This is a basic quality assurance class for personnel with limited or no prior exposure to contracting and matters related to quality assurance and personnel who have been out of the field for an extended period of time. The primary target audience is composed of shop and other functional personnel who have been displaced and reassigned as monitors of contractor services as a result of A-76 cost studies and new employees who will be working with government contracting or quality assurance for the first time. This class introduces the student to contracting for services, addressing the basic terms and acronyms commonly used, the essential few fundamentals of the Federal Acquisition Regulations, and the basic elements of performance assessment using Performance Based Services Acquisition guidance.

Day one: A contract is defined and a sample contract in the Commercial Item contract format, is reviewed in class and the parts are explained and discussed. The cover sheet, pricing schedule, clauses, requirements, and attachments are discussed to illustrate the structure of a service contract. The difference between standard and special clauses is explained and selected clauses of both types are identified and discussed in class to show students how clauses govern contractor performance and monitoring activities by the Government.

Day two: The team approach to contracting is discussed and the roles and responsibilities of team members are addressed. Contracts are classified for the student by what is purchased, the type of requirements, the compensation arrangement and the delivery arrangement. Simple examples of each classification are discussed in class to illustrate the meaning of each type of classification. The preference for fixed-price type contracts is explained and the concept of incentives in contracting is discussed, using Award Fee and Award Term incentives as examples. The types of specifications used in service contracts are identified and illustrated. Changes in contracts are addressed and the role of the QA person in support of contract modifications is explained.

Day three: The terms "Performance Assessment" and "Performance Management" are defined and discussed. The basics of FAR Part 46 as related to QA duties and responsibilities is covered along with a discussion of the contractor's obligation to control the quality of products and services offered for acceptance. The Commercial Item inspection and acceptance clause and the standard inspection clause are discussed. The importance of establishing meaningful expectations for performance standards and thresholds is addressed and the meaning of "substantial compliance" is explained. The contents of a Quality Assurance Surveillance Plan or a contract Performance Plan is discussed along with a description of the traditional surveillance methods and procedures used.

Day four: Partnering is discussed in detail. The concept of "involvement" is introduced to enhance the students understanding of what it means to assess performance through insight as opposed to oversight. In a discussion of the contractor's obligation to control quality, the basic elements to look for in the contractor's quality control program are identified and procedures for review and approval of the contractor's Quality Control Plan are explained. The importance of a sound partnering relationship is emphasized. Surveillance techniques are explained and discussed in class, including requirements for both the contractor and the government for an effective customer complaint program.

Day five: Day five ends at noon. The morning is devoted completion of practical exercises and a complete review and discussion of the materials covered in the entire course.

This is an overview course designed for a mixed class of contracting and functional personnel. It addresses all aspects of performance based contracting and current guidance for Performance-Based Services Acquisition (PBSA) using Commercial Item acquisition procedures. Topics addressed include selecting contractors with proven performance records who offer the best value and partnering with the contractor for success. It includes as references, the "Guidebook for Performance-Based Services Acquisition (PBSA) in the Department of Defense, March 2001 and extracts from the web based guide to PBSA, "Seven Steps to Performance-Based Services Acquisition." The course materials are entirely consistent with current guidance from the Air Force, Army, Navy, and higher level policies and procedures.

Day one presents an overview of the PBSA approach to service contracting. The basic references governing PBSA are discussed. The unique terms and definitions are presented and the structure of the contract is demonstrated through the use of examples and practical exercises.

Day two addresses the systems approach to job analysis for identifying requirements and the "PBSA" informal approach to the identification of performance objectives, standards, and thresholds. Each step in the process is reinforced through the use of practical exercises.

Day three covers development of the requirements package for a solicitation and includes a discussion of the Requirements Summary, the contract pricing schedule, and the use of a Statement of Objectives (SOO) or a Performance Work Statement (PWS). Practical exercises build on the previous days work. Emphasis is placed on describing the required performance standards to meet performance objectives and establishing an appropriate performance threshold for each required service to reflect the overall level of quality needed from the contractor to meet the Governments mission needs. The relationship between the performance threshold and the concept of substantial compliance is explained .

The last two days of this course are devoted to quality control and quality assurance, with emphasis on reliance on assessing the contractor's management and performance metrics. Problem prevention rather than problem identification is identified as the focus of Government quality assurance actions. The appropriate FAR clauses and recommended special contract clauses are identified and explained. Use of the Requirements Summary and Quality Assurance Surveillance Plan (QASP) or a Performance Plan is covered and includes a recommended format. Detailed coverage is provided for developing individual quality assurance plans for each required service. Unique terms are defined and illustrated, techniques for developing surveillance plans are discussed, and sample documents are analyzed and discussed. The various surveillance methods used are explained, including the use of random sampling techniques. The course is concluded with a review of all materials covered in the course.

This is an introductory course designed for quality personnel, Contracting Officer Representatives (COR), and other functional personnel with service contractor monitoring responsibilities. Surveillance monitoring procedures are covered in detail. It incorporates recent guidance addressing techniques for Performance-Based Services Acquisition using Commercial Item acquisition procedures. Through lectures, individual study, and work group activities, this course provides a basic approach to service contract administration.

On day one, the unique terms and definitions related to quality in service contracts are presented and illustrated through the use of examples and practical exercises. The pertinent FAR clauses and other quality related contract clauses are identified and explained. Specific inspection and acceptance responsibilities are identified and the elements of the Performance Monitoring Plan or Quality Assurance Surveillance Plan are discussed and distinguished from those in individual work requirement Assessment Plans. New procedures which shift the quality assurance focus from oversight to insight are addressed. The concept of partnering with the contractor to validate the contractor's quality control system, establish meaningful metrics, and monitor those metrics is explained. Emphasis is on understanding what is needed in terms of contractor management, worker skills, training, processes, procedures, materials, tools, equipment, facilities, and all other elements of quality control. The focus is on fixing the cause of problems identified as well as correcting the defects found.

