tidewater government industry council contract specifications and performance based work statements...

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Tidewater Government Industry Council

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TIDEWATER ASSOCIATI0N OF SERVICE CONTRACTORS

TASCTIDEWATER ASSOCIATI0N OF SERVICE CONTRACTORS

TASC

Contract Specifications and Performance Based Work

Statements©

Tidewater Government Industry Council Training Program


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Flashbacks and Dots• Acquisition Planning/Market Research

– Market Surveillance and Investigation– Involve the Team– Commercial Items and Services– Requests for Information (RFI)– Draft Statement of Work– Draft Request for Proposal– Pre-Solicitation Conference– Procurement Administrative Lead Time


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More Flashbacks and Dots• Contract Types

– Risk Sharing Arrangement– Type and Complexity of Requirement– Doctrine of Contra Proferentem– What does the contract say?

• Competition– Incumbents and Competitors– Single-Award vs. Multiple Award Contracts


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Design & Performance Specifications

• Design– Detailed, prescriptive, how-to– Military and Federal Specifications– Detailed drawing packages

• Performance– Outcomes (within parameters)– Performance Measures


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FAR 37.102(a)

• Performance Based Acquisition– Preferred method for acquiring services– Must be used to the maximum extent

practicable except architect-engineer services, construction, utility services and services incidental to supply purchases

• Still has applicability, e.g., Design-Build, Service Levels, Commercial Installation Services


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FAR 37.601• Requirements are described in terms of results

rather than methods to perform the work– What versus how– Descriptive versus prescriptive

• Work is performed using measurable performance standards, e.g., timeliness, quantity, quality

• Price or fee reductions for unacceptable results• Performance incentives for better performance


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Technical Program Office Responsibilities

• A Statement of Work that clearly defines the required effort and specific tasks to be accomplished

• Quality assurance requirements for (objectively) determining acceptable performance

• Deliverables and their delivery dates


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Performance Based Acquisition in its Simplest Terms

• What do I need?

• When do I need it?

• How do I know it’s good?


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Benefits of Performance-Based

• Increased likelihood of meeting mission needs• Focus on results, not prescriptive process; Absence of

detailed Government specs and processes• Better value and enhanced performance • Flexibility in contractor experience and solutions• Enhanced competition• Reduced likelihood of protests and claims• Contractor responsible for quality control, Government

for quality assurance


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Fundamentally

• Federal contracts should mirror best commercial practices which tend to be outcome oriented

• More fundamentally, why are you contracting and with whom are you contracting?

• Most fundamentally, how do you execute personal procurements?


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Elements of the PBWS

• Performance Requirements

• Performance Standards

• Acceptable Quality Level

• Monitoring Method

• Incentive

• Performance Requirements Summary


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Performance Requirement

• Scrub to eliminate unnecessary tasks

• What is the requirement?

• What must be accomplished to satisfy the requirement?

• What deliverables are necessary and when are they due?

• Use the “so what” test.


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So What?

• Who needs the output?

• Why is the output needed?

• What occurs as a result?

• Is it worth the effort and cost?

• Would a different output be preferable?

• Requirements vs. “desirements”– Saw it, liked it, wanted it.


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Performance Standards• Drive level-of-effort and cost; should be

consistent with minimum mission needs• What are the standards for timeliness, quantity,

and quality, e.g., work volume, completeness, accuracy, reliability, customer satisfaction, cost, etc.

• How much deviation can the mission tolerate?• Will commercial standards meet mission needs?


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Examples of Performance Standards

• Response times, delivery times, timeliness meeting deadlines or due dates

• Error rates (number)

• Accuracy rates (percentage)

• Completion milestones (% complete and time)

• Cost control (non-fixed price contracts)


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Checklist for Performance Standards

• Do your selected standards address quality, quantity, and timeliness?

• Are they objective and measureable?

• Are you using commercial standards?

• Will two evaluators come to the same performance conclusions using the same chosen standards?


