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Training & Management Assistance Branch. Performance-Based Acquisition (PBA) in the TMA Environment. Report Tile. UNITED STATES OFFICE OF PERSONNEL MANAGEMENT . TMA on the PBA Continuum. TMA’s traditional fixed-price practices are based on the principles of PBA

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  1. Training & Management Assistance Branch Performance-Based Acquisition (PBA) in the TMA Environment Report Tile UNITED STATES OFFICE OF PERSONNEL MANAGEMENT

  2. TMA on the PBA Continuum • TMA’s traditional fixed-price practices are based on the principles of PBA • TMA’s new language and guidance are intended to implement additional aspects of PBA, as defined in the Federal Acquisition Regulations (FAR) • Need open communication as this evolves

  3. It’s in the FAR • “Performance-based acquisition (PBA)” means an acquisition structured around the results to be achieved, as opposed to the manner by which the work is to be performed • “Performance Work Statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results in clear, specific, and objective terms with measurable outcomes

  4. FAR 37.102 -- Policy • Performance-based acquisition is the preferred method for acquiring services • When acquiring services, agencies must use performance-based acquisition methods to the maximum extent practicable • Firm-fixed price, performance-based takes precedence – this is TMA’s established practice

  5. Subpart 37.6Performance-Based Acquisition Performance-based contracts for services include: Performance work statement (PWS) prepared by the Government or results from a Statement of Objectives (SOO) prepared by the Government where the offeror proposes the PWS. PWS = TMA Management Plan

  6. Subpart 37.602Performance-Based Acquisitions • Describes work in terms of required results rather than “how” the work is to be accomplished or the hours to be provided (deliverables as opposed to methods or hours) • Assesses performance against measurable standards • Relies on measurable standards and incentives to encourage innovative, cost-effective methods

  7. Performance Standards Go in the Management Plan • Performance standards establish the performance level required by the Government to meet requirements • Standards shall be measurable and structured to permit assessment of performance FAR 37.603  PerformanceStandards

  8. Your TMA Contract: Sample PRS* * Each task order will contain a Performance Requirements Summary (PRS) similar to the one contained herein, which will be negotiated and agreed upon by the OPM/TMA Project Manager, client agency, and the contractor.

  9. It’s in the FAR - Performance Incentives • Firm-fixed-price is not subject to adjustment based the contractor’s cost to perform the work • Places maximum risk and full responsibility for all costs and resulting profit or loss upon the contractor • Provides maximum incentive for contractors to control costs and perform effectively • Minimizes administrative burden for all FAR 16.202  PerformanceIncentives

  10. TMA Philosophy - Performance Incentives • Contracting officer may use firm-fixed-price in conjunction with award-fee incentive and performance or delivery incentives • Contract remains firm-fixed-price OPM/TMA does NOT anticipate using award fees, or performance or delivery incentives unless SPECIFICALLY required by a client If that happens, OPM will supply guidance

  11. TMA Reality – Role of Performance Incentives Incentives in TMA are: • Cash flow • Follow-on work • More invitations to Task Order Competitions • Option year award • Past performance references

  12. TMA Reality – Role of Performance Incentives Disincentives in TMA are: • Slower payment (because of late delivery) • Having to “fix it for free” • Removal from the task for poor performance • No follow-on work • Fewer invitations to Task Order Competitions • No option year renewal

  13. TMA Philosophy • Surveillance is inherently a Governmental role • TMA’s Quality Assurance Surveillance Plan (QASP) includes: • Quality of TOC performance • Quality of Project Management • Quality of Administrative performance • Periodic Client and PM surveys

  14. The Bottom Line • TMA is inherently performance-based • TMA’s performance-based language is evolving • PBA helps ensure: • Maximum client satisfaction • High performance, efficiency, and profitability • Continued success under the TMA vehicle • We need open communication as this evolves …

  15. Questions?

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