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Breakout Session # 514Dave Theimer

Assistant VP, Marketing

NISH

Date Tuesday, July 20 Time 2:30pm – 3:45pm

Streamlining the Performance Based Service Contracting Process Through the AbilityOne Program…

Putting Disabled American Vets to Work

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• 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…

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• The Javits-Wagner-O’Day Program is now called AbilityOne

• New name will increase awareness and better communicate the mission and program identity.

JWOD/AbilityOne Updates

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Program Structure

President of the United States

Committee for Purchase From People Who Are Blind or Severely Disabled

Congress(Legal Authority)

DOCDODAir ForceArmyNavyDOJDOLEDGSAUSDAVACitizenCitizenCitizenCitizen

Nonprofit Agencies Employing Persons Who

Are Blind

Nonprofit Agencies Employing Persons With

Severe Disabilities

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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”

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AbilityOne is Smart Business

• 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

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Market Pricing - Services

• 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

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Program Management Support

• 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.

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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.

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Traditional AbilityOne Services

CustodialFood ServiceGrounds

MaintenancePostal Service

CentersSwitchboard

Operators

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NISH Organization

San Ramon, CA

Pacific West

Pacific West

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Results of Recent Studies

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NISH - Meeting Today’s Needs• Janitorial/Custodial• Grounds Maintenance• Base Supply Stores• Food Services• Laundry Service• Fleet Management• Secure Mail/Document Imaging• Secure Document Destruction• Warehousing and Distribution• Contract Management Support (Contract Close-out)• Healthcare Environmental Services• National Treasures Management• Tele Services/Call Center Ops

Traditional Lines

Innovative, Strategic Lines

“You have an extraordinarily talented team who provide the best possible customer experience to U.S. citizens.” Hilary Rodham Clinton, Secretary of State

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1. Develop/Define the Requirement

2. Contact the AbilityOne Program

3. Determine If AbilityOne and Their Community Rehabilitation Program (CRP) Business Partners Possess the Capability

4. Determine Federal Prison and NIB Priority (products only)

5. NISH/NIB Project Manager Performs A “Preliminary” Impact Determination

a. Dun & Bradstreet Business Base Review (Opportunity Percentage of Contractor’s Business)

b. Incumbent Contractor Profile

c. 8A Contractor’s Program Status (Years To Graduation)

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6. Complete Statement Of Work (SOW) And Send To The NISH/NIB Project Manager (NISH Can and Will Assist In Writing The SOW)

7. Receive The “No-obligation” Price Proposal From The NISH/NIB Project Manager

8. Negotiate The Proposal, Sign The Concurrence Letter, and Send To NISH/NIB

9. NISH/NIB’s Project Manager Stays in Touch with the Contracting Officer to Report on the “Procurement List Addition” Process/Progress at the Committee For Purchase

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AbilityOne Approach to Performance-Based Contracting

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Performance-Based Contracting

• 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

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PBSC and FAR 37.601

• 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

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NISH & PBSC

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

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Prescriptive SOW

• 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.

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Prescriptive SOW

• 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.

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Performance Based PWS

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

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Six Components of a PBSC

• Performance Work Statement (PWS)• Performance Indicators and Standards• Performance Requirements Summary (PRS)• Acceptable Quality Level (AQL)• Performance Plan (Formerly the QASP)• Appropriate Incentives

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1. Performance Work Statement (PWS)

• 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”

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PWS and the WBS(Work Breakdown Structure)

1. Outputs are clearly identified

2. Inputs are clearly defined

3. WBS is required for work analysis

4. WBS is required for the proposal

5. WBS is required for pricing

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Performance Work Statement (PWS)

• 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

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2. Performance Indicators and Standards

• 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

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Common AbilityOne Quality Indicators

• Workmanship

• Timeliness

• Accuracy

• Conformance

• Customer Satisfaction

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Objective, Measurable Standards Are Key to PBSC

• Complete task in 30 minutes

• 275 to 300 Meals served between 12-1

• Maintain grass between 3” and 5” on improved areas

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Try to make Subjective standards Common Sense Standards

• 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

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3. Performance Requirements Summary

• 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

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4. The AQL• 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

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5. The Performance Plan (Old Quality Assurance

Surveillance Plan (QASP)

• 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

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6. Appropriate Incentives

• 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

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…But don’t forget the QCP

• 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!)

