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Breakout Session # 514 Dave Theimer Assistant VP, Marketing NISH Date Tuesday, July 20 Time 2:30pm – 3:45pm PowerPoint Presentation
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Breakout Session # 514 Dave Theimer Assistant VP, Marketing NISH Date Tuesday, July 20 Time 2:30pm – 3:45pm - PowerPoint PPT Presentation

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Streamlining the Performance Based Service Contracting Process Through the AbilityOne Program… Putting Disabled American Vets to Work. Breakout Session # 514 Dave Theimer Assistant VP, Marketing NISH Date Tuesday, July 20 Time 2:30pm – 3:45pm. Public Law

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Streamlining the Performance Based Service Contracting Process

Through the AbilityOne Program…

Putting Disabled American Vets to Work

Breakout Session #514

Dave Theimer

Assistant VP, Marketing


Date Tuesday, July 20

Time 2:30pm – 3:45pm

back to the beginning
Public Law

Wagner-O’Day Act of 1938 for NIB

Javits Amendment of 1971 added People with Disabilities

Javits-Wagner-O’Day Act (41 U.S.C. 46-48c)

Implemented through 41 CFR Chapter 51 and FAR Subpart 8.7

Committee for Purchase from People Who Are Blind or Severely Disabled (15 Members)

Back to the Beginning…
The Javits-Wagner-O’Day Program is now called AbilityOne

New name will increase awareness and better communicate the mission and program identity.

JWOD/AbilityOne Updates

program structure
Program Structure

President of the United States















(Legal Authority)

Committee for Purchase From People Who Are Blind or Severely Disabled

Nonprofit Agencies Employing Persons Who Are Blind

Nonprofit Agencies Employing Persons With Severe Disabilities

committee responsibilities
Committee Responsibilities
  • Oversee central nonprofit agencies (NISH & NIB)
  • Qualify non-profit agencies (NPAs)
  • Determine Suitability of Projects & Impact
  • Sets the “Fair Market Price”
  • Administer priority program
  • Control the “Procurement List”
  • Establish/Enforce Rules & Regulations under “The Law”
abilityone is smart business
AbilityOne is Smart Business

Quality Services & Products

Fair Market Prices

Long Term Partnerships/Relationships

Ease of Contract Award and Administration

In Step with Acquisition Streamlining

Break to Taxpayers (Convert Tax Users Into Taxpayers)

Reduced Entitlements

New Taxpayers

market pricing services
Market Pricing - Services

Committee for Purchase Established Price

Pricing Memorandum No. 3 – Guideline

Need Contracting Officer Concurrence

Price Recommendation is Negotiable!

Market-Based//Evaluate by Price Analysis

Simplified Acquisition

NISH Pricing Support to Contracting Officer

Limited DCAA Involvement

Simplified Annual Renewals

program management support
Program Management Support

NISH assist with SOW/PWS

PBSA Training & Implementation

Price to Budget (Design-to-Cost)

NISH – Contract Management Support (FAR Part42)

Effective Teaming

Full & Open Discussions

Mission Focused Service Providers

No Cost – No Obligation Proposals

Provide innovative, timely and cost effective acquisition/business solutions for the Federal Government.

so what is nish
So… What is NISH?
  • Central Nonprofit Agency
  • NISH Mission:
      • Create Job Opportunities for Persons

with Severe Disabilities.

  • Funded by program fee based on sale
  • of products and services.
traditional abilityone services
Traditional AbilityOne Services
  • Custodial
  • Food Service
  • Grounds Maintenance
  • Postal Service Centers
  • Switchboard Operators
nish organization
NISH Organization

San Ramon, CA

Pacific West

Pacific West



  • Grounds Maintenance
  • Base Supply Stores
  • Food Services
  • Laundry Service
  • Fleet Management
  • Secure Mail/Document Imaging
  • Secure Document Destruction
  • Warehousing and Distribution
  • Contract Management Support
  • (Contract Close-out)
  • Healthcare Environmental Services
  • National Treasures Management
  • Tele Services/Call Center Ops

NISH - Meeting Today’s Needs

Traditional Lines


Innovative, Strategic Lines

“You have an extraordinarily talented team who provide the best possible customer experience to U.S. citizens.” Hilary Rodham Clinton, Secretary of State


The Contracting Officer's Guide

to the Procurement List Addition Process

  • Develop/Define the Requirement
  • Contact the AbilityOne Program
  • Determine If AbilityOne and Their Community Rehabilitation Program (CRP) Business Partners Possess the Capability
  • Determine Federal Prison and NIB Priority (products only)
  • NISH/NIB Project Manager Performs A “Preliminary” Impact Determination
    • Dun & Bradstreet Business Base Review (Opportunity Percentage of Contractor’s Business)
    • Incumbent Contractor Profile
    • 8A Contractor’s Program Status (Years To Graduation)

