1. Contributors:

2. Performance Based Services Acquisition Writing a Statement Of Objectives Chip Mather 301-261-9849 chip.Mather@acqsolinc.com Chip Mather 301-261-9849 chip.Mather@acqsolinc.com

3. Performance Based Service Acquisition November 1, 2002 3

4. Performance Based Service Acquisition November 1, 2002 4 Seven Step Guide to PBSC Performed Steps 1- 3 Step 1 Established Integrated Solutions Team n Acquisition Starts with I Have a Dream Step 2 Described the Problem That Needs Solving n Desired Outcomes, Success Criteria Step 3 Examine Private and Public Sector Solutions n Meaningful Market Research – Best Practices (Gov and Commercial), Performance Measures and Metrics, Incentive Plans

5. Performance Based Service Acquisition November 1, 2002 5 Seven Step Guide To PBSC n Step 4: Developing a Statement of Objectives States Government’s Overall Objectives Replaces Performance Work Statement n Reality; SOO is a Really GOOD PWS! n Simplified Definition of PBSC Structuring All Aspects of Acquisition Around Outcomes and Results! n Shared Goals and Objectives Very Powerful!

6. Performance Based Service Acquisition November 1, 2002 6 Step 4 – Developing a SOO n Dramatic Change: Best PBSC I’ve Seen… “We didn’t know enough to write a SOW, so we had to write it that way!” n That is the Key! Write Outcomes (Statement of Objectives) Offerors Propose SOW and Performance Measures

7. Performance Based Service Acquisition November 1, 2002 7 Step 4 – Developing a SOO n Where Knowledge Exists Government – Problem and Constraints Industry – Solutions n Current Process Government “Solves” the Problem in SOW n Good SOW is a Tight SOW! n Take Last RFP, Close Loop Holes Industry – Responds to Government Solicitation n Restate Line for Line From SOW n State Why You Are “Uniquely Qualified” to Do What Government Directed

8. Performance Based Service Acquisition November 1, 2002 8 Step 4 – Developing a SOO n Change the Process – Government States Problem and Constraints Offerors Provide SOW n Based on Unique Solution n Provide Performance Measures and Metrics n Stop Buying Compliance – Start Buying Results! “Significantly easier to identify good idea than invent one!”

9. Performance Based Service Acquisition November 1, 2002 9 Step 4 – Developing a SOO n Statement of Objectives Two Pages +/- Identify Program Objectives and Constraints n Why Was Program Funded? Link A-11 Strategic Plan to Acquisition n Your Objectives Should be Contractor’s Objectives! For IT: Clinger Cohen Promises n “Award” Citation

10. Performance Based Service Acquisition November 1, 2002 10 Step 4 – Developing a SOO n TSA Information Technology Managed Services (ITMS) SOO 5 Pages n 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

11. Performance Based Service Acquisition November 1, 2002 11 Step 4 – Developing a SOO n 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.

12. Performance Based Service Acquisition November 1, 2002 12 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.

13. Performance Based Service Acquisition November 1, 2002 13 Step 4 – Developing a SOO i)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.

14. Performance Based Service Acquisition November 1, 2002 14 Step 4 – Developing a SOO n True Best Value Selection! Wider Range of Solutions – “Good Thing” Understanding the Requirement – n Assessment of Comprehensiveness and Risk of Technical and Management Solution n Quality of Performance Metrics and Service Level Agreements What Measured, Level of Performance, Linkage to Objectives Both Parties Focused on Outcome n Tied to Mission Objectives

15. Performance Based Service Acquisition November 1, 2002 15 Application of SOO to TSA ITMS n Best Value Source Selection Superior Solutions Received; Worst Proposal Was Exceptional! Significantly Easier to Recognize Good Idea, Than to Invent One! n 107 Day Acquisition Cycle 6 Weeks From TORFP to Award

16. Performance Based Service Acquisition November 1, 2002 16 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 n Shared Goals and Objectives!

17. Performance Based Service Acquisition November 1, 2002 17 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

18. Seven Steps Guide Decide How to Measure and Manage Performance Commercial Quality Standards Quality Assurance Plan Contractual Language

19. Seven Steps Guide Decide How to Measure and Manage Performance Minimum Success Factors Incentive Type Award Term

20. Seven Steps Guide Decide How to Measure and Manage Performance Consider Profit Relationship

21. Seven Steps to Performance-Based Services Acquisition Step 6 Select the Right Contractor Michael.Canales@OSD.MIL 703-695-9571-- Pentagon 3C838

22. 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

23. Step 6 Select the Right Contractor "Compete the Solution" Downselect Due Diligence Evaluate Heavily on Past Performance Make a Best-value Source Selection Decision

24. 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

25. 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!

26. 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

27. Step 6 Use Downselection And "Due Diligence" Due Diligence Site Visits Meet Key Agency People Open Period of Communication

28. 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

29. Step 6 Use Oral Presentations and Other Opportunities to Communicate Communication Important Element of Selecting the Right Contractor Award Without Discussions

30. 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

31. 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://clc.dau.mil "CL Modules”, key word "ppi"http://clc.dau.mil Market Research

32. 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

33. 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

34. 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

35. Step 6 Evaluation Factors to Consider Management Team Past Performance (how well the contractor has performed) Past Experience (what the contractor has done, relevancy)

36. Step 6 Conflict of Interest Concerns vs. Good Business Sense

37. Seven Steps Guide Manage Performance Keep the team together Adjust roles and responsibilities Assign accountability

38. Manage Performance Cont’d Hold a kick-off meeting Regularly review performance in a Contract Performance Improvement Working Group Seven Steps Guide

39. Manage Performance Cont’d Ask the right questions Report on the contractor’s past performance Seven Steps Guide