In day two, the various surveillance methods are explained and considerations in choosing a surveillance method are discussed. Practical exercises are used to illustrate the essential features of random sampling, periodic inspection (planned sampling) and 100 percent inspection as primary surveillance methods. The use of contractor metrics, trend analysis, third party audits, validated customer complaints and unscheduled inspections are discussed as other surveillance methods.

The emphasis in day three is on random sampling. Use of the appropriate tables from ANSI/ASQC Z1.4 (MIL-STD-105E), Sampling Procedures and Tables for Inspection by Attributes is covered in detail. Usage of random number tables and a personal computer random number generator are demonstrated in practical exercises. The need for objective quality data is identified. Sample Surveillance Checklists are provided and the students prepare tailored checklists in class.

On day 4 the student prepares a draft of the essential elements of a Performance Plan for a single, simple contract requirement. Based on a sample contract Performance Work Statement, the student identifies the important performance requirements, the standards to be met and designs a surveillance plan to monitor the contractor's performance of a single requirement through out the contract performance period. Various Performance Plan attachments such as a surveillance checklist, inventory of services worksheets, evaluation worksheets, and a narrative summary are addressed.

On day 5 emphasis is on contract administration documentation requiremnts and payment processing. The course is concluded with a review of all materials covered in class.

This course is designed for the Contracting Officer Representatives (COR) and other functional personnel who may be responsible for preparation of the requirements package for a service contract. Multiple attendees from a single installation may be grouped together for work on a requirements package of interest to group. Up to six notebook computers loaded with notional PWS/SOO documents will be available in class for group use in developing the requirements package. Each group will be requested to bring to class a project description with supporting documentation to the extent possible in an electronic format to serve as the basis for workshops and practical exercises. Sample electronic files for SOO and PWS documents will be available for students use in the workshops and practical exercises if needed. A complete SOO/PWS (or at least a draft of a comprehensive outline for one) will be prepared in class.

Day one presents an overview of the PBSA approach to service contracting. The unique terms and definitions are presented and the structure of the contract is demonstrated through the use of examples and discussion. The legal and contractual aspects of specifications are covered along with a detailed discussion of the differences between design and performance requirements. The design and performance requirements discussion is reinforced in a practical exercise.

Day two addresses the systems approach to job analysis for identifying requirements. Each step in the process is illustrated with a handout which is discussed in class. In a workshop each group will develop to the extent possible data for each step of job analysis for their individual projects. PBSA performance analysis is identified as a tool for identification of specific contract performance objectives and related performance standards for all important performance attributes. Emphasis is placed on development of a Work Breakdown Structure as the basic framework for analysis performed. For each required service, the need for performance standards and objectives and an overall performance threshold is identified. The difference between an objective and threshold is stressed.

Day three covers the requirements for a Performance Work Statement and a Statement of Objectives and discusses when to use one or the other. Development of both the PWS and SOO is addressed in detail. First. developing drafts of the Requirements Summary and the contract pricing schedule as preliminary steps to writing the Performance Work Statement is covered. A recommended standard format for the Performance Work Statement is covered along with a general discussion of the contents of each paragraph. The general principles for writing a Performance Work Statement are covered and a notional guide Performance Work Statkements is reviewed in class. In a workshop, one the notional Performance Work Statement guide is edited to reflect appropriate general requirements for the group exercise. Next, requirements for development of a Statement of Objectives is covered. This segment of the training is new and stresses this methodology as an important emerging approach to PBSA. As noted in various guidance document related to PL 107-107 and the Services Acquisitin Reform Act, it is an excellent way to take advantage of commercially available services to satisfy organiztional need at a savings.

On day four, the previous day's workshop continues and the Performance Work Statement and Statement of Objectives specific requirements are developed.

Day five ends at noon. The morning is devoted to a presentation by each group to show what was accomplished. Disk copies of all products prepared by all groups are made and exchanged so that each group has a copy of all documentation prepared in class. The course is concluded with a review of all materials covered in class.

This course is designed for government contracting and technical personnel who may be called upon to produce a cost estimate for a service contracting requirement. The course addresses estimating for services primarily related to facility operation and related support services. The course stresses the importance of Market Research as an integral part of cost estimating; the use of a work breakdown structures as the framework for development of well documented Independent Government Cost Estimates; the calculation of fully burdened labor rates; estimating for facilities operations, maintenance, and support services using RS Means Facilities Maintenance and Repair Manual (a copy of the manual is provided for each student to keep); a complete description of the methods of estimating normally used for estimating services costs; and typical techniques used for the projection of cost data from past contracts and other sources. Computers will be used in class by students to develop typical cost estimates for practical exercises.

On day one, essential definitions are provided along with a discussion of the different types of estimates prepared. The contents of a cost estimate package and importance of cost estimates are addressed. A section on the different kinds of costs in cost estimating includes a discussion of direct and indirect costs, overhead cost, and profit. Example calculations for a fully burdened labor rate and a composite rate are presented and reinforced by a practical exercise. Estimating techniques for estimating labor hour requirements are identified. The FAR Cost Accounting Standards and Cost Principles are reviewed briefly in class.

Day two addresses the preparation and use of a Work Breakdown Structure (WBS) as the basic framework for development of a cost estimate. The importance of the WBS is highlighted by an example and practical exercise. Estimating methods and procedures are covered and example estimates are presented using the comparison method and group expert opinion technique. Use of the detailed estimating method is the subject of a practical exercise. Other techniques are identified along with procedures for data collection and normalization.

