Quality Assurance for Performance Based Services Acquisitions (PBSA)

1. Rabbanai T. Morgan Chief, Contingency Contracting Element June 2005 Quality Assurance forPerformance Based Services Acquisitions (PBSA)

2. Quality Assurance for PBSA Overview • Governing Directives/References • Definition(s) • Policy • AFI 63-124 Roles and Responsibilities • Seven Steps to PBSA • Performance Work Statement Format • Inspection of Services • Summary

3. Governing Directives/References FAR Part 2 – Definitions of Words and Terms FAR Part 37.6 Performance-Based Contracting AFFARS 5337.6 - Performance-based Contracting AFFARS Appendix CC-502 – Contracting Functions Under Deployed Conditions AFI 63-124, Performance-Based Service Contracts (PBSC) (9 Feb 04/9 Mar 05 Draft Revision in Final Coord) AFI 63-125, Quality Assurance Program for Service Acquisitions (Initial Draft) Quality Assurance for PBSA

4. Definition Performance Based Contracting: “Performance-based contracting” means structuring all aspects of an acquisition around the purpose of the work to be performed with the contract requirements set forth, in clear, specific, and objective terms with measurable outcomes as opposed to either the manner by which the work is to be performed or broad and imprecise statements of work. Quality Assurance for PBSA

5. 37.601 -- General. (a) Performance-based contracting methods are intended to ensure that required performance quality levels are achieved and that total payment is related to the degree that services performed or outcomes achieved meet contract standards. Performance-based contracts or task orders- Quality Assurance for PBSA

6. (1) Describe the requirements in terms of results required rather than the methods of performance of the work; (2) Use measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and quality assurance surveillance plans (see 46.103(a) and 46.401(a)); (3) Specify procedures for reductions of fee or for reductions to the price of a fixed-price contract when services are not performed or do not meet contract requirements (see 46.407); and (4) Include performance incentives where appropriate. (b) See 12.102(g) for the use of Part 12 procedures for performance-based contracting. NOTE: Performance based solicitations & contracts may prescribe Gov’t/commercial detail specifications or standards Quality Assurance for PBSA

7. Policy Subpart 5337.6 - Performance-based Contracting 5337.601 General. All services acquisitions shall be performance based. Services acquisitions above $2,500 are to include the requirements at FAR 46.102(a)-(g) to ensure the service rendered meets contract requirements. Services acquisitions with an annual contract value above the Simplified Acquisition Threshold (SAT) shall be performance-based IAW AFI 63-124, Performance-Based Services Acquisitions (PBSA). Quality Assurance for PBSA

8. Exceptions to Policy Regarding AFI 63-124 Services exempted by FAR 37.102(a)(1) Architect-Engineer Services Construction Utility Services Services that are incidental to supply purchases http://www.safaq.hq.af.mil/contracting/affars/ 5337/library-5337-pbsa.html Quality Assurance for PBSA

9. AFI 64-123 Roles & Responsibilities Contracting Squadron CC - COCO Wing Commander – Installation Commander at Deployed Location CO - CCO Functional Director/Functional Commander (FD/FC) Quality Assurance Program Coordinator (QAPC) Quality Assurance Personnel (QAP) – COTR/COR Multi-functional Team (MFT) – Requirements Review Board Quality Assurance for PBSA

10. AFI 64-123 Roles & Responsibilities Contracting Squadron CC - COCO Serves as Installation Business Advisor Responsible for forming the MFTs Update Installation Commander annually CO - CCO Ensures all legal and regulatory guidance is followed Ensures adequate funds are available (Anti-Deficiency Act) Ensures compliance with terms of the contract Quality Assurance for PBSA

11. AFI 64-123 Roles & Responsibilities QAPC Installation QA Program Manager Provides QA Training to FD/FC and QAP FD/FC Assign competent and capable functional experts to MFT Ensure requirements documents are performance based, foster innovation, define metrics (as applicable and appropriate), and satisfy mission requirements Assign primary & alternate QA personnel Quality Assurance for PBSA

12. AFI 64-123 Roles & Responsibilities QAP Responsibilities Member of MFT Maintains technical competence in contracted function Understands contract and surveillance requirements Evaluate and document contractor performance IAW performance plan/quality assurance surveillance plan (QASP) Notify contractor and CCO of deficiencies Recommend improvements to performance plan and PWS Calculates and certifies acceptance of services Reviews/Certifies Invoices as authorized/directed by CO Maintains neutrality regarding labor issues Quality Assurance for PBSA

13. AFI 64-123 Roles & Responsibilities QAP Limitations Interpret scope or intent of the contract Approve contractor’s processes Levy tasks or permit substitutions Direct contractors or their employees Provide Advice to contractors which may: Adversely affect performance Compromise rights of the Government Provide basis for a claim Impact pending or future CO determinations Quality Assurance for PBSA

14. AFI 64-123 Roles & Responsibilities MFT - A customer focused multifunctional team made of stakeholders in the acquisition that plans and manages service contracts throughout the life of the requirement Team contains the needed resources with the authority and responsibility to effect the procurement from its inception through follow-on contracts Quality Assurance for PBSA

15. AFI 64-123 Roles & Responsibilities Required for every acquisition operating under AFI 63-124 Contracting Squadron CC/COCO responsible for formation of MFT Quality Assurance for PBSA

16. AFI 64-123 Roles & Responsibilities MFT Responsibilities: Developing appropriate acquisition strategy Developing technical requirements Assessing contractor performance Collection of Past Performance Information - CPARS (over 1M contracts) Quality Assurance for PBSA

