Seven Steps
to performance-based acquisition
    
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step 4

Using a Performance Work Statement
  Capture the results of the analysis in a matrix.

As the information is developed, the integrated project team should begin capturing the information in a performance matrix. The Department of Treasury guide, "Performance-Based Service Contracting" illustrates a six-column approach with the following:

  • Desired 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? (Note: Be careful this doesn't become a "how" statement.)
  • Performance Standard: What should the standards for completeness, reliability, accuracy, timeliness, customer satisfaction, quality and/or cost be?
  • Acceptable Quality Level (AQL): How much error will we accept?
  • Monitoring Method: How will we determine that success has been achieved?
  • Incentives/Disincentives for exceeding or not meeting the performance standards:
  • What carrot or stick will best reward good performance or address poor performance? [This reflects priced and unpriced adjustments based on an established methodology. Reductions can be made for reduced value of performance.]
See the performance templates. The Treasury guide provides templates for help desk, seat management, systems integration, software development, and system design/business process re-engineering services.

The Department of Defense approach is very similar: take the desired outcomes, performance objectives, performance standards, and acceptable quality levels that have been developed during the analytical process and document them in a Performance Requirements Summary (PRS). The PRS matrix has five columns: performance objective, performance standard, acceptable quality level, monitoring method, and incentive. The PRS serves as the basis for the performance work statement.


 

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Using a Performance Work Statement

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