Performance Based Statements of Work

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Writing

• Performance Based Statements of Work
• for
• Any Contract Requirement
• Robert Knauer, CPCM, NCMA

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Performance-Based Contracting

• OBJECTIVE
• To illustrate how to write a
• PWS
• Performance Work Statement
• QASP
• Quality Assurance Surveillance Plan
• for any service contract

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Performance-Based Contracting

• Performance Based Contracting has been with
  us since the early 1980s, the Office of Federal
  Procurement Policys Pamphlet 4 (one of the best
  documents ever written on the subject). OFPP 4
  has not been canceled, and is still valid. It
  thoroughly demonstrates how to
• 1. LOOK AT THE CONTRACTING QUALITY
• 2. COLLECT AND ANALZE DATA FOR SERVICE
• 3. WRITE A QUALITY PWS
• 4. DEVELOP AND WRITE A QA PLAN

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Performance-Based Contracting

• Performance Based Contracting has many
  benefits, they include
• Increased likelihood of meeting mission
• Focus on intended results-not process
• Better value and performance
• Less performance risk
• No more detailed SPECS
• Contractor flexibility with solutions
• Better competition, not just KTRS but solutions
• KTR buy-in and shared interests
• Fewer protests
• Surveillance is more meaningful and less frequent
• Results documented for GPRA reporting
• Many solutions from which to chose

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Performance-Based Contracting

• The OFPP has rescinded the suggested use of the
  DoD Guidebook for Performance Service Acquisition
  and adopted the
• Treasurys Seven Steps

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Performance-Based Contracting

• A different approach to the analytical process
  was described in the guidebook for PBSA in the
  Department of Defense.
• It describes three "analysis-oriented steps that
  are "top down" in nature.

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Performance-Based Contracting

• The OFPP currently suggests using Treasurys
  Seven Steps to Performance Based Service
  Acquisition
• 1. Establish an integrated solutions team (IST)
• 2. Describe the problem that needs solving
• 3. Examine private and public-sector solutions
• 4. Develop a Performance Work Statement (PWS) or
  a Statement of Objectives (SOO)
• 5. Decide how to measure manage performance
• 6. Select the right contractor
• 7. Manage performance
• NOTE the Seven Steps to PBSA was created by
  an interagency industry team guided by
  Acquisition Solutions inc.

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Performance-Based Contracting

• The OFPP suggests using Treasurys Seven Steps
  which are reflected throughout this presentation
• 1. Establish an integrated solutions team

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1. Establish an integrated solutions team

• Performance-based acquisition is a collective
  responsibility that involves representatives from
  budget, technical, contracting, logistics, legal,
  and the program office.
• Thus an Integrated Team!

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1. Establish an integrated solutions team

• The IST needs to identify the essential inputs,
  processes, and outputs during Job Analysis.
• INPUT-PROCESS-OUTPUT
• Resources-Actions-Results

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1. Establish an integrated solutions team

• FAR 1.102 states
• The Acquisition Team consists of technical,
  supply, procurement, customers and contractors

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1. Establish an integrated solutions team

• Is the mission of your office is to support
  another activity within your agency (i.e.,
  internal client).
• Is the worth of your value-added services
  determined by that clients opinion of what you
  deliver?
• If so, and your office is seeking assistance from
  an outside contractor then

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1. Establish an integrated solutions team

• that internal client has the right to understand
  what you are doing and have the opportunity to
  discuss or review your statement of work we will
  call the PWS.
• Get Your Client Involved

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Performance-Based Contracting

• The OFPP suggests using
• Treasurys Seven Steps
• 2. Describe the problem that needs solving

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2. Describe the problem that needs solving

• Determine..
• What is the problem the agency needs to solve?
• What results are needed?
• Will it meet the organizational and mission
  objectives?

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2. Describe the problem that needs solving

• An agency should be able provide a definitive
  link between a contracts performance objectives
  and the agency's overall mission and goals.
• Outputs Agency Mission

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2. Describe the problem that needs solving

• FAR section 37.601
• (a) Describe the requirements in terms of results
  required rather than the methods

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2. Describe the problem that needs solving

• The foundation for a successful acquisition
  involves a clear answers to these questions
• What do I need,
• when do I need it,
• where do I need it
• what level of performance is required
• how do I know it's good when I get it

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2. Describe the problem that needs solving

• You Must Baseline Current Performance
• Determining the current level of performance
  establishes the baseline against which future
  performance can be measured.
• A valid measure of comparison

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3. Acquisition Planning

• Market research is the process of collecting
• information on the commercial marketplace its
• capabilities, technologies, and competitive
  forces.
• Market research is essential to the government's
• ability to buy best-value products and services
  that
• solve mission-critical problems.
• Market research is easy to do with links to
  catalogs, vendor websites, GOOGLE, etc

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3. Acquisition Planning

• Acquisition reform has opened the door to
  effective new approaches to market research that
  should be undertaken by the integrated
  solutions team long before attempting to write a
  performance work statement or PWS
• Many templates already exist on the WEB, then
  there are the old standards

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3. Acquisition Planning

• Some of the traditional ways to do this include
  issuing "sources sought" type notices at
  FEDBIZOPPS Industry Days, Industry Conferences
  issuing Requests for Information (RFI) and
  holding pre-solicitation conferences.

