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Slide 2 - BACKGROUND ON IMPLEMENTATION OF AFI 63-124 1 April 1999 – Initial Publication 9 February 2004 – Interim Change 1 Aug 2005 – First Revision 9 Aug 2005 – AFMC delayed Implementation 16 Sep 2005 – AFMC Implementation
Slide 3 - COURSE OBJECTIVE Provide the student with the knowledge and skills required to perform QAP duties to ensure the government is receiving the services it contracts for
Slide 4 - COURSE OVERVIEW ATTENDEES Quality Assurance Personnel (Mandatory) Multi-Functional Teams (MFT) (Recommended) COURSE MATERIALS: AFI 63-124, 1 Aug 2005 Slides/Note Pages QAP Assessment Documents Acronym/Abbreviations List Do’s & Don’ts for QAPs
Slide 5 - CLASS INTRODUCTIONS Name Organization Type of Contract Experience
Slide 6 - PHILOSOPHY OF PBSA The goal of PBSA is to design mission support strategies that obtain higher levels of: contractor performance foster synergistic partnerships accommodate changing mission needs leverage commercial best practices
Slide 7 - PBSA PROCESS PBSA begins with the planning of the acquisition by the MFT and consists of - Acquisition Strategy - Market Research - Write the PWS - Write the PP - Performance Metrics – Ensure that performance metrics align with the PWS and mission objectives
Slide 8 - APPLICATION OF AFI 63-124 This AFI is applicable to all Service Acquisitions with an annual contract value above the Simplified Acquisition Threshold (SAT) ($100,000.00) (FAR 2.101)
Slide 9 - APPLICATION OF AFI 63-124 Exemptions in FAR 37.102 (a) (1) Use performance based contracting methods to the maximum extent practicable, except for: - Architect-Engineer Services - Construction - Utility Services - Services that are incidental to supply purchases
Slide 10 - DEFINITION OF A SERVICE CONTRACT One which directly engages a contractor’s time and effort whose primary purpose is to perform an identifiable task rather than furnish an end item of supply
Slide 11 - PRINCIPLES OF PBSA Some of the areas in which service contracts are found include the following: - Maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, or modification of supplies, systems or equipment - Routine recurring maintenance of real property - Housekeeping and base services
Slide 12 - PRINCIPLES OF PBSA - Advisory & Assistance services (A&AS) - Operation of Government-owned equipment facilities and systems - Communications services - Architect-Engineering - Transportation and related services - Research and Development
Slide 13 - ELEMENTS OF PERFORMANCE-BASED Requirements are outcome-based Includes performance thresholds Surveillance methods focus on end results, not the process
Slide 14 - BENEFITS OF PBSA Reduces contract prices and improved performance Contain measurable performance requirements Provides contractor flexibility
Slide 15 - BENEFITS OF PBSA Requires less surveillance Motivates contractors to use innovative and cost effective approaches
Slide 16 - STANDARDS OF CONDUCT ETHICS Government Standards of Conduct Bribery Gratuities
Slide 17 - UNAUTHORIZED COMMITMENTS An agreement that is not binding solely because the government representative who made it lacked the authority to enter into that agreement on behalf of the government
Slide 18 - RATIFICATIONS The act of approving an unauthorized commitment by an official who has the authority to do so
Slide 19 - RATIFICATION PROCESS Statement of Facts Management Corrective Action Contracting Officer’s Actions Ratification Authority
Slide 20 - RATIFICATION PROCESS If approved If not approved
Slide 21 - FREEDOM OF INFORMATION ACT Specifies how federal agencies will make their records available for public review
Slide 22 - RELEASE OF INFORMATION General Information Advance Acquisition Information
Slide 24 - SENIOR LEADERSHIP WING COMMANDER Appoint a MFT and QAPC to ensure that service contracts meet mission needs and performance based service acquisitions Ensure a service acquisition is designed with performance-based mission support strategy to support contractor performance, partnerships, accommodates changing a desired mission needs Implement a Performance Management Assessment Program (Quality Program) to satisfy mission requirements Ensure performance management focuses on risk management, cost, schedule and performance baselines
Slide 25 - CONTRACTING SQUADRON COMMANDER/75 CONS/CC Serves as the Business Advisor to Senior Leadership Providing the health of services acquisitions to senior leadership annually . Ensure MFT work IAW the FAR, DFARS, AFFARS Ensures the QAPC is appointed and training plans are tailored to local mission and responsibilities Ensures FC/FD receives training for PBSA Ensures consistent guidance to customers, functional areas and ACE office by the QAPC
