Healthcare Services Contracting Discussion CAPT Bernie Poindexter, MSC, USN Deputy, M8 Wednesday, 7 Oct 2009

Personal Services Contract (PSC) Authorized by 10 U.S.C 1091 for healthcare By its expressed terms or as administered, makes the contractor personnel appear, in effect, to be GS employees Usually: –Performance on site –Principle tools and equip furnished by the Gov –Services are applied directly to the integral effort of Agency –Comparable services are performed by civil service personnel –Reasonable need for service to last beyond a year –Inherent nature of the service requires Gov direction or supervision

Personal Services Contract: Terms and Tools Types –Indefinite Delivery Indefinite Quantity (IDIQ) –Multiple Award Task Order (MATO) –Individual Set-Aside (ISA) –Blanket Purchase Agreement (BPA) Key People –Contracting Officer (KO) –Contracting Officer’s Representative (COR) –Technical Liaison (TL) Coming soon: –Physician Locum Tenens –Traveling Nurse and Allied Health Professionals

Basic $414.6M on 4,053 FTEs PH/TBI $26.1M on 201 FTEs PDHRA $12.1M on 100 FTE’s OCO $22.8M on 237 FTEs Blood Bank Program $4.4M on 95 FTEs FY2009 Funded Personal Services Total FY2009 Obligations: $480M and 4,686 FTEs $151M Forward Funded (1,626 FTEs) – Performance must start by 30 Sep FY09 Non-PSC Contracts (15) awarded by FISC valued at $11.5M (e.g., Emergency Department, Mobile MRI, etc.) Total number of CORs BSO-wide = 66; 2,072 SOWs developed in FY09 Contract Healthcare Workers - Significant Investment

Current Contract Healthcare Services GRAND TOTAL: 4,686 FTEs (avg $103K per FTE) Contract Healthcare Workers Support All Service Lines

Shared understanding of roles and responsibilities; commitment (resources and time) to the acquisition process Effective & timely collaboration on market research, technical specifications, procurement strategy, SOW development & approval Timely funds authorization/flow Effective communication for problem solving, process management, leadership awareness Requirement scope, complexity, and value drive acquisition lead time and acquisition planning resources Healthcare Service Acquisition a) Vendor b) Customer / Vendor c) Customer / Vendor 3.Start-Up a)Conduct Healthcare Provider Recruiting b)Conduct Credentialing c)Provide Facility Access a) KO b) KO c) KO d) Vendor e) KO/ Customer f) KO 2.Procurement / Contracting a)Develop Solicitation b)Conduct Legal Review c)Issue Solicitation to Industry d)Develop / Submit Proposal e)Evaluate Proposal - price & technical f)KO review / negotiate contract award a) Customer b) KO/ Customer c) KO/ Customer d) KO// Customer e) KO/ Customer f) KO g) Customer 1.Requirements Definition / SOW Development a)Define Requirement b)Build SOW c)Conduct Market Research d)Develop Cost/Price Estimate e)Define Procurement Strategy f)Final Review / Approve SOW g)Provide Funding Responsible Responsible Lead / SupportCategory *ALT – Acquisition Lead Time**PALT – Procurement Administrative Lead Time Key Success Factors

Take Aways Contractors are essential MTFs must be fully engaged in acquisition planning – communication is crucial Streamlining is possible across the acquisition continuum – mostly in phase one Contracting for personnel cannot be done in a vacuum – must be integral part of the business plan