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Breakout Session # 1411 Robert F. Watts, Senior Consultant, ESI International

Buying Results Through Service Level Agreements: Best Practices in Performance- Based Acquisition. Breakout Session # 1411 Robert F. Watts, Senior Consultant, ESI International Date: April 16 Time: 2:40 – 3:40 PM. Performance Based Acquisition -- Still a Challenge.

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Breakout Session # 1411 Robert F. Watts, Senior Consultant, ESI International

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  1. Buying Results Through Service Level Agreements: Best Practices in Performance- Based Acquisition Breakout Session # 1411 Robert F. Watts, Senior Consultant, ESI International Date: April 16 Time: 2:40 – 3:40 PM

  2. Performance Based Acquisition -- Still a Challenge • Recent Acquisition Advisory Panel study determined that more than half the contracts designated as PBA in the Federal Procurement Data System-Next Generation were not performance-based

  3. It’s All About Mindset…

  4. Performance Work Statement or SOO Incentive Plan Performance Requirements Summary PBA Quality Assurance Surveillance Plan

  5. What is a Service Level Agreement (SLA)? • A performance-based technique where a written agreement is established between the customer and service provider that defines key service objectives, metrics, and acceptable quality levels (AQLs) • Primarily used in information technology (IT) procurements • Expanding into other sustainment-type services

  6. Example SLA Outline Equivalent to PWS/SOO and Performance Requirements Summary • Service Level Agreement • (Title of Agreement) • 1.0 Introduction • 1.1 Statement of Need • 1.2 Background • 2.0 Service Objectives • 4.0 Service Level Metrics/AQLs • 3.0 Applicable Directives • 3.1 Compliance • 3.2 Reference • 4.0 Constraints and Assumptions • 5.0 Data Deliverables • 6.0 Government Furnished Property (GFP)

  7. Service Objectives Example Do what? Provide, implement, operate and maintain a fully-functional, reliable Service Desk… Service Desk ….for successfully recording, triaging, troubleshooting and resolving/ redirecting customer support requirements and ensuring minimum user downtime. To accomplish what?

  8. Service Level Metrics/AQLs

  9. Service Level Metrics: Possible Areas to Measure

  10. What is the QASP? • An internal plan used by the customer that describes the performance monitoring methods they will use to evaluate the contractor’s progress and success in meeting service level metrics and AQLs contained in the SLA

  11. Some Techniques to Monitor Contractor Performance Example Performance Monitoring Approaches 100% inspection Random sampling Automated Reporting Customer surveys On-site spot checks

  12. Contractor Monitoring (Example)

  13. Automated Email Survey

  14. Incentive Plan • Rewards and/or penalties assessed against the contractor based on their success in achieving service level metrics and AQLs in the SLA

  15. Possible Incentive Structures

  16. Some Best Practices in Developing SLAs • Keep it simple! • Look at the overall mission and develop a small set of key service level metrics—find things that are measurable, meaningful and have real impact on the bottom line • Stay focused on mission success and customer satisfaction • Leave measuring of activities and processes to the contractor • Manage AQL expectations – be realistic • The closer to 100% perfection you require, then the higher the price -- be practical and realistic • Performance standards cannot exist in a vacuum; there must be a forum for discussion and negotiation

  17. Case Study Chicago adjusts on the fly to make its contract perform

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