Performance Based Studies Research Group Pre Award Phase.
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Transcript of Performance Based Studies Research Group Pre Award Phase.
W W W . P B S R G . C O M 2
Best Value SystemBest Value System
Identification of PotentialBest-Value
Pre Planningand
Risk Management
Measurement ofDeviation from the
Expectation
PHASE 1PHASE 1 PHASE 2PHASE 2 PHASE 3PHASE 3
W W W . P B S R G . C O M
Expectations of a Expectations of a Best Value ContractBest Value Contract All efforts are first planned, and then operations are executed. All efforts
are well documented with actual performance measured against the original plan.
Risk and control transferred to the vendor. Risk are planned for before they occur, focusing on risk that is not controllable.
A measured environment
Accountable client and an accountable service provider
Transparent, simple, and clear
Minimum transactions
3
W W W . P B S R G . C O M 44
Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important
Period of time allotted to potential best value vendor (aka the Expert) to:
Present their project plan
Set a plan for its delivery / clarify that your proposal is accurate
Identify the risks and issues that could cause the plan to deviate Identify what you don’t know and when you will know it and how
the plan could change based upon what you discover Set plans to minimize those risks from occurring Address all the concerns and risks of the client
W W W . P B S R G . C O M 55
Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important
Period of time allotted to potential best value vendor (aka the Expert) to:
Know how they are being successful and adding value (measurement) Weekly Risk Report through project
Identify what you need from the client and have a plan for getting it Identify what you need from other entities, agency, etc. and also
have a plan for getting what you need
Have completely aligned expectations between all parties so everyone knows what is going to transpire and what they are supposed to do
W W W . P B S R G . C O M 66
Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important
Period of time allotted to potential best value vendor (aka the Expert) to:
Coordinate the schedule: client, sub-vendors, consultants, suppliers, designer, etc. etc. etc.
Set up and initiate using the Weekly Risk Report (WRR)
Finalize and sign contract
W W W . P B S R G . C O M
What Happens During the What Happens During the Pre Award PhasePre Award Phase Education (video, vendor and PBSRG)
Vendor present Draft Plan at the Kickoff meeting (what you proposed based upon), and also addresses any key client concerns, big ticket items, deal breakers, etc.
Set Pre-Award Period Schedule
Initiate the Weekly Risk Report IMMEDIATELY
Work with client to finalize details and set expectations/responsibilities Coordinate the project / transition schedule, complete RMP, etc.
Finalize the financials and contract
Set the baseline / benchmark metrics / performance measurement reporting
Hold the Final Summary Meeting
Sign the contract
W W W . P B S R G . C O M 8
Filter 1Past
PerformanceInformation
Filter 2Current
Capability
Filter 4Prioritization
(Identify Best Value)
Filter 5Cost
Reasonableness
Filter 6Pre-
Planning & Risk Min
Time
Qua
lity
of V
endo
rs
Filter 3Interview
Key Personnel
Awar
d
High
Low
BV ProcessBV Process
Measurement of Risk & Performance During the Contract
No
n-D
etai
led
No
n-D
etai
led
No
n-D
etai
led
No
n-D
etai
led
Det
aile
d
No
n-D
etai
led
Clarification, but No Negotiation
W W W . P B S R G . C O M
Buyer Controls Vendor Through Contract
Traditional Risk Model
Vendor BuyerContract
W W W . P B S R G . C O M
Vendor Manages/Minimizes Risk With Contract- Contract is predictive
Best Value Risk Model
Vendor BuyerContract
W W W . P B S R G . C O M
Pre Award PeriodSta
rt
Very High Level
Cost Verification
Included in Proposal
Excluded from Proposal
Major Assumptions
Major Client Risks/Concerns
High Level
Project Work Plan
Client Risks/Concerns
PA Schedule
Uncontrollable Risks
Response to all risks
Roles and Responsibilities
Value Added Ideas
Coordination
Review Functionality
Mid Level
Performance Reports / Metrics
Additional Documentation
Technical Details
Project Schedule
High level demos
PA Document
End
W W W . P B S R G . C O M 12
Pre Award DocumentPre Award Document(Risk Management Plan)(Risk Management Plan) The PA Document should contain the following:
1. Scope Clear and Detailed Project Scope (what is and what is not included)
– Set Baseline Expectation2. Risks
A list of Risks vendor does not control with plans to minimize Identified Risks List
A list of all client/user risks with plans to minimize & all vendor’s risks
3. Milestone schedule4. Coordination5. Client Action Item List6. Weekly Risk Report 7. Cost8. Other: Agreed to Value Adding Options, Original Plans, Interview
Minutes, etc…
W W W . P B S R G . C O M 13
Note to Vendor and Client -Note to Vendor and Client -Do Not Work in a Vacuum!!!!! Do Not Work in a Vacuum!!!!!