Slide 26 - FUNCTIONAL COMMANDER/FUNCTIONAL DIRECTOR (FC/FD) Squadron commander or Division Chief Identify mission essential services DoDI 3020.37 Assigns primary and alternate QAPs to each requirement Review QAPs assessment records to ensure it is compatible with contract and mission objectives
Slide 27 - FUNCTIONAL COMMANDER/FUNCTIONAL DIRECTOR (FC/FD) Receive training from QAPC within 30 days of commencement of duties Provides written notification when QAPs are removed from the contract Notify QAPC when vacating the position
Slide 28 - QUALITY ASSURANCE PERSONNEL (QAP) QAP must be appointed and trained prior to assuming QA responsibilities (Phase I and Phase II) Evaluate and document contractor’s performance IAW the PP on Performance Assessment Report (PAR) Notify the CO of any performance deficiencies on the Corrective Action Report (CAR) Maintain assessment documentation Recommend improvements to the PP and PWS Participate as a member of the MFT
Slide 29 - CONTRACTING OFFICER AFFARS MP5346.103 Advises the MFT on PP development Manages the listing of QAP assigned to the contract Issues duties & responsibilities letter to Contractor/QAP MFT advisor for developing incentives/remedies tied to performance objectives/thresholds
Slide 30 - CONTRACTING OFFICER AFFARS MP5346.103 Conducts Phase II Training (Contract Specific) Maintains contract file documentation Phase I and Phase II training Provide the following copies to the QAPC PWS, PP, Nomination/Appointment Letters, Contractor QC Plan Letter, Modifications, Contractor and QAP Limitation Letters , Phase II Training Certificates
Slide 31 - QUALITY ASSURANCE PROGRAM COORDINATOR (QAPC) Supports the MFT in development of contract requirements Provides Phase I Training to QAP, FC/FD and MFT Members Reviews PWS/PP Processes/maintains/updates QAP appointment and delegation memos Q QAPC PHASE 1 TRAINING
Slide 32 - QUALITY ASSURANCE PROGRAM COORDINATOR (QAPC) Maintains a master file and database of contracts & QAP assigned to each contract, and training documentation Assists in market research efforts of the MFT to determine commercial QA practices Assists in the evaluation of the Contractor’s QC Plan Provides refresher training annually to ensure the QAPs are up to date on all required changes
Slide 33 - SEVEN STEPS TO PERFORMANCE-BASED SERVICES ACQUISITION What do I need? When do I need it? How do I know if it’s good when I get it?
Slide 34 - ESTABLISH THE TEAM Ensure senior management involvement and support. Tap multi-disciplinary expertise. Define roles and responsibilities. Develop rules of conduct. Empower team members. Identify stakeholders and nurture consensus. Develop and maintain the knowledge base over the project life. "Incent" the team
Slide 35 - TEAM MEMBERSHIP For complex requirements: All stakeholders impacted by the service, CO, QAPC, QAP, FTR For less complex requirements: CO, QAPC, QAP, FTR
Slide 36 - MULTI-FUNCTIONAL TEAM (MFT) Consists of stakeholders that are responsible for acquisition throughout the life of the requirement Duties and Responsibilities of the team includes: Fostering partnerships with industry Provide support to senior leadership (metrics, data, briefings) Researching the commercial market to ensure MFT is using the most efficient and effective assessment methods Developing, implementing performance-based acquisition strategy
Slide 37 - MULTI-FUNCTIONAL TEAM (MFT) Manage risk to ensure mission is within cost and schedule constraints Developing, implementing and executing source selection Planning, programming and budgeting adequate funds Completing and reporting annual reviews IAW the Management and oversight of the Acquisition of Services Process (MOASP) Identifying opportunities to improve performance throughout the life of the contract
Slide 38 - MULTI-FUNCTIONAL TEAM (MFT) Assessing and managing contractor performance to submit CPARS report Measure performance IAW the PP Include contractor understands hazardous, safety, security and environmental concerns Approve the deviation authorized in para 1.8 Recommend changes to the PP as required
Slide 39 - ANLALYZE/DEFINE REQURIEMENTS Acquisition Planning Link acquisition to mission and performance objectives. Define (at a high level) desired results. Decide what constitutes success. Determine the current level of performance.