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3. Acquisition Planning

• Contact with vendors and suppliers for purposes
  of market research is encouraged in todays
  government.
• In fact, FAR 15.201(a) specifically promotes the
  exchange of information "among all interested
  parties, from the earliest identification of a
  requirement through receipt of proposals."

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4. Develop a PWS or SOO

• There are two ways to develop a specification for
  a performance-based acquisition by using
• a Performance Work Statement (PWS)
• or an emerging methodology built around
• a Statement of Objectives (SOO).

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4. Develop a PWS or SOO

• PWS is a document that states the technical,
  functional and performance characteristics of the
  work to be performed or delivered
• identifies essential functions to be performed
• determines performance standards
• including the location of the work, the units of
  work, the quantity of work units, and the quality
  and timeliness of the work units.

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4. Develop a PWS or SOO

• Developing the PWS begins with collecting and
  gathering data that defines the present
  operation.
• In Competitive Sourcing, this can be done during
  the pre-planning phase
• Sources of data can include information
  management systems (MIS), cost accounting
  systems, current and projected workload
  estimates, notes, log books, customer records and
  internal or external interviews with managers and
  workers

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4. Develop a PWS or SOO

• A thorough understanding of the organizational
  mission and a clearly worded mission statement
  will enable anyone to develop a Work Breakdown
  Structure for a PWS

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4. Develop a PWS

• The PWS should focus on defining desired results
  or outputs and acceptable levels of performance
  for all major top-level tasks

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4. Develop a PWS or SOO

• The ultimate purpose of this step is to develop
  the complete solicitation and execute a
  competitive procurement
• RFPs and IFBs are used to solicit contractor
  and government proposals that will propose ways
  to accomplish work outputs

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4. Develop a PWS or SOOUniform Contract
Format (UCF)

• A- SF33
• B- The Schedule including CLIN
• C- The PWS (with Attachments)
• D- Packaging Marking
• E- Inspection Acceptance
• F- Deliveries or Performance
• G-Contract Administration Data
• H-Special Contract Requirements
• I-Clauses
• J-List of Attachments
• K-Representations Certifications
• L-Instructions, conditions and notices
• M-Evaluation Factor for Award

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4. Develop a PWS or SOO

• There is not a standard template or outline for a
  PWS. The FAR only requires that agencies
• Describe requirements in terms of results or
  outputs, rather than process used.
• Use measurable performance standards and
  quality assurance surveillance plans to measure
  performance results.
• Provide for reductions of fees or price for
  failed performance, and...
• Include performance incentives as appropriate.

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4. Develop a PWS or SOO

• Industry Best Practices has resulted in adopting
  the following PWS outline for Section C
• Section C-1 Background
• Section C-2 Acronyms and Definitions
• Section C-3 Government Furnished
  Property
• Section C-4 Contractor Furnished Property
• Section C-5 Task Descriptions
• Section C-6 Technical Publications
• Attachments or Technical Exhibits

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4. Develop a PWS or SOO

• In terms of organization of information, a
  SOW-like approach is suitable for a performance
  work statement
• C-1 Introduction,
• Background information
• Mission statement
• Scope (Tasking)

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4. Develop a PWS or SOO

• The Attachments or Technical Exhibits should
  include
• Performance Requirement Summary (PRS)
• Historical and Project Workload
• Required Reports, and possibly
• Quality Assurance Surveillance Plan (QASP)

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4. Develop a PWS or SOO

• From the PWS Contractors can
• Determine what needs to be done
• Determine the skill sets (capabilities), level of
  expertise, and hours required
• Develop realistic and reasonable equipment and
  facility estimates
• Compile a Technical Cost proposal

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4. Develop a PWS or SOO

• FIRST, keep this important "lesson learned" in
  mind
• Don't specify the requirement so tightly that you
  get the same solution from each offeror
• Doing so restricts competition and doesnt result
  in Best Overall Value proposals
• In Competitive Sourcing doing so would not be
  good for government or industry

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4. Develop a PWS or SOO

• SECOND, performance-based service acquisition
  requires that the integrated solutions team
  usually must jettison some traditional approaches
  to buying services... like specifying labor
  categories, educational requirements, or number
  of hours of support required. Those are "how to"
  approaches.

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4. Develop a PWS or SOO

• Instead, let contractors propose the
• Best people
• Best skill sets
• Best solution
• To meet the need and fit the solution.
• Government can then evaluate the proposal
• based both on the quality of the solution and
• the experience of the proposed personnel.

