1 / 31

Performance Based Acquisitions

TRICARE Management Activity. HEALTH AFFAIRS. Performance Based Acquisitions. Presented by: Alex Graham TMA Acquisitions Management and Support (AM&S) Contract Operations Division-Falls Church(COD-FC) Acquisition Manager and Daniel Signore USAMRAA - Contracting Officer. Agenda.

rock
Download Presentation

Performance Based Acquisitions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TRICARE Management Activity HEALTH AFFAIRS Performance Based Acquisitions Presented by: Alex Graham TMA Acquisitions Management and Support (AM&S) Contract Operations Division-Falls Church(COD-FC) Acquisition Manager and Daniel Signore USAMRAA - Contracting Officer

  2. Agenda • Overview • Federal PBA Requirements and Exclusions • Performance Based Terminology • PBA Objectives and Approach • Developing a PBA Performance Work Statement • Quality Assurance Surveillance Plan • Incentives and Remedies

  3. Performance Based Acquisition Performance Based Acquisition (PBA) is a mechanism applied to the acquisition of services and supplies. It involves strategies, methods, and techniques that describe and communicate measurable outcomes rather than direct performance processes. It is structured around defining a requirement in terms of performance objectives and providing contractors the latitude to determine how to meet those objectives. Simply put, it is a method for acquiring what is required and placing the responsibility for how it is accomplished on the contractor. Overview NOTE: All aspects of an acquisition are structured around the purpose of the work to be performed rather than how the work is to be performed

  4. Federal Requirements FAR Part 37.6 Requires Performance Based Acquisitions to: • Describe requirements in terms of results required rather than the methods of performance • Use measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) • Establish a method of assessing contractor performance against performance standards • Use performance incentives where appropriate • Use quality assurance surveillance plans USD AT&L memo (September 6, 2006) Performance Based Acquisition (PBA) retains a goal of using PBA for at least 50 percent of eligible service actions over $25,000 (measured in dollars awarded).

  5. PBA Exclusions • Service areas excluded from the requirement to use BPA • Architect-engineering services • Construction • Utility Services  • Services that are incidental to supply purchases • Service areas excluded from assessment of PBA activity • Research and Development (R&D) • Professional Medical Services • Tuition, Registration and Membership Fees • Leaseholds for buildings • Entitlement payments

  6. Performance Based Terminology • OFPP Policy Letter 91-2 established government-wide policies for acquisition of services. • Established a preference for performance based statements of work (PBSOW) • Prior to February 2000, this was referred to as Performance Based Service Contracting (PBSC) • In February of 2000 the terminology changed to Performance Based Services Acquisition (PBSC) • In February 2006 the terminology changed once again to Performance Based Acquisition (PBA) • Solicitations use either • A Performance Work Statement (PWS), or • Statement of Objective (SOO)

  7. Performance Work Statement (PWS) • The Government defines tasks and associated performance metrics, and the Offeror responds with a technical and price/cost proposal • Used when: • The Government has specific tasks and deliverables to be achieved, yet multiple acceptable solutions exist • Advantages: • Gives the Government a greater role in framing the requirement and selecting the best fit solution from Offerors’ proposals • Establishes a means of measuring results • The Government should realize increased performance and efficiency

  8. Objectives of Using PBA • Maximize Performance • Maximize Competition and Innovation • Encourage and Promote the use of Commercial Services • Shift in Risk • Achieve Savings

  9. PBA Approach • Determine objectives, tasks and acceptable outcomes • Use a team approach • Conduct market research • Plan for contract administration

  10. The PBA Team • Customer/User • Technical Specialist/Project Manager • Contracting Officer/Contract Specialist • Cost/Price Analyst • Performance Assessment Personnel • Small and Disadvantaged Business Utilization Specialist • Finance/Budget Officer • Legal Advisor

  11. Market Research Market research is the process of collecting and analyzing information on commercial capabilities, processes, pricing, incentives, warranties, and delivery, and other standard terms and conditions. This information is needed in order to determine the suitability of the marketplace for satisfying a need or a requirement. Why conduct market research for a PBA requirement?

  12. Ingredients For a PBA Requirement • PERFORMANCE WORK STATEMENT (PWS) – Through the development of performance outcomes, performance objectives, and performance standards/acceptable quality levels, the PWS is created. The PWS describes the requirement in terms of measurable standards rather than by means of prescriptive methods. • QUALITY ASSURANCE SURVEILLANCE PLAN(QASP) – Describes how contractor performance will be measured and assessed against the performance standards. • INCENTIVES AND REMEDIES – Incentives are used to encourage performance that will exceed performance standards. They motivate high-quality performance. Remedies are procedures employed to manage performance that does not meet performance standards. Incentives and remedies are not an essential element for every PBA requirement. These are usually employed when an acquisition is critical to agency mission or requires a large expenditure of funds.

  13. Developing a PBA PWS With Measurable Performance Standards Key thing to remember … Describe requirements as outcomes, not in terms of how to accomplish the requirement.

  14. Developing a PBA PWS Performance Requirements Analysis • 1. Define the desired outcomes – What must be • accomplished to satisfy the requirement? • Outcome Example: • Provide custodial services for the four-building “Bio-Defense Complex” located at Fort Detrick, Frederick Maryland.

  15. Developing a PBA PWS Performance Requirements Analysis (continued) 2. Conduct an outcome analysis to identify performance objectives – What tasks must be accomplished to arrive at the desired outcomes? Performance Objectives Samples: Provide an array of custodial services to the: - Faculty Office Building (52 offices) - Research Laboratory (26 lab stations) - Human Resource Building (20 offices) - Harold Hoffman Hospital (a full services, 100-bed facility)

  16. Developing a PBA PWS Performance Requirements Analysis (continued) • 3. Conduct a performance analysis to identify the appropriate • performance standards and acceptable quality levels • – When or how will I know that the outcome has been • achieved and how much deviation from the standard will I • allow, If any? • Performance standards must be measurable in terms of quality, timelines, quantity, etc.

