Breakout Session # 1608 Dave Theimer Assistant VP, Marketing NISH Date 4/16/2008 Time 9:40am – 10:40am

2. Performance Based Service Contracting, Streamlined with AbilityOne Breakout Session #1608 Dave Theimer Assistant VP, Marketing NISH Date 4/16/2008 Time 9:40am – 10:40am

3. Public Law Wagner-O’Day Act of 1938 for NIB Javits Amendment of 1971 added People with Disabilities Javits-Wagner-O’Day Act (41 U.S.C. 46-48c) Implemented through 41 CFR Chapter 51 and FAR Subpart 8.7 Committee for Purchase from People Who Are Blind or Severely Disabled (15 Members) Back to the Beginning…

4. The Javits-Wagner-O’Day Program will now be called AbilityOne Will refer to AbilityOne (formerly the Javits-Wagner-O’Day Program) over the next 18 months to allow for a smooth transition. New name will increase awareness and better communicate the mission and program identity. JWOD/AbilityOne Updates

5. AbilityOne Organization

6. Members of the Committee

7. Committee Responsibilities • Oversee central nonprofit agencies (NISH & NIB) • Qualify non-profit agencies (NPAs) • Determine Suitability of Projects & Impact • Sets the “Fair Market Price” • Administer priority program • Control the “Procurement List” • Establish/Enforce Rules & Regulations under “The Law”

8. So… What is NISH? • Central Nonprofit Agency • NISH Mission: • Create Job Opportunities for Persons with Severe Disabilities. • Funded by program fee based on sale of products and services.

9. Quality Services & Products Fair Market Prices Long Term Partnerships/Relationships Ease of Contract Award and Administration In Step with Acquisition Streamlining Break to Taxpayers (Convert Tax Users Into Taxpayers) Reduced Entitlements New Taxpayers AbilityOne is Smart Business

10. Committee for Purchase Established Price Pricing Memorandum No. 3 – Guideline Need Contracting Officer Concurrence Price Recommendation is Negotiable! Market-Based//Evaluate by Price Analysis Simplified Acquisition NISH Pricing Support to Contracting Officer Limited DCAA Involvement Simplified Annual Renewals Market Pricing - Services

11. NISH assist with SOW/PWS PBSA Training & Implementation Price to Budget (Design-to-Cost) NISH – Contract Management Support (FAR Part42) Effective Teaming Full & Open Discussions Mission Focused Service Providers No Cost – No Obligation Proposals Provide innovative, timely and cost effective acquisition/business solutions for the Federal Government. Program Management Support

12. The Contracting Officer’s Guide to the Procurement List Addition Process • Develop/define the requirement • Contact the regional NISH office • Determine if NISH and their Community Rehabilitation Program (CRP) business partners possess the capability • Complete Statement of Work (SOW) and send to the NISH project manager(NISH can & will assist in writing the SOW) • Receive the “no-obligation” price proposal from the NISH project manager • Negotiate the proposal, sign the concurrence letter, & send to NISH • Stay in Touch with the NISH Project Manager to monitor the “procurement list addition” process/progress

13. NISH Organization

14. Traditional AbilityOne Services • Custodial • Food Service • Grounds Maintenance • Postal Service Centers • Switchboard Operators

15. New Services • Off-Site Telecommuting Capabilities • Central Facility Management • Document Conversion & Management • Printing Services • Linen Rental Service (Product and Service) • Family Housing Maintenance • Call Centers • Wheeled Vehicle Maintenance (FORT LEWIS) • Nationwide/Agencywide Arrangements • State Department - Passports • INS - Visa’s • Marine Corps - Food Service

16. Results of Recent Studies

17. AbilityOne Approach to Performance-Based Contracting

18. A PBSC is structured around the purpose of the work as opposed to the manner in which it is to be performed Focus is on measuring the output of a contractor’s effort rather than on managing those efforts Performance-Based Contracting

19. Performance-based contracts- Describe the requirements in terms of the results required rather than the methods of performance Use measurable performance standards (i.e. terms of quality, timeliness, quantity) Specify procedures for reductions to price when services are not performed, and Include performance incentives where appropriate PBSC and FAR 37.601

20. Since most NISH Service contracts are PBSC, NISH has developed extensive experience in performance based service contracting NISH & PBSC

21. 5.3.4 The contractor shall vacuum the rug in Room 12 daily, as follows: 5.3.4.1 Move all tables and chairs to the stage on the North side of the room 5.3.4.2 use a commercial vacuum cleaner (HooverType31C or equal) to vacuum the rug. Check to see that the bag does not need replacement. Use two passes in each direction with 3 inch overlaps, to insure entire rug surface has been vacuumed. Prescriptive SOW

22. 5.3.4.2 Use a hand vacuum (Electrolux Type 16 or equal) with a 4 inch wand extension to vacuum corners and recessed areas not reached by the commercial vacuum cleaner. 5.3.4.3 After vacuuming, replace all tables and chairs in their original positions. 5.3.4.4 Note any spills, spots, etc. for treatment. 5.3.4.5 Store vacuum cleaning equipment in Closet 12A after use. Prescriptive SOW

