Proposal Letter for Office Cleaning Contract by nnh13108

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Performance Based Service Contracting,
Streamlined with AbilityOne

      Breakout Session # 1608
             Dave Theimer
         Assistant VP, Marketing

           Date 4/16/2008

     Time 9:40am     – 10:40am
            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-
    • Implemented through 41 CFR Chapter 51 and
      FAR Subpart 8.7
• Committee for Purchase from People
  Who Are Blind or Severely Disabled (15
         JWOD/AbilityOne Updates

• The Javits-Wagner-O’Day Program will now be called

• Will refer to AbilityOne (formerly the Javits-Wagner-
  O’Day Program) over the next 18 months to allow for
  a smooth transition.

• New name will increase awareness and better
  communicate the mission and program identity.

AbilityOne Organization

Members of the Committee

       Committee Responsibilities
• Oversee central nonprofit agencies (NISH &
• 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”

           So… What is NISH?

•CentralNonprofit Agency
•NISH Mission:
      Create Job Opportunities for Persons
     with Severe Disabilities.
•Funded by program fee based on sale of
products and services.

     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
   – Reduced Entitlements
   – New Taxpayers

        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

         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.

     The Contracting Officer’s Guide to the
     Procurement List Addition Process

1.   Develop/define the requirement
2.   Contact the regional NISH office
3.   Determine if NISH and their Community Rehabilitation
     Program (CRP) business partners possess the capability
4.   Complete Statement of Work (SOW) and send to the NISH
     project manager (NISH can & will assist in writing the SOW)
5.   Receive the “no-obligation” price proposal from the NISH
     project manager
6.   Negotiate the proposal, sign the concurrence letter, &
     send to NISH
7.   Stay in Touch with the NISH Project Manager to monitor
     the “procurement list addition” process/progress

NISH Organization

  Traditional AbilityOne Services

Food Service
Grounds Maintenance
Postal Service Centers
Switchboard Operators

                    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
 Nationwide/Agencywide Arrangements
   State Department - Passports
   INS - Visa’s
   Marine Corps - Food Service

Results of Recent Studies

AbilityOne Approach to
Performance-Based Contracting

  Performance-Based Contracting

• A PBSC is structured around the
  purpose of the work as opposed to
  the manner in which it is to be
• Focus is on measuring the output of
  a contractor’s effort rather than on
  managing those efforts

              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

                NISH & PBSC

• Since most NISH Service contracts are
  PBSC, NISH has developed extensive
  experience in performance based
  service contracting

                   Prescriptive SOW

• 5.3.4 The contractor shall vacuum the rug in Room
  12 daily, as follows:
• Move all tables and chairs to the stage on the
  North side of the room
• 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

• 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.
• After vacuuming, replace all tables and chairs
  in their original positions.
• Note any spills, spots, etc. for treatment.
• Store vacuum cleaning equipment in Closet
  12A after use.

             Performance Based PWS

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

           Six Components of a PBSC

•   Performance Work Statement (PWS)
•   Performance Indicators and Standards
•   Performance Requirements Summary (PRS)
•   Acceptable Quality Level (AQL)
•   Performance Plan (Formerly the QASP)
•   Appropriate Incentives

      1. Performance Work Statement

• The PWS describes the requirements
  that the contractor must meet in
  performance of the contract
• Usually a brief statement of the result
• Key is include adequate requirement
  statements without excess detail or
  “how to”

             PWS and the WBS
         (Work Breakdown Structure)

1.   Outputs are clearly identified
2.   Inputs are clearly defined
3.   WBS is required for work analysis
4.   WBS is required for the proposal
5.   WBS is required for pricing

   Performance Work Statement (PWS)

• The WBS is used to give a framework
  for developing the requirements of a
• PWS lists the performance
  requirements of the contract
• It will guide the contractor and the
  Government throughout the life of the
     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
• This information must be provided in the PWS
  and in the PRS (if separate) and reflected in
  the Performance Plan

        Common AbilityOne Quality Indicators

•   Workmanship
•   Timeliness
•   Accuracy
•   Conformance
•   Customer Satisfaction

    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

    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

     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

                      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

   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
            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

          …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.


               DO’s of Writing a PWS

•   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”

       Streamlining Using AbilityOne

• AbilityOne offers substantial
  opportunities to streamline the “normal”
  Federal procurement process
• Save staff time, effort, money
• Bring services on line quicker

                           Acquisition– The Federal Process

                                       Market research                Acquisition planning
       Identification of
     requirement or need                (FAR Part 10                      (FAR Part 7)

      Solicitation and                                                Source selection
                                        Evaluation and
       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

            Streamline Advantages

• Can go directly to a JWOD producer with a
• 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

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

                      Acquisition– The NISH Process

  Identification of
requirement or need

                              Proposal and
                               Negotiation     Contract award
                                               (FAR Part 8.7)
                              (FAR Part 8.7)

        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 JWOD
  cannot have disproportionate impact on
  the previous supplier -
• 75% of our direct labor must be by
  individuals who qualify as severely
              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

            Follow-on, the Real Pay Off
• Once in the AbilityOne program, the
  procurement becomes a base year plus
  four follow on years (AbilityOne
• Automatically renewed every five years
  (unless agency requirements change)
• If performance problems, which is rare,
  NISH helps and can select replacement
  – Committee for Purchase
  – Forms & Publications
  – Procurement List
  – Guides for federal customers
  – Training Catalog
  – National Industries for the Blind


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