Contributors:
Performance Based Services Acquisition
Writing a Statement Of Objectives
Chip Mather301-261-9849
3Performance Based Service Acquisition
November 1, 2002 12Performance-Based Acquisition©Acquisition Solutions, Inc.
Seven Steps to PBSASeven Steps to PBSA
4Performance Based Service Acquisition
November 1, 2002
Seven Step Guide to PBSCPerformed Steps 1- 3
• Step 1 Established Integrated Solutions Team Acquisition Starts with I Have a Dream
• Step 2 Described the Problem That Needs Solving Desired Outcomes, Success Criteria
• Step 3 Examine Private and Public Sector Solutions Meaningful Market Research –
• Best Practices (Gov and Commercial), Performance Measures and Metrics, Incentive Plans
5Performance Based Service Acquisition
November 1, 2002
Seven Step Guide To PBSC Step 4: Developing a Statement of
Objectives• States Government’s Overall
Objectives• Replaces Performance Work Statement
Reality; SOO is a Really GOOD PWS! Simplified Definition of PBSC
• Structuring All Aspects of Acquisition Around Outcomes and Results!
Shared Goals and Objectives• Very Powerful!
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November 1, 2002
Step 4 – Developing a SOO Dramatic Change: Best PBSC I’ve
Seen…• “We didn’t know enough to write a
SOW, so we had to write it that way!”
That is the Key! • Write Outcomes (Statement of
Objectives)• Offerors Propose SOW and
Performance Measures
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November 1, 2002
Step 4 – Developing a SOO Where Knowledge Exists
• Government – Problem and Constraints• Industry – Solutions
Current Process• Government “Solves” the Problem in SOW
Good SOW is a Tight SOW! Take Last RFP, Close Loop Holes
• Industry – Responds to Government Solicitation
Restate Line for Line From SOW State Why You Are “Uniquely Qualified” to
Do What Government Directed
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November 1, 2002
Step 4 – Developing a SOO Change the Process –
• Government States Problem and Constraints
• Offerors Provide SOW Based on Unique Solution Provide Performance Measures and
Metrics Stop Buying Compliance – Start Buying
Results!
“Significantly easier to identify good idea than invent one!”
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November 1, 2002
Step 4 – Developing a SOO Statement of Objectives
• Two Pages +/-
• Identify Program Objectives and Constraints
Why Was Program Funded?
• Link A-11 Strategic Plan to Acquisition Your Objectives Should be Contractor’s
Objectives!
• For IT: Clinger Cohen Promises “Award” Citation
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Step 4 – Developing a SOO TSA Information Technology Managed
Services (ITMS) SOO• 5 Pages
Table of Contents• 1.0 Overview• 2.0 Task Order Scope• 3.0 Partnering Philosophy• 4.0 TSA ITMS Objectives• 5.0 TSA Strategic Objectives• 6.0 TSA Assoc Under Secretary OIT
Responsibilities
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Step 4 – Developing a SOO TSA ITMS SOO Para 4.0 – Program Objectives
a) Receive under a performance-based arrangement, highly reliable, and secure, IT managed services and support that meets or exceeds customer requirements and expectations.
b) Establish a partner-focused working relationship with TSA.
c) Continuously seek ways to apply information technology to improve TSA mission performance.
d) Throughout the life of this effort, demonstrate improved performance, reliability, security, and reduced cost of the delivered service.
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Step 4 – Developing a SOOe) Given the dynamics of establishing a new agency,
establish a contract arrangement that easily accommodates change.
f) Maintain the highest level of service consistent with cost effectiveness. Be able to provide audit and oversight activities convincing proof that TSA is receiving superior service at a fair and reasonable price.
g) Provide an effective and efficient management information system that provides insightful, accurate and timely information and data on program status and performance reporting.
h) Develop, implement, and maintain appropriate inventory, security, quality control, architecture standards, and reporting requirements.
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Step 4 – Developing a SOOi) Develop and provide a system that supports
TSA’s compliance with Government standards and requirements (e.g., Clinger-Cohen architecture and program oversight, security, etc).
j) Receive appropriate data rights as well as cooperation for any transition to another provider, to ensure continuity of service in unlikely event of contract termination, or upon contract re-competition.
k) Effectively utilize subcontract and teaming arrangements, including use of small, small disadvantaged, women-owned, veteran-owned, HUBzone and service-disabled veteran businesses.
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Step 4 – Developing a SOO True Best Value Selection!
• Wider Range of Solutions – “Good Thing”• Understanding the Requirement –
Assessment of Comprehensiveness and Risk of Technical and Management Solution
Quality of Performance Metrics and Service Level Agreements• What Measured, Level of Performance,
Linkage to Objectives• Both Parties Focused on Outcome
Tied to Mission Objectives
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Application of SOO to TSA ITMS Best Value Source Selection
• Superior Solutions Received; Worst
Proposal Was Exceptional!
