Elements of a Performance Work Statement (PWS) - PowerPoint Presentation

1. Elements of a Performance Work Statement (PWS)

2. PBAPERFORMANCE BASED ACQUISITION“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.FAR 2.1012

3. PWSPERFORMANCE WORK STATEMENTDescribes work in terms of required results rather than “how” the work is to be accomplished or the number of hours to be provided Enables assessment of work performance against measurable performance standards Relies on measurable performance standards and financial incentives in a competitive environment to encourage innovation and cost effective methods of performing the work3

4. VPROCESS METHODOLOGYPERFORMANCE-BASED METHODOLOGYRequirements described in terms of processes or tasksGov’t instructs contractor when, where, how, and how manyDoes not address desired end resultQuality assurance is labor intensiveRequirements described in terms of end resultContractor complies with commercial standardsContractor provides labor mix & skill set solutions to fulfill requirementsRelies on contractor quality control plan--“Trust-but validate”4

5. BENEFITS OF PERFORMANCE-BASED REQUIREMENTSReduced contract pricesImproved contractor performanceMeasurable performance requirements Clearly defined outcomesLeaves no question as to whether a contractor has met requirementContractor flexibilityContractor can change processes in response to changing requirements within scope without contract modificationDecreased surveillanceReview contractor provided data/metricsEvaluate end resultsContractor innovationIncentivizes contractor to streamline processes, reducing costs5

6. ELEMENTS OF PERFORMANCE-BASED PWS6

7. DEVELOPING A PERFORMANCE-BASED REQUIREMENT7

8. DEFINE THE DESIRED OUTCOMESList what needs to be accomplished from a top-level perspective 8

9. TREE DIAGRAM9

10. CONDUCT AN OUTCOME ANALYSISIdentify specific performance objectives10

11. EXAMPLE OUTCOME ANALYSIS FOR CLEANING SERVICEInputWorkOutputInclude in Contract?Furniture:YesNoMetalClean, de-rust, and polishHygienically clean and conserved XWood SystemsClean, protect, and preserveHygienically clean and preserved X  LeatherClean, moisturize, and protectHygienically clean and conserved  X  11

12. CONDUCT A PERFORMANCE ANALYSIS12Desired Outcomes (What do we want to accomplish as the end result of this contract?) Required Service (What task must be accomplished to give us the desired result?)Performance Standard (What should the standards for completeness, reliability, accuracy, timeliness, quality and/or cost be?)1. X. User guides and other documentation provided are accurate, complete, and easy to use. Documentation shall meet agency requirements for accuracy, completeness, and ease of use.95% of the documentation provided meets the stated standards. Identify how performance objective should be measured Establish Performance StandardsIdentify Acceptable Quality Levels (AQLs)Example:

13. DEVELOP PERFORMANCE STANDARDS13

14. DEFINE ACCEPTABLE QUALITY LEVELS14

15. METHODS OF SURVEILLANCE15

16. INCENTIVESFAR 37.602(b)(3), states: “Rely on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.”16Align incentive criteria to performance, cost, or scheduling results;Ensure the cost benefit equation justifies the incentive; andFAR 16.401 (d) requires a D&F to support use in the contract file.

17. INCENTIVE STRATEGIESIncentives need not be limited to costIncentives should be based on target performance standards, not minimum contractual requirements Avoid rewarding contractors for simply meeting contract requirementsEnsure that incentives motivate the contractor to measurable quality control processesUse a combination of positive and negative incentives17

18. INCENTIVE CONSIDERATIONSWill enhanced performance provide additional value to the agency?Which areas of the requirement would benefit most from enhanced performance? How much is the agency willing to pay to achieve a level of performance beyond the performance standard? Do contractors within the particular industry prefer additional performance periods (award terms) in lieu of monetary incentives (award fees)? 18

19. PERFORMANCE REQUIREMENTS SUMMARY (PRS)PERFORMANCEOBJECTIVE(The service required; usually a shall statement)STANDARD PERFORMANCE THRESHOLD(This is the maximum errorrate. For example: Zero deviation from standard.)METHOD OF SURVEILLANCE(Also indicate who performs. For example: One hundred percent inspection by the COR.)INCENTIVES (If any, Positive and/or Negative Impact on Contractor Payments)Performance requirementssummary (PRS) #1(Insert PWS paragraph.)PRS # 2(Insert PWS paragraph number.)PRS # 3(Insert PWS paragraphnumber.)PRS # 4(Insert PWS paragraphnumber.)19