The Contracting Officer's Guide

to the Procurement List Addition Process

  • Complete Statement Of Work (SOW) And Send To The NISH/NIB Project Manager (NISH Can and Will Assist In Writing The SOW)
  • Receive The “No-obligation” Price Proposal From The NISH/NIB Project Manager
  • Negotiate The Proposal, Sign The Concurrence Letter, and Send To NISH/NIB
  • NISH/NIB’s Project Manager Stays in Touch with the Contracting Officer to Report on the “Procurement List Addition” Process/Progress at the Committee For Purchase
performance based contracting
Performance-Based Contracting

A PBSC is structured around the purpose of the work as opposed to the manner in which it is to be performed

Focus is on measuring the output of a contractor’s effort rather than on managing those efforts

pbsc and far 37 601
PBSC and FAR 37.601

Performance-based contracts-

Describe the requirements in terms of the results required rather than the methods of performance

Use measurable performance standards (i.e. terms of quality, timeliness, quantity)

Specify procedures for reductions to price when services are not performed, and

Include performance incentives where appropriate

nish pbsc

Since most NISH Service contracts are PBSC, NISH has developed extensive experience in performance based service contracting

prescriptive sow
Prescriptive SOW

5.3.4 The contractor shall vacuum the rug in Room 12 daily, as follows: Move all tables and chairs to the stage on the North side of the room use a commercial vacuum cleaner (HooverType31C or equal) to vacuum the rug. Check to see that the bag does not need replacement. Use two passes in each direction with 3 inch overlaps, to insure entire rug surface has been vacuumed.

prescriptive sow22
Prescriptive SOW Use a hand vacuum (Electrolux Type 16 or equal) with a 4 inch wand extension to vacuum corners and recessed areas not reached by the commercial vacuum cleaner. After vacuuming, replace all tables and chairs in their original positions. Note any spills, spots, etc. for treatment. Store vacuum cleaning equipment in Closet 12A after use.

performance based pws
Performance Based PWS

5.3.4. Vacuum the rug in Room 12 to remove all visible traces of fuzz, lint, and other foreign materials.

six components of a pbsc
Six Components of a PBSC

Performance Work Statement (PWS)

Performance Indicators and Standards

Performance Requirements Summary (PRS)

Acceptable Quality Level (AQL)

Performance Plan (Formerly the QASP)

Appropriate Incentives

1 performance work statement pws
1. Performance Work Statement (PWS)

The PWS describes the requirements that the contractor must meet in performance of the contract

Usually a brief statement of the result required

Key is include adequate requirement statements without excess detail or “how to”

pws and the wbs work breakdown structure
PWS and the WBS(Work Breakdown Structure)

Outputs are clearly identified

Inputs are clearly defined

WBS is required for work analysis

WBS is required for the proposal

WBS is required for pricing

performance work statement pws
Performance Work Statement (PWS)

The WBS is used to give a framework for developing the requirements of a PWS

PWS lists the performance requirements of the contract

It will guide the contractor and the Government throughout the life of the contract

2 performance indicators and standards
2. Performance Indicators and Standards

An indicator is an essential characteristic of acceptable performance

A standard is a definite level or degree of quality against which performance can be measured

This information must be provided in the PWS and in the PRS (if separate) and reflected in the Performance Plan

common abilityone quality indicators
Common AbilityOne Quality Indicators





Customer Satisfaction

objective measurable standards are key to pbsc
Objective, Measurable Standards Are Key to PBSC

Complete task in 30 minutes

275 to 300 Meals served between 12-1

Maintain grass between 3” and 5” on improved areas

try to make subjective standards common sense standards
Try to make Subjective standards Common Sense Standards

After sweeping, there shall be no visible dirt, trash, or foreign matter.

Door Glass will be clean if there is no visible dirt, smudges, or fingerprints

Standard must be workable both to contractor and to COTR/QAE

3 performance requirements summary
3. Performance Requirements Summary

The PRS is a summary of the tasks or deliverables, the performance standards, the AQL, and the quality assurance surveillance methods to be used, and incentives to the contractor

May not be stated separately

4 the aql
4. The AQL

The AQL is the degree to which the Government will allow performance to vary from the standard

Absolute standards, zero defects, are possible but expensive

For each requirement or task, there must be an AQL

Establish reasonable AQLs – be realistic, ask what is acceptable

5 the performance plan old quality assurance surveillance plan qasp
5. The Performance Plan (Old Quality Assurance Surveillance Plan (QASP)

The Perf Plan outlines the methodology to monitor the performance against the standards in the PWS

Written by the Government for the QAE or COTR

May be shared with the contractor (except for sampling plan) but not included in contract

6 appropriate incentives
6. Appropriate Incentives

Incentives may be positive or negative, monetary or non-monetary but must be included and should be effective

The level of incentive should relate directly to the value of the outcome (AQL)

