Performance-based Service Acquisition under the new TMA

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Training & Management
Assistance Branch
Performance-Based Acquisition (PBA)
in theTile
Report
TMA Environment
UNITED STATES OFFICE OF PERSONNEL MANAGEMENT
TMA on the PBA Continuum
• TMA’s traditional fixed-price practices are based
on the principles of PBA
• TMA’s 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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It’s in the FAR
• “Performance-based acquisition (PBA)” means an
acquisition structured around the results to be
achieved, as opposed to the manner by which the
work is to be performed
• “Performance Work Statement (PWS)” means 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 – this is TMA’s 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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Subpart 37.602
Performance-Based Acquisitions
• Describes work in terms of required results rather
than “how” the 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
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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*
Deliverable
Performance
Standard
Acceptable
Quality Level
(AQL)
Monitoring
Method
Incentive /
Price
Reduction
Program of
Instruction
Includes
required
content and
adheres to
established
courseware
guidelines
Draft
documents
80% complete
Client SME
review based
on required
content and
guidelines
Eligible for
award of
subsequent
task
Aligned with
agency
strategic and
tactical goals
Content as
agreed in Plan
and format
complies with
standards
Client review
panel
Positive
Performance
rating for
early delivery
Complete by
June 30
No more than 5
days late
Client and
TMA validate
delivery date
No follow-on
if late
Workforce
Plan
Final Document
100%
complete
Bring into
compliance
at no
additional
charge
* 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.
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It’s in the FAR - Performance Incentives
• Firm-fixed-price is not subject to adjustment based
the contractor’s 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 – Role 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 – Role of Performance Incentives
Disincentives in TMA are:
• Slower payment (because of late delivery)
• Having to “fix it for free”
• 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
• TMA’s 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
• TMA’s 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 …
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Questions?
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