20. PUTTING IT ALL TOGETHERREQUIRED SERVICES(TASKS) PERFORMANCESTANDARDS ACCEPTABLE QUALITYLEVELS METHODS OFSURVEILLANCE INCENTIVE (POSITIVE AND/OR NEGATIVE)(IMPACT ON CONTRACTOR PAYMENTS EXAMPLES:  Submit a PM report of scheduled, completed, and outstanding tasks monthly (PWS C.2.1.2 (G))100% of reports accurately depict current status 99%File reviews, periodic inspections, and random, observations, customer complaints-$500 for each documented instance when a report is submitted after the 15th of the month.Administer quality control program including subcontractor management in accordance with QCPContractor is in compliance with QCP 97% of the time File reviews, periodic inspections, and random, observations, customer complaints Submit management reports as required95%20

21. PWSPERFORMANCE WORK STATEMENT21GeneralDefinitions and AcronymsGovernment Furnished ItemsContractor Furnished ItemsDescription of Work (Tasks)Applicable Regulations and ManualsAttachment/Technical Exhibits

22. TIPS FOR WRITING THE PWSStyle: Include all essential information in a concise, accurate, thorough, and logical sequence with the clearest, simplest possible presentation. Avoid complex words Sentences: Eliminate long, complicated sentences by rearranging into small sentencesJargon: Avoid legal or technical jargon. Define anything that might not be clear to anyone on the streetParagraphs: Avoid long paragraphs Ambiguity: Do not use vague, indefinite, or uncertain terms that have double meanings. You can’t qualify or measure them, e.g.: Securely mountedProperly assembled.Carefully performed.22

23. TIPS FOR WRITING THE PWSNumbers: Spell out numbers under 10 except for dimensions.Use the numerals numbers 10 and above. Write dimensions, temperature, percentages, and dollars and cents as numerals (2 inches, 40 degrees F, 30 percent, $10.75)Redundancy & Repetition: Avoid it. It creates a possibility of an inconsistencyPunctuation: Use minimal punctuation. If complicated sentences require more punctuation, rewrite the sentence. Shorten it. Inadvertent or misplaced punctuation can change the meaningAbbreviations/Acronyms: If you have to use them, define them first23

24. TIPS FOR WRITING THE PWSSymbols: Use the full word instead, e.g., “pound” instead of “#”, “at” instead of “@”, “percent” instead of “%.”Misused Words & Phrases: Shall & Will: “Shall” is a binding term. “Will” is a suggestion of a future event. Use “shall” when expressing a binding requirement on the part of the contractor. Use “will” to refer to the Government’s future actions Any & Either: Both words imply a choice. “Any” refers to more than two choices. “Either” refers to a choice between two optionsAnd & Or: Use “and” if BOTH conditions are true. Use “or” if only ONE condition is true. Don’t use “and/or” because it shows a contradictionEtc.: Avoid using it because the reader might not know what else is available24

25. TIPS FOR WRITING THE PWSVoice: Use the ACTIVE voice rather than the PASSIVE voice. The active voice is always clearer. Examples:Active: Clean up all debris at the end of each workdayPassive: The debris shall be picked up at the end of each workdayActive: Empty trash containers twice a weekPassive: Trash containers shall be emptied twice a weekActive: Install new air filters in accordance with manufacturer's recommendationsPassive: New air filters are required in accordance with the manufacturer's recommendations25

26. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)Systematic method to evaluate the services of the contractorIdentifies the performance indicators, standards, inspections methods and procedures to be used in monitoring performance Details thresholds for acceptable and unacceptable performanceThe QASP explains the following:What will be monitoredHow monitoring will take placeWho will conduct the monitoringHow monitoring efforts and results will be documented26

27. SUMMARYDefine requirements in clear, concise language identifying specific work to be accomplishedDescribe the work in terms of “what” (end result) rather than “how” (processes)Enable assessment of performance against measurable performance standardsUse measurable standards and incentives to encourage innovation and cost-effective methods of performanceCite publications by specific paragraph/chapter, referencing only needed portions27

28. ADDITIONAL REFERENCESFAR 37.6, Service Contracting, Performance-Based AcquisitionSeven Steps to Performance-Based Services Acquisition https://www.acquisition.gov/seven_steps/home.htmlPerformance-Work-Statement-Template http://www.easc.noaa.gov/APG/PBA/PBA_Docs/Performance-Work-Statement-Template.doc28