Performance-Based Task Orders

Acquisition-reform legislation requires agencies to use performance-based contracting techniques to the maximum extent practicable. In 1991, the Office of Federal Procurement Policy (OFPP) stated:

It is the policy of the Federal Government that
(1) agencies use performance-based contracting methods to the maximum extent practicable when acquiring services; and,
(2) agencies carefully select acquisition and contract administration strategies, methods, and techniques that best accommodate the requirements.

Prior to initiating a task order competition, agencies must determine the program's performance objectives and incorporate them into the RFS. OFPP's Guide to Best Practices for Performance-Based Services contracting, describes the Key processes for implementing performance-based contracting

Information on OFPP's Guide for Performance-Based-Service Contracting
http://www.arnet.gov/Library/OFPP/BestPractices/PPBSC/BestPPBSC.html

Job Analysis determines the agency’s needs, types of services, and outputs to be provided by the contractor, and forms the basis for establishing performance requirements, developing performance standards and indicators, writing the Performance Work Statement, and producing the Quality Assurance/Surveillance Plan.

Performance Work Statement (PWS) describes specific requirements the contractor must meet in performance of the contract, including a statement of the required services in terms of output and a measurable performance standard for the output.

Quality Assurance Plan and Surveillance defines what the government must do to ensure that the contractor has performed in accordance with the PWS performance standards, ranging from a one-time inspection to periodic in-process inspections.

Contract Type encourages the increased use of fixed-price contracts, where appropriate, and incentives for optimal contractor performance.

Contract Administration cites the importance of close cooperation between program and procurement offices to achieve effective contract administration and successful contract performance.

Conflict Resolution is informal and timely with the aid of the COMMITS NexGen Ombudsman.

As opposed to traditional service contract statements of work, performance-based contracting requires an acquisition be presented in terms of the purpose of the work. It requires the work to be defined in mission-related, outcome-oriented statements with quality assurance performance measures. In its simplest terms, it asks two basic questions:

• What am I buying (outcome)?
• How will I know if it is any good when I get it (quality assurance)?
• The OFPP guide for performance-based service acquisition describes seven steps upon which the COMMITS NexGen ordering process is based
• The executive version of Seven Steps to Performance Based Services Acquisition is at http://www.arnet.gov/Library/OFPP/BestPractices/pbsc/Index.html.

Agencies that lack experience in drafting performance-based specifications or quality assurance surveillance plans may call upon COMMITS NexGen Program Office contractors that can assist in developing these documents and offer training for future requirements.