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Breakout Session # 1410 Gregg Mossburg, Vice President, CGI Phil McKinney, Philip L. McKinney, LLC April 16, 2008 1:30-

Performance Based Contracting: Using Innovative Practices to Get What You Really Want. Breakout Session # 1410 Gregg Mossburg, Vice President, CGI Phil McKinney, Philip L. McKinney, LLC April 16, 2008 1:30-2:30 p.m. Agenda. Session Objectives and Context Requirements and Proposal Stage

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Breakout Session # 1410 Gregg Mossburg, Vice President, CGI Phil McKinney, Philip L. McKinney, LLC April 16, 2008 1:30-

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  1. Performance Based Contracting:Using Innovative Practices to Get What You Really Want Breakout Session # 1410 Gregg Mossburg, Vice President, CGI Phil McKinney, Philip L. McKinney, LLC April 16, 2008 1:30-2:30 p.m.

  2. Agenda • Session Objectives and Context • Requirements and Proposal Stage • Evaluation Stage • Management and Delivery Stage

  3. Session Objectives • Use collaboration to develop performance objectives that actually measure the outcomes you want to achieve • Use lessons learned from other organizations to avoid common pitfalls • Effectively manage projects to deliver target outcomes from cradle to grave

  4. Session Context • Gregg Mossburg – representing industry’s perspectives • Phil McKinney – representing government’s perspective • Discussion will explore Performance Based Contracting from both angles

  5. The Challenge Government & Industry often do not see eye to eye on the creation, negotiation, and delivery of performance based contracts Industry Government

  6. The Goal Help align government and industry by discussing perspectives from both sides of the “negotiating table” during major stages of the contracting process • Requirements and Proposal Stage • Evaluation Stage • Management and Delivery Stage Industry Government

  7. Requirements and Proposal StageObjectives At a high level, objectives are clear Government wants to create an RFX that… Industry wants to create a proposal that… Generates competition Is fair and open Clearly defines desired outcomes Communicates risk tolerance Differentiates us Is clear and concise Links results to value/price Defines and bounds risk

  8. What is the right balance of describing my solution vs. describing how I am going to accomplish the task? Does this opportunity allow me to be creative in my solution, or only offer a commodity? How can I accept the required measurements when the ‘how’ of my solution is not aligned with them? How do I ask for the ‘right’ solution when I don’t have a complete understanding of what is possible in the market? How do I give control to industry, yet remain comfortable being accountable for results? How do I create measure-able and mission related objectives? Requirements and Proposal StageChallenges However, we each face challenges Government is thinking… Industry is thinking…

  9. Requirements and Proposal StageLessons learned/recommendations • Get input while you can – pre-RFP activities • Maintain control through standards • Measure what matters - don’t create an administrative nightmare

  10. Evaluation StageObjectives At a high level, objectives are clear Government wants an evaluation process that… Industry wants an evaluation process that… Selects best value option Is objective and quantifiable Poses the least amount of risk to its organization Emphasizes value over price Considers unique capabilities Allows flexibility in delivery

  11. How do I assist the government in understanding our value proposition? Did we provide items we knew they needed but were not asked for? Did we assume to much information was common knowledge? How do I compare multiple, different approaches to my requirement? What criteria do I use to select the best value when the proposed solutions are so different? How do I make sure that the vendor understands my business Evaluation StageChallenges However, we each face challenges Government is thinking… Industry is thinking…

  12. Evaluation StageLessons learned/recommendations • Compare solutions through a ‘Bake Off’ • Elevate priority of past performance and key personnel • Focus on linking solution to objectives

  13. Management and Delivery StageObjectives At a high level, objectives are clear Government wants to… Industry wants to… Accomplish objectives/value Stay within budget and schedule Gain trusted partner Understand and manage risk Accomplish objectives/value Achieve profit objectives Gain a reference/advocate Proactively mitigate risks

  14. How do I ensure that senior management support endures? How do I streamline my delivery and administrative processes over time? Do I have the ability to offer proposals for increased value (above and beyond agreed to scope)? How do I make sure industry has a clear understanding of my organization and goals? How do I adapt my management process to changing requirements How do I maintain a focus on my mission while I transition my operations to fit the performance based model? Management and Delivery StageChallenges However, we each face challenges Government is thinking… Industry is thinking…

  15. Management and Delivery StageLessons learned/recommendations • Build relationship at all levels • Emphasize the ‘Team’ approach • Communicate, communicate, communicate

  16. Questions?

  17. Contact Information • Gregg Mossburg, Vice President CGI Federal gregg.mossburg@cgifederal.com • Phil McKinney Philip L. McKinney, LLC mckinnpl@aol.com

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