Elements of a Performance Work Statement PWS PERFORMANCE
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Elements of a Performance Work Statement (PWS)
PERFORMANCE BASED ACQUISITION PBA “Performance-based acquisition (PBA)” means an acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed. “Performance Work Statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes. FAR 2. 101 2
PERFORMANCE WORK STATEMENT PWS Describes work in terms of required results rather than “how” the work is to be accomplished or the number of hours to be provided Enables assessment of work performance against measurable performance standards Relies on measurable performance standards and financial incentives in a competitive environment to encourage innovation and cost effective methods of performing the work 3
PROCESS METHODOLOGY PERFORMANCE-BASED METHODOLOGY Requirements described in terms of processes or tasks Requirements described in terms of end result Gov’t instructs contractor when, where, how, and how many Contractor complies with commercial standards Does not address desired end result Contractor provides labor mix & skill set solutions to fulfill requirements V Quality assurance is labor intensive Relies on contractor quality control plan-“Trust-but validate” 4
BENEFITS OF PERFORMANCE-BASED REQUIREMENTS Reduced contract prices Improved contractor performance Measurable performance requirements Clearly defined outcomes Leaves no question as to whether a contractor has met requirement Contractor flexibility • Contractor can change processes in response to changing requirements within scope without contract modification o Decreased surveillance • Review contractor provided data/metrics • Evaluate end results o Contractor innovation • Incentivizes contractor to streamline processes, reducing costs o o o 5
ELEMENTS OF PERFORMANCE-BASED PWS Requirements are “outcome-based” Requirements include clear, unambiguous, and measurable performance thresholds Surveillance methods focus on end results, not the process 6
DEVELOPING A PERFORMANCE-BASED REQUIREMENT Define the desired outcomes • What must be accomplished to satisfy the requirement? Conduct an outcome analysis • What tasks must be accomplished to arrive at the desired outcomes? Conduct performance analysis • When or how will I know that the outcome has been satisfactorily achieved, and how much deviation from the performance standard will I allow the contractor, if any? 7
DEFINE THE DESIRED OUTCOMES List what needs to be accomplished from a top-level perspective A description of the requirements in terms of outcomes Determine all dependent variables Requirements to be outcomebased Outcomes must be measurable 8
TREE DIAGRAM Office Building Floors Hardwood Linoleum Furniture Carpet Tile Fixtures Appliances Metal Sinks Wall-to-Wall Wood Systems Shower Interior Blinds Oriental Leather Toilets Exterior Curtains Cabinets Refrigerator Dishwasher Walls Stove Windows Paintings Posters Surfaces Glass 9
CONDUCT AN OUTCOME ANALYSIS Identify specific performance objectives Ensure that each performance objective is necessary Avoid restrictive performance objectives Identify only the essential outputs 10
EXAMPLE OUTCOME ANALYSIS FOR CLEANING SERVICE Input Work Output Furniture: Include in Contract? Yes No Metal Clean, de-rust, and polish Hygienically clean and conserved X Wood Systems Clean, protect, and preserve Hygienically clean and preserved X Clean, moisturize, and protect Hygienically clean and conserved X Leather 11
CONDUCT A PERFORMANCE ANALYSIS Identify how performance objective should be measured Establish Performance Standards Identify Acceptable Quality Levels (AQLs) Example: Desired Outcomes Required Service Performance Standard (What do we want to accomplish as the end result of this contract? ) (What task must be accomplished to give us the desired result? ) (What should the standards for completeness, reliability, accuracy, timeliness, quality and/or cost be? ) 1. X. User guides and other documentation provided are accurate, complete, and easy to use. Documentation shall meet agency 95% of the documentation provided requirements for accuracy, completeness, meets the stated standards. and ease of use. 12
DEVELOP PERFORMANCE STANDARDS Use commercial standards where practicable; Ensure the standard is needed and not unduly burdensome (Let the offerors propose them. ). Components of standards are indicators (essential characteristics of acceptable performance), Must be measurable, easy to apply, and attainable. • Delivery time, error rates (accuracy), operational costs, responsiveness, adherence to specifications, etc. 13
DEFINE ACCEPTABLE QUALITY LEVELS Maximum allowable deviation Must be realistic, State the minimum standard, • percentage of errors allowed, • cost trade-offs, • etc. 14
METHODS OF SURVEILLANCE 100% inspection Random Sampling Periodic Inspection Client Input Contractor Self. Reporting 15
INCENTIVES FAR 37. 602(b)(3), states: “Rely on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work. ” o Align incentive criteria to performance, cost, or scheduling results; o Ensure the cost benefit equation justifies the incentive; and o FAR 16. 401 (d) requires a D&F to support use in the contract file. 16
INCENTIVE STRATEGIES o Incentives need not be limited to cost o Incentives should be based on target performance standards, not minimum contractual requirements o Avoid rewarding contractors for simply meeting contract requirements o Ensure that incentives motivate the contractor to measurable quality control processes o Use a combination of positive and negative incentives 17
