level of
    expertise, and hours required
  • Develop realistic and reasonable equipment and
    facility estimates
  • Compile a Technical Cost proposal

36
4. Develop a PWS or SOO
  • FIRST, keep this important "lesson learned" in
    mind
  • Don't specify the requirement so tightly that you
    get the same solution from each offeror
  • Doing so restricts competition and doesnt result
    in Best Overall Value proposals
  • In Competitive Sourcing doing so would not be
    good for government or industry

37
4. Develop a PWS or SOO
  • SECOND, performance-based service acquisition
    requires that the integrated solutions team
    usually must jettison some traditional approaches
    to buying services... like specifying labor
    categories, educational requirements, or number
    of hours of support required. Those are "how to"
    approaches.

38
4. Develop a PWS or SOO
  • Instead, let contractors propose the
  • Best people
  • Best skill sets
  • Best solution
  • To meet the need and fit the solution.
  • Government can then evaluate the proposal
  • based both on the quality of the solution and
  • the experience of the proposed personnel.

39
4. Develop a PWS
  • Define the desired outcomes
  • Conduct an outcome analysis
  • Conduct a performance analysis

40
4. Develop a PWS
  • Steps inWork Analysis
  • These requirement sentences will eventually form
    the..
  • PERFORMANCE WORK STATEMENT

41
4. Develop a PWS
  • Work Analysis
  • Grouping similar and related tasks and
    identifying
  • their relationships is a common sense approach to
  • communicating with contractors in the PWS. They
    use
  • the results of the Government's work analysis, as
  • stated in the solicitation, in their technical
    and
  • business proposals.
  • The review what Inputs (Resources) are required,
  • what Actions (Work Steps) must be performed, and
  • Outputs (Deliverables) must occur.

42
4. Develop a PWS
  • When people talk about
  • performance-based contracting,
  • they typically think of a PWS and
  • QASP as their model.

43
4. Develop a PWS
  • Job Analysis?
  • Work Analysis?
  • They are the SAME?

44
4. Develop a PWS
  • Preparing the Performance-Based Statement of
    Work (PBSOW)
  • The process begins with an analytical process,
    referred to as either a
  • Job Analysis or Work Analysis

45
4. Develop a PWS
  • Work Analysis
  • Those responsible for the mission or program are
    essential to the performance of the work
    analysis.

46
4. Develop a PWS
  • It involves a close examination of the work
  • requirements from a "bottom up"
  • perspective or Zero based approach
  • It is the basis for establishing performance
  • requirements, drafting the PWS,
  • Performance standards and producing the
  • quality assurance surveillance plan.

47
4. Develop a PWS
  • Work Breakdown Structure (WBS)
  • Any job system can be broken into sub-systems
    and each sub-system into parts, smaller parts and
    sub-parts with every aspect of the service to be
    contracted being represented.

48
4. Develop a PWS
  • Work Breakdown Structure (WBS)
  •  
  • Outputs are clearly identified and can be
    separated from processes so the focus is on
    results.  
  • This information is great for identifying
    Government-Furnished Property, Personnel, and
    Value

49
4. Develop a PWS
  • Steps in Work AnalysisWork analysis
    involves breaking down the work into its
    meaningful task levels and linking tasks in a
    logical flow of activities to produce mission
    oriented results.

50
4. Develop a PWS
  • Steps in Work Analysis
  • Start with the overall service or output
  • required from the contractor
  • Divide the job into all its parts and subparts
  • Identify the relationships among all the parts.

51
4. Develop a PWS
  • Steps in Work Analysis
  • Typically, one requirement sentence will be
    written for each main task or sub-task in the
    Work Breakdown Structure (WBS) describing the
    desired result or output.

52
4. Develop a PWS
  • The Guidebook for Performance-Based Services
    Acquisition (PBSA) by the Department of Defense
    stated,
  • Prescribing manpower requirements limits the
    ability of offerors to propose their best
    solutions, and could preclude the use of
    qualified contractor personnel from performing
    the requirement due to a lack of a college degree
    or the exact years of specified experience.

53
4. Develop a PWS
  • Congress passed a provision (section 813) in the
    2001 Defense Authorization Act, now implemented
    in the FAR
  • When acquiring information technology services,
    solicitations may not describe any minimum
    experience or educational requirements for
    proposed contractor personnel unless the
    contracting officer determines that needs of the
    agency either
  • (1) cannot be met without that requirement, or
  • (2) requires the use of other than a
    performance-based contract.

54
4. Develop a PWS
  • The PWS is written concurrently with the Quality
    Assurance Surveillance Plan (QASP) and influences
    what is put into the QASP
  • Developing the QASP is a check to make sure
    that outputs and procedures are measurable

55
5. Decide how to measure and manage performance
  • The QASP describes the procedures to be used by
    the Government to ensure that the service
    provider, Government or contractor, is meeting
    the minimum requirements of the PWS.
  • The QASP includes the method of inspection the
    Government will use, reports required, and
    Government resources to be employed.

56
5. Decide how to measure and manage performance
  • PURPOSE OF THE QASP
  • Does Contract Performance
  • equal or exceed the
  • Contract Requirements as listed in the
    Performance Requirements Summary (PRS)?

57
5. Decide how to measure and manage performance
  • The Quality Assurance Surveillance Plan (QASP)
    is a Government developed document
  • The document outlines what methods to follow in
    determining if the contractors is meeting the
    requirements of the Contract

58
5. Decide how to measure and manage performance
  • The QASP details how and when the Government
    will survey, observe, test, sample, evaluate, and
    document contractor performance
  • The QASP focuses on the quality, quantity,
    timeliness, etc. of the performance outputs

59
6. Select the Right Contractor
  • Your ability to select the right contractor
    comes from the evaluation of their technical
    proposal.
  • The technical proposal is written in accordance
    with the instructions listed in Section L of the
    RFP.

60
6. Select the Right Contractor
  • If the statement of work includes a specific
    task, and the contractor is not asked to discuss
    their experience in performing that task in
    Section L, then there is no way to properly
    evaluate the contractor.

61
6. Select the Right Contractor
  • Also, ensure that the individuals selected to
    serve on the Source Selection Evaluation Team
    have direct hands-on experience with the work
    that is being evaluated.

62
7. Manage Performance
  • The COTR and the Quality Assurance Surveillance
    Plan (QASP) are critical component to managing
    contractor performance. You can only be as good
    as the weakest link, oknow how do we do that?
  • TOMORROW (DAY 2) we will focus on how to manage
    performance as contracted
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