The Pre Award period is a time for the client and Vendor to interact Maximize effort BEFORE the event begins
The Vendor should not work in a vacuum There should be regular meetings between vendor and client (weekly) An Outcome of first meeting: PA Period Meeting Schedule Agreed to
Vendor should come prepared with a proposed schedule that will be coordinated
Complete honesty
Optimize within client constraints
Vendor should be the leader/driver
All critical parties/groups should be coordinated with
W W W . P B S R G . C O M 14
ScopeScope Projects need to have clear scope at the start of the service
Everything within the expectation/budget Minimize/Eliminate Client/User Scope Changes
Detailed Scope Scope identifies what is included and what is not included to meet the
client’s intent Conservative is best
If risks exists between scope and client intent they must be identified Resolve alignment and expectations before signing the contract Identify path to identifying unknowns during contract
W W W . P B S R G . C O M 15
Cost ClarificationCost Clarification Cost clarified if needed
Clear and simple movement of money identified
If need, linked to performance, expectations, or progress (set by vendor)
Model can have “scenarios” for various outcomes
Model can be adjusted based upon value adding options Risk Plans Additional risk elimination actions
W W W . P B S R G . C O M 16
Identified Risks Identified Risks List of Risks that have been previously identified
All vendor team risks All client technical concerns, risk, issues, and bugaboos All user concerns, risk, issues, etc.
Simple format Risk Solution/Plan to Minimize Action if Risk Occurs Impact is Risk Occurs
If a risk is not a risk, just say why it is not a risk…
W W W . P B S R G . C O M 17
Risk Minimization StructureRisk Minimization Structure List of Risk Vendor
From Project Capability plans
Example Format Risk #1: Description of risk (or why it is a risk)
Solution: Provide your solution. Because this document is not constrained by a page limit, it is acceptable to add more detail to your previous solution provided in your RAVA plan. Make sure it is identified at what point you have done everything reasonably possible. Identify the impact if the risk still exists after you have done everything reasonably possible.
Step 1: Step 2: Step 3: Step 4: Step 5: Etc.
Action If Risk Occurs: Similar to above, but a list of action items once risk occurs
Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”
W W W . P B S R G . C O M 18
Milestone ScheduleMilestone Schedule Project schedule that can be worked from
Simple to read Simple to use
Intent: Minimize Risk = Help All Parties be more efficient and accountable
Contents Major Activities, Deliverables, and Milestones (linked to metrics) Client Action Items clearly identified (e.g. red) Risky areas / decision points clearly identified (e.g. green)
W W W . P B S R G . C O M 19
Client Action Item ListClient Action Item List Client Action Item List
List of all actions/tasks that the vendor requires from the client Each Action Item will have a:
Activity Person Accountable in the Client organization Agreed to Due Date
W W W . P B S R G . C O M 21
Weekly Risk ReportsWeekly Risk ReportsWhat is it / Why is it importantWhat is it / Why is it important
What is it: Excel Spreadsheet that tracks unforeseen risks on a service
Why is it important: Allows vendors to document unresolved client issues Allows vendors the ability to show they can manage a service through
risk minimization Allows vendors to document all client decisions Provides PM a weekly/monthly analysis of all services Will be used to monitor the progress and performance of the entire client
organization (this isn’t just for a specific contractor or a specific service...there is a bigger picture)
How much effort: Minimal (less than 5-15 minutes), unless contractor did not preplan, or
client making decisions
W W W . P B S R G . C O M 22
Weekly Reporting System (Sample)Weekly Reporting System (Sample)
Excel Spreadsheet that tracks unforeseen risks on a service
The client will setup and send to vendor once Award/NTP issued
Vendor must submit the report every week (Friday).