Day three begins with a discussion of the cost estimating process, to include documenting its purpose, the type of estimate, ground rules and assumptions; gathering cost data; identifying estimating methods to use, developing the cost estimate for each cost element, and related cost elements. The cost of contractor quality assurance and quality control is addressed as a factor that may impact the government cost estimate. Estimating techniques discussed include parametric cost estimating, the use of cost estimating relationships, use of the learning curve, and the use of estimating standards. A section on understanding labor rates and escalation includes discussion of wage rates in a service contract, the Fair Labor Standards Act, the Service Contract Act, and workmen’ compensation costs. A price escalation discussion addresses the use of consumer price indexes and other indexes. An example of using the employment cost index is presented. The course ends with a brief discussion of a life cycle cost estimate, documenting the cost estimate package, and using a forward pricing rate agreement when estimating in a sole source environment.

This is a detailed quality assurance course designed for Government quality personnel, Contracting Officer Representatives (COR), and other management and functional personnel with service contractor monitoring responsibilities. This course is based on FAR Part 46, Subparts 37-5 and 37-6, OFPP Pamphlet #4, ANSI Standard Z1.4, and related DoD documentation. The course materials are specifically tailored to the needs of quality personnel asigned performance assessment duties for a support services contract. A sample contract is provided with the course manual and is the subject of the primary practical exercises of the course. The course is also important for other functional personnel who may be assigned duties involving monitoring any aspect of a contractor's performance.

Day one: The basic references are covered with emphasis on the contents of FAR Part 46 and the guidance documentation governing Performance-Based Services Acquisition (PBSA). The legal and contractual aspects of quality control and quality assurance are covered, including a discussion of FAR Part 46 and the standard inspection clauses. The Commercial Item contract format is discused and the contents of the pricing schedule, requirements document, selected clauses, attachments, and addenda are covered in detail as they relate to the structure of a service contract. The importance of the Requirements Summary and the Performance Plan or Quality Assurance Surveillance Plan (QASP) are discussed and the need for consistency among the pricing schedule, requirements document, and the Performance Plan or QASP is emphasized. Design and performance specifications are defined and their use in service contracts is discussed and surveillance techniques applicable for each type of specification are identified.

Day two: The requirements for Contractor Quality Control are discussed and procedures for review and approval of the contractor's Quality Control Plan are explained. The methods of surveillance, including Random Sampling, 100% Inspection, Periodic Inspection (Planned Sampling), Customer Complaints, and Unscheduled Inspections are defined and discussed. Other surveillance methods used are also defined and discussed. The criteria for selecting a surveillance method is discussed.

Day three: In a discussion of quality assurance methods and procedures, the types of surveillance are explained in more detail and exercises are used to demonstrate the use of random sampling. The interval technique for random sampling is explained. Practical exercises provide practice in selection of a surveillance method and using the indifference method and ANSI Z1.4 Attribute Sampling method of random sampling. Procedures for use of random sampling with an unknown lot size are discussed and applied in a practical exercise.

Day four: Procedures for preparing a Performance Plan or QASP are discussed along with guidelines for determining performance standards, overall performance requirements quality levels, and appropriate methods of surveillance. In a practical exercise, the students prepare a Performance Plan or QASP for a sample PWS. The requirements for scheduling surveillance are discussed along with procedures for observing contractor performance, documenting the results, evaluating the overall results for the period of observation and making recommendations for contractor payment.

Day five: Day five ends at noon. The morning is devoted to a discussion of the use of the a support services contract, including a discussion of quality personnel responsibilities, the recommended performance requirements, and frequency standards. The contents of a purchase request and solicitation package are identified as the Government Cost Estimate, the Performance Work Statement, the Performance Plan or Quality Assurance Surveillance Plan, the Price Schedule and supporting documentation. Surveillance procedures and required reports and documentation are discussed. The course is concluded with a review of all materials covered in class.

This is a basic course designed specifically for DoD housing personnel assigned quality or performance assessment duties and for other housing management personnel or housing inspectors with service contractor monitoring responsibilities. This course is based on current Department of Defense guidance addressing the implementation of Performance-Based Services Acquisition (PBSA) and the Federal Acquisition Regulation Subpart 37.6 for Performance-Based Service Contracts (PBSC). The course examples and practical exercises are based on current housing maintenance contracts and current service practices and procedures. Sample MFH maintenance contracts from the Army, Navy and Air Force are reviewed in class. Surveillance monitoring procedures are covered in detail.

Day one: The basic references governing PBSA for DoD activities are covered and the service implementing instructions are identified. An overview of the procurement process is provided, the roles of the various participants in service contract administration are covered, and the role of QA personnel is emphasized along with a discussion of the QAE file and its importance. The commercial item contract format is identified and the pricing schedule, Performance Work Statement, and selected clauses are covered in detail as they relate to the structure of a service contract. The importance of the Requirements Summary and the Performance Plan or Quality Assurance Surveillance Plan (QASP) are discussed and the need for consistency among the schedule, Performance Work Statement, and the Performance Plan or QASP is emphasized. Design and performance specifications are defined and their use in service contracts is discussed. In a practical exercise, the student is asked to identify design specifications and convert them to performance specifications where appropriate.

Day two: Job Analysis as a tool used in identifying mission functions to be contracted out is discussed and the use of a Statement of Objectives or a Performance Work Statement for describing requirements is addressed. The contents of the Requirements Summary and Quality Assurance Surveillance Plan are described in detail and examples are reviewed in class. As noted in the new PBSA approach to quality assurance, the emphasis is on problem prevention and not detection. The use of customer complaints, and periodic inspection in validating contractor quality data is emphasized. Partnering with the contractor to develop and maintain meaningful quality metrics is addressed. The traditional methods of surveillance, including Random Sampling and 100% Inspection are defined and discussed. The criteria for selecting a surveillance method are discussed. Requirements for preparing a Performance Work Statement are discussed along with the need for appropriate performance indicators and performance objectives, standards, and thresholds. Emphasis is on adopting commercial standards where they exist. Contract types are defined and explained in terms of both compensation arrangement and delivery arrangement. In a practical exercise, the students prepare a simple Performance Work Statement.