Slide 40 - MARKET RESEARCH “ The ultimate goal of market research is to help the acquisition team members to become informed consumers. Information derived from market research will help the acquisition team develop the optimum strategy for meeting the requirement.” Performance Based Service Acquisition, a DoD Guide
Slide 41 - MARKET RESEARCH Take a team approach to market research. Spend time learning from public-sector counterparts. Talk to private-sector companies before structuring the acquisition. Consider one-on-one meetings with industry. Look for existing contracts. Document market research.
Slide 42 - DEVELOPING A PWS Steps to Develop the: PWS Services Summary (SS) Decide how to measure & manage performance
Slide 43 - PEFORMANCE-BASED REQUIREMENTS PWS defines the requirements in terms of results rather than the method of performing the work.
Slide 44 - Performance-Based Work Statement (PWS) requires: Requirements to be outcome based Outcomes must be measurable Contractor empowered to use best commercial practices and management innovation OUTCOMES From: Specifying “How To” To: Specifying “What” C o n t i n u u m
Slide 45 - WRITING A PERFORMANCE- BASED REQUIREMENT Use precise terms Clear, concise wording Abbreviations and acronyms Ambiguous words and phrases
Slide 46 - FORMAT Examples are found in the SAF/ACQ Contracting Toolkit Local electronic format is also available from QAPC
Slide 47 - FORMAT SECTION I. Description of Services Describes the services required under the contract Defines those things the contractor would not know from the outcomes alone
Slide 48 - FORMAT SECTION II. Services Summary (SS) A summary of the performance objective and performance threshold required by the government in contractor performance
Slide 50 - SERVICES SUMMARY (SS) Captures the overall requirements at the outcome level “Bird’s eye” view of what is on the contract
Slide 51 - FORMAT SECTION III. Government Furnished Property and Services
Slide 52 - FORMAT SECTION IV. General Information QAP Responsibilities Hours of Operations, Holidays Contractor Quality Control Plan Requirements Security Issues DODI 3020.37 Identify Mission Essential Services IAW 63-124 para 2.7.1
Slide 53 - FORMAT SECTION V. Appendices Workload Estimates Maps Unique Definitions Listings of References
Slide 54 - REFERENCES AFI 63-124 para 1.4.3 – Cite reference directives (publications, instructions) by specific process/procedure (paragraph, chapter) rather than the entire publication
Slide 55 - 3.1 Task 1. MESA/PD model Manager: The contractor shall furnish appropriately skilled labor for the management of the XYZ analytical tool called “The Model for Electronic Support and Attack” (MESA) and “Passive Detection” (PD). Duties include software engineering support (requirements solicitation and analysis, software design and testing, verification/validation), tool deployment support, and end user training/support. In this role the contractor shall be expected to and make decisions regarding the design and functionality of MESA and PD models for the government during performance. Deliverables include: “Requirements Definition Documents” for use in the enhancement/sustainment program (A007) PBSA PWS Examples - Yes, No, Maybe
Slide 56 - Experience. A minimum of six years experience working in fuels is required; three years in base level general fuels, and three years in a fuels managerial capacity. XXX The contractor shall have graduated from Harvard with a BS in Fuels Management. XXX The contractor shall hire three people to man the service desk XXX The contractor cannot wear “crop tops” and belly rings. XXX The contractor shall turn off all lights upon leaving the room. XXX The contractor shall turn off all water facets after use. PBSA PWS Examples - Yes, No, Maybe
Slide 57 - Preservation is accomplished only if required by technical orders listed below and only if directed by the CO: XXX. Accomplish engine preservation in IAW TO 1C-130B/H-2-4 or1C-130(H)H-2-2 and 1C-130H-2-00GE-00-1. XXX. Remove aircraft storage battery and SCNS battery if installed, store, and maintain as directed in TO 8D2‑1‑31 or TO 8D2‑3‑1. XXX. Treat the aircraft as directed in TOs 1‑1‑17 and 1C‑130A‑17 when storage is anticipated. Drained fluids shall be disposed of or reused as follows: PBSA PWS Examples - Yes, No, Maybe
Slide 58 - MEASURE AND MANAGE PERFORMANCE Rely on commercial quality standards. Have the contractor propose the metrics Select only a few meaningful measures on which to judge success. Include contractual language for negotiated changes to the metrics and measures. Apply the contract-type order of precedence carefully. Use incentive-type contracts. Consider other incentive tools.
