1
U.S. Coast Guard Headquarters
Office of Contract Support
EMBRACING PERFORMANCE-BASED SERVICES ACQUISITION (PBSA) 00i>
A FAR CITE TOOLBOX
April 12, 2005
Dani Wildason, G-ACS-3
Chief, Contracts Plans, Procedures and Quality Engineering Division
(202) 475-3222
2
OFPP MEMO
00Sept. 7, 2004
Agency Target
Achievement Levels
For FY05
- 00gencies should apply PBSA methods to 40 percent of eligible service
actions over $25K (includes contracts, task orders, modifications and
options as measured in dollars).00/font>
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OFPP Memo
Recommendation 00
00se the Seven Steps to PBSA00nbsp;
OFPP Memo rescinds the 1998 Guide to Best Practices for Performance-Based
Contracting with 00b>The Seven Steps to Performance Based Services
Acquisition00website
Link to the Seven Steps:
A method of contracting where:
The Government defines the results it is seeking, rather than the process by which those results are attained. Also included are the standards against which contractor performance will be measured.
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PBSA Policy
(FAR 37.102)
(a) Performance-based contracting is the preferred method for acquiring services (Public Law 106-398, Section 821)
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PBSA Policy
(FAR 37.102)
(a)(1)..Agencies must use PBSA methods to the maximum extent practicable for all services except:
A&E Construction Utility Services Services incidental to supply purchases,9
PBSA Policy
(FAR 37.102)
(a)(2)00se this order
of precedence:
(i) Firm-Fixed Price
(FFP) Performance Based
contract or task order;
(ii) Performance
Based contract or task order that
is NOT FFP;
(iii) Contract or
task order that is not performance
based (but see FAR Part 7.105 (b)(4)
and, if
GSA FSS, FAR 8.405-7)
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Acquisition
Plans 00Content Considerations (FAR 7.105(b)(4)(i))
Content of Written
Acquisition Plans
KO must provide rationale if :
a performance based
contract will not be used or if a performance based contract
for services is contemplated on an other than FFP basis.
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PBSA 00
General (FAR 37.601)
(a)00erformance-based contracts or task orders (Note: The first 3 criteria are mandatory) -
(1) Describe
the requirements in terms of results required rather than the methods
of performance of the work;
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PBSA General
(FAR 37.601) (cont.)
(2) Use measurable performance
standards
(i.e., in terms of quality, timeliness,
quantity, etc.) and quality assurance
surveillance plans (see 46.103(a) and
46.401(a));
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PBSA General
(FAR 37.601) (cont.)
(3) Specify procedures for reductions of fee or for reductions to the price of a fixed-price contract when services are not performed or do not meet contract requirements (see 46.407); and
(4) Include performance
incentives where appropriate.
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PBSA General
(FAR 37.601) (cont.)
(b) See 12.102(g) for the use of Part 12 procedures for performance-based contracting (effective 6/18/04)
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Non-Commercial
PBSA using
Part 12 Procedures (FAR 12.102(g))
(g)(1) If the contract or task order meets certain requirements00b>KOs may use Part 12 procedures for any performance-based acquisition for services that does not meet the definition of commercial item!
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Non-Commercial
PBSA using
Part 12 Procedures (FAR 12.102(g))
In general, the requirements
are:
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Non-Commercial
PBSA using
Part 12 Procedures (FAR 12.102(g))
In addition:
(g)(2)00O should tailor paragraph (a) of the clause at FAR 52.212-4 (Contract Terms and Conditions 00Commercial Items) as necessary to ensure the contract00 remedies protect the Government
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GSA FSS &
PBSA (FAR 8.405-2(b))
Ordering Procedures
Statements of Work.
Includes this sentence 00o the maximum extent practicable, agency requirements shall be performance-based statements (see 37.6).00/font>
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GSA FSS &
PBSA (FAR 8.405-7(b)(4))
Documentation
Additional Documentation for Services
The ordering office shall also document
the rationale for using other than -
(i) a FFP order or
(ii) a performance-based order
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Indef. Delivery
Contracts 00Ordering (16.505(a)(3))
Performance-based work statements must be used to the maximum extent practicable, if the contract or order is for services (see 37.102(a))
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IT Services
(FAR 39.104)
Solicitations for IT services
Must not describe any minimum experience or educational requirements for proposed contractor personnel00unless the KO determines that the needs of the agency -
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IT Services
(FAR 39.104)
Solicitations for IT services (cont.)
...unless the KO determines that the needs of the agency -
(a) Cannot be met w/out that
requirement; or
(b) Require the
use of other than
a performance-based contract
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Follow-on
and Repetition Requirements (37.602-5)
00gencies shall rely on experience gained from the prior contract to incorporate PBSA methods to the maximum extent practicable. This will facilitate the use of fixed-price contracts for such requirements for services. (See 7.105)
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G-ACS Current
Challenges
- The 00eventh Step00(Manage Performance) is our
current office-wide focus
- Not easy to get to 00ull00PBSA - several are
00ybrid00and we are working to improve these
when
they come up for follow-on
-
Turnover of customers and contracting staff requires
repeated training
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G-ACS
Customer Advocacy and Assistance Team (CAAT)
Work Statements for FY04:
The CAAT prepared 184 work statements
171 were performance based (5 of thesewere SOOs) 13 did not lend themselves to performance
based
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THE FUTURE
00nbsp;
FAR Case 2003-018
A FAR Case with many positive potential
changes to PBSA was published in July 2004 with comments due September
2004. To date, no word on the results!
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G-ACS
Points of Contact
Dani Wildason
(202) 475-3222
Chief, Contracts Plans, Procedures, and Quality Engineering Division
(G-ACS-3)
Brian Jones
(202) 475-3231
Customer Advocate and CAAT Team Leader Contracts
Plans, Procedures, and Quality Engineering Division (G-ACS-3c)
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