Performance-based Service Acquisition under the new TMA Contract ...

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file time: 2008-02-16

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Report Tile 

Training & Management Assistance Branch 

UNITED STATES OFFICE OF PERSONNEL MANAGEMENT  

Performance-Based Acquisition (PBA)  
in the  
TMA Environment

 
 
 

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TMA on the PBA Continuum 

TMA00 traditional fixed-price practices are based on the principles of PBA TMA00 new language and guidance are intended to implement additional aspects of PBA, as defined in the Federal Acquisition Regulations (FAR) Need open communication as this evolves  
 
 

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It00 in the FAR 

00erformance-based acquisition (PBA)00means an acquisition structured around the results to be achieved, as opposed to the manner by which the work is to be performed 00erformance Work Statement (PWS)00means a statement of work for performance-based acquisitions that describes the required results in clear, specific, and objective terms with measurable outcomes  
 
 

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FAR 37.102 -- Policy 

Performance-based acquisition is the preferred method for acquiring services When acquiring services, agencies must use performance-based acquisition methods to the maximum extent practicable Firm-fixed price, performance-based takes precedence 00this is TMA00 established practice  
 
 

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Subpart 37.6 
Performance-Based Acquisition  

Performance-based contracts for services include: 

Performance work statement (PWS) prepared by the Government or results from a Statement of Objectives (SOO) prepared by the Government where the offeror proposes the PWS. 

PWS = TMA Management Plan

 
 
 

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Describes work in terms of required results rather than 00ow00the work is to be accomplished or the hours to be provided (deliverables as opposed to methods or hours) Assesses performance against measurable standards Relies on measurable standards and incentives to encourage innovative, cost-effective methods  

Subpart 37.602 
Performance-Based Acquisitions

 
 
 

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Performance Standards Go in the Management Plan 

Performance standards establish the performance level required by the Government to meet requirements Standards shall be measurable and structured to permit assessment of performance  

FAR 37.603  Performance Standards

 
 
 

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Your TMA Contract: Sample PRS* 

* Each task order will contain a Performance Requirements Summary (PRS) similar to the one contained herein, which will be negotiated and agreed upon by the OPM/TMA Project Manager, client agency, and the contractor. 

Positive Performance rating for early delivery 
 

No follow-on if late 

Client review panel 
 
 
 

Client and TMA validate delivery date 

Content as agreed in Plan and format complies with standards 

No more than 5 days late 

Aligned with agency strategic and tactical goals 
 

Complete by June 30 

Workforce Plan 

Eligible for award of subsequent task 

Bring into compliance at no additional charge 

Client SME review based on required content and guidelines 

Draft documents 80% complete 

Final Document 100% complete 

Includes required content and adheres to established courseware guidelines 

Program of Instruction 

Incentive / Price Reduction 

Monitoring Method  

Acceptable Quality Level (AQL)  

Performance Standard 

Deliverable

 
 
 

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It00 in the FAR - Performance Incentives 

Firm-fixed-price is not subject to adjustment based the contractor00 cost to perform the work Places maximum risk and full responsibility for all costs and resulting profit or loss upon the contractor Provides maximum incentive for contractors to control costs and perform effectively Minimizes administrative burden for all  

FAR 16.202  Performance Incentives

 
 
 

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TMA Philosophy - Performance Incentives 

Contracting officer may use firm-fixed-price in conjunction with award-fee incentive and performance or delivery incentives Contract remains firm-fixed-price  

OPM/TMA does NOT anticipate using award fees, or performance or delivery incentives unless SPECIFICALLY required by a client

If that happens, OPM will supply guidance

 
 
 

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TMA Reality 00Role of Performance Incentives 

Incentives in TMA are:

Cash flow Follow-on work More invitations to Task Order Competitions Option year award Past performance references  
 
 

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TMA Reality 00Role of Performance Incentives 

Disincentives in TMA are:

Slower payment (because of late delivery) Having to 00ix it for free00/font> Removal from the task for poor performance No follow-on work Fewer invitations to Task Order Competitions No option year renewal  
 
 

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TMA Philosophy 

Surveillance is inherently a Governmental role TMA00 Quality Assurance Surveillance Plan (QASP) includes: Quality of TOC performance Quality of Project Management Quality of Administrative performance Periodic Client and PM surveys  
 
 

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The Bottom Line 

TMA is inherently performance-based TMA00 performance-based language is evolving PBA helps ensure: Maximum client satisfaction High performance, efficiency, and profitability Continued success under the TMA vehicle We need open communication as this evolves 00/font>  
 
 

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Questions?

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