Elements of a Performance Work Statement (PWS)

1. Elements of a Performance Work Statement (PWS)

2. PERFORMANCE BASED ACQUISITION PBA “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 2.101

3. PERFORMANCE WORK STATEMENT PWS Describes 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 work

4. PERFORMANCE-BASED METHODOLOGY PROCESS METHODOLOGY Requirements described in terms of processes or tasks Requirements described in terms of end result • V Gov’t instructs contractor when, where, how, and how many Does not address desired end result Quality assurance is labor intensive Contractor complies with commercial standards Contractor provides labor mix & skill set solutions to fulfill requirements Relies on contractor quality control plan--“Trust-but validate”

5. BENEFITS OF PERFORMANCE-BASED REQUIREMENTS • Reduced contract prices • Improved contractor performance • Measurable performance requirements • Clearly defined outcomes • Leaves no question as to whether a contractor has met requirement • Contractor flexibility • Contractor can change processes in response to changing requirements within scope without contract modification • Decreased surveillance • Review contractor provided data/metrics • Evaluate end results • Contractor innovation • Incentivizes contractor to streamline processes, reducing costs

6. ELEMENTS OF PERFORMANCE-BASED PWS

7. DEVELOPING A PERFORMANCE-BASED REQUIREMENT

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

9. TREE DIAGRAM

10. CONDUCT AN OUTCOME ANALYSIS Identify specific performance objectives

11. EXAMPLE OUTCOME ANALYSIS FOR CLEANING SERVICE

12. CONDUCT A PERFORMANCE ANALYSIS Identify how performance objective should be measured Establish Performance Standards Identify Acceptable Quality Levels (AQLs) Example:

13. DEVELOP PERFORMANCE STANDARDS

14. DEFINE ACCEPTABLE QUALITY LEVELS

15. METHODS OF SURVEILLANCE

16. INCENTIVES FAR 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.” • Align incentive criteria to performance, cost, or scheduling results; • Ensure the cost benefit equation justifies the incentive; and • FAR 16.401 (d) requires a D&F to support use in the contract file.

17. INCENTIVE STRATEGIES • Incentives need not be limited to cost • Incentives should be based on target performance standards, not minimum contractual requirements • Avoid rewarding contractors for simply meeting contract requirements • Ensure that incentives motivate the contractor to measurable quality control processes • Use a combination of positive and negative incentives

18. INCENTIVE CONSIDERATIONS • Will 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)?

19. PERFORMANCE REQUIREMENTS SUMMARY (PRS)

20. PUTTING IT ALL TOGETHER

21. PERFORMANCE WORK STATEMENT General Definitions and Acronyms Government Furnished Items Contractor Furnished Items Description of Work (Tasks) Applicable Regulations and Manuals Attachment/Technical Exhibits PWS

22. TIPS FOR WRITING THE PWS • Style: 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 sentences • Jargon: Avoid legal or technical jargon. Define anything that might not be clear to anyone on the street • Paragraphs: 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 mounted • Properly assembled. • Carefully performed.

23. TIPS FOR WRITING THE PWS • Numbers: • 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 inconsistency • Punctuation: Use minimal punctuation. If complicated sentences require more punctuation, rewrite the sentence. Shorten it. Inadvertent or misplaced punctuation can change the meaning • Abbreviations/Acronyms: If you have to use them, define them first

24. TIPS FOR WRITING THE PWS • Symbols: 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 options • And & 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 contradiction • Etc.: Avoid using it because the reader might not know what else is available

25. TIPS FOR WRITING THE PWS • Voice: 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 workday • Passive: The debris shall be picked up at the end of each workday • Active: Empty trash containers twice a week • Passive: Trash containers shall be emptied twice a week • Active: Install new air filters in accordance with manufacturer's recommendations • Passive: New air filters are required in accordance with the manufacturer's recommendations

26. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP) • Systematic method to evaluate the services of the contractor • Identifies the performance indicators, standards, inspections methods and procedures to be used in monitoring performance • Details thresholds for acceptable and unacceptable performance The QASP explains the following: • What will be monitored • How monitoring will take place • Who will conduct the monitoring • How monitoring efforts and results will be documented

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

28. ADDITIONAL REFERENCES FAR 37.6, Service Contracting, Performance-Based Acquisition Seven Steps to Performance-Based Services Acquisition https://www.acquisition.gov/seven_steps/home.html Performance-Work-Statement-Template http://www.easc.noaa.gov/APG/PBA/PBA_Docs/Performance-Work-Statement-Template.doc