23. 5.3.4. Vacuum the rug in Room 12 to remove all visible traces of fuzz, lint, and other foreign materials. Performance Based PWS

24. Performance Work Statement (PWS) Performance Indicators and Standards Performance Requirements Summary (PRS) Acceptable Quality Level (AQL) Performance Plan (Formerly the QASP) Appropriate Incentives Six Components of a PBSC

25. The PWS describes the requirements that the contractor must meet in performance of the contract Usually a brief statement of the result required Key is include adequate requirement statements without excess detail or “how to” 1. Performance Work Statement (PWS)

26. Outputs are clearly identified Inputs are clearly defined WBS is required for work analysis WBS is required for the proposal WBS is required for pricing PWS and the WBS(Work Breakdown Structure)

27. The WBS is used to give a framework for developing the requirements of a PWS PWS lists the performance requirements of the contract It will guide the contractor and the Government throughout the life of the contract Performance Work Statement (PWS)

28. An indicator is an essential characteristic of acceptable performance A standard is a definite level or degree of quality against which performance can be measured This information must be provided in the PWS and in the PRS (if separate) and reflected in the Performance Plan 2. Performance Indicators and Standards

29. Workmanship Timeliness Accuracy Conformance Customer Satisfaction Common AbilityOne Quality Indicators

30. Complete task in 30 minutes 275 to 300 Meals served between 12-1 Maintain grass between 3” and 5” on improved areas Objective, Measurable Standards Are Key to PBSC

31. After sweeping, there shall be no visible dirt, trash, or foreign matter. Door Glass will be clean if there is no visible dirt, smudges, or fingerprints Standard must be workable both to contractor and to COTR/QAE Try to make Subjective standards Common Sense Standards

32. The PRS is a summary of the tasks or deliverables, the performance standards, the AQL, and the quality assurance surveillance methods to be used, and incentives to the contractor May not be stated separately 3. Performance Requirements Summary

33. The AQL is the degree to which the Government will allow performance to vary from the standard Absolute standards, zero defects, are possible but expensive For each requirement or task, there must be an AQL Establish reasonable AQLs – be realistic, ask what is acceptable 4. The AQL

34. The Perf Plan outlines the methodology to monitor the performance against the standards in the PWS Written by the Government for the QAE or COTR May be shared with the contractor (except for sampling plan) but not included in contract 5. The Performance Plan (Old Quality Assurance Surveillance Plan (QASP)

35. Incentives may be positive or negative, monetary or non-monetary but must be included and should be effective The level of incentive should relate directly to the value of the outcome (AQL) The AQL can be used to “dial in” the appropriate level of performance at the budgeted cost 6. Appropriate Incentives

36. Your Quality Control Plan, written based on the PWS and the QASP (provided to NISH contractors) detailing how YOU are going to manage to assure quality. (Approved!) …But don’t forget the QCP

37. Use an experienced drafting team Exclude “how-to” requirements Use the WBS to outline the effort Tailor the standards Use commercial practices and definitions Use workable standards for subjective standards, such as “clean” DO’s of Writing a PWS

38. AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process Save staff time, effort, money Bring services on line quicker Streamlining Using AbilityOne

39. Acquisition– The Federal Process Identification of requirement or need Acquisition planning (FAR Part 7) Market research (FAR Part 10 Solicitation and Proposal phase (FAR Part 15) Source selection And contract award (FAR Part 15) Evaluation and Negotiation (FAR Part 15) • Functions within legal/regulatory framework implemented by the FAR • Involves entire acquisition team • Balances goals of obtaining best value for the government and promoting competition

40. Can go directly to a JWOD producer with a SOW No formal notice, no solicitation, no synopsis, no sources sought Can immediately begin negotiation. Not a competitive environment as used in FAR –a directed procurement under FAR 8.7 Can ask NISH to help with the SOW/PWS Streamline Advantages

41. If the item is on the Procurement List, no problem; just place the order citing FAR 6.302-5, Authorize by Statute No requirement for publication, competition, etc. JWOD buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs. Buying from AbilityOne

42. Acquisition– The NISH Process Identification of requirement or need Contract award (FAR Part 8.7) Proposal and Negotiation (FAR Part 8.7)

43. Service must be suitable- i.e. can be performed by a NPA and can be performed by individuals with disabilities Providing the Service through JWOD cannot have disproportionate impact on the previous supplier - 75% of our direct labor must be by individuals who qualify as severely disabled AbilityOne Is Not a “Front”

44. NISH will help prepare NPA proposal and costing package NISH will support the NPA with training NISH has blanket alliances with large clients such as GSA, DeCA, NAVFAC Team Approach

45. Once in the AbilityOne program, the procurement becomes a base year plus four follow on years (AbilityOne Options) Automatically renewed every five years (unless agency requirements change) If performance problems, which is rare, NISH helps and can select replacement NPA Follow-on, the Real Pay Off

46. www.jwod.gov Committee for Purchase Forms & Publications Procurement List www.nish.org Guides for federal customers Training Catalog www.nib.org National Industries for the Blind Questions