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Streamlining the Performance Based Service Contracting Process
Through the AbilityOne Program…
Putting Disabled American Vets to Work
Breakout Session # 514
Dave Theimer
Assistant VP, Marketing
NISH
Date Tuesday,
July 20
Time 2:30pm – 3:45pm
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Back to the Beginning…
• 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
• Committee for Purchase from People Who Are Blind or Severely
Disabled (15 Members)
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JWOD/AbilityOne Updates
• The Javits-Wagner-O’Day Program is now called
AbilityOne
• New name will increase awareness and better
communicate the mission and program identity.
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Program Structure
President of the United States
DOC
DOD
Air Force
Army
Navy
DOJ
DOL
ED
GSA
USDA
VA
Citizen
Citizen
Citizen
Citizen
Committee for Purchase From People
Who Are Blind or Severely Disabled
Nonprofit Agencies
Employing Persons Who
Are Blind
Nonprofit Agencies
Employing Persons With
Severe Disabilities
Congress
(Legal Authority)
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Committee Responsibilities
• 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”
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AbilityOne is Smart Business
•
•
•
•
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
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Market Pricing - Services
• Committee for Purchase Established Price
• Pricing Memorandum No. 3 – Guideline
– Need Contracting Officer Concurrence
– Price Recommendation is Negotiable!
– Market-Based//Evaluate by Price Analysis
• Simplified Acquisition
– NISH Pricing Support to Contracting Officer
– Limited DCAA Involvement
– Simplified Annual Renewals
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Program Management Support
•
•
•
•
•
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.
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So… What is NISH?
•Central
Nonprofit Agency
•NISH Mission:
 Create Job Opportunities for Persons
with Severe Disabilities.
•Funded by program fee based on sale
• of products and services.
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Traditional AbilityOne Services
Custodial
Food Service
Grounds Maintenance
Postal Service Centers
Switchboard Operators
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NISH Organization
San Ramon, CA
Pacific West
Pacific West
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Results of Recent Studies
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NISH - Meeting Today’s Needs
• Janitorial/Custodial
Traditional Lines
• Grounds Maintenance
• Base Supply Stores
• Food Services
• Laundry Service
• Fleet Management
• Secure Mail/Document Imaging
Innovative, Strategic Lines
• Secure Document Destruction
• Warehousing and Distribution
• Contract Management Support
(Contract Close-out)
• Healthcare Environmental Services
• National Treasures Management
• Tele Services/Call Center Ops
“You have an extraordinarily talented team who
provide the best possible customer experience
to U.S. citizens.” Hilary Rodham Clinton, Secretary of State
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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)
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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
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AbilityOne Approach to
Performance-Based Contracting
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Performance-Based Contracting
• 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
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PBSC and FAR 37.601
• 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
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NISH & PBSC
• Since most NISH Service contracts
are PBSC, NISH has developed
extensive experience in performance
based service contracting
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Prescriptive SOW
• 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.
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Prescriptive SOW
• 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.
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Performance Based
PWS
• 5.3.4. Vacuum the rug in Room 12 to
remove all visible traces of fuzz, lint,
and other foreign materials.
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Six Components of a
PBSC
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•
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•
•
Performance Work Statement (PWS)
Performance Indicators and Standards
Performance Requirements Summary (PRS)
Acceptable Quality Level (AQL)
Performance Plan (Formerly the QASP)
Appropriate Incentives
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1. Performance Work Statement (PWS)
• 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”
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PWS and the WBS
(Work Breakdown Structure)
1.
2.
3.
4.
5.
