Performance Based Service Contract Template

Organizational analysis includes examining the organization`s needs and identifying the services and outcomes that the contractor needs. It should focus on the outputs that the entrepreneur will produce, but not dictate how to produce those outputs. The Railroad Retirement Board converted a contract for data entry services into a performance-based statement of work. They recorded cost savings of about 30%. By developing a PBSC-PWS, they identified and eliminated unnecessary requirements. The estimated type and quantity of source documents to be converted decreased by 14%. Supplier pricing was based on a more accurate and realistic profile of the work to be done. The EPO contract for telephone hotline services was awarded on a fixed price basis. The contractor used the past compiled by the EPO to determine the amount of work he could expect. In order to provide additional flexibility in the event of an emergency or crisis, quantity options (fixed price per hour) have been included. If the results of the monitoring are working well on a consistent basis, the scope of the monitoring should be adjusted accordingly. This saves the government money, reduces the contractor`s oversight burden, and recognizes the contractor`s performance.

Organizations should draft the PWS in concise terms and clear and concise wording. Organizations should not use general or vague statements or overly technical language. Agencies should use active voice, task-oriented statements (verb-noun sentence structure), and emphatic verb form to establish a binding imperative. For example, say, “The contractor must (or must) provide `X` instead of `X`. Performance “credentials” prior to FAR 42.15 should reflect compliance with performance requirements when a PWS was used. PBSC performance provides better data to evaluate past performance on other calls. A strong incentive for excellence and customer satisfaction is created when entrepreneurs know that their performance will influence future sourcing decisions. The following is a Request for Comment (RFC). This summary is provided for informational and planning purposes only and does not constitute a request for quotation. The President`s budget for the financial year 1996 provides for increased use of privatized correctional services within the Federal Bureau of Prisons (FBOP). In particular, there are plans to enter into contracts with private prisons to operate the majority of all future federal, minimal and low-security detention facilities.

[CORRECTIONAL] facilities will be owned by the government or operated by contractors, and the estimated demographic capacity of each prison is expected to be between 800 and 1,600 inmates. The purpose of the RFC is to provide industry with an opportunity to comment on any perceived issues related to the privatization initiative and to allow the government to benefit from industry feedback. The government is providing industry with an opportunity to comment on comments by identifying potential issues and making other recommendations to increase the success of the initiative. The government believes that industry feedback is important and is receptive to any industry ideas that would lead to unnecessary limitation of requirements, cost savings, or identification of potential technical or contractual issues related to the initiative. Feedback should not be seen as a way to present a particular approach or product to be offered, but as an opportunity to improve any set of calls. Comments were sought on the following: The Deputy Administrator of the General Services Administration (GSA) confirmed the use of PBSCs in a memorandum to management and requested his assistance in focusing on the use of PBSCs for service creators and contract staff involved in the awarding of service contracts. Training of program and contract staff that includes writing PWS and QAP, as well as other aspects of PBSC, is equally important to PBSC`s success. Training can be delivered through internal resources, external sources, or modifying existing training to include pbSC. The scope of monitoring is determined by the monitoring schedule specified in the AQP. It should be systematic and sufficient to fairly assess the contractor`s overall performance throughout the period of service. Organizations should adopt an interdisciplinary team approach to the development of the WPS and should include at least contract staff and a technical representative. The program manager or a representative of the procurement manager or the head of the agency should set up the team.

Other team members may be a lawyer, an editorial consultant, and a representative of the client/user`s staff. Where possible, at least one team member should have experience with PBSC contracting techniques. After setup, the team must appoint a team leader to serve as a facilitator. The key elements of a PWS PBSC are: a list of services required in terms of performance; a measurable performance standard for production; and an AQL or allowed error rate. These will have been defined during the workplace analysis phase discussed in Chapter 3. The PWS describes the specific requirements that the contractor must meet in the performance of the contract. It also sets a performance standard for the tasks required and the level of quality that the government expects from the contractor. The contractual declaration, called PWS, forms the basis of performance-based services. The PWS PBSC describes the effort in the form of measurable performance standards (outputs). These standards should include elements such as “what, when, where, how much and to what extent”, the work should be done. A Quality Assurance Plan (QAP) that directly meets performance standards and measures the contractor`s performance is required to determine whether the contractor`s services meet the contract`s PPS requirements. Positive and/or negative performance incentives based on AQP measures should be included.

PwS` performance standards, AQP and incentives are interdependent and must be consistent in form, style and content and must be cross-referenced. For a procurement to be a true PBSC, it should include a PWS, QAP and appropriate financial incentives. PbSC will help resolve issues often associated with service contracts that have been identified in many audits, including cost overruns, delays in timelines, inability to achieve certain results, and other performance issues. The purpose of this document is to facilitate the implementation of the PBSC. The DOE`s analysis of its protection forces program led to the conclusion that it no longer needed armed and specially trained security forces. The shift from armed guards to unarmed guards has significantly reduced labor costs. .