Breakout Session # 1505 Lori Woolf, Booz Allen Hamilton Tory Kauffman, Esq., Booz Allen Hamilton

2. Statement of Objectives:A Valuable Tool that is Often Misused and Abused Breakout Session # 1505 Lori Woolf, Booz Allen Hamilton Tory Kauffman, Esq., Booz Allen Hamilton Date April 11, 2005 Time 1:30 – 2:30 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

3. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

4. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

5. Introduction – Relevant Definitions • Performance Based Acquisitions (PBA) • An acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed. (FAR 2.101) • Statement of Objectives (SOO): • States the Government’s overall performance objectives • Used in solicitations • Provides maximum flexibility to offerors to provide an innovative approach. (FAR 2.101) • Performance WorkStatement (PWS) • May be prepared by the Government or result from an offeror’s response to a SOO (FAR 37.602) • Describes the required results in clear, specific and objective terms with measurable outcomes (FAR 2.101) NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

6. Introduction – Relevant Definitions (cont’d) • Statement of Work (SOW) • Provides in clear understandable terms the work to be done • Defines the requirements (specific work tasks) • Includes a scope statement (breadth and limitations of the work to include performance period) • Identifies applicable documents (instructions, regulations, policy letters, etc.) • Quality Assurance Surveillance Plan(QASP) • The Government’s inspection plan • Documents methods used to measure performance of the service provider against the requirements and performance standards in the PWS NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

7. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

8. Myths Regarding the Use of SOOs • Myth: Using a SOO significantly reduces the planning burden of the Government • Fact: Using a SOO is not a “shortcut.” If SOO preparation is done properly, it requires no less effort than writing a SOW or PWS. • Myth: If you use a SOO, it replaces the SOW or PWS • Fact: FAR 37.602 (c) states “the SOO does not become part of the contract.” The SOO provides guidance to the Offeror as to the Government’s requirement and requires the Offeror to develop the SOW or PWS. • Myth: SOOs only need to be “high level” • Fact: SOOs need to be written specifically enough that vendors are able to propose a solution (PWS) in response. Specific requirements such as Security or IT infrastructure, must be identified if they will have a direct impact on the Offeror’s proposed solution. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

9. Myths Regarding the Use of SOOs (cont’d.) • Myth: SOOs can’t exceed 5 pages • Fact: There is no established page limitation for a SOO. As with any well written document, it should be concisely worded. • Myth: Using a SOO makes a source selection much easier • Fact: When it uses a SOO, the Government must evaluate and negotiate the PWS submitted by each offeror. This can result in a more complex evaluation. However, the overall benefit of using a SOO is that the Government can consider many innovative solutions that meet the Government’s objectives. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

10. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

11. Best Practices for Using SOOs SOO Planning • Have Executive Leadership • Someone who has the ability to assess and influence • Conduit to external environment • Someone who is willing to be innovative and not adverse to facing criticism • Ensure culture supports the spirit of partnership • Be prepared to articulate how innovative approaches are consistent with your organization’s values and mission • Be prepared to face resistance and be able to address each situation • Do the planning up front • Collectively identify what you organization wants – what is your expected end result? • Conduct the Market Research • Engage industry • Issue a draft solicitation to ensure that industry understands the requirements (questions can lead to important clarifications in the SOO which can increase the likelihood of a successful contract) • Allow industry sufficient time to understand the requirements which will encourage more offerors to submit proposals NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

12. Best Practices for Using SOOs – (cont’d) • Garner a partnership with Industry and all stakeholders and encourage teamwork • Focus on outcomes and communications to solve problems as they emerge • Conduct a due diligence of the industry partner • Knowledge of partner breeds trust • Allow sufficient time to allow all parties to understand the situation • Define Roles and Responsibilities • Ensure that everyone knows what each others role and responsibilities are • Ensure clear lines of communication that are open and honest • Contract should have a clearly defined mechanism for resolving disputes • Using mediation or other alternative dispute resolving mechanisms can save time and is less expensive than litigation • Resolution mechanism should be designed to improve the relationship between parties NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

13. Best Practices for Using SOOs (cont’d) SOO Writing • Agencies should use a SOO when the Government wishes to place the reliance on private industry to solve its problem • The SOO should marry to the objectives stated in agency strategic performance and business plans, and budget and investment documents • The SOO must, at a minimum, contain: • Purpose; • Scope or mission; • Period and place of performance; • Background; • Performance objectives, i.e., required results; and • Any operating constraints, e.g., security requirements. (FAR 37.602 (c)) NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

14. Best Practices for Using SOOs – (cont’d) SOO as Part of the Solicitation • A SOO is only used in a solicitation (typically as an attachment to Part J or annexed to Section L); the resulting contract must contain a PWS (FAR 37.602(c)) • When a solicitation uses a SOO, also require offerors to submit a proposed quality assurance surveillance plan (QASP) along with its PWS (FAR 37.603(b), FAR 37.604) • Nothing in the FAR requires that the QASP be incorporated in the contract • Section L (Instructions to Offerors) of the RFP must include instructions to the offerors that require using the SOO to develop and submit a PWS • Section M (Evaluation Factors for Award) should include criteria to evaluate the offeror’s ability to successfully achieve the SOO’s objectives; ensure a sound technical approach is proposed; and verify that all requirements can be met NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

15. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

16. Walkthrough of a SOO Overview Background Vision/Goal Scope NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

17. Walkthrough of a SOO (cont’d) Government - Contractor Interaction Performance Objectives NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

18. Walkthrough of a SOO(cont’d) Objectives include transition at the end of the contract NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

19. Walkthrough of a SOO(cont’d) Constraints Budgetary Constraints FOIA Constraints NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

20. Walkthrough of a SOO (cont’d) Network Constraints IA Constraints NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

21. Walkthrough of a SOO(cont’d) Information Security Constraints Physical Security Constraints NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

22. Walkthrough of a SOO (cont’d) IT Constraints Logistics Constraints NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

23. Walkthrough of a SOO (cont’d) Future Constraints Performance Objective Key Stakeholders NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

24. Overview • Introduction • Myths Regarding the Use of SOOs • Best Practices for Using SOOs • Walkthrough of a SOO • Conclusion • Questions NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

25. Conclusion • When used properly, a SOO can be an effective tool that enables private industry to propose innovative solutions to the Government in a performance-based environment. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

26. QUESTIONS? NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management