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
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Performance Work Statement
(PWS)
• 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
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2. Performance Indicators and Standards
• 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
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Common AbilityOne Quality
Indicators
•
•
•
•
•
Workmanship
Timeliness
Accuracy
Conformance
Customer Satisfaction
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Objective, Measurable Standards Are Key to PBSC
• Complete task in 30 minutes
• 275 to 300 Meals served
between 12-1
• Maintain grass between 3” and
5” on improved areas
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Try to make Subjective standards Common
Sense Standards
• 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
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3. Performance Requirements Summary
• 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
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4. The AQL
• 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
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5. The Performance Plan (Old Quality Assurance
Surveillance Plan (QASP)
• 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
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6. Appropriate Incentives
• 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
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…But don’t forget the
QCP
• 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!)
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DO’s of Writing a PWS
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•
•
•
•
•
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”
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Streamlining Using
AbilityOne
• AbilityOne offers substantial
opportunities to streamline the
“normal” Federal procurement
process
• Save staff time, effort, money
• Bring services on line quicker
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Acquisition– The Federal Process
Identification of
requirement or need
Solicitation and
Market research
Acquisition planning
(FAR Part 10
(FAR Part 7)
Evaluation and
Source selection
Proposal phase
Negotiation
And contract award
(FAR Part 15)
(FAR Part 15)
(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
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Streamline Advantages
• 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
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Buying from AbilityOne
• 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.
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Acquisition– The NISH Process
Identification of
requirement or need
Proposal and
Negotiation
Contract award
(FAR Part 8.7)
(FAR Part 8.7)
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AbilityOne Is Not a
“Front”
• 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
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Team Approach
• 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
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Follow-on, the Real Pay
Off
• 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
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Subcontracting
with AbilityOne
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Subcontracting w/
AbilityOne?
• Recent “sea change” in RFPs
– Resulting from “SPE” Support
• Specific RFP requirements vary:
– 5% Goal
– 1% Goal
– Bid your Own Goal
• KEY MESSSAGES:
– You don’t subcontract with “AbilityOne”
– You subcontract with “Approved” Nonprofit
Agencies
– It is easier than you think!
– NIB and NISH are there to help!
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What RFPs?
•
•
•
•
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•
SETAC 07 – 1%
GSA USA Contact (Call Centers) – 5%
SOFSA CLS – 5%
AF UNICOMM
Military One Source – 1%
HRsolutions - ___%
More coming!
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What’s an “Approved” NPA?
KEY POINTS:
DFARS 219.703 Eligibility requirements for participating in
the program.
(a) Qualified nonprofit agencies for the blind and other
severely disabled, that have been approved by the
Committee for Purchase from People Who Are Blind or
Severely Disabled under the Javits-Wagner-O’Day Act (41
U.S.C. 46-48), are eligible to participate in the program as a
result of 10 U.S.C. 2410d and Section 9077 of Pub. L. 102-396
and similar sections in subsequent Defense appropriations
acts. Under this authority, subcontracts awarded to such
entities may be counted toward the prime contractor’s
small business subcontracting goal.
• Use NIB and NISH to assist
• Listed in CCR
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How does it work?
• Ensure your Supplier Diversity
Manager is involved and your Supplier
Diversity definitions are up to date
(include NPAs)
• Engage NIB and NISH in MOAs/MOUs
• Use NIB and NISH for Sourcing
• Use CCR search to find NPAs
• Engage a NPA in Mentor-Protégé
program
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Advantages to Prime
• NPAs already have FAR experience
– Understand T’s and C’s
– Have SCA payroll system in place
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•
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•
•
Small Business Goals
Positive Brand Name Recognition
Possibly – Facility Security Clearance
Probably already working on site or nearby
Can be competitive!
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Challenges to Prime
• Something new and different
– Another step for your Capture Managers
– Another check for Contract Compliance
– But, NIB and NISH are there to help
• Multiple Primes chasing same NPA
– May not get Exclusive Teaming
Agreement
• Need internal training
– But, NIB and NISH are there to help
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KEEP IT SIMPLE!
• National Industries for the Blind (NIB):
– DuWayne Gilbertson
dgilbertson@nib.org
703-310-0532
• NISH:
– Dave Theimer
dtheimer@nish.org
571-226-4636
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Questions
• 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