The AQL can be used to “dial in” the appropriate level of performance at the budgeted cost

but don t forget the qcp
…But don’t forget the QCP

Your Quality Control Plan, written based on the PWS and the QASP (provided to NISH contractors) detailing how YOU are going to manage to assure quality.


do s of writing a pws
DO’s of Writing a PWS

Use an experienced drafting team

Exclude “how-to” requirements

Use the WBS to outline the effort

Tailor the standards

Use commercial practices and definitions

Use workable standards for subjective standards, such as “clean”

streamlining using abilityone
Streamlining Using AbilityOne

AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process

Save staff time, effort, money

Bring services on line quicker

acquisition the federal process
Acquisition– The Federal Process

Identification of

requirement or need

Acquisition planning

(FAR Part 7)

Market research

(FAR Part 10

Solicitation and

Proposal phase

(FAR Part 15)

Source selection

And contract award

(FAR Part 15)

Evaluation and


(FAR Part 15)

  • Functions within legal/regulatory framework implemented by the FAR
  • Involves entire acquisition team
  • Balances goals of obtaining best value for the government and promoting competition
streamline advantages
Streamline Advantages

Can go directly to an AbilityOne producer with a SOW

No formal notice, no solicitation, no synopsis, no sources sought

Can immediately begin negotiation. Not a competitive environment as used in FAR –a directed procurement under FAR 8.7

Can ask NISH to help with the SOW/PWS

buying from abilityone
Buying from AbilityOne

If the item is on the Procurement List, no problem; just place the order citing FAR 6.302-5, Authorize by Statute

No requirement for publication, competition, etc.

AbilityOne buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs.

acquisition the nish process
Acquisition– The NISH Process

Identification of

requirement or need

Contract award

(FAR Part 8.7)

Proposal and


(FAR Part 8.7)

abilityone is not a front
AbilityOne Is Not a “Front”

Service must be suitable- i.e. can be performed by a NPA and can be performed by individuals with disabilities

Providing the Service through AbilityOne cannot have disproportionate impact on the previous supplier -

75% of our direct labor must be by individuals who qualify as severely disabled

team approach
Team Approach

NISH will help prepare NPA proposal and costing package

NISH will support the NPA with training

NISH has blanket alliances with large clients such as GSA, DeCA, NAVFAC

follow on the real pay off
Follow-on, the Real Pay Off

Once in the AbilityOne program, the procurement becomes a base year plus four follow on years (AbilityOne Options)

Automatically renewed every five years (unless agency requirements change)

If performance problems, which is rare, NISH helps and can select replacement NPA

subcontracting w abilityone
Subcontracting w/ AbilityOne?

Recent “sea change” in RFPs

Resulting from “SPE” Support

Specific RFP requirements vary:

5% Goal

1% Goal

Bid your Own Goal


You don’t subcontract with “AbilityOne”

You subcontract with “Approved” Nonprofit Agencies

It is easier than you think!

NIB and NISH are there to help!

what rfps
What RFPs?

SETAC 07 – 1%

GSA USA Contact (Call Centers) – 5%



Military One Source – 1%

HRsolutions - ___%

More coming!

what s an approved npa
What’s an “Approved” NPA?


DFARS 219.703 Eligibility requirements for participating in the program.

(a) Qualified nonprofit agencies for the blind and other severely disabled, that have been approved by the Committee for Purchase from People Who Are Blind or Severely Disabled under the Javits-Wagner-O’Day Act (41 U.S.C. 46-48), are eligible to participate in the program as a result of 10 U.S.C. 2410d and Section 9077 of Pub. L. 102-396 and similar sections in subsequent Defense appropriations acts. Under this authority, subcontracts awarded to such entities may be counted toward the prime contractor’s small business subcontracting goal.

Use NIB and NISH to assist

Listed in CCR

how does it work
How does it work?

Ensure your Supplier Diversity Manager is involved and your Supplier Diversity definitions are up to date (include NPAs)

Engage NIB and NISH in MOAs/MOUs

Use NIB and NISH for Sourcing

Use CCR search to find NPAs

Engage a NPA in Mentor-Protégé program

advantages to prime
Advantages to Prime

NPAs already have FAR experience

Understand T’s and C’s

Have SCA payroll system in place

Small Business Goals

Positive Brand Name Recognition

Possibly – Facility Security Clearance

Probably already working on site or nearby

Can be competitive!

challenges to prime
Challenges to Prime

Something new and different

Another step for your Capture Managers

Another check for Contract Compliance

But, NIB and NISH are there to help

Multiple Primes chasing same NPA

May not get Exclusive Teaming Agreement

Need internal training

But, NIB and NISH are there to help

keep it simple

National Industries for the Blind (NIB):

DuWayne Gilbertson



Dave Theimer



Committee for Purchase

Forms & Publications

Procurement List

Guides for federal customers

Training Catalog

National Industries for the Blind