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4. Develop a PWS

• Define the desired outcomes
• Conduct an outcome analysis
• Conduct a performance analysis

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4. Develop a PWS

• Steps inWork Analysis
• These requirement sentences will eventually form
  the..
• PERFORMANCE WORK STATEMENT

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4. Develop a PWS

• Work Analysis
• Grouping similar and related tasks and
  identifying
• their relationships is a common sense approach to
  
• communicating with contractors in the PWS. They
  use
• the results of the Government's work analysis, as
  
• stated in the solicitation, in their technical
  and
• business proposals.
• The review what Inputs (Resources) are required,
• what Actions (Work Steps) must be performed, and
• Outputs (Deliverables) must occur.

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4. Develop a PWS

• When people talk about
• performance-based contracting,
• they typically think of a PWS and
• QASP as their model.

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4. Develop a PWS

• Job Analysis?
• Work Analysis?
• They are the SAME?

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4. Develop a PWS

• Preparing the Performance-Based Statement of
  Work (PBSOW)
• The process begins with an analytical process,
  referred to as either a
• Job Analysis or Work Analysis

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4. Develop a PWS

• Work Analysis
• Those responsible for the mission or program are
  essential to the performance of the work
  analysis.

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4. Develop a PWS

• It involves a close examination of the work
• requirements from a "bottom up"
• perspective or Zero based approach
• It is the basis for establishing performance
• requirements, drafting the PWS,
• Performance standards and producing the
• quality assurance surveillance plan.

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4. Develop a PWS

• Work Breakdown Structure (WBS)
• Any job system can be broken into sub-systems
  and each sub-system into parts, smaller parts and
  sub-parts with every aspect of the service to be
  contracted being represented.

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4. Develop a PWS

• Work Breakdown Structure (WBS)
•  
• Outputs are clearly identified and can be
  separated from processes so the focus is on
  results.  
• This information is great for identifying
  Government-Furnished Property, Personnel, and
  Value

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4. Develop a PWS

• Steps in Work AnalysisWork analysis
  involves breaking down the work into its
  meaningful task levels and linking tasks in a
  logical flow of activities to produce mission
  oriented results.

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4. Develop a PWS

• Steps in Work Analysis
• Start with the overall service or output
• required from the contractor
• Divide the job into all its parts and subparts
• Identify the relationships among all the parts.

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4. Develop a PWS

• Steps in Work Analysis
• Typically, one requirement sentence will be
  written for each main task or sub-task in the
  Work Breakdown Structure (WBS) describing the
  desired result or output.

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4. Develop a PWS

• The Guidebook for Performance-Based Services
  Acquisition (PBSA) by the Department of Defense
  stated,
• Prescribing manpower requirements limits the
  ability of offerors to propose their best
  solutions, and could preclude the use of
  qualified contractor personnel from performing
  the requirement due to a lack of a college degree
  or the exact years of specified experience.

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4. Develop a PWS

• Congress passed a provision (section 813) in the
  2001 Defense Authorization Act, now implemented
  in the FAR
• When acquiring information technology services,
  solicitations may not describe any minimum
  experience or educational requirements for
  proposed contractor personnel unless the
  contracting officer determines that needs of the
  agency either
• (1) cannot be met without that requirement, or
• (2) requires the use of other than a
  performance-based contract.

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4. Develop a PWS

• The PWS is written concurrently with the Quality
  Assurance Surveillance Plan (QASP) and influences
  what is put into the QASP
• Developing the QASP is a check to make sure
  that outputs and procedures are measurable

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5. Decide how to measure and manage performance

• The QASP describes the procedures to be used by
  the Government to ensure that the service
  provider, Government or contractor, is meeting
  the minimum requirements of the PWS.
• The QASP includes the method of inspection the
  Government will use, reports required, and
  Government resources to be employed.

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5. Decide how to measure and manage performance

• PURPOSE OF THE QASP
• Does Contract Performance
• equal or exceed the
• Contract Requirements as listed in the
  Performance Requirements Summary (PRS)?

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5. Decide how to measure and manage performance

• The Quality Assurance Surveillance Plan (QASP)
  is a Government developed document
• The document outlines what methods to follow in
  determining if the contractors is meeting the
  requirements of the Contract

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5. Decide how to measure and manage performance

• The QASP details how and when the Government
  will survey, observe, test, sample, evaluate, and
  document contractor performance
• The QASP focuses on the quality, quantity,
  timeliness, etc. of the performance outputs

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6. Select the Right Contractor

• Your ability to select the right contractor
  comes from the evaluation of their technical
  proposal.
• The technical proposal is written in accordance
  with the instructions listed in Section L of the
  RFP.

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6. Select the Right Contractor

• If the statement of work includes a specific
  task, and the contractor is not asked to discuss
  their experience in performing that task in
  Section L, then there is no way to properly
  evaluate the contractor.

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6. Select the Right Contractor

• Also, ensure that the individuals selected to
  serve on the Source Selection Evaluation Team
  have direct hands-on experience with the work
  that is being evaluated.

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7. Manage Performance

• The COTR and the Quality Assurance Surveillance
  Plan (QASP) are critical component to managing
  contractor performance. You can only be as good
  as the weakest link, oknow how do we do that?
• TOMORROW (DAY 2) we will focus on how to manage
  performance as contracted