INCENTIVE CONSIDERATIONS o Will enhanced performance provide additional value to the agency? o Which areas of the requirement would benefit most from enhanced performance? o How much is the agency willing to pay to achieve a level of performance beyond the performance standard? o Do contractors within the particular industry prefer additional performance periods (award terms) in lieu of monetary incentives (award fees)? 18
PERFORMANCE REQUIREMENTS SUMMARY (PRS) PERFORMANCE THRESHOLD PERFORMANCE OBJECTIVE (The service required; usually a shall statement) STANDARD (This is the maximum error rate. For example: Zero deviation from standard. ) METHOD OF SURVEILLANCE (Also indicate who performs. For example: One hundred percent inspection by the COR. ) INCENTIVES (If any, Positive and/or Negative Impact on Contractor Payments) Performance requirements summary (PRS) #1 (Insert PWS paragraph. ) PRS # 2 (Insert PWS paragraph number. ) PRS # 3 (Insert PWS paragraph number. ) PRS # 4 (Insert PWS paragraph number. ) 19
PUTTING IT ALL TOGETHER REQUIRED SERVICES (TASKS) ACCEPTABLE QUALITY LEVELS PERFORMANCE STANDARDS METHODS OF SURVEILLANCE EXAMPLES: Submit a PM report of scheduled, completed, and outstanding tasks monthly (PWS C. 2. 1. 2 (G)) 100% of reports accurately 99% depict current status File reviews, periodic inspections, and random, observations, customer complaints Administer quality control program including subcontractor management in accordance with QCP Contractor is in compliance with QCP 97% of the time File reviews, periodic inspections, and random, observations, customer complaints Submit management reports as required INCENTIVE (POSITIVE AND/OR NEGATIVE) (IMPACT ON CONTRACTOR PAYMENTS -$500 for each documented instance when a report is submitted after the 15 th of the month. 95% 20
PERFORMANCE WORK STATEMENT PWS 1. General 2. Definitions and Acronyms 3. Government Furnished Items 4. Contractor Furnished Items 5. Description of Work (Tasks) 6. Applicable Regulations and Manuals 7. Attachment/Technical Exhibits 21
TIPS FOR WRITING THE PWS üStyle: Include all essential information in a concise, accurate, thorough, and logical sequence with the clearest, simplest possible presentation. Avoid complex words üSentences: Eliminate long, complicated sentences by rearranging into small sentences üJargon: Avoid legal or technical jargon. Define anything that might not be clear to anyone on the street üParagraphs: Avoid long paragraphs üAmbiguity: Do not use vague, indefinite, or uncertain terms that have double meanings. You can’t qualify or measure them, e. g. : üSecurely mounted üProperly assembled. üCarefully performed. 22
TIPS FOR WRITING THE PWS üNumbers: üSpell out numbers under 10 except for dimensions. üUse the numerals numbers 10 and above. üWrite dimensions, temperature, percentages, and dollars and cents as numerals (2 inches, 40 degrees F, 30 percent, $10. 75) üRedundancy & Repetition: Avoid it. It creates a possibility of an inconsistency üPunctuation: Use minimal punctuation. If complicated sentences require more punctuation, rewrite the sentence. Shorten it. Inadvertent or misplaced punctuation can change the meaning üAbbreviations/Acronyms: If you have to use them, define them first 23
TIPS FOR WRITING THE PWS üSymbols: Use the full word instead, e. g. , “pound” instead of “#”, “at” instead of “@”, “percent” instead of “%. ” üMisused Words & Phrases: üShall & Will: “Shall” is a binding term. “Will” is a suggestion of a future event. Use “shall” when expressing a binding requirement on the part of the contractor. Use “will” to refer to the Government’s future actions üAny & Either: Both words imply a choice. “Any” refers to more than two choices. “Either” refers to a choice between two options üAnd & Or: Use “and” if BOTH conditions are true. Use “or” if only ONE condition is true. Don’t use “and/or” because it shows a contradiction üEtc. : Avoid using it because the reader might not know what else is available 24
TIPS FOR WRITING THE PWS üVoice: Use the ACTIVE voice rather than the PASSIVE voice. The active voice is always clearer. Examples: üActive: Clean up all debris at the end of each workday üPassive: The debris shall be picked up at the end of each workday üActive: Empty trash containers twice a week üPassive: Trash containers shall be emptied twice a week üActive: Install new air filters in accordance with manufacturer's recommendations üPassive: New air filters are required in accordance with the manufacturer's recommendations 25
QUALITY ASSURANCE SURVEILLANCE PLAN (QASP) o Systematic method to evaluate the services of the contractor o Identifies the performance indicators, standards, inspections methods and procedures to be used in monitoring performance o Details thresholds for acceptable and unacceptable performance The QASP explains the following: o What will be monitored o How monitoring will take place o Who will conduct the monitoring o How monitoring efforts and results will be documented 26
SUMMARY Define requirements in clear, concise language identifying specific work to be accomplished Describe the work in terms of “what” (end result) rather than “how” (processes) Enable assessment of performance against measurable performance standards Use measurable standards and incentives to encourage innovation and costeffective methods of performance Cite publications by specific paragraph/chapter, referencing only needed portions 27
ADDITIONAL REFERENCES FAR 37. 6, Service Contracting, Performance-Based Acquisition Seven Steps to Performance-Based Services Acquisition https: //www. acquisition. gov/seven_steps/home. html Performance-Work-Statement-Template http: //www. easc. noaa. gov/APG/PBA_Docs/Performance-Work. Statement-Template. doc 28
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