Day three: The quality assurance contract clauses are reviewed and pertinent QA terms are defined and discussed, including inspection techniques for commercial item acquisitions. Requirements for Contractor Quality Control are discussed and procedures for review and approval of the contractor's Quality Control Plan are explained. In a discussion of quality assurance methods and procedures, the types of surveillance are explained in more detail and exercises are used to demonstrate the use of random sampling. A computer based random number generator is demonstrated. Practical exercises provide practice in selection of a surveillance method and in using random sampling.

Day four: Procedures for preparing the Performance Plan or Performance Plan or QASP are discussed along with guidelines for determining performance objectives, standards, and thresholds, and appropriate methods of surveillance. In a practical exercise, the students prepare a Performance Plan or QASP for the sample PWS previously prepared. The requirements for scheduling surveillance are discussed along with procedures for observing contractor performance, documenting the results, evaluating the overall results for the period of observation and making recommendations for contractor payment.

Day five: Day five ends at noon. The morning is devoted to a discussion of the use of templates addressing QA responsibilities, the recommended performance requirements, and frequency standards. The contents of the MFH contract package are identified as the Government Cost Estimate, the Performance Work Statement, the Quality Assurance Surveillance Plan, and the Bid Schedule. Surveillance procedures and required reports and documentation are discussed. The course is concluded with a review of all materials covered in class.

This is a detailed quality assurance course designed for QA personnel and other management and functional personnel with service contractor monitoring responsibilities. It includes as references, the "Guidebook for Performance-Based Services Acquisition (PBSA) in the Department of Defense, March 2001 and extracts from the web based guide to PBSA, "Seven Steps to Performance-Based Services Acquisition." The text has been updated to reflect the contents and policy of "Air Force Instruction 63-124, 1 August 2005, Performance-Based Services Acquisition (PBSA).The course includes extensive coverage of Commercial Item acquisition procedures and conforms entirely with FAR Subpart 37.5 and 37.6. The materials address the flexibility permitted in in meeting PBSA guidanceto and identifies the use of a Performance Plan in place of a Performance Plan or QASP now permitted by the new AFI. The course materials are specifically tailored to the needs of Air Force Quality Assurance Personnel assigned surveillance responsibility for one or more base support service contracts. Sample contracts are provided with the course manual and are the subject of the primary practical exercises of the course.

Day one: The basic references are covered with emphasis on the contents of AFI 63-124 which address performance-based service contracting. The legal and contractual aspects of quality control and quality assurance are covered, including a discussion of FAR Part 46 and the standard inspection clauses. The Commercial Item contract format is identified and the contents of the Bid Schedule, the PWS, and selected contract clauses and special provisions are covered in detail as they relate to the structure of a service contract. The importance of the Service Delivery Summary (SDS) and the Quality Assurance Surveillance Plan (QASP) are discussed and the need for consistency among the Bid Schedule, Performance Work Statement, and the Performance Plan or QASP is emphasized. Design and performance specifications are defined, their use in service contracts is discussed, and surveillance techniques applicable for each type of specification are identified.

Day two: The requirements for Contractor Quality Control are discussed and procedures for review and approval of the contractor's Quality Control Plan are explained. The methods of surveillance, including Random Sampling, 100% Inspection, Periodic Surveillance, and Customer Complaints are defined and discussed. Other methods of surveillance including trend analysis, third party audit, and the use of contractor metrics are also identified. The criteria for selecting a surveillance method are discussed.

Day three: In a discussion of quality assurance methods and procedures, the types of surveillance are explained in more detail and exercises are used to demonstrate the use of the indifference method of random sampling. A computer based random number generator is demonstrated and a disk copy is provided to each participant. The interval technique for random sampling is explained. Practical exercises provide practice in selection of a surveillance method and in using random sampling with payment deductions for projected defects. Procedures for use of random sampling with an unknown lot size are discussed and applied in a practical exercise.

Day four: Procedures for preparing the Performance Plan or QASP are discussed along with guidelines for determining performance standards, performance requirements, and appropriate methods of surveillance. The importance of partnering with the contractor to establish realistic expectations for service outputs to meet the specified performance standards and thresholds is emphasized. In a practical exercise, the students prepare a Performance Plan or QASP for a sample PWS. The requirements for scheduling surveillance are discussed along with procedures for observing contractor performance, documenting the results, evaluating the overall results for the period of observation and making recommendations for contractor payment.

Day five: Day five ends at noon. The morning is devoted to a discussion of the use of the a current Air Force support services contract, including a discussion of QA Personnel responsibilities. The contents of a contract package are identified as the Government Cost Estimate, the Performance Work Statement, the Quality Assurance Surveillance Plan, and the Bid Schedule. Surveillance procedures and required reports and documentation are discussed. The course is concluded with a review and a posttest which is critiqued in class.

This is an introductory quality assurance course designed for Civil Engineering Quality Assurance and other CE personnel with contractor monitoring responsibilities. Service contract Contract Administrators and Command QAPC's are also encouraged to attend. It includes as references, the "Guidebook for Performance-Based Services Acquisition (PBSA) in the Department of Defense, March 2001 and extracts from the web based guide to PBSA, "Seven Steps to Performance-Based Services Acquisition." The text has been updated to reflect the contents and policy of "Air Force Instruction 63-124, 1 August 2005, Performance-Based Services Acquisition (PBSA).The course includes extensive coverage of Commercial Item acquisition procedures and conforms entirely with FAR Subpart 37.5 and 37.6. The materials address the flexibility permitted in in meeting PBSA guidance and addresses the use of a Performance Plan in place of a Performance Plan or QASP now permitted by the new AFI. The course materials are specifically tailored to the needs of Air Force Quality Assurance Personnel assigned surveillance responsibility for one or more base support service contracts. Sample contracts are provided with the course manual and are the subject of the primary practical exercises of the course.

