Power Point Template

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Performance Based Service Contracting,
Streamlined with AbilityOne
Breakout Session 1608 Dave Theimer Assistant
VP, Marketing NISH Date 4/16/2008 Time 940am
1040am
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Back to the Beginning

• Public Law
• Wagner-ODay Act of 1938 for NIB
• Javits Amendment of 1971 added People with
  Disabilities
• Javits-Wagner-ODay Act (41 U.S.C. 46-48c)
• Implemented through 41 CFR Chapter 51 and FAR
  Subpart 8.7
• Committee for Purchase from People Who Are Blind
  or Severely Disabled (15 Members)

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JWOD/AbilityOne Updates

• The Javits-Wagner-ODay Program will now be
  called AbilityOne
• Will refer to AbilityOne (formerly the
  Javits-Wagner-ODay Program) over the next 18
  months to allow for a smooth transition.
• New name will increase awareness and better
  communicate the mission and program identity.

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AbilityOne Organization
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Members of the Committee
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Committee Responsibilities

• Oversee central nonprofit agencies (NISH NIB)
• Qualify non-profit agencies (NPAs)
• Determine Suitability of Projects Impact
• Sets the Fair Market Price
• Administer priority program
• Control the Procurement List
• Establish/Enforce Rules Regulations under The
  Law

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So What is NISH?

• Central Nonprofit Agency
• NISH Mission
• Create Job Opportunities for Persons with Severe
  Disabilities.
• Funded by program fee based on sale of products
  and services.

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AbilityOne is Smart Business

• Quality Services Products
• Fair Market Prices
• Long Term Partnerships/Relationships
• Ease of Contract Award and Administration
• In Step with Acquisition Streamlining
• Break to Taxpayers (Convert Tax Users Into
  Taxpayers)
• Reduced Entitlements
• New Taxpayers

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Market Pricing - Services

• Committee for Purchase Established Price
• Pricing Memorandum No. 3 Guideline
• Need Contracting Officer Concurrence
• Price Recommendation is Negotiable!
• Market-Based//Evaluate by Price Analysis
• Simplified Acquisition
• NISH Pricing Support to Contracting Officer
• Limited DCAA Involvement
• Simplified Annual Renewals

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Program Management Support

• NISH assist with SOW/PWS
• PBSA Training Implementation
• Price to Budget (Design-to-Cost)
• NISH Contract Management Support (FAR Part42)
• Effective Teaming
• Full Open Discussions
• Mission Focused Service Providers
• No Cost No Obligation Proposals
• Provide innovative, timely and cost effective
  acquisition/business solutions for the Federal
  Government.

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The Contracting Officers Guide to the
Procurement List Addition Process

1. Develop/define the requirement
2. Contact the regional NISH office
3. Determine if NISH and their Community
   Rehabilitation Program (CRP) business partners
   possess the capability
4. Complete Statement of Work (SOW) and send to the
   NISH project manager (NISH can will assist in
   writing the SOW)
5. Receive the no-obligation price proposal from
   the NISH project manager
6. Negotiate the proposal, sign the concurrence
   letter, send to NISH
7. Stay in Touch with the NISH Project Manager to
   monitor the procurement list addition
   process/progress

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NISH Organization


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Traditional AbilityOne Services

• Custodial
• Food Service
• Grounds Maintenance
• Postal Service Centers
• Switchboard Operators

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New Services

• Off-Site Telecommuting Capabilities
• Central Facility Management
• Document Conversion Management
• Printing Services
• Linen Rental Service (Product and Service)
• Family Housing Maintenance
• Call Centers
• Wheeled Vehicle Maintenance
• (FORT LEWIS)
• Nationwide/Agencywide Arrangements
• State Department - Passports
• INS - Visas
• Marine Corps - Food Service

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Results of Recent Studies
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AbilityOne Approach to Performance-Based
Contracting
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Performance-Based Contracting

• A PBSC is structured around the purpose of the
  work as opposed to the manner in which it is to
  be performed
• Focus is on measuring the output of a
  contractors effort rather than on managing those
  efforts

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PBSC and FAR 37.601

• Performance-based contracts-
• Describe the requirements in terms of the results
  required rather than the methods of performance
• Use measurable performance standards (i.e. terms
  of quality, timeliness, quantity)
• Specify procedures for reductions to price when
  services are not performed, and
• Include performance incentives where appropriate

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NISH PBSC

• Since most NISH Service contracts are PBSC, NISH
  has developed extensive experience in performance
  based service contracting

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Prescriptive SOW

• 5.3.4 The contractor shall vacuum the rug in Room
  12 daily, as follows
• 5.3.4.1 Move all tables and chairs to the stage
  on the North side of the room
• 5.3.4.2 use a commercial vacuum cleaner
  (HooverType31C or equal) to vacuum the rug. Check
  to see that the bag does not need replacement.
  Use two passes in each direction with 3 inch
  overlaps, to insure entire rug surface has been
  vacuumed.

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Prescriptive SOW

• 5.3.4.2 Use a hand vacuum (Electrolux Type 16 or
  equal) with a 4 inch wand extension to vacuum
  corners and recessed areas not reached by the
  commercial vacuum cleaner.
• 5.3.4.3 After vacuuming, replace all tables and
  chairs in their original positions.
• 5.3.4.4 Note any spills, spots, etc. for
  treatment.
• 5.3.4.5 Store vacuum cleaning equipment in
  Closet 12A after use.

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Performance Based PWS

• 5.3.4. Vacuum the rug in Room 12 to remove all
  visible traces of fuzz, lint, and other foreign
  materials.

