2. AbilityOne Performance Based Contracting – Putting Disabled Vets to Work 1 1 Breakout Session # F01 Name: Dave Theimer Assistant VP, Marketing NISH SPC Nathan S. Short US Army (ret.) Quality Assurance Manager PCSI Austin, Texas Date: Tuesday, July 12 Time: 4:00PM – 5:15PM

3. 2 A Wounded Warrior’s Story A Brief AbilityOne Program Overview/up-date AbilityOne Performance Based Contracting Summary/Questions Today’s Agenda

4. SPC Nathan S. Short, US Army (ret.) Quality Assurance Manager PCSI Austin, Texas

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18. 17 The Javits-Wagner-O’Day Program is now called AbilityOne New name will increase awareness and better communicate the mission and program identity. JWOD/AbilityOne Updates

19. Back to the Beginning… 18 Public Law –Wagner-O’Day Act of 1938 for NIB –Javits Amendment of 1971 added People with Disabilities Javits-Wagner-O’Day Act (41 U.S.C. 46-48c) Implemented through 41 CFR Chapter 51 and FAR Subpart 8.7

20. AbilityOne Program Organization Chart President of the United States Committee for Purchase From People Who Are Blind or Severely Disabled Congress (Legal Authority) DOC DOD Air Force Army Navy DOJ DOL ED GSA USDA VA Citizen Nonprofit Agencies Employing Persons Who Are Blind Nonprofit Agencies Employing Persons With Severe Disabilities Members Federal Customers

21. 20 Presidential Appointees Andrew Houghton Chairperson James Omvig Vice Chairperson Paul Laird Dept. of Justice J. Anthony Poleo Dept. of Defense P. Edward Anthony Dept. of Education Robert Kelly, Jr. Private Citizen James Kestleloot Private Citizen RADM Michael Lyden Dept. of the Navy Pamela Schwenke Dept. of the Air Force Kathy Martinez Dept. of Labor Helen Hurcombe Dept. of Commerce Vacant

22. 21 Statutory Role & Responsibilities Establish, publish, maintain Procurement List (PL) Determine Fair Market Prices of PL Items Designate Central Nonprofit Agency(ies) (CNA) Make Rules and Regulations as necessary to carry out the purposes of the JWOD Act Conduct Continuing Study and Evaluation of activities under the JWOD Act

23. Committee Responsibilities 22 Oversee central nonprofit agencies (NISH & NIB) Qualify non-profit agencies (NPAs) Determine Suitability of Projects & Impact Sets the “Fair Market Price” Administer priority program Control the “Procurement List” Establish/Enforce Rules & Regulations under “The Law”

24. AbilityOne is Smart Business 23 Quality Services & Products Fair Market Prices Long Term Partnerships/Relationships Ease of Contract Award and Administration –In Step with Acquisition Streamlining Break to Taxpayers (Convert Tax Users Into Taxpayers) –Reduced Entitlements –New Taxpayers

25. Program Management Support 24 NISH assist with SOW/PWS PBSA Training & Implementation Price to Budget (Design-to-Cost) NISH – Contract Management Support (FAR Part42) Effective Teaming – Full & Open Discussions –Mission Focused Service Providers No Cost – No Obligation Proposals Provide innovative, timely and cost effective acquisition/business solutions for the Federal Government.

26. So… What is NISH? 25 Central Nonprofit Agency NISH Mission:  Create Job Opportunities for Persons with Significant Disabilities

27. Traditional AbilityOne Services 26 Custodial Food Service Grounds Maintenance Postal Service Centers Switchboard Operators

28. NEW AbilityOne Services 27

29. NISH Organization 28 San Ramon, CA Pacific West

30. 29 1.Develop/Define the Requirement 2.Contact the AbilityOne Program 3.Determine If AbilityOne and Their Community Rehabilitation Program (CRP) Business Partners Possess the Capability 4.Determine Federal Prison and NIB Priority (products only) 5.NISH/NIB Project Manager Performs A “Preliminary” Impact Determination a.Dun & Bradstreet Business Base Review (Opportunity Percentage of Contractor’s Business) b.Incumbent Contractor Profile c.8A Contractor’s Program Status (Years To Graduation)

31. 30 6.Complete Statement Of Work (SOW) And Send To The NISH/NIB Project Manager (NISH Can and Will Assist In Writing The SOW) 7.Receive The “No-obligation” Price Proposal From The NISH/NIB Project Manager 8.Negotiate The Proposal, Sign The Concurrence Letter, and Send To NISH/NIB 9.NISH/NIB’s Project Manager Stays in Touch with the Contracting Officer to Report on the “Procurement List Addition” Process/Progress at the Committee For Purchase

32. 31 AbilityOne Approach to Performance-Based Contracting

33. Performance-Based Contracting 32 A PBSC is structured around the purpose of the work as opposed to the manner in which it is to be performed Focus is on measuring the output of a contractor’s effort rather than on managing those efforts

34. PBSC and FAR 37.601 33 Performance-based contracts- Describe the requirements in terms of the results required rather than the methods of performance Use measurable performance standards (i.e. terms of quality, timeliness, quantity) Specify procedures for reductions to price when services are not performed, and Include performance incentives where appropriate

35. NISH & PBSC 34 Since most NISH Service contracts are PBSC, NISH has developed extensive experience in performance based service contracting

36. Prescriptive SOW 35 5.3.4 The contractor shall vacuum the rug in Room 12 daily, as follows: 5.3.4.1 Move all tables and chairs to the stage on the North side of the room 5.3.4.2 use a commercial vacuum cleaner (HooverType31C or equal) to vacuum the rug. Check to see that the bag does not need replacement. Use two passes in each direction with 3 inch overlaps, to insure entire rug surface has been vacuumed.