The new AFI 63-124 instruction aims to implement the latest directives of DOD for compliance with Public Law 107-107, for 2002 which includes cost reduction goals for DOD of 10 percent for service contracting by 2011. The course materials are specifically tailored to the needs of Air Force QA personnel assigned surveillance responsibility for base operation, maintenance and support services contracts, including housing and all operations services. Sample contracts are provided with the course manual and are the subject of the primary practical exercises of the course. The course is also important for other personnel, including newly assigned Contract Administrators, and anyone who may be assigned duties involving monitoring any aspect of a service contractor's performance. New Commercial Item acquisition procedures are addressed.

Day one: The basic references are covered with emphasis on the contents of AFI 63-124 which address performance-based service contracting. An overview of the procurement process is provided, the roles of the various participants in service contract administration are covered, and the role of QA personnel is emphasized along with a discussion of the QA file and its importance. The commercial item contract format is identified, and the pricing schedule, Performance Work Statement , and selected clauses are covered in detail as they relate to the structure of a service contract. The importance of the Service Delivery Summary (SDS) and the Quality Assurance Surveillance Plan (QASP) are discussed and the need for consistency among the schedule, Performance Work Statement, and the Performance Plan or QASP is emphasized. Design and performance specifications are defined and their use in service contracts is discussed. In a practical exercise, the student is asked to identify design specifications and convert them to performance specifications where appropriate.

Day two: Job Analysis as a formal tool and "performance" analysis as an informal tool for identifying mission functions to be contracted out are discussed. The contents of the Service Delivery Summary and Quality Assurance Surveillance Plan are described in detail and examples are reviewed in class. As noted in the new PBSA approach to quality assurance, the emphasis is on problem prevention and not detection. The use of customer complaints, and periodic inspection in validating contractor quality data is emphasized. Partnering with the contractor to develop and maintain meaningful quality metrics is addressed. The traditional methods of surveillance, including Random Sampling and 100% Inspection are defined and discussed. The criteria for selecting a surveillance method are discussed. Requirements for preparing a Performance Work Statement are discussed along with the need for appropriate performance indicators and performance objectives, standards, and thresholds. Emphasis is on adopting commercial standards where they exist. Contract types are defined and explained in terms of both compensation arrangement and delivery arrangement. In a practical exercise, the students prepare a simple performance-based Performance Work Statement.

Day three: The quality assurance contract clauses are reviewed and pertinent QA terms are defined and discussed, including the need for receipt inspection in simplified acquisitions and commercial item acquisitions. Requirements for Contractor Quality Control are discussed and procedures for review and approval of the contractor's Quality Control Plan are explained. In a discussion of quality assurance methods and procedures, the types of surveillance are explained in more detail and exercises are used to demonstrate the use of the various methods of random sampling. A computer based random number generator is demonstrated. Practical exercises provide practice in selection of a surveillance method.

Day four: Procedures for preparing the Performance Plan or QASP are discussed along with guidelines for determining performance objectives, standards, and thresholds, and appropriate methods of surveillance. In a practical exercise, the students prepare a Performance Plan or QASP for the sample PWS previously prepared. The requirements for scheduling surveillance are discussed along with procedures for observing contractor performance, documenting the results, and evaluating the overall results for the period of observation for overall Quality Control by the contractor.

Day five: Day five ends at noon. The morning is devoted to a discussion of the use of the current standardized services contracts Templates addressing QA personnel responsibilities, the recommended performance requirements, and frequency standards. The contents of a representative contract package are identified as the Government Cost Estimate, the Performance Work Statement, the Quality Assurance Surveillance Plan, and the Bid Schedule. Surveillance procedures and required reports and documentation are discussed. The course is concluded with a review and a posttest which is critiqued in class.

This Performance-Based Services Acquisition (PBSA) course is designed for contracting personnel who are responsible for service contracting. It addresses all aspects of PBSC and new Department of Defense guidance for Performance-Based Services Acquisition (PBSA) using Commercial Item acquisition procedures. Topics addressed include selecting contractors with proven performance records who offer the best value and partnering with the contractor for success. Course materials include a comprehensive course manual with basic references and copies of viewgraphs.

Day one presents an overview of the PBSC approach to service contracting. The basic references governing PBSC and PBSA are discussed. The unique terms and definitions are presented and the structure of the contract is discussed. Day two addresses the systems approach to job analysis for identifying requirements and the performance analysis approach to identifying contract objectives and performance thresholds. Day two covers the requirements for developing the Performance Requirements Summary, the contract pricing schedule and the Performance Work Statement (PWS). Emphasis is placed on describing the required performance standards for performance objectives and establishing an appropriate performance threshold for each required service. The relationship between the performance threshold and the concept of substantial compliance is explained . The requirements for quality control and quality assurance are introduced.

Day three addresses the PBSA approach to Quality Assurance, with emphasis on reliance on assessing the contractor's management and performance metrics. Problem prevention rather than problem identification is identified as the focus of Government quality assurance actions. The appropriate FAR clauses and recommended special contract provisions are identified and explained. Use of the Requirements Summary and Quality Assurance Surveillance Plan (QASP) in developing contractor performance monitoring plans is covered. The requirements for developing individual quality assurance plans for each required service are addressed. Unique terms are defined and illustrated, techniques for reviewing surveillance plans are discussed, and sample documents are discussed. The various surveillance methods used are explained.

This one day Performance-Based Services Acquisition (PBSA) seminar is designed for contracting personnel who are responsible for service contracting. It addresses all aspects of PBSC and new Department of Defense guidance for Performance-Based Services Acquisition (PBSA) using Commercial Item acquisition procedures. Topics addressed include selecting contractors with proven performance records who offer the best value and partnering with the contractor for success. Course materials include copies of the new DOD guidance as well as text material and copies of viewgraphs used in lectures.

