Online extra: Climbing the performance-based stairway
In 2001, a task force comprised of volunteers from several federal departments created a roadmap to help agencies implement performance-based contracting. Acquisition Solutions Inc., a consulting company based in Oakton, Va., that specializes in advising on procurement policy and strategy, assisted in the process.
In 2001, a task force comprised of volunteers from several federal departments created a roadmap to help agencies implement performance-based contracting. Acquisition Solutions Inc., a consulting company based in Oakton, Va., that specializes in advising on procurement policy and strategy, assisted in the process.The task force developed a template with seven steps for a performance-based services acquisition. To get more detailed information for each step, visit www.acquisitionsolutionsinc.com and click on "Seven Steps to PBSC."Step 1. Establish the teamStep 2. Decide what problem needs solvingStep 3. Examine private-sector and public-sector solutionsStep 4. Develop a performance work statement or statement of objectivesStep 5. Decide how to measure and manage performanceStep 6. Select the right contractorStep 7. Manage performance.Source: Acquisition Solutions Inc.
- Ensure senior management involvement and support
- Tap multi-disciplinary expertise
- Define roles and responsibilities
- Develop rules of conduct
- Empower team members
- Identify stakeholders and nurture consensus
- Develop and maintain the knowledge base over the project life
- "Incent" the team: establish a link between program mission and team members' performance
- Link acquisition to mission and performance objectives
- Define desired results
- Decide what constitutes success
- Determine the current level of performance
- Take a team approach to market research
- Spend time learning from public-sector counterparts
- Talk to private-sector companies before structuring the acquisition
- Consider one-on-one meetings with industry
- Performance work statement: Conduct an analysis; apply the "so what" test; capture the results of the analysis in a matrix; write the performance work statement; let the contractor solve the problem, including the labor mix
- Statement of objectives: Begin with the acquisition's "elevator message;" describe the scope; write the performance objectives into the statement; make sure the government and the contractor share objectives; identify the constraints; develop the background; make the final checks and maintain perspective
- Review the success determinants
- Rely on commercial quality standards
- Have the contractor propose the metrics and the quality assurance plan
- Select only a few meaningful measures on which to judge success
- Include contractual language for negotiated changes to the metrics and measures
- Apply the contract-type order of precedence carefully
- Use incentive-type contracts
- Consider "award term"
- Consider other incentive tools
- Recognize the power of profit as motivator
- Consider the relationship
- Compete the solution
- Use down selection and "due diligence"
- Use oral presentations and other opportunities to communicate
- Emphasize past performance in evaluation
- Use best-value evaluation and source selection
- Assess solutions for issues of conflict of interest
- Keep the team together
- Adjust roles and responsibilities
- Assign accountability for managing contract performance
- Add the contractor to the team at a formal "kick-off" meeting
- Regularly review performance in a Contract Performance Improvement Working Group
- Ask the right questions
- Report on the contractor's "best performance"