  17. Developing a PBA PWS Acceptable Quality Limits (AQL) • Restrooms in all buildings shall be cleaned daily. • Administrative portions of all buildings shall be cleaned on a Monday, Wednesday, and Friday basis and shall be completed by 1:00 p.m. on each of those days. • Research Lab shall be cleaned in a manner that satisfies the requirements of DoD Manual 165, “Good Laboratory Practices-Lab Cleanliness.” The permissible error rate is not more than three violations per calendar quarter. • Patient care areas (hospital rooms, surgical suites, diagnostic suites, and medical testing areas) shall be cleaned daily between 1:00 a.m. – 6:00 a.m. The entire hospital shall be cleaned to the satisfaction of the requirements contained in the 2006 edition of “The Joint Accreditation Council for Hospital Cleanliness.” An accuracy rate of 99% per six-month period must be achieved.

  18. Developing a PBA PWS Performance Requirements Analysis (continued) • Manpower requirements and labor categories descriptions • Historical and projected workload data

  19. Developing a PBA PWS Performance Requirements Summary Outcomes + Objectives + Standards/AQLs = PRS The PRS is the baseline for performance work statement development

  20. PBA PWS Performance Requirements Summary • AM&S COD-FC ’s PWS templates include a Performance Requirements Summary Matrix • This matrix outlines the Government’s performance requirements for each procurement

  21. Developing a PBA PWS Review Considerations • Will offerors be able to prepare a sound technical proposal? • Will offerors be able to prepare a sound cost proposal? • Are standards clearly identified so they measure performance? • Are proper quantities and delivery dates articulated? • Are referenced documents properly described and cited?

  22. Quality Assurance Surveillance Plan • The Quality Assurance Surveillance Plan (QASP) is a key tool to help the Government attain its contract surveillance goals • The QASP is a document that provides a systematic, structured process for the Government to evaluate services that contractors are required to furnish. • Serves as a mechanism to assess and assure contract compliance • Details how and when the Government will observe, test/sample, evaluate, and document contractor performance.

  23. Why is a QASP Important? • The FAR directs that the Government shall perform quality assurance at such times as may be necessary to determine that supplies or services conform to contract requirements. (FAR 46.4) • Recent DoD IG report cited the lack of QASP as a major factor contributing to insufficient oversight of DoD service contracts (D-2006-010, Oct 2005), and • Contracting offices supporting TMA (such as USAMRAA) require a QASP to be developed by the Requiring Activity as a key acquisition planning step

  24. How is a QASP Used? • The COR uses the QASP as a planning and communication tool • The QASP spells out methods and metrics to insure consistency and objectivity in the surveillance process • The QASP supports systematic collection and documentation of contractor performance information • Support for performance appraisals • Input on award fees, incentives, and penalties • When shared with the contractor, the QASP can serve as a communication tool, allowing both COR and contractor to focus on what is most important to the Government • The QASP is not required to be incorporated into the contract.

  25. Preparation of the QASP • The activity responsible for technical requirements is also responsible for preparing the QASP. (FAR 46.103) • The Government may either: • Prepare the QASP entirely on its own, or • Require each offeror to submit a proposed QASP, for consideration in development of the Government’s QASP. (FAR 37.604) • Either way, the Government has the final say. • The QASP may be completed in two stages to insure it captures all of the quality measures in the final contract.

  26. Preparation of the QASP (cont.) • IAW FAR 46.401, the QASP should be prepared in conjunction with the preparation of the statement of work, and should specify: • All work requiring surveillance, and • The method of surveillance • The QASP and the PWS are two separate documents • However, the QASP includes a portion of the PWS (i.e. the Performance Standards Summary Matrix). • AM&S COD-FC has developed a QASP Template, available in paragraph 3.10.6.1 of the Desk Top Reference • The Government may review and revise the QASP, consistent with the terms of the contract.

  27. Performance Incentives • The key to PBSC is to encourage the Contractor to meet or exceed the Government’s requirements. • The incentive plan should include positive and negative incentives • Incentives should be tied to key objectives • All objectives do not have to be tied to incentives • The importance of the task should be commensurate with the amount of incentive applied

  28. Performance Incentives (cont.) • There are two types of incentives: • Non-Monetary • Award Term • Past Performance • Monetary • Award Fee • Incentive Fee

  29. Remedies • Remedies are applied when services are not performed or do not meet contract requirements. • Types of Remedies • Reduction in price • Reduction in profit/fee • Re-Performance at no additional cost • Increased surveillance • Increased contractor reporting

  30. Statement of Objective (SOO) • The Government outlines high level programmatic objectives and requires Offerors to propose solutions, as well as cost/price • SOO does not become part of the contract • Offerors respond with a PWS (including performance standards/measures), technical proposal, as well as a cost/price proposal • Used when: • The Government is seeking creative and innovative solutions • Advantages: • Industry may have cost saving approaches that the Government has not considered • Allows the Government to select the best fit solution from Offerors’ proposals • The Government should realize increased performance and efficiency

  31. Questions AM&S COD-FC Web-site: http://tricare.mil/tma/ams/ Desk Top Reference: http://tricare.mil/tma/ams/ams_desktop.aspx Acquisition Tools and Guides: http://tricare.mil/tma/ams/ams_acqguides.aspx

More Related