Slide 59 - PERFORMANCE PLAN (PP) Provides a systematic method to evaluate the services the contractor is required to perform Elements of the Gov’t PP are not contractual Should be revised or modified as needed throughout the life of the contract Ensure the government receives acceptable contractor performance against contractual requirements Minimum surveillance of the contractor Tailored to each individual contract
Slide 60 - PERFORMANCE PLAN (PP) Contract assessment is the Prime responsibility of QAP Method of surveillance will determine how the QAP will actually evaluate the contractor’s performance
Slide 61 - CONTENTS OF THE PP 1. Objective 2. Results expected by the MFT 3. Roles and responsibilities of the MFT 4. Strategy, methods & tools used to assess the contractor’s performance 5. Management approach, methods & tools to validate objectives and goals Incentive plan to validate the objective & goals of the MFT The members of the MFT sign the PP
Slide 62 - METHODS OF SURVEILLANCE How to Determine what method to use: Criticality of the task Lot size Availability of QAPs Value of surveillance in relationship to cost or task criticality Commercial practices as a result of market research
Slide 63 - PERIODIC SURVEILLANCE Samples selected on other than 100% or statistically random basis Frequency Weekly Monthly Quarterly
Slide 64 - RANDOM SAMPLING Appropriate for frequently recurring tasks with a lot size of over 25 Statistically based Assumes the government receives acceptable performance if a given percentage or number of scheduled inspections are found to be acceptable
Slide 65 - CUSTOMER COMPLAINTS QAP is the point of contact and must collect all customer complaints and validate immediately Can be used to validate information obtained through other sources Need to be validated Customer training Customer Complaint Record (CCR) Customer Training
Slide 66 - ONE HUNDRED PERCENT INSPECTION Inspecting the requirement every time it occurs May be required when Critical impact Occur infrequently Have stringent requirements
Slide 67 - PERFORMANCE THRESHOLDS Percentage of required conformance Number of allowable deviations from the performance objective to be considered acceptable
Slide 68 - PERFORMANCE THRESHOLDS Should rarely be 100% or no deviations Directly affects the cost of the service May be industry-wide standards May be developed by the agency
Slide 69 - PERFORMANCE ASSESSMENT GUIDANCE FOR RANDOM SAMPLING PROCEDURES 1. Method of Surveillance: 2. Lot Size: 3. Sample Size: Performance Threshold: a. Performance is acceptable when (Use your percentage or number of deviations on SS) b. Performance is unacceptable when (Use your percentage or number of deviations on SS) Sampling Procedure: (How your random numbers were pulled). 6. Inspection Procedure:
Slide 70 - PERFORMANCE ASSESSMENT GUIDANCE FOR OTHER THAN RANDOM SAMPLING 1. Method of Surveillance: 2. Performance Threshold: a. Performance is acceptable when (Use your percentage or number of deviations on SS) b. Performance is unacceptable when (Use your percentage or number of deviations on SS) 3. Inspection Procedures:
Slide 71 - SAMPLE OF SS AND METHOD OF SURVEILLANCE Para 1.1 Report generation from consolidated database to support our Customers. What is important in each of these requirements? Timeliness, Accuracy, Cost, Customer interaction, “down time for the system/application” How will I determine if the contractor is performing? Timeliness PP SS
Slide 72 - SAMPLE OF SS AND METHOD OF SURVEILLANCE Para 1.1 Report generation from consolidated database to support our Customers. What is important in each of these requirements to you? - Timeliness, Accuracy, Cost, Customer interaction, “down time for the system/application” - How will I determine if the contractor is performing? Accuracy SS PP
Slide 73 - REMEDIES Negative Incentives Increased assessments CPAR statements Award Fee Monies Inspection of Services Clause One size doesn’t fit all!!!