37. Prescriptive SOW 36 5.3.4.2 Use a hand vacuum (Electrolux Type 16 or equal) with a 4 inch wand extension to vacuum corners and recessed areas not reached by the commercial vacuum cleaner. 5.3.4.3 After vacuuming, replace all tables and chairs in their original positions. 5.3.4.4 Note any spills, spots, etc. for treatment. 5.3.4.5 Store vacuum cleaning equipment in Closet 12A after use.

38. Performance Based PWS 37 5.3.4. Vacuum the rug in Room 12 to remove all visible traces of fuzz, lint, and other foreign materials.

39. Six Components of a PBSC 38 1.Performance Work Statement (PWS) 2.Performance Indicators and Standards 3.Performance Requirements Summary (PRS) 4.Acceptable Quality Level (AQL) 5.Performance Plan ( Formerly the QASP ) 6.Appropriate Incentives

40. 1. Performance Work Statement (PWS) 39 The PWS describes the requirements that the contractor must meet in performance of the contract Usually a brief statement of the result required Key is include adequate requirement statements without excess detail or “how to”

41. PWS and the WBS (Work Breakdown Structure) 40 1.Outputs are clearly identified 2.Inputs are clearly defined 3.WBS is required for work analysis 4.WBS is required for the proposal 5.WBS is required for pricing

42. Performance Work Statement (PWS) 41 The WBS is used to give a framework for developing the requirements of a PWS PWS lists the performance requirements of the contract It will guide the contractor and the Government throughout the life of the contract

43. 2. Performance Indicators and Standards 42 An indicator is an essential characteristic of acceptable performance A standard is a definite level or degree of quality against which performance can be measured This information must be provided in the PWS and in the PRS (if separate) and reflected in the Performance Plan

44. Common AbilityOne Quality Indicators 43 Workmanship Timeliness Accuracy Conformance Customer Satisfaction

45. Objective, Measurable Standards Are Key to PBSC 44 Complete task in 30 minutes 275 to 300 Meals served between 12-1 Maintain grass between 3” and 5” on improved areas

46. Try to make Subjective standards Common Sense Standards 45 After sweeping, there shall be no visible dirt, trash, or foreign matter. Door Glass will be clean if there is no visible dirt, smudges, or fingerprints Standard must be workable both to contractor and to COTR/QAE

47. 3. Performance Requirements Summary 46 The PRS is a summary of the tasks or deliverables, the performance standards, the AQL, and the quality assurance surveillance methods to be used, and incentives to the contractor May not be stated separately

48. 4. The AQL 47 The AQL is the degree to which the Government will allow performance to vary from the standard Absolute standards, zero defects, are possible but expensive For each requirement or task, there must be an AQL Establish reasonable AQLs – be realistic, ask what is acceptable

49. 5. The Performance Plan (Old Quality Assurance Surveillance Plan (QASP) 48 The Perf Plan outlines the methodology to monitor the performance against the standards in the PWS Written by the Government for the QAE or COTR May be shared with the contractor (except for sampling plan) but not included in contract

50. 6. Appropriate Incentives 49 Incentives may be positive or negative, monetary or non- monetary but must be included and should be effective The level of incentive should relate directly to the value of the outcome (AQL) The AQL can be used to “dial in” the appropriate level of performance at the budgeted cost

51. …But don’t forget the QCP 50 Your Quality Control Plan, written based on the PWS and the QASP (provided to NISH contractors) detailing how YOU are going to manage to assure quality. (Approved!)

52. DO’s of Writing a PWS 51 Use an experienced drafting team Exclude “how-to” requirements Use the WBS to outline the effort Tailor the standards Use commercial practices and definitions Use workable standards for subjective standards, such as “clean”

53. Streamlining Using AbilityOne 52 AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process Save staff time, effort, money Bring services on line quicker

54. Acquisition– The Federal Process 53 Identification of requirement or need Market research (FAR Part 10 Acquisition planning (FAR Part 7) Solicitation and Proposal phase (FAR Part 15) Evaluation and Negotiation (FAR Part 15) Source selection And contract award (FAR Part 15)  Functions within legal/regulatory framework implemented by the FAR  Involves entire acquisition team  Balances goals of obtaining best value for the government and promoting competition

55. Streamline Advantages 54 Can go directly to an AbilityOne producer with a SOW No formal notice, no solicitation, no synopsis, no sources sought Can immediately begin negotiation. Not a competitive environment as used in FAR –a directed procurement under FAR 8.7 Can ask NISH to help with the SOW/PWS

56. Buying from AbilityOne 55 If the item is on the Procurement List, no problem; just place the order citing FAR 6.302-5, Authorize by Statute No requirement for publication, competition, etc. AbilityOne buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs.

57. Acquisition– The NISH Process 56 Identification of requirement or need Proposal and Negotiation (FAR Part 8.7) Contract award (FAR Part 8.7)

58. AbilityOne Is Not a “Front” 57 Service must be suitable- i.e. can be performed by a NPA and can be performed by individuals with disabilities Providing the Service through AbilityOne cannot have disproportionate impact on the previous supplier - 75% of our direct labor must be by individuals who qualify as severely disabled

59. Team Approach 58 NISH will help prepare NPA proposal and costing package NISH will support the NPA with training NISH has blanket alliances with large clients such as GSA, DeCA, NAVFAC

60. Follow-on, The Real Pay Off 59 Once in the AbilityOne program, the procurement becomes a base year plus four follow on years (AbilityOne Options) Automatically renewed every five years (unless agency requirements change) If performance problems, which is rare, NISH helps and can select replacement NPA

61. 60 www.abilityone.gov –Committee for Purchase –Forms & Publications –Procurement List www.nish.org –Guides for federal customers –Training Catalog www.nib.org –National Industries for the Blind Questions