320 likes | 484 Views
. Service Acquisition Process. Plan. Develop. Execute. Overview. To reach this point you've:Completed an extensive Planning phase Developed performance requirements that reflect mission requirements with clear performance objectives and measureable standards Developed an acquisition strategy designed to deliver long term performance resultsNOW you're ready to: Execute the StrategyManage Performance.
E N D
1. Improve your Service AcquisitionsExecution Phase Execute the Strategy and Manage for Results Lyle Eesley
Director
Center for Service Acquisition
Defense Acquisition University
2. Service Acquisition Process
3. Overview To reach this point youve:
Completed an extensive Planning phase
Developed performance requirements that reflect mission requirements with clear performance objectives and measureable standards
Developed an acquisition strategy designed to deliver long term performance results
NOW youre ready to:
Execute the Strategy
Manage Performance
4. Step Six Execute Strategy
5. DODI 5000.2 - Table 9. Acquisition of Services Categories
6. (RFP) To Draft or not to Draft, that is the question? When is it beneficial to issue a draft RFP?
When its highly desirable to get feedback from industry in order to improve the RFP
Solicits industries input concerning the what the government is asking for and how they are asking for it
Solicits feedback on the basis for the award decision
Can save time in the long run by resolving issues early before youve entered the formal source selection process
Disadvantages
Takes time and resources
7. Conduct Due Diligence Method to ensure meeting of minds between government and industry on the requirement and business arrangement
Open to all perspective offerors
Held after release of RFP and prior to receipt of proposals
Contracting Officer led teams during exchanges between industry and government 7
8. Discussions If Discussions are needed, make them meaningful
Intent is to maximize Governments ability to obtain best value based on RFP
That does not mean getting everyone to Green
9. Make the Award Award based on best value to the government
Considering evaluation factors in Section M
Comply with Agency approval and notification requirements
Debrief unsuccessful offerors
Conduct post award conference
Finalize QASP based on awarded contract 9
10. Transition to New Contract Performance Implement the transition plan
Manage transition
Communication with stakeholders during transition is extremely importance
How will you handle in your communication plan?
10
11. Step Seven Performance Management
12. 12 Crossed The Finish Line: Now What? Contract is in place!
The right contractor has been selected
Performance metrics have been finalized
Performance baseline has been finalized
Everyone takes a vacation
The baby is starting to grow up
Whats left to do?
Continuous improvement requires continuous
attention
Attention should focus on the QASP
Manage the Relationship
13. Manage PerformanceWhats Important about Step 7 Manage performance / transition from Acquisition to Supplier Management
Keep the team together and add the contractor
Assign accountability for managing contract performance
Adjust your Communication Plan to include Contractor
Evaluate effectiveness of strategy
Use the QASP to Monitor performance What gets measured gets managed.What gets measured gets managed.
14. Reasons Contracts Fail 23% said because we didnt know what to expect, either as clients or as providers
15% said because our interests diverged over time
13% said because we did not manage to the contract
11% said because we did not communicate well
In total 62% of respondents cited factors related to SUPPLIER RELATIONSHIP MANAGEMENT as the primary cause of outsourcing failure
IN CONTRAST only 8% of respondents cited that outsourcing relationships failed because of supplier performance problems23% said because we didnt know what to expect, either as clients or as providers
15% said because our interests diverged over time
13% said because we did not manage to the contract
11% said because we did not communicate well
In total 62% of respondents cited factors related to SUPPLIER RELATIONSHIP MANAGEMENT as the primary cause of outsourcing failure
IN CONTRAST only 8% of respondents cited that outsourcing relationships failed because of supplier performance problems
15. Effectively Using the QASP Communication plays a vital role in assessing performance using the QASP
Buyers and providers often manage as much or more by communication than just by measures and incentives
Dynamic environment makes good communication the key to effective performance management / quality assessment
Performance measures can be difficult to interpret without good communication
16. 16 After Contract Award shift to Performance Management Performance Management
Now the contractor becomes part of our team
Successful contract performance is the focus for both government and contractor
Use remedies if necessary
QASP describes
How the team will work together
How the team will treat data used to measure performance
How the team identifies ways to improve efficiency and reduce risk
How disputes will be resolved
17. 17 Performance Assessment Quality Assurance is the Contractors responsibility
Contractor puts their quality control plan into action
Must build Quality into the program
Government should shift from oversight to insight
Emphasis on partnering with the contractor
Relying upon, but validate the contractors quality control plan
Use contractor generated metrics to determine if performance standards are met
Eliminate government QA personnel duplicating the contractors quality control program
Limit inspections to validating the contractors metrics We want to go from the blame game to the Change Game -- Steve We want to go from the blame game to the Change Game -- Steve
18. Step 7: Getting Performance Management Right
19. Step 7: Getting Performance Management Right
20. Step 7: Getting Performance Management Right
22. Step 7: Getting Performance Management Right
24. Network Security
27. 27 Measure and Manage Performance Be fair and reasonable when things change
Dont expect the contractor to perform new requirements for free
Make sure you have the whole picture before assessing poor performance responsibility
Was the Government partly or wholly responsible
Be Proactive rather than Reactive
But keep in mind
Agencies must take care implementing this order of precedence. Be aware that a firm-fixed price contract is not the best solution for every requirement. Force fitting the contract type can actually result in much higher prices as suppliers seek to cover their risks.
