Performance Based Contracting

PBSC Trends in Government
The growth of Performance-Based Service Contracts (PBSC) in Government continues:

• The Office of Management and Budget (OMB) mandated that Performance-based Contract usage increase from 20% in FY2002 to 30% in FY2003 to 40% in FY2004.
• Office of Federal Procurement Policy (OFPP) memorandum states that agencies should apply PBSA (Performance-Based Service Acquisition) methods on 40% of eligible service actions over $25,000 (including contracts, task orders, modifications, and options) awarded in FY2005.
• The 7 Steps to PBSA was published on ACQNET to educate Government on how to embrace performance-based contracting.

PBSC with CYIPRO

Performance-based contracts have been vastly adopted by the Federal Government in recent years to empower contractors to innovate and perform to given metrics as opposed to simply adhering to detailed contract designs. This shift provides contractors with incentives for meeting a standard and disincentives for not meeting a standard. Following the President's Management Agenda, PBSC helps government become more agile and strategic by reducing acquisition cycle time and costs.

CYIPRO features built-in components to support PBSC stakeholders and the supporting contract staff. It begins with the CYIPRO Quality Control Plan (QCP), the contractor's everyday tool to insure the Government's performance standards (as set forth in the Quality Assurance Surveillance Plan [QASP]) are met. The QCP can be created easily from Administration reports within CYIPRO.

Next, CYIPRO has the ability for staff to open a new project for every required service needed to complete a desired outcome. Once the project is completed, all time and materials (i.e., documents, discussions, assignments and notes) are tracked, saved and archived. CYIPRO time utilization reports capture all of this information based on users or by category (categories are setup by the Program Manager). These reports are web based and available 24/7 for review by those monitoring contract.

Problems

1. Metrics Management
2. Total Staff Accountability
3. Project and Time Management
4. Manpower Reporting
5. Burn Rates and Cost Analysis

Four Steps to PBSC Success With CYIPRO

PErformance-Based Service Contracting with CYIPRO can be successful by following four steps.

1. Set up the contract within CYIPRO including task order numbers, CLINs, and Costs to comply with Manpower Reporting requirements.
2. Create a virtual organizational structure within CYIPRO to mirror your current structure to include divisions and teams.
3. Use CYIPRO daily to manage projects and tasks. All tasks are linked with timesheets to ensure staff accountability.
4. Conduct monthly Internal Progress Reviews (IPRs) to analyze CYIPRO time utilization reports and quality management graphs.

Results of PBSC with CYIPRO

The tools of CYIPRO help streamline communications between the Government and Contractor and ensure metrics are easily managed and monitored.

• All metrics are managed to effectively award incentives or penalize disincentives.
• On demand quality control reports are available to assess performance of the contract as it pertains to staff accountability.
• Built-in invoices display contract burn rates and staff hours to forecast costs and perform long-term budget planning.