Slide 74 - INSPECTION OF SERVICES FAR 52.246-4 This clause is in every service contract Gives the QAPs authority to perform inspections Provides the means for reduction of fee/price (amount = importance to contractor) Allows re-performance if possible at no additional cost
Slide 75 - AUTHORITY TO INSPECT Implied Authority Contracting Officer Expressed Authority QAPs Do’s & Don’ts for QAPs
Slide 76 - INCENTIVES Positive Incentives (as applicable) Consider award fee and award term incentives Exercising of options Reduced assessment Performance incentive (Bonus on a FFP contract) Newspaper article on merits of contractor Participation in enterprise type meetings Doesn’t have to be monetary
Slide 77 - SELECT THE RIGHT CONTRACTOR Compete the solution. Emphasize past performance in evaluation. Use oral presentations and other opportunities to communicate Use best-value evaluation and source selection. Assess solutions for issues of conflict of interest.
Slide 78 - PAST PERFORMANCE INFORMATION (PPI) Enhance market research Help establish competitive range and make award decisions Provide a basis for discussing progress with contractors Help decide whether to exercise contract options Award decisions on task orders Aid in developing acquisition strategies Recognize good performers
Slide 79 - CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEM (CPARS) Annual requirement Contracts at or over $1,000,000 (Aggregate Total) AF adopted the Automated Navy System ( Information is for “Official Use Only”
Slide 80 - MANAGE PERFORMACE Keep the team together Adjust roles and responsibilities Assign accountability for managing contract performance. Add the contractor to the team at a formal “kick-off meeting. Regularly review performance in a contract Performance Improvement Working Group. Ask the right questions.
Slide 82 - STANDARD REQUIREMENTS Form 9 with at least three suggested sources Justification & Approval (J&A) if ≥$100K and not awarded competitively (AFFARS 5308.404(b)(2)) Requirement written IAW AFI 63-124 with a Services Summary (SS) Performance Plan (PP) QAP Nomination Letters (at least one primary and one alternate assigned per contract)
Slide 83 - A&AS REQUIREMENTS Form 9 with at least three suggested sources Justification & Approval (J&A) if ≥$100K and not awarded competitively (AFFARS 5308.404(b)(2)) Decision Determination Document (DDD) Staff Summary if over $50K Exemptions Requirement written IAW AFI 63-124 with a (SS) Performance Plan (PP) QAP Nomination Letters (at least one primary and one alternate assigned per contract)
Slide 84 - GSA REQUIREMENTS Form 9 with GSA Contract # and at least three suggested sources for a multi-source schedule and one source for a single-source schedule Sole Source Justification Document if ≥$100K and not awarded competitively (AFFARS 5308.404(b)(2)) Requirement written IAW AFI 63-124 with a SS Performance Plan (PP) QAP Nomination Letters (at least one primary and one alternate assigned to each contract)
Slide 86 - CONTRACTOR’S QUALITY CONTROL PLAN Contractor’s Plan for Assuring that the Services conform to the Requirement (Section I) Includes Inspection and Test Criteria Policies, Procedures and Practices Delivery within Allowable Tolerances Quality Planning Procedures QC
Slide 87 - CONTRACT ASSESSMENT Scheduling Performing Documenting
Slide 88 - SCHEDULING ASSESSMENTS Use QA Monthly Schedule Template Schedule monthly assessments of SS items Send a copy to the CO Retain a copy for your records
Slide 89 - PERFORMING ASSESSMENTS Perform assessments IAW procedures set forth in the PP per performance assessment guides If assessment methods need to be changed revise the PP and send copies to who has a copy of the original PP
Slide 90 - DOCUMENTING ASSESSMENTS Document assessments as it is accomplished Use the Performance Assessment Report (PAR) Template
Slide 91 - UNACCEPTABLE RESULTS OF ASSESSMENTS If government actions caused the unacceptable performance, take steps to prevent it in the future If not government caused inform the contractor’s on-site representative Document on the Corrective Action Report (CAR) and send to the CO If the contractor disputes the results of the assessment refer them to the CO
Slide 92 - QAP CONTRACT FILE QAP Nomination/Appointment letter QAPs Duties & Responsibilities Letter CO’s Duties & Responsibilities Letter Phases I & II Training Certificates Memo for Records/Correspondence Records of Inspection Discrepancy Reports Certification of Services
Slide 93 - ADDITIONAL TRAINING This training serves as Phase I QAP Training Refresher Training will be provided when changes occur Your Contract Administrator will schedule you for Phase II Training Contract Specific Training Training is required every time a new contract is awarded
Slide 94 - QUESTIONS? Student Evaluations Certificates