The final service rating will be impacted by the accuracy and timely submittal of the WRS
W W W . P B S R G . C O M 23
Weekly Risk ReportWeekly Risk Report
We will be starting a weekly risk report for the pre-award period
Contents: Contact Info Pre-Award Schedule Risks/Issue Tracking
PBSRG can provide specific detailed education individually with the vendor
W W W . P B S R G . C O M24
Unforeseen Risks
PERFORMANCE SUMMARY• Vendor Performance• Client Performance• Individual Performance• Project Performance
RISK MANAGEMENT PLAN• Risk• Risk Minimization• Schedule
WEEKLY REPORT• Risk• Unforeseen Risks
Measurement of Deviation from the ExpectationMeasurement of Deviation from the ExpectationManagement by Risk MinimizationManagement by Risk Minimization
W W W . P B S R G . C O M 25
OtherOther All other items of importance
Including Value Adding Options agreed to Original Plans Interview Minutes Any specifications Any other pertinent information
W W W . P B S R G . C O M 2626
Pre Award Final Pre Award Final Summary MeetingSummary Meeting Is not a “Q&A” meeting
All issues resolved All coordination complete All risks that are not in vendors control have been identified All value added options have been addressed
PA Final Meeting is to summarize all of the coordination that has been complete and walk through the PA Document/RMP
Upon successful completion of the PA Final Meeting, the client will make the award
W W W . P B S R G . C O M 27
Filter 1Past
PerformanceInformation
Filter 2Current
Capability
Filter 4Prioritization
(Identify Best Value)
Filter 5Cost
Reasonableness &Dominance Check
Filter 6Pre-
Planning & Risk Min
Time
Qua
lity
of V
endo
rs
Filter 3Interview
Key Personnel
Awar
d
High
Low
BV Process - AwardBV Process - Award
Measurement of Risk & Performance During the Contract
W W W . P B S R G . C O M 28
Filter 1Past
PerformanceInformation
Filter 2Current
Capability
Filter 4Prioritization
(Identify Best Value)
Filter 5Cost
Reasonableness &Dominance Check
Filter 6Pre-
Planning & Risk Min
Time
Qua
lity
of V
endo
rs
Filter 3Interview
Key Personnel
Awar
d
High
Low
Measurement of Risk & Performance During the Contract
Post Project RatingPost Project Rating
Updating of PPI
W W W . P B S R G . C O M 2929
Final RatingFinal Rating After the project is complete, the client will evaluate the project.
The Final Rating will be heavily impacted by: Performance Owner surprises Complaints Ability to submit accurate and timely weekly reports
In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive.
W W W . P B S R G . C O M 30
Immediate Action ItemsImmediate Action Items Prep for Kick Off Meeting & Conduct the Kickoff Meeting
Draft Plan (focus on differences from current service) Address any Critical Client Concerns or clarification needs Pre-Award meeting schedule Initiate Pre-Award Period Weekly Risk Reporting
Recommended to Hold a weekly phone call Review schedule Review issues/risks This carries forward into the project
Risk Minimization - Lists of risks/concerns/issues from the client, users, etc.
Begin Pre-Award and RMP development – will become functional pieces of contract
W W W . P B S R G . C O M
Best Value Vendor CharacteristicsBest Value Vendor Characteristics
Preplans and Minimizes Risk on Each Initiative Has a plan and knows the risks to the plan Is transparent Communicates clearly Asks good questions, knows what they don’t know
Measures Performance and drives accountability
Uses Dominant Information to Differentiate themselves/show value added
Educates the Client and helps the client be a better client
Educates themselves and has a continually enhanced vision Holds themselves and the client accountable Their plan is aligned so that when they win, the client automatically wins
31
W W W . P B S R G . C O M
Best Value Client CharacteristicsBest Value Client Characteristics
Ensures their needs and concerns are known by the vendor Ensures the vendor has a plan that addresses each need/concern/risk Is a facilitator to the vendors development of the plan(s) Enforces the best value structure
Weekly risk reporting is being done Each risk is given a client satisfaction rating Measurements by vendor are being done Do not be pulled into making decisions you do not need to make
Educates themselves and the vendor Avoids reversion to previous practices Transfers risk and control
Holds the vendor and themselves accountable Ensures the plan is aligned so they win and the vendor wins
32
W W W . P B S R G . C O M 3434
Uncontrollable Risk 1Uncontrollable Risk 1 The client has agreed to move storage boxes prior to the NTP. The
boxes are blocking the wall where we will install the new electrical equipment. If the material is not moved we will not be able to install the equipment. If material is not moved we will perform the following:
1. Immediately notify the client and track in our weekly report. We will mobilize and perform other functions. However, if material is not moved by 2nd week, this will cause delays.
2. If the client cannot get the material moved, we can move the material into another room (on the same floor) at no additional cost or time delay. The client will have to move the material back.
3. Or, we can rent a storage container for the duration of the project and move the material into storage and back into the room after completion. This will cost $1,500 and add 1 week to our schedule.
W W W . P B S R G . C O M 35
Uncontrollable Risk 2Uncontrollable Risk 2 One of the biggest risk on this service is falling debris from the roof deck onto
personnel or equipment below the deck. On this service, the personnel and equipment are protected since there is a dropped ceiling beneath the deck. The PM (client) has assured us that these tiles have been installed properly and we have randomly spot checked areas to determine that they will perform. However, if for some reason the ceiling tile fails, we will perform the following:
Immediately stop all work and determine the extent of damage Identify if work can proceed as is, or if additional protection is needed We can modify our schedule to work off-hours to protect falling debris
from hitting personnel, but this will not protect equipment. There will be no impact to cost or time if we have to work off-hours.
We can purchase large tarps (100’x100’) and place them beneath the ceiling tiles. This will protect both personnel and equipment. These special tarps will cost an additional $5K and will take an additional 2 weeks to setup and move.
Identify any actions required from the client