It presents an overview of the PBSC approach to service contracting. The basic references governing PBSC and PBSA are discussed. The unique terms and definitions are presented and the structure of the contract is discussed. The systems approach to job analysis for identifying requirements and the performance analysis approach to identifying contract objectives and performance thresholds is explained. The purpose, structure, and contents of the Performance Requirements Summary is presented and the need for relating required services in the contract pricing schedule to the Performance Work Statement (PWS) is identified. Emphasis is placed on describing the required performance standards for performance objectives and establishing an appropriate performance threshold for each required service. The relationship between the performance threshold and acceptable quality level is explained, the concept of substantial compliance is addressed, and the means for measurement of the contractor's control of quality is presented. The FAR requirements for quality control and quality assurance are reviewed

The PBSA approach to Quality Assurance, with emphasis on reliance on assessing the contractor's management and performance metrics. Problem prevention rather than problem identification is identified as the focus of Government quality assurance actions. The appropriate FAR clauses and recommended special contract provisions are identified and explained. Use of the Requirements Summary and Quality Assurance Surveillance Plan (QASP) in developing contractor performance monitoring plans is covered. The requirements for developing individual quality assurance plans for each required service are addressed. Unique terms are defined and illustrated, techniques for reviewing surveillance plans are discussed. The need for objective quality assurance documentation in the contract file is emphasized. An overview of surveillance methods is presented.

This course addresses the use of random sampling in service contracting both by contractors as part of a contractor inspections system and by Government personnel in surveillance of contract service delivery. It is designed for contractor Quality Control Inspectors, Government quality personnel, Contracting Officer Representatives (COR), and other functional personnel with service contract inspection or monitoring responsibilities. General surveillance monitoring procedures are addressed and detailed coverage is provided for the use of random sampling. Through lectures, individual study, and work group activities, this course provides a detailed description of random sampling applications in service contracting.

On day one, the unique terms and definitions related to quality in service contracts are presented and illustrated through the use of examples and practical exercises. The pertinent FAR clauses and other quality related contract clauses are identified and explained. Specific inspection and acceptance responsibilities are identified and the elements of the Performance Plan or Quality Assurance Surveillance Plan are discussed. DoD procedures which shift the quality assurance focus from oversight to insight are addressed. The concept of partnering with the contractor to validate the contractor's quality control system, establish meaningful metrics, and monitor those metrics is explained. The various surveillance methods are explained and considerations in choosing a surveillance method are discussed. Practical exercises are used to illustrate the essential features of random sampling.
On day two the statistical basis for random sampling and the concept of statistical confidence levels are explained. The concepts of Acceptable Quality Level and Substantial Compliance are defined and illustrated. Then, two methods of random sampling are illustrated: Indifference Sampling, as formerly used by the US Air Force and DCAA and Attribute Sampling as addressed in ANSI/ASQC Z1.4 (MIL-STD-105E). Simple sampling exercises are used to illustrate the most efficient applications of both methods of random sampling. The emphasis is on understanding and practicing the mechanics of random sampling. The Indifference Sampling Table, and the appropriate tables from ANSI/ASQC Z1.4 (MIL-STD-105E), Sampling Procedures and Tables for Inspection by Attributes are covered in detail. Computers are provided for each group of 5 or 6 students for use in class to draw random numbers and establish sampling plans. Use of a random sampling program and various random number generators are demonstrated in practical exercises.

On day 3 the emphasis is on lot and unit of service determinations. Extracts from various installation support service contracts are used as the basis of exercises where the student prepares a random sampling plan. For each plan the required service is analyzed, a reasonable "unit of service" is identified, the lot is defined for the random sampling plan.

Day four is devoted to random sampling for unknown lot sizes for both large and small lots. Two cases for unknown lot size are defined: Case 1, for inspection any time after service delivery and Case 2, for inspection after service delivery while the evidence of quality is still apparent. Practical exercises are used to reinforce the learning objectives.
Day five , which ends at noon, is devoted to a discussion of random sampling in cost type contracts and by the Government in-house inspection force in the "Most Efficient Organization" (MEO) resulting from an OMB Circular A-76 Commercial Activities competition. Typical applications are addressed in a practical exercise to illustrate the differences in the approach to random sampling in this service delivery environment. The course is concluded with a review of all course materials covered in class.

This course addresses Quality Assurance procedures in cost type contracts for services. It provides specific guidance for Quality Assurance Evaluators (QAEs), Contracting Officer Representatives, (CORs) and other member of the Government Contract Administration Team with responsibilities that involve contractor surveillance or monitoring contractor performance. The guidance is based on applicable Federal Acquisition Regulations, DoD implementing regulations, directives, policies and procedures, and accepted administrative practices.

Day one is devoted to a review of the PBSA approach to service contracting and to a review of typical contract clauses in a cost type contract for services, including a discussion of applicable cost principles from FAR Part 31. References and unique terms and definitions are presented and the structure of the contract is demonstrated through the use of a sample contract and practical exercises. The role of government quality personnel and the COR in contract monitoring is covered in detail.

Day two covers the primary contract administration functions associated with cost type contracts. Special emphasis is placed on the importance of cost monitoring as a part of the quality assessment function. Government interest in contractor use of overtime is addressed and the concept of contractor overhead costs is discussed. The special interest of the Government in the contractor's assignment of personnel, the use of materials, performance quality levels, delivery schedules, the use of funds, and schedule adherence is addressed. The provision of technical direction by Government personnel to the contractor and regulatory inspection and acceptance practices in a cost type contract are discussed. The requirements for contractor control of quality are discussed and procedures for evaluation of the contractors Quality Control Plan are provided.

In day three, the emphasis is on Performance Assessment administration. The PBSA approach to quality is explained and the role of partnering with the contractor is addressed. The concepts of Acceptable Quality Level and Substantial Compliance as applicable in a service contract are discussed and a means for measuring contractor Quality Control is provided. The various surveillance methods are explained, including the use of random sampling techniques. Performance and design specifications are defined and appropriate surveillance methods for each are discussed. Exercises are used to illustrate the applications for the different surveillance techniques. The contents and structure of the Performance Plan or QASP are identified and QA Plan Attachments, Forms, and Surveillance Checklists are discussed.

