A-76 Post-Competition Accountability

1. A-76 Post-Competition Accountability Chapter Summaries with Space for Notes

2. IntroductionA-76 Post Competition Accountability WHAT YOU ARE ABOUT TO SEE • Paul Dennet is Administrator of the Office of Federal Procurement Policy • He is leading one of the key elements of the President’s Management Agenda, competitive sourcing, across the Federal Government • In this segment, he explains why accountability is a priority after an A-76 competition 2

3. Introduction, cont.A-76 Post Competition Accountability WHAT YOU JUST LEARNED • The competitive sourcing program is projected to save taxpayers over $5 billion in the next 10 years • Agencies need to document savings and performance improvements achieved through an A-76 competition • Post-competition monitoring will ensure greater accountability on the part of the service provider in helping to achieve savings and efficiencies 3

4. Introduction, cont.A-76 Post Competition Accountability NOTES: 4

5. Chapter 1A-76 Basics WHAT YOU ARE ABOUT TO SEE • A review of the basic steps of preparing for and conducting an A-76 competition through award decision 5

6. Chapter One, cont.A-76 Basics WHAT YOU JUST LEARNED The basic steps of an A-76 competition include: • The agency’s FAIR Act inventory and its review by OMB • Data analysis of commercial inventory to determine the most appropriate opportunity for savings through public-private competition • Preliminary planning for an A-76 competition • Conducting a streamlined or standard competition • Using COMPARE to calculate and document costs and assist in determining an award selection 6

7. Chapter One, cont.A-76 Basics NOTES: 7

8. Chapter TwoA-76 Competition Decision Reached:What are the Immediate Next Steps? WHAT YOU ARE ABOUT TO SEE • The transition after award selection is a process that is critical to the success of the new service provider, and thus to the efficiencies and savings that will be realized 8

9. Chapter Two, cont.A-76 Competition Decision Reached:What are the Immediate Next Steps? WHAT YOU JUST LEARNED • Develop a transition plan in the early stages of an A-76 competition to guide effective change • Complexity during transition is relative to the complexity of a competition • Human Resources, contracting and program staff, and the general counsel are key players that need to be involved throughout the entire A-76 process • Government employees must be prepared in advance for transforming their mindset and way of working no matter which service provider wins 9

10. Chapter Two, cont.A-76 Competition Decision Reached:What are the Immediate Next Steps? NOTES: 10

11. Chapter ThreeFocusing on the Award Winner THE MEO WIN THE PRIVATE SECTOR WIN PUBLIC REIMBURSABLE SOURCE WIN 11

12. Chapter Three, cont.Focusing on the Award Winner WHAT YOU ARE ABOUT TO SEE • In case of an MEO win, government employees transition to a different staffing structure, management plan, and set of work processes • Through a document called a Letter of Obligation (LOO), the MEO organization is now accountable to the performance standards promised in the tender • Human resources plays a vital role in the case of a private sector or public reimbursable win as government employees make the transition • In a private sector win, a Contracting Officer (CO) implements a contract • In a public reimbursable source win, a CO implements a fee-for-service agreement 12

13. Chapter Three, cont.Focusing on the Award Winner WHAT YOU JUST LEARNED MEO Win • A LOO holds the MEO accountable for performance standards it proposed in its agency tender • The transition to operating in a new environment focused on key performance metrics can be challenging and requires proper transition planning • MEO implementation may necessitate a cultural change in the organization • Over time, employees operating in an MEO have observed and benefited from efficiencies and process improvements • Agencies have a better understanding of how to handle a transition to the private sector as this situation is much more prevalent across the government 13

14. Chapter Three, cont.Focusing on the Award Winner WHAT YOU JUST LEARNED Private Sector Win • If the private sector wins, government employees have several options available to them that include: • Right of first refusal • VERA/VSIP • Placement in another government agency • Transition to a private contractor is most effective when strong coordination exists between the government and the contractor 14

15. Chapter Three, cont.Focusing on the Award Winner WHAT YOU JUST LEARNED Public Reimbursable Source Win • The CO establishes a fee-for-service agreement • Human Resources, contracting and program staff, and general counsel need to stay involved 15