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DO’s of Writing a PWS

• 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”

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Streamlining Using AbilityOne

• AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process

• Save staff time, effort, money

• Bring services on line quicker

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Acquisition– The Federal Process

Identification ofrequirement or need

Market research

(FAR Part 10

Acquisition planning

(FAR Part 7)

Solicitation and

Proposal phase

(FAR Part 15)

Evaluation and

Negotiation

(FAR Part 15)

Source selection

And contract award

(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

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Streamline Advantages

• Can go directly to an AbilityOne 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

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Buying from AbilityOne

• 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.

• AbilityOne buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs.

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Acquisition– The NISH Process

Identification ofrequirement or need

Proposal and

Negotiation

(FAR Part 8.7)

Contract award

(FAR Part 8.7)

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AbilityOne Is Not a “Front”

• Service must be suitable- i.e. can be performed by a NPA and can be performed by individuals with disabilities

• Providing the Service through AbilityOne cannot have disproportionate impact on the previous supplier -

• 75% of our direct labor must be by individuals who qualify as severely disabled

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Team Approach

• 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

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Follow-on, the Real Pay Off• 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

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Subcontractingwith AbilityOne

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Subcontracting w/ AbilityOne?• Recent “sea change” in RFPs

– Resulting from “SPE” Support• Specific RFP requirements vary:

– 5% Goal– 1% Goal– Bid your Own Goal

• KEY MESSSAGES:– You don’t subcontract with “AbilityOne”– You subcontract with “Approved” Nonprofit

Agencies– It is easier than you think!– NIB and NISH are there to help!

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What RFPs?

• SETAC 07 – 1%

• GSA USA Contact (Call Centers) – 5%

• SOFSA CLS – 5%

• AF UNICOMM

• Military One Source – 1%

• HRsolutions - ___%

• More coming!

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What’s an “Approved” NPA?

KEY POINTS:

DFARS 219.703 Eligibility requirements for participating in the program.(a) Qualified nonprofit agencies for the blind and other severely disabled, that have been approved by the Committee for Purchase from People Who Are Blind or Severely Disabled under the Javits-Wagner-O’Day Act (41 U.S.C. 46-48), are eligible to participate in the program as a result of 10 U.S.C. 2410d and Section 9077 of Pub. L. 102-396 and similar sections in subsequent Defense appropriations acts. Under this authority, subcontracts awarded to such entities may be counted toward the prime contractor’s small business subcontracting goal.

• Use NIB and NISH to assist• Listed in CCR

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How does it work?

• Ensure your Supplier Diversity Manager is involved and your Supplier Diversity definitions are up to date (include NPAs)

• Engage NIB and NISH in MOAs/MOUs

• Use NIB and NISH for Sourcing• Use CCR search to find NPAs• Engage a NPA in Mentor-Protégé

program

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Advantages to Prime

• NPAs already have FAR experience– Understand T’s and C’s– Have SCA payroll system in place

• Small Business Goals

• Positive Brand Name Recognition

• Possibly – Facility Security Clearance

• Probably already working on site or nearby

• Can be competitive!

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Challenges to Prime

• Something new and different– Another step for your Capture Managers– Another check for Contract Compliance– But, NIB and NISH are there to help

• Multiple Primes chasing same NPA– May not get Exclusive Teaming Agreement

• Need internal training– But, NIB and NISH are there to help

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KEEP IT SIMPLE!• National Industries for the Blind (NIB):

– DuWayne Gilbertsondgilbertson@nib.org703-310-0532

• NISH:– Dave Theimer

dtheimer@nish.org571-226-4636

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• www.abilityone.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