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Acceptable Quality Levels

• AQLs – Performance thresholds for minimally acceptable level of performance

• Should be consistent with mission needs and budget

• Some level of unacceptable work will always happen and zero tolerance is expensive

• How much error is acceptable and how much perfection is affordable.


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Checklist for AQLs

• Clearly defined?

• Realistic and achievable?

• AQL time period clearly defined?

• Performance evaluators identified, trained, and technically knowledgeable?

• Will AQL satisfy customer?

• Allow for improvement…incentives


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Monitoring Methods

• Random Sampling & Periodic Sampling– Most appropriate for frequently recurring tasks– Sample size and frequency calibrated to

experienced performance– Periodic sampling similar to random but at

specific intervals or dates


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Monitoring Methods

• Trend Analysis– Used regularly and continually to assess

ongoing performance over time– Maintained in customer database– May be used to recalibrate performance

assessment methods and/or frequencies


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Customer Feedback

• Supplements other forms of evaluation

• Likely complaint-oriented and subjective

• Must be validated by Contracting Officer’s Technical Representative (COTR)/Quality Assurance Evaluator (QAE)


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Determining the Assessment Method

• Best match-up with outcomes and standards• Criticality of task to mission• Length of assessment period• Frequency and cost of assessment• Availability of capable Assessors• Commercial practice for the service area• Practicality and reasonableness of contractor • re-performance


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Performance Assessment Plan

• Government-initiated document in parallel with PBWS• Describes how QAE will evaluate and assess performance• One or more methods for each performance objective• Describes how performance information will be captured and

documented• Revised and modified as necessary• Incorporated into contract or otherwise furnished to contractor

– Based on the premise that contractor is responsible for Quality Control

• Contractor-developed Quality Control Plan may be required in proposal or as an initial contract deliverable


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The Contractor’s QCP

• The contractor’s procedures to ensure:– Successful completion of tasks– Compliant, timely deliverables– Cost-efficient task completion– Effective management of workforce, level-of-

effort, labor mix– Tracking of labor hours to correct or replace

work not meeting contract requirements


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A Suggested PBWS Format

• Introduction (brief)– What is overall need and why important

• Background Information (relatively brief)– How need supports the mission

• Scope (brief)– What specifically is needed and included in the framework of the

contract.• Applicable Documents

– Directives, instructions, publications• Pertinent and available


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A Suggested PBWS Format

• Performance Requirements (narrative)– Performance outcomes and their measures– Performance Requirements Summary

• Special Requirements– Security– Period of Performance– Place(s) of Performance– Government Furnished Facilities/Equipment/Information

• Deliverables– Tie their purpose to needs and mission– Who will use them and why


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Tips for PBWS Authors• Assume nothing and avoid generalities• Don’t rush to produce volume• Commit to clarity, “what,” not “how”• Don’t include extraneous material or over-specify• Avoid redundant repetition• Think before you write• Active, not passive, voice• Plain language, explain acronyms• Avoid run-on sentences• Describe requirements, don’t write around them• Write to explain, not impress


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Today’s Closing Thought

“What does the contract say?”

Bernard Sargrad, 1974


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Closing Questions?


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TGIC Training Program for FY 2014

TOPIC PRESENTERS

REED INTEGRATION, INC.

SUFFOLK

TIDEWATER COMMUNITY COLLEGE

VA BEACH

1 Synopsis, Competition, and Sole Source

Jeff Brunner and Damien Walsh

November 5th December 3rd

2 Small Business and Other Socioeconomic Set-Asides

Dona Storey and Brad Reaves

January 14th February 25th

3 Contract Specifications and Performance Based Work Statements

Jeff Brunner and Damien Walsh

March 11th April 1st

4 Contract Pricing and Pricing Strategies

Beverly Arviso May 13th June 10th

5 Source Selection, Debriefings, and Protests

Damien Walsh and Terence Murphy

July 22nd August 5th