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Six Components of a PBSC

• Performance Work Statement (PWS)
• Performance Indicators and Standards
• Performance Requirements Summary (PRS)
• Acceptable Quality Level (AQL)
• Performance Plan (Formerly the QASP)
• Appropriate Incentives

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1. Performance Work Statement (PWS)

• The PWS describes the requirements that the
  contractor must meet in performance of the
  contract
• Usually a brief statement of the result required
• Key is include adequate requirement statements
  without excess detail or how to

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PWS and the WBS(Work Breakdown Structure)

• Outputs are clearly identified
• Inputs are clearly defined
• WBS is required for work analysis
• WBS is required for the proposal
• WBS is required for pricing

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Performance Work Statement (PWS)

• The WBS is used to give a framework for
  developing the requirements of a PWS
• PWS lists the performance requirements of the
  contract
• It will guide the contractor and the Government
  throughout the life of the contract

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2. Performance Indicators and Standards

• An indicator is an essential characteristic of
  acceptable performance
• A standard is a definite level or degree of
  quality against which performance can be measured
• This information must be provided in the PWS and
  in the PRS (if separate) and reflected in the
  Performance Plan

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Common AbilityOne Quality Indicators

• Workmanship
• Timeliness
• Accuracy
• Conformance
• Customer Satisfaction

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Objective, Measurable Standards Are Key to PBSC

• Complete task in 30 minutes
• 275 to 300 Meals served between 12-1
• Maintain grass between 3 and 5 on improved
  areas

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Try to make Subjective standards Common Sense
Standards

• After sweeping, there shall be no visible dirt,
  trash, or foreign matter.
• Door Glass will be clean if there is no visible
  dirt, smudges, or fingerprints
• Standard must be workable both to contractor and
  to COTR/QAE

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3. Performance Requirements Summary

• The PRS is a summary of the tasks or
  deliverables, the performance standards, the AQL,
  and the quality assurance surveillance methods to
  be used, and incentives to the contractor
• May not be stated separately

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4. The AQL

• The AQL is the degree to which the Government
  will allow performance to vary from the standard
• Absolute standards, zero defects, are possible
  but expensive
• For each requirement or task, there must be an
  AQL
• Establish reasonable AQLs be realistic, ask
  what is acceptable

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5. The Performance Plan (Old Quality Assurance
Surveillance Plan (QASP)

• The Perf Plan outlines the methodology to monitor
  the performance against the standards in the PWS
• Written by the Government for the QAE or COTR
• May be shared with the contractor (except for
  sampling plan) but not included in contract

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6. Appropriate Incentives

• Incentives may be positive or negative, monetary
  or non-monetary but must be included and should
  be effective
• The level of incentive should relate directly to
  the value of the outcome (AQL)
• The AQL can be used to dial in the appropriate
  level of performance at the budgeted cost

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But dont forget the QCP

• Your Quality Control Plan, written based on the
  PWS and the QASP (provided to NISH contractors)
  detailing how YOU are going to manage to assure
  quality.
• (Approved!)

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DOs of Writing a PWS

• Use an experienced drafting team
• Exclude how-to requirements
• Use the WBS to outline the effort
• Tailor the standards
• Use commercial practices and definitions
• Use workable standards for subjective standards,
  such as clean

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Streamlining Using AbilityOne

• AbilityOne offers substantial opportunities to
  streamline the normal Federal procurement
  process
• Save staff time, effort, money
• Bring services on line quicker

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Acquisition The Federal Process
Identification of requirement or need
Acquisition planning (FAR Part 7)
Market research (FAR Part 10
Solicitation and Proposal phase (FAR Part 15)
Source selection And contract award (FAR Part 15)
Evaluation and Negotiation (FAR Part 15)

• Functions within legal/regulatory framework
  implemented by the FAR
• Involves entire acquisition team
• Balances goals of obtaining best value for the
  government and promoting competition

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Streamline Advantages

• Can go directly to a JWOD producer with a SOW
• No formal notice, no solicitation, no synopsis,
  no sources sought
• Can immediately begin negotiation. Not a
  competitive environment as used in FAR a
  directed procurement under FAR 8.7
• Can ask NISH to help with the SOW/PWS

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Buying from AbilityOne

• If the item is on the Procurement List, no
  problem just place the order citing FAR
  6.302-5, Authorize by Statute
• No requirement for publication, competition,
  etc.
• JWOD buys at the discretion of the KO if
  procurement is suitable. KO must balance
  socio-economic programs.

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Acquisition The NISH Process
Identification of requirement or need
Contract award (FAR Part 8.7)
Proposal and Negotiation (FAR Part 8.7)
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AbilityOne Is Not a Front

• Service must be suitable- i.e. can be performed
  by a NPA and can be performed by individuals with
  disabilities
• Providing the Service through JWOD cannot have
  disproportionate impact on the previous supplier
  -
• 75 of our direct labor must be by individuals
  who qualify as severely disabled

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Team Approach

• NISH will help prepare NPA proposal and costing
  package
• NISH will support the NPA with training
• NISH has blanket alliances with large clients
  such as GSA, DeCA, NAVFAC

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Follow-on, the Real Pay Off

• Once in the AbilityOne program, the procurement
  becomes a base year plus four follow on years
  (AbilityOne Options)
• Automatically renewed every five years (unless
  agency requirements change)
• If performance problems, which is rare, NISH
  helps and can select replacement NPA

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Questions

• www.jwod.gov
• Committee for Purchase
• Forms Publications
• Procurement List
• www.nish.org
• Guides for federal customers
• Training Catalog
• www.nib.org
• National Industries for the Blind