Organizations that have experience in using the PBSC have established a process that provides a useful model for the implementation of the PBSC. Typically, the steps in this process involve conducting a contract analysis, drafting a PWS and QAP at the same time, and carefully monitoring the contractor after the contract is awarded. This document covers each of these important steps. Previous ”report cards” in FAR 42.15 should reflect compliance with performance requirements when using a PWS. PbSC performance provides better data to evaluate past performance, among other prompts. A strong incentive for excellence and customer satisfaction is created when entrepreneurs know that their performance will influence future sourcing decisions. The historical workload data collected can be used in cost estimation and analysis and should serve as a basis for estimating the future workload to be covered in the contract. This is particularly important so that, in addition to the incumbent operator, suppliers can acquire sufficient knowledge of the work to be competitive. In addition, estimating future labour needs and government-supplied items is crucial, as suppliers can provide realistic cost estimates. Where available, authorities should use the existing PWS model, in particular those tested in the application. Often, agencies don`t need to start from scratch to develop a PWS. Appendix 10 contains a list of generic PBSC documents developed by working groups composed of Agency technical and professional staff to assist organizations in transitioning certain professional and technical services to PBSC methods.
Copies of these documents are available from the EOP Publications Office and ARNET. For commercial services, the market should provide a sufficient basis for cost estimation. When developing their independent government estimates, authorities should take into account the commercial costs of performing work in the private sector. Under the Navy`s aircraft maintenance contract, requirements are set out in measurable terms, such as: The ground abandonment rate is less than five percent; 100% of flight schedules are respected; and the aircraft are 80% operational. Training of program and contract staff, which includes writing PWS and QAP, as well as other aspects of PBSC, is equally important to PBSC`s success. Training can be done through internal resources, external sources, or modification of existing PBSC training. Contractors should be informed of oversight requirements and responsibilities at a post-award conference. Monitoring must be comprehensive, systematic and well documented. It is important to review and discuss the contractor`s plan to maintain an acceptable level of quality under the contract. In many cases, contractors are required to submit a quality control plan to the government prior to the post-award conference.
Work analysis further analyzes the required results by breaking down the job into the lowest task level and linking the tasks into a logical flow of activities. Agencies should start with the entire service or production required by the contractor, then divide the order into all its parts and subdivisions and identify the relationships between all the parts. Organizations should also consider dissolving large systems contracts with cost overruns or performance issues. This will often allow the use of PBSCs for a large part of the framework contract. The amount of money saved, improved performance, and reduced contract management overhead can often outweigh the additional costs of awarding and managing multiple contracts. Performance-based procurement (ABP) (FAR Subpart 37.6) – formerly performance-based contracting (PBC) – is a technique for structuring all aspects of an acquisition around the desired objective and outcome, as opposed to the process by which the work is to be performed. It is a concept based on the reforms imposed on all federal organizations by the President`s Management Program, the Government Performance and Results Act, 1993, and the Federal Procurement Rationalization Act, 1994. When purchasing previously contracted services, organizations must draw on the experience, knowledge and historical data of the previous contract to integrate PBSC methods. Where appropriate, the transition from reimbursement agreements to fixed price agreements should take place. OTP Policy Letter 91-2 established the policy for the use of a performance-based approach to contracting for services. Appendix 2 contains a copy of the policy letter. PBSC emphasizes objective and measurable performance requirements and quality standards in the development of service descriptions, the selection of contractors, the determination of contract type and incentives, and contract management.
Appendix 3 provides a checklist of key elements of PBSC acquisitions. The purpose of this publication is to assist organizations in developing policies and procedures for the implementation of the PBSC. The practices contained in this document have been derived from the experience of contract staff in both government and industry. This information was collected from existing government interviews, articles and guidelines. The service description, called PWS, is the basis for performance-based services. The PWS PBSC describes the effort against measurable performance standards (outputs). These standards should include elements such as ”what, when, where, how much and how” to perform the work. A Quality Assurance Plan (QAP) that directly meets performance standards and measures the contractor`s performance is required to determine whether the contractor`s services meet the contract`s PPS requirements.
Positive and/or negative performance incentives based on AQP measures should be included. PwS` performance standards, AQP and incentives are interdependent and must be consistent in form, style and content and must be cross-referenced. For a procurement to be a true PBSC, it should include a PWS, QAP and appropriate financial incentives. Organizational analysis involves examining the needs of the organization and determining the services and outcomes requested by the contractor. It should focus on the outputs that the entrepreneur will produce, but should not prescribe how these outputs are to be produced. Performance-based contract types include a number of financial and non-financial consequences related to a contractor`s skills.3 min read Agencies should award more performance-based task contracts competitively when using task contracts. They should define their needs so that performance-based task orders can be assigned at a fixed price. (3) Performance incentives, if any. When used, performance incentives must meet the performance standards set out in the contract (see 16.402-2).
Partnerships can transform a conflicting relationship/attitude into a professional one based on trust and cooperation between the parties. Parties that participated in partnerships achieved faster performance, better cost control, significant red tape reductions, and fewer disputes. (2) allow the evaluation of work performance against measurable performance standards; Definition: Performance-based procurement (PBA) is a method of preparing service contracts that focuses on the results of the services that the government wants the contractor to provide the DOE`s analysis of its protection forces program, leading to the conclusion that it no longer needs armed and specially trained security forces. The shift from armed guards to unarmed guards has significantly reduced labor costs. In addition, the hours of contract work required to support an armed force have been eliminated. These changes have saved approximately $500,000 per year. The Department of Finance has awarded a recurring core contract for operational support services using PBSC. They switched from repayment to a fixed-price contract and realized savings of more than 20% on a need of $6 million, including the impact of inflation. The Treasury Department also believes that the government will realize further savings in the future, as a cost contract would have required at least five audits at a cost of about $5,000 per audit.
In addition, the lower contract management saves considerable time. .