This view is upheld by FAR 16.103(b) which indicates, A firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be predicted with an acceptable degree of certainty. However, when a reasonable basis for firm pricing does not exist, other contract types should be considered, and negotiations should be directed toward selecting a contract type (or combination of types) that will appropriately tie profit to supplier performance.
At one end of the contractual spectrum is the firm-fixed-price contract, under which the supplier
is fully responsible for performance costs and enjoys (or suffers) resulting profits (or losses). At the other end of the spectrum is the cost-plus-fixed-fee contract, in which allowable and allocable costs are reimbursed and the negotiated fee (profit) is fixed -- consequently, the supplier has minimal responsibility for, or incentive to control, performance costs. In between these extremes are various incentive contracts, including:
Fixed-price incentive contracts (in which final contract price and profit are calculated based on a formula that relates final negotiated cost to target cost): these may be either firm target or successive
targets.
Fixed-price contracts with award fees (used to motivate a supplier when supplier performance
cannot be measured objectively, making other incentives inappropriate).
Cost-reimbursement incentive contracts (used when fixed-price contracts are inappropriate, due to uncertainty about probable costs): these may be either cost-plus-incentive-fee or cost-plus-award-fee.Agencies must take care implementing this order of precedence. Be aware that a firm-fixed price contract is not the best solution for every requirement. Force fitting the contract type can actually result in much higher prices as suppliers seek to cover their risks.
This view is upheld by FAR 16.103(b) which indicates, A firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be predicted with an acceptable degree of certainty. However, when a reasonable basis for firm pricing does not exist, other contract types should be considered, and negotiations should be directed toward selecting a contract type (or combination of types) that will appropriately tie profit to supplier performance.
At one end of the contractual spectrum is the firm-fixed-price contract, under which the supplier
is fully responsible for performance costs and enjoys (or suffers) resulting profits (or losses). At the other end of the spectrum is the cost-plus-fixed-fee contract, in which allowable and allocable costs are reimbursed and the negotiated fee (profit) is fixed -- consequently, the supplier has minimal responsibility for, or incentive to control, performance costs. In between these extremes are various incentive contracts, including:
Fixed-price incentive contracts (in which final contract price and profit are calculated based on a formula that relates final negotiated cost to target cost): these may be either firm target or successive
targets.
Fixed-price contracts with award fees (used to motivate a supplier when supplier performance
cannot be measured objectively, making other incentives inappropriate).
Cost-reimbursement incentive contracts (used when fixed-price contracts are inappropriate, due to uncertainty about probable costs): these may be either cost-plus-incentive-fee or cost-plus-award-fee.
28. Manage the Process Analyze your strategies performance
What does the data say?
Change operating budgets to reflect efficiencies and savings or cost increases as realized
The work will change over time
Reevaluate current strategy for changes
What should be changed given new learning?
Regularly review performance with the multifunctional team
Make it a point to communicate - listen
Ask the right questions
What is going right - why?
What has the potential of going off track - and how do you avoid it? Get to the root cause!
29. When In Doubt: Communicate Dynamic environment makes good communication the key to effective performance management
Performance measures can be difficult to interpret without good communication
Communication is even more important when good measures are not available
Communication Plan and QASP are vital
Must have a plan
Communication is not happenstance
Can be either formal or informal
Start preparing early for the follow on
.. Is the acquisition achieving its cost, schedule, and performance goals?
Is the contractor meeting or exceeding the contract's performance-based requirements?
How effective is the contractor's performance in meeting or contributing to the agency's program performance goals?
Are there problems or issues that we can address to further mitigate risk?
Is the acquisition achieving its cost, schedule, and performance goals?
Is the contractor meeting or exceeding the contract's performance-based requirements?
How effective is the contractor's performance in meeting or contributing to the agency's program performance goals?
Are there problems or issues that we can address to further mitigate risk?
30. Service Acquisition Workshop - SAW
31. Service Acquisition Mall - SAM Integrates Acquisition Process and Learning assets with service type specific Knowledge
Utilizes same sourcing process contained in SAW and ACQ 265
Roadmap Assistant Tool in development
https://sam.dau.mil
32. ACQ 265 Mission Focused Services DAU Catalog course
4 Days in length
Designed for cross functional participation
Technical, contracting, CORs, PMs, etc
Walk thru all elements of the seven step sourcing process
Use local service acquisition project or USMC food service contract
33. Bottom Line
DAU is committed to developing learning assets and tools to help the acquisition workforce design and implement effective service acquisition requirements and business strategies.
How can we help you?