Day Four is used for practical exercises. Sample contracts are used as the basis for development of surveillance plans and checklists. The student is instructed on techniques for the identification of "units of service" and "lot descriptions" for inspection purposes. Group sampling plans are developed and critiqued in class.

Day five is devoted to delivery order administration, contract modifications, monitoring of incidental services and Government property management. The course is concluded with a review of all materials covered in class.

This course is designed for delivery on site and is based on a customer specific Performance Work Statement (PWS) to be used for workshops and practical exercises. This course is a tailored version of our basic QA course. Accordingly, an exact and detailed agenda is not available. To tailor the course, we require a copy of the MEO Performance Work Statement and the existing QASP. If a Performance Plan or QASP is not available, one is developed as part of the group exercises. The training is for the in-house work force performing quality control and the in-house performance assessment team for the MEO effort. Since the MEO is not a contractor, but yet has a Performance Work Statement to perform, we treat the MEO effort as if it is delivered under a cost reimbursement contract. In such a contract, the primary emphasis in monitoring performance is in making sure that the MEO efforts are along the most beneficial lines of performance, that the performance is efficient, and that the services delivered meet specified standards.

Under normal A76 cost studies, the PWS should include a requirement for the MEO (or contractor if not retained in house) to prepare and implement a Quality Control Plan or Program which includes a written inspection system. The QC Plan should address management, supervision, procedures, facilities, tools, equipment, materials, training, other service delivery elements necessary to satisfy PWS requirements. The inspection system should provide for systematic evaluation of all required services to make sure that service outputs are substantially in compliance with PWS standards or commercially acceptable standards that will satisfy the mission needs of the installation as intended under the terms of the solicitation that was issued. Once the QC system and its related inspection system are implemented and operating effectively, an independent team of quality inspectors needs to evaluate overall performance to make sure it remains within the specified Acceptable Quality levels. Our course will be tailored to this goal, with emphasis on development of the performance assessment effort. There is no need for the government performance assessment effort to duplicate the MEO inspection system effort. The inspection team should work with the MEO QC inspectors to develop meaningful inspection plans for each required service and once the plans are proven to be effective, use that data to make the monthly evaluations. The data should be independently verified by the QA team using the least effort possible. Performing concurrent inspections, random sampling of QC data, use of customer data for this purpose, and such are addressed in the course.

In the training, the basics of Quality Assurance and Performance Assessment are addressed in detail including the identification of appropriate performance indicators and performance standards for each required service addressed in the Performance Work Statement, the grouping of service delivery outputs into units of service for observation and payment purposes, the preparation of surveillance checklists for documenting inspections performed, the differences between performance and design specifications, the surveillance methods used, the concepts of Acceptable Quality Levels and Substantial Compliance, and measuring the MEO's control of Quality.

This three day seminar is designed as a refresher course for personnel who have had Performance-Based contract training in previous years. For personnel who have completed any of our previous performance-based services acquisiton quality courses, this refresher is important because of significant changes that are taking place in the award and administration of service contract within DOD. This refresher seminar will address current policy and procedures as well as lessons learned. Specific topics to be covered include: Writing Performance Based Work Statements, Identifying Meaningful Performance Objectives, Best Value Source Selection, Substantial Compliance Requirements, Identification and use of Contractor Metrics, Measuring Quality Control, Partnering for Success, and Assessing and Documenting Contractor Past Performance. Emphasis is on the DOD PBSA Guidelines and the web based "Seven Steps to PBSA."

This is a class designed to provide detailed guidance for monitoring a service contract in conformance with the latest guidance published by DOD to implement congressional directives for Performance Based-Services Acquisition. This class is designed for Quality personnel, Contracting Officer Representatives (COR), and other management and functional personnel with service contractor monitoring responsibilities. It is also appropriate for contracting specialists who are new to service contracting.

This course is based on FAR Part 46, FAR Subparts 37-5 and 37-6, the web based "Seven Steps to Performance Based Services Acquisition", the DoD Guidebook for Performance-Based Services Acquisition (PBSA), and related DOD and agency specific guidance documentation, including AF Instructions for the implementation of PBSA. The course materials are specifically tailored to the needs of functional personnel assigned as Quality Assurance personnel for support service contracts. A sample contract is provided with the course manual and is the subject of the primary practical exercises of the course.

Day one: The concept of "Performance Monitoring" as opposed to traditional Surveillance Methods and Procedures is addressed. The terms "Performance Assessment" and "Performance Management" are defined and discussed in detail. The basic references are covered with emphasis on the contents of FAR Part 46 and the guidance documentation governing performance-based services acquisition. The legal and contractual aspects of quality control and quality assurance are covered, including a discussion of the FAR fixed price inspection clauses. The Uniform Contract Format and the Commercial Item contract format are identified and the contents of the pricing schedule, requirements document, selected clauses, attachments, and addenda are covered in detail as they relate to the structure of a service contract. The importance of the establishing meaningful performance standards and thresholds is covered. In this segment, the concept of "substantial compliance" is explained.

Day two: Design and performance specifications are defined and their use in service contracts is discussed. Monitoring techniques applicable for each type of specification are identified. The requirement for Contractor Quality Control is discussed and identified as the key element of successful Performance Monitoring. Detailed elements to look for in the contractor's quality control program are identified and procedures for review and approval of the contractor's Quality Control Plan are explained. The importance of a sound partnering relationship is emphasized.

Day three: This session is devoted to discussion of the contract Performance Plan, its contents, and elements to consider in development of a typical contract performance plan. When discussing Performance Assessment in this session , the traditional surveillance methods and procedures will be addressed.

Day four: Partnering is discussed in detail. The concept of "involvement" is introduced to enhance the students understanding of what it means to assess performance through insight as opposed to oversight. In a practical exercise, the students prepare a Performance Plan for a simple one function contract requirement.