17. Seven Steps to PBSA Establish the team Decide what problems need solving (acquisition planning) Examine private & public sector solutions (market research) Develop Requirements Package (PWS/SOO, PP/QASP, and PR) Establish how to measure & manage performance (Performance Plan) Select the right contractor (source selection) Performance management (post-award) Quality Assurance for PBSA

18. Seven Steps to PBSA Positive Incentives Contract Type (Cost Plus or Fixed Price Incentive Firm) Award Fee or Award Term Delivery and Performance Incentives Technical Performance Characteristics Speed or Responsiveness Target Performance Standards Contract Extensions Quality Assurance for PBSA

19. Seven Steps to PBSA Negative Incentives Payment Deductions CPARS Reports Not awarding the additional term of an award-term contract Low award-fee determinations Other remedies such as letters of concern, cure notice, etc Quality Assurance for PBSA

20. Performance Work Statement A performance based description of the services required by a functional activity. Tells “what” needs to be accomplished, not “how” to do the work. AFI 63124 Prescribes a 5-Part format for the PWS Quality Assurance for PBSA

21. PWS Format I. Description of Services Describes the services required under the contract (tasks) Defines those things the contractor would not know from the outcomes alone PWS taskings define the “SCOPE” of the contract Quality Assurance for PBSA

22. PWS Format II. Services Summary (SS) Captures the overall requirements at the outcome level “Bird’s eye” view of what is on the contract Performance Thresholds Percentage of required conformance, or Number of allowable deviations from the performance objective to be considered acceptable Quality Assurance for PBSA

23. PWS Format III. Government-Furnished Property and Services GFP Clauses IV. Information Identify those requirements that are considered “mission essential” in times of escalation of Force Protection levels (Mandatory Crisis provision) QA function and QAP Responsibilities paragraphs Quality Control Plan/Health & Safety Plan requirements Hours of Operation and Federal Holidays Security Requirements Quality Assurance for PBSA

24. PWS Format V. Appendices Definitions/Acronyms Workload Data Government Furnished Property Reference Publications Maps/Work Area Layouts Reports/CDRL Support Agreements Contingency Requirements Transition Plan Quality Assurance for PBSA

25. Inspection of Services AFI 63-124 requires the Inspection of Services Clause be included in every service contract Gives QAP authority to perform inspections Any time as long as contractor is not delayed Provides the means to take payment deductions if necessary Allows re-performance if possible at no additional cost Quality Assurance for PBSA

26. Contractor’s Quality Control Plan Contractor’s written plan for ensuring services conform to PWS Contractor inspects their work prior to submission to Government for inspection Should be submitted as part of proposal Contractor must keep adequate records QAPs review records periodically May conduct concurrent inspection with contractor QAP inspects every month for first 3 months If no defects, go to quarterly inspections If defects, continue with monthly inspections Quality Assurance for PBSA

27. Government Performance Plan The Performance Plan (QASP) provides a systematic method to evaluate the services the contractor is required to perform MFT must determine the method of surveillance Can be revised or modified as needed throughout the life of the contract, but must be approved by Contracting Officer before use Quality Assurance for PBSA

28. Performance Plan Surveillance List of SS items subject to observation List non-SS items subject to routine observation Sampling Guide for each SS (and non-SS) item with copies of documents to be used Copy of the PWS/SOW Copy of Award Fee plan or Level-of-Effort plan Customer complaint procedures and training instructions Quality Assurance for PBSA

29. Surveillance Methods Periodic Surveillance Samples selected on other than 100% or statistically random basis Frequency Weekly Monthly Quarterly Quality Assurance for PBSA

30. Surveillance Methods Random Sampling Appropriate for frequently recurring tasks with lot size over 25 Statistically based and assumes the Government receives acceptable performance (sample tested is representative of the lot) Quality Assurance for PBSA

31. Surveillance Methods ONE HUNDRED PERCENT INSPECTION Inspecting the requirement every time it occurs May be required when Extremely critical impact Occur infrequently Have stringent requirements Quality Assurance for PBSA

32. Surveillance Methods Customer Complaint QAP is the point of contact and must collect all customer complaints and validate immediately Second hand information Customer is not always familiar with contract requirements Customer training is critical Quality Assurance for PBSA

33. Surveillance Methods Evaluating non SS Items The government retains the right to inspect any requirement included in the contract Provide procedures for non-SS items in the Performance Plan/QASP (Sampling Guide) Quality Assurance for PBSA

34. Documenting Surveillance Checklist/Inspection Record for contract requirements is generated by the QAP QAP documents surveillance as it is accomplished Submitted monthly to Contracting Office Document Deficiencies Observed on Corrective Action Report (CAR) or Performance Assessment Report (PAR)can be used for write-ups Quality Assurance for PBSA

35. Documenting Surveillance Unacceptable results Must be documented for each occurrence Contractor acknowledges deficiency by signing the Form If the contractor disputes the results of the surveillance they are referred to CO Quality Assurance for PBSA

36. QAP Contract Documentation File QAP nomination/appointment letter QAP Training records CO’s letter to contractor of appointment, with duties and limits of authority PWS Performance Plan/QASP Records of Inspection Memo for Records Correspondence Discrepancy Reports Certification of Services Quality Assurance for PBSA

37. Rabbanai T. Morgan Chief, Contingency Contracting Element June 2005 Quality Assurance for PBSA