Thurmond Project Briefing

1
Performance Based Contracting A USACE Perspective
Presented by Michael W. Sydow, PE Chief,
Environmental and IIS Management Branch USAED
Savannah
2
Why PBC

• Government Performance and Results Act of 1993.
• Federal Acquisition Streamlining Act of 1994.
• Utilized successfully in private sector since the
  70s.
• DOD Business Initiatives Council adopts concept
  in 2002.
• ACSIM/ODEP deploy PBC as a matter of Army policy
  in 2003.
• Defense Planning Guidance
• Army Environmental Strategic Cleanup Plan
• FUDS Program Policy (ER 200-3-1)

3
Why PBC

• Current process employed to date is inherently
  phase focused and process driven.
• Not viewing the problem in a holistic manner.
• PBC is based on achieving an Exit Strategy
• Incorporates Life Cycle Project Management.
• Incorporates future land use planning.
• Affords greater flexibility in meeting changing
  project requirements.

4
What PBC Does Not Do!

• Does not change applicable laws or regulations.
• Does not relieve DOD of its liability.
• Does not negate Federal Facilities Agreements or
  Cooperative Agreements.
• Does not eliminate the Partnering Concept.
• Does not mean the contractor is turned loose with
  no technical or administrative oversight.
• It is simply a new Business Process!

5
PBC Defined

• Objective is to define the What not the How
• Focus on the End Point and not the Process.
• Army Policy
• Fixed Price Contracts only.
• Incentives and Insurance may be applied based
  upon the amount of risk and uncertainty.
• Competitive bid process with a minimum of three
  qualified vendors.
• Can be used for all project phases, from RI
  through RAO and LTM.

6
FUDS Programmatic Goals

• Funds Obligation
• FY05 7.5
• FY06 15
• FY07 25
• FY10 50
• DPG Goals for Responses in Place (RIP) and
  Response Complete (RC)
• FY07 High Relative Risk Sites
• FY11 Medium Relative Risk Sites
• FY20 Low Relative Risk Sites

7
FUDS Challenges

• Budget Limitations
• Averages 250M per FY.
• Number of States and Territories competing for
  funds.
• Number of eligible sites competing for funds.
• Private Property Owners
• Potentially Responsible Party (PRP) Issues
• Competition for Regulatory Agency resources
• New Business Process

8
USACE Initiatives

• Developed and deployed PBC Training
• Established USACE Contract Acquisition Working
  Group
• Developing national contract strategies.
• Share Lessons Learned.
• Leverage resources from across USACE.
• Obtained Industry input.
• Developing After Action Reports for established
  contracts
• Participate in Interagency Forums

9
How Do We Make It Work?

• Proper Project Planning
• Site selection.
• Sound Performance Work Statement with Measurable
  Performance Standards.
• Development of Transition Plan from current
  contract actions to PBC.
• Engage the Regulatory Community
• Includes Planning and Contract Acquisition
  phases.
• Educate the entire Team
• What changes, what doesnt, and what are the
  impacts?
• Roles and Responsibilities.

10
How Do We Make It Work?

• Communication must be open and continuous
• Need a well developed Project Management Plan
  that clearly identifies Exit Strategies and Major
  Milestone Dates.
• May require frequent Project Meetings and/or
  Teleconferences.
• Allows all Team Member organizations to determine
  and plan resource requirements.
• Seek process efficiencies
• Number, type and format of submittals.
• Concurrent reviews.
• Authority for approval.

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Questions?