• Significantly Easier to Recognize
Good Idea, Than to Invent One!
107 Day Acquisition Cycle
• 6 Weeks From TORFP to Award
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November 1, 2002
Application of PBSA to TSA ITMS
Contract Award is The Start; Not The End
Milestone
• Mission Success Is What is Being
Acquired!
• Improved Performance – Reduced Cost Shared Goals and Objectives!
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Closing Thought …
“Never tell people how to do
things. Tell them what to do and
they will surprise you with their
ingenuity.”
-- General George S. Patton
Seven Steps GuideSeven Steps GuideDecide How to Measure and
Manage Performance
• Commercial Quality Standards
• Quality Assurance Plan• Contractual Language
Seven Steps GuideSeven Steps Guide Decide How to Measure and
Manage Performance
• Minimum Success Factors• Incentive Type• Award Term
Seven Steps GuideSeven Steps Guide Decide How to Measure and
Manage Performance
• Consider Profit• Relationship
Seven Steps to Performance-Based Services Acquisition
Step 6
Select the Right Contractor
[email protected] Pentagon 3C838
Step 6 Select the Right Contractor
Develop an Acquisition Strategy That Will Lead to the Selection of the "Right Contractor"
Contractor Must: Understand the Performance-based
Approach Have an Understanding of the Agency's
Requirement Have a History of Performing Exceptionally
in the Field Have the Processes and Resources in Place
to Support the Mission
Step 6 Select the Right Contractor
"Compete the Solution" Downselect Due Diligence Evaluate Heavily on Past Performance
Make a Best-value Source Selection Decision
Step 6 Government-issued statements of work try to "solve the problem."
“Tighten the Spec” Approach Not Always Better SOWs Increase the Government's Risk
“Competing" Vendors Bid to the Same Government-directed Plan
Let Competition Work!Let Competition Work!
Step 6 Compete the Solution
Step 6 Compete the Solution
Describe the Problem and Let the Vendors Solve It!
The Quality of the Solution and the Contractor-proposed Performance Measures, are True Discriminators in a Best-value Evaluation!
Step 6 Use Downselection And "Due Diligence" Downselection
FSS MAS Competitive Process Existing GWAC or MAC Multistep Advisory Process in a Negotiated Procurement
Competitive Range Determination in a Negotiated Procurement
Step 6 Use Downselection And "Due Diligence"
Due Diligence Site Visits Meet Key Agency People Open Period of Communication
Step 6 Use Oral Presentations and Other Opportunities to Communicate Oral Presentations
Contractor Shares Proposed Solution
May Substitute For, or Augment, Written Proposals
Oral Presentations Are Not Binding
Step 6 Use Oral Presentations and Other Opportunities to Communicate
Communication Important Element of Selecting the Right Contractor
Award Without Discussions
Step 6 Emphasize Past Performance
Contractor's Past Performance Key Indicator For Predicting Future Performance
Use Past Performance in Evaluating and Selecting Contractors
A Powerful Incentive for Current Contractors to Maximize Current Performance and Ensure Customer Satisfaction
Step 6 Emphasize Past Performance
Past Performance InformationPast Performance Information Retrieval System (PPIRS) http://www.ppirs.gov
Past Performance Information on-line course http://clc.dau.mil "CL Modules”, key word "ppi"
Market Research
Step 6 Best-value Evaluation
and Source Selection Best Value = The Most Advantageous
Offer Compare Factors Tradeoffs Cost and Non-cost Evaluation Factors
Greatest or Best Value for its Money
Step 6 Best-value Evaluation
and Source Selection
Required Documentation Recent GAO Decision Specific to the Acquisition Process Being Used FAR 15 (Contracting by Negotiation) vs. FAR 8 (Required Sources of Supplies and Services)
Guidance in the Solicitation
Step 6 Evaluation Factors to Consider Quality And Benefits of the Solution Quality of the Performance Metrics and Measurement Approach
Risks Associated With the Solution Management Approach and Controls
Step 6 Evaluation Factors to Consider
Management Team Past Performance (how well the contractor has performed)
Past Experience (what the contractor has done, relevancy)
Step 6
Conflict of Interest
Concerns vs. Good Business Sense
Seven Steps GuideSeven Steps Guide
Manage Performance
• Keep the team together• Adjust roles and responsibilities
• Assign accountability
Manage Performance Cont’d
• Hold a kick-off meeting • Regularly review performance
in a Contract Performance Improvement Working Group
Seven Steps GuideSeven Steps Guide
Manage Performance Cont’d
• Ask the right questions• Report on the contractor’s
past performance
Seven Steps GuideSeven Steps Guide
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