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Breakout Session # 1801 Dave Theimer Assistant Vice President, Marketing NISH April 23, 2007

Performance Based Services Contracting, Streamlined with JWOD. Breakout Session # 1801 Dave Theimer Assistant Vice President, Marketing NISH April 23, 2007 10:45 AM – 11:45 AM. Obtain an Introduction to JWOD

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Breakout Session # 1801 Dave Theimer Assistant Vice President, Marketing NISH April 23, 2007

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  1. Performance Based Services Contracting, Streamlined with JWOD Breakout Session # 1801 Dave Theimer Assistant Vice President, Marketing NISH April 23, 2007 10:45 AM – 11:45 AM

  2. Obtain an Introduction to JWOD Understand Performance Based Contracting Techniques Used in JWOD Services Contracting Learn About Streamlining the Federal Procurement Process Using JWOD Learning Objectives

  3. Public Law Wagner-O’Day Act of 1938 for NIB Javits Amendment of 1971 added People with Disabilities NISH formally organized in 1974 Not federal employees Javits-Wagner-O’Day Act (41 U.S.C. 46-48c) Implemented through 41 CFR Chapter 51 and FAR Subpart 8.7 Committee for Purchase from People Who Are Blind or Severely Disabled (15 Members) Javits-Wagner O’Day Act (JWOD) Javits-Wagner O’Day Act (JWOD)

  4. JWOD Organization

  5. JWOD Organization

  6. Northwest Region (206) 272-3500 North/Central Region East Region Pacific West (847)789-8400 (571) 226-4600 Region (925)485-4100 South Central Region South Region (817)649-5419 (770)424-9093 NISH Organization NISH Organization

  7. Quality services & products Fair market prices Long term partnerships/relationships Ease of contract award and administration In step with Acquisition Streamlining Break to taxpayers Reduced entitlements New taxpayers Direct Benefits to Mission! JWOD is Smart Business JWOD is Smart Business

  8. ...some of our new "Services" • Off-Site Telecommuting Capabilities • Central Facility Management • Document Conversion & Management • Printing Services • Linen Rental Service (Product and Service) • Family Housing Maintenance • Call Centers • Wheeled Vehicle Maintenance • (FORT LEWIS) • Nationwide/Agencywide Arrangements • State Department - Passports • INS - Visa’s • Marine Corps - Food Service

  9. Requires purchase of items on the Procurement List from designated sources Sources are Non Profit Agencies that employ individuals who are blind or have severe disabilities. 75% of direct labor must be provided by individuals that are blind or have severe disabilities JWOD Act 41 USC 46-48(c)

  10. Part 8-Required Sources of Supplies and Services Subpart 8.7 - Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled Regulatory implementation of the JWOD Act and rules of the Committee for Purchase FAR 8.7

  11. JWOD Approach to Performance-Based Contracting

  12. 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 Performance-Based Contracting

  13. 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 PBSC and FAR 37.601

  14. Since many NISH Service contracts are PBSC, NISH has developed extensive experience in service contracting NISH & PBSC

  15. 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. Prescriptive SOW

  16. 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. Prescriptive SOW

  17. 5.3.4. Vacuum the rug in Room 12 to remove all visible traces of fuzz, lint, and other foreign materials. Performance Based PWS

  18. PBC is designed to ensure that contractors are given the freedom to determine how to meet the Government's performance objectives (requirements), that acceptable performance is achieved, and that payment is only made for services which meet those levels. Key concepts

  19. Performance Work Statement (PWS) Performance Indicators and Standards Performance Requirements Summary (PRS) Acceptable Quality Level (AQL) Quality Assurance Surveillance Plan (QASP) Appropriate Incentives Six Components of a PBSC

  20. 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” 1. Performance Work Statement (PWS)

  21. Outputs are clearly identified Inputs are clearly defined WBS is required for work analysis WBS is required for the proposal WBS is required for pricing PWS and the WBS(Work Breakdown Structure)

  22. 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 Performance Work Statement (PWS)

  23. 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 QASP 2. Performance Indicators and Standards

  24. What is the indicator, or standard, which will tell me that the service was performed satisfactorily? Each requirement (task or deliverable) must have a performance indicator and a reasonable standard Each standard is then tied to a description of Acceptable Quality Level (AQL) Performance Indicators

  25. A performance indicator is an essential characteristic of acceptable performance and a feature of output that can be measured, either quantitatively or qualitatively. Performance Indicators must be realistic Performance Indicators

  26. Workmanship Timeliness Accuracy Conformance Customer Satisfaction Common JWOD Quality Indicators

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

  28. 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 Try to make Subjective standards Common Sense Standards

  29. 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 3. Performance Requirements Summary

  30. 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 4. The AQL

  31. The QASP 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 5. The Quality Assurance Surveillance Plan (QASP)

  32. 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 6. Appropriate Incentives

  33. 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!) …But don’t forget the QCP

  34. 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” DO’s of Writing a PWS

  35. Limiting what to measure How to deal with un-measurables (subjective criteria) Developing effective incentives Most Frequent Problems

  36. Performance Work Statement (PWS) Performance Indicators and Standards Performance Requirements Summary (PRS) Acceptable Quality Level (AQL) Quality Assurance Surveillance Plan (QASP) Appropriate Incentives SummarySix Components of a PBSC

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

  38. Acquisition– The Federal Process Identification of requirement or need Acquisition planning (FAR Part 7) Market research (FAR Part 10 Solicitation and Proposal phase (FAR Part 15) Source selection And contract award (FAR Part 15) Evaluation and Negotiation (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

  39. Can go directly to a JWOD 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 Streamline Advantages

  40. 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. JWOD buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs. Buying from JWOD

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

  42. Regulations permit a contracting officer to select appropriate procurements for the JWOD program Must demonstrate suitability Must go through Impact process Still no need to publicize, compete New Starts

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

  44. 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 Team Approach

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

  46. “You will have no better day in your contracting career than when you award your first JWOD contract” Mark Lumer Principal Assistant Responsible for Contracting (SES) US Army Space and Missile Defense Command JWOD Champion Feel Good Contracting Words of Wisdom Words of Wisdom

  47. Q& A

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