16. Chapter Three, cont.Focusing on the Award Winner NOTES: 16

17. Chapter Three, cont.Focusing on the Award Winner NOTES: 17

18. Chapter FourPost-Competition Accountability WHAT YOU ARE ABOUT TO SEE • Performance monitoring ensures that the service provider achieves efficiencies and savings • Monitoring Ensures Better Performance within Cost Goals • Monitoring Can Be Beneficial to MEO Operations • Reviews Can Validate Savings • IV&V Promotes MEO Accountability 18

19. Chapter Four, cont.Post-Competition Accountability WHAT YOU JUST LEARNED • Sound contract administration is key to realizing performance and savings goals for all types of service providers • Working with an MEO will require oversight similar to that used in monitoring a private sector contractor • Performance monitoring is essential to hold the service provider accountable • Monitoring means that the agency must continually (at least annually) review the service provider’s work to: • Ensure that performance standards are being met • Validate costs and savings 19

20. Chapter Four, cont.Post-Competition Accountability WHAT YOU JUST LEARNED • Perform an evaluation of the service provider’s performance by an independent party, such as: • The Office of the Inspector General • Other third party within the same agency • Private sector audit firms • Continual evaluation gives organizations the opportunity to improve and adjust performance to meet the standards set out in the PWS • To validate savings, the evaluator may use pre-existing cost-revenue accounting systems • Effective and ongoing communication remains essential, particularly during transition and performance monitoring 20

21. Chapter Four, cont.Post-Competition Accountability NOTES: 21

22. Chapter Four, cont.Post-Competition Accountability NOTES: 22

23. Chapter FiveOption Year Performance andFollow-On Competition WHAT YOU ARE ABOUT TO SEE • A Contracting Officer (CO) has the option to exercise option periods and extend performance periods in accordance with the FAR 23

24. Chapter Five, cont.Option Year Performance andFollow-On Competition WHAT YOU JUST LEARNED • The CO can exercise option year renewals for an MEO similar to a private sector provider • The CO can also extend the agreement for high performing organizations under certain conditions • Follow-on competitions must follow the FAR 24

25. Chapter Five, cont.Option Year Performance andFollow-On Competition NOTES: 25

26. Chapter SixTerminations and Contests WHAT YOU ARE ABOUT TO SEE • An MEO may be terminated for poor performance or other reasons • Certain parties may contest a termination 26

27. Chapter Six, cont.Terminations and Contests WHAT YOU JUST LEARNED • The CO may terminate the agreement for poor performance or other reasons, such as changing needs or structures at the agency or federal level • Directly interested parties may contest a solicitation, an exclusion from a competition, a decision, or a termination 27

28. Chapter Six, cont.Terminations and Contests NOTES: 28

29. Chapter SevenLessons Learned and Additional Guidance WHAT YOU ARE ABOUT TO SEE • This chapter shares important guidance and lessons learned • The experience of your peers is invaluable in helping to address issues related to post-competition accountability as new guidance is developed • The Share A-76 website is a useful resource for competitive sourcing process and provides materials from peer agencies that can support your A-76 program 29

30. Chapter Seven, cont.Lessons Learned and Additional Guidance WHAT YOU JUST LEARNED • The Share A-76 website is a helpful resource to draw upon the experience of other agencies in the competitive sourcing process • The “useful documents” folder on this website provides helpful, more in-depth information • The A-76 pre-planning activities have a strong effect on the success of the transition • Develop and document baselines to decide on the appropriate performance metrics and monitoring techniques for your organization 30

31. Chapter Seven, cont.Lessons Learned and Additional Guidance WHAT YOU JUST LEARNED • All functions involved in executing the transition to the new service provider must work together as one unit to help ensure the success of the new organization • Provide guidance to the service provider on data collection so that it will have future application in audits • Employee transition plans are critical for thinking about how to address issues and concerns 31

32. Chapter Seven, cont.Lessons Learned and Additional Guidance WHAT YOU JUST LEARNED • Agencies are still learning how to manage MEO employees, as they are government workers, but share some characteristics of contractors • Clear and continual communication throughout the A-76 process and implementation is essential, and will help to alleviate employee anxieties • The competitive sourcing program has created realized savings 32

33. Chapter Seven, cont.Lessons Learned and Additional Guidance WHAT YOU JUST LEARNED • The competitive sourcing program is not focused on contracting out government employees; its goal is to create efficiencies so that an organization can achieve its mission 33

34. Chapter Seven, cont.Lessons Learned and Additional Guidance NOTES: 34

35. Chapter Seven, cont.Lessons Learned and Additional Guidance NOTES: 35