# Presentation: 535875

- Contributors:

**Notes:**
Web-enabled guide sponsored by Dept of Commerce

Participants from across Gov’t

We’d like to have OFPP adopt this guide across the Gov’t, 
after we pilot-test and refine it.  Angela Styles made some
complimentary comments in Gov’t Computer News last
week

## Performance Based Services Acquisition 

***Writing a Statement Of Objectives***

**Chip Mather**
**301-261-9849**
**chip.Mather@acqsolinc.com**

## Flow chart of seven steps

## Seven Step Guide to PBSC

**Performed 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

## 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!**

## 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**

## 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**

## 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!”***

## 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**

## 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**** **

## 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.**

## Step 4 – Developing a SOO

**e) 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****.**

## Step 4 – Developing a SOO

**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.**

## 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**

## 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**

## 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!***

## 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 Guide

- Decide How to Measure and
- Manage Performance
*Commercial Quality Standards*
*Quality Assurance Plan*
*Contractual Language*

- March 15, 2001

## Seven Steps Guide

-  Decide How to Measure and
- Manage Performance
*Minimum Success Factors*
*Incentive Type*
*Award Term *

- March 15, 2001

## Seven Steps Guide

-  Decide How to Measure and
- Manage Performance
- Consider Profit
- Relationship

- March 15, 2001

## Seven Steps  to Performance-Based Services Acquisition                  

**Step 6**
**Select the Right**
** ****Contractor**
- _[Michael.Canales@OSD.MIL](mailto:Michael.Canales@OSD.MIL)_
**703-695-9571-- Pentagon 3C838**

- March 15, 2001

## 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

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## Step 6	         Select the Right Contractor

- "Compete the Solution"
- Downselect
- Due Diligence
- Evaluate Heavily on Past Performance
- Make a Best-value Source Selection Decision

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## 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!

- Step 6	**                   ***Compete the Solution*

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## 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!

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## 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

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## Step 6                Use Downselection And                                             "Due Diligence"

- Due Diligence
- Site Visits
- Meet Key Agency People
- Open Period of Communication

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## 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

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## Step 6 	      Use Oral Presentations and Other 			     Opportunities to Communicate

- Communication
- Important Element of Selecting the Right Contractor
- Award Without Discussions

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## 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

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## Step 6                         Emphasize Past Performance

- Past Performance Information
- Past Performance Information Retrieval System (PPIRS)  _[http://www.ppirs.gov](http://www.ppirs.gov/)_
- Past Performance Information on-line course _[http://](http://clc.dau.mil/)__[clc](http://clc.dau.mil/)__[.](http://clc.dau.mil/)__[dau](http://clc.dau.mil/)__[.mil](http://clc.dau.mil/)_ "CL Modules”, key word "ppi"
- Market Research

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## 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

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## 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

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##  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

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## Step 6             Evaluation Factors to Consider

- Management Team
- Past Performance (how well the contractor has performed)
- Past Experience (what the contractor has done, relevancy)

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## Step 6                                          Conflict of Interest                  

- Concerns vs. Good Business Sense

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## Seven Steps Guide

-         **Manage Performance**
*Keep the team together*
*Adjust roles and responsibilities*
*Assign accountability *

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**Notes:**
COMMUNICATE, COMMUNICATE, COMMUNICATE!

To the extent possible, keep team together

Assign roles and  responsibilities, and assign accountability

Formal kick-off meeting

Have regular performance improvement working group 
  meetings.  IPT’s!!!  Reassess metrics at least annually.

Document performance so no surprises at annual and end-
of-contract evaluation

## Manage Performance Cont’d

Hold a kick-off meeting 
Regularly review performance in a Contract Performance Improvement Working Group

**Manage Performance **Cont’d
*Hold a kick-off meeting *
*Regularly review performance in a Contract Performance Improvement Working Group*

- Seven Steps Guide

- March 15, 2001

## Manage Performance Cont’d

Ask the right questions
Report on the contractor’s past performance

**Manage Performance **Cont’d
*Ask the right questions*
*Report on the contractor’s past performance*

- Seven Steps Guide

- March 15, 2001