Day five: Day five ends at noon. The morning is devoted to a discussion of performance assessment duties and responsibilities and documentation requirements for Performance Monitoring. The course is concluded with a review of all meterials covered in class.

This course is designed for government quality personnel, Contracting Officer Representatives (COR), and other functional personnel who may be responsible for performance monitoring and preparation of a performance monitoring plan either as a member of the multifunction team assigned for the acquisition or independently after contract award. Multiple attendees from a single installation will be grouped together for development of a Performance Monitoring Plan. Up to six notebook computers loaded with a notional Performance Plan or QASP will be available in class for group use in developing the Performance Monitoring Plan. Each group will be requested to bring to class a PWS in an electronic format to serve as the basis for workshops and practical exercises. A complete Performance Monitoring Plan (or at least a comprehensive outline for one) will be prepared in class.

In day one, the unique terms and definitions related to quality in service contracts are presented and illustrated through the use of examples and practical exercises. The pertinent FAR clauses and other quality related contract clauses are identified and explained. Specific inspection and acceptance responsibilities are identified and discussed. The DOD Guidance for Performance Assessment are identified and discussed. Following this, the elements of a Performance Monitoring Plan are identified and described in detail. The primary element of the of the Performance Monitoring Plan is identified as the partnership of the Government with the contractor in achieveing mutual goals in performance of contract requirements. A procedure is descirbed for working with the contractor during the phase in period of the contract to make sure the contractor has an acceptable quality control management system in place. Then the Government and contractor jointly establish meaningful expectations of what constitutes substantial compliance for each required service and validate that the contractor's plan and metrics produce objective evidence of conforming service delivery all the time. When this level of service is delivered routinely by the contactror, the performance assessment effort is then limited to validation of the data used in the metrics. The need for Government involvement in the contractor's operations is identified as a necessary part of monitoiring service output with "insight" as opposed to "Oversight".

In day two, the need for a surveillance plan for each required service is identified as a part of the Performance Monitoring Plan which has to be used whenever the contractor's work effort becomes unsatisfacotry or marginal. The various surveillance methods are explained and considerations in choosing a surveillance method are discussed. The importance of the Requirements Summary and the Performance Plan or Quality Assurance Surveillance Plan (QASP) are discussed and the need for consistency among the pricing schedule, the requirements document, and the surveillance plans is emphasized. Design and performance specifications are defined and their use in service contracts is discussed and surveillance techniques applicable for each type of specification are identified. In a workshop, the general information in the notional Performance Plan or QASP is tailored to the group PWS.

The emphasis in day three is on identifying appropriate performance indicators and performance standards for each required service addressed in the Performance Work Statement and on grouping service delivery outputs into units of service for observation and payment purposes. In a workshop this information is applied to create the surveillance plans for each required service.

In day four the concept of "substantial compliance" is addressed and a system for determining a unit of service to be substantially in compliance with contract requirements is developed and illustrated in sample documents and a practical exercise. In a workshop, the substantial compliance criteria is applied in completion of the individual Performance Assessment Plans for each required service. Surveillance Checklists are prepared for each sampling guide to show a location for each performance indicator that is applicable in the required service with a space to indicate that the service output is satisfactory or unsatisfactory. For each service output found to be defective a space is provided to categorize the defect as a major or minor nonconformance. In a comments section a note instructs the inspector to identify the performance standard that was not met for each defect noted. Additional Performance Assessment Plan attachments such as inventory of services worksheets and random selection checklists are identified as needed to complete the QASP.

Day five ends at noon. The morning is devoted to a presentation by each group to show what was accomplished. Disk copies of all product prepared by all groups are made and exchanged so that each group has a copy of all documentation prepared in class. The course is concluded with a review of all meterials covered in class.

This course was delivered four times in 2009. It is the first certification course for the National Association for Service Contract Quality (NASCQ). Over the course of the next 10 years, there will be three levels of Certification: Quality Specialist I (QSI), Quality Specialist II (QSII), and Quality Specialist III (QSIII). Additionally, there will be a senior level for Distinguished Quality Specialist (DQS), for personnel with more than 10 years applicable experience and completion of other association requirements. Three years of dues free membership in the association comes with tuition payment for the Level I course. Membership in the Association is mandatory for certification to be valid. Prerequisites for QSI certification include: completion of the Basic Quality Assurance course (equivalent or higher level), one year or more in a service contract quality related position (positions include occupations such as: inspector, QA or QC specialist, COR, COTR, PM - occupations on an annual basis at least 25% of working time), organization supervisory recommendation letter certifying one year in qualifying position, and a passing score of 80% or better with no mistakes in core issues on a certification test at the end of the training session. The course will cover all of the material the QS needs to know to be certified, including: the definition and elements of a contract; the important differences between the Uniform Contract Format and the Commercial Item Format as related to contract quality requirements; the relationship of the contract pricing schedule to the requirements and the performance assessment approach used; the importance of reviewing the contract to identify those selected clauses that impact on contractor performance and government performance assessment; the team approach to contracting; the classification of contracts by what is purchased, the compensation arrangement, and the delivery arrangement; and the types of incentives used; the types of specifications used and the assessment approach used for each; the basic elements of contract modifications; the basics of FAR Part 46 as related to QA duties and responsibilities; the differences between the Commercial Item inspection and acceptance clause and the standard inspection clause; understanding performance indicators, standards, objectives, and thresholds; the approach to and importance of establishing meaningful expectations for performance standards and thresholds; understanding of the "substantial compliance" concept; knowledge of the traditional surveillance methods and procedures used; the concept of "involvement" as related to contractor performance assessment through insight as opposed to oversight; the essential elements of a good contractor quality control program; the elements of a good corrective action program; the essential elements of a good performance assessment plan; and the importance of a sound partnering relationship with the contractor.

Every year it seems the Defense Authorization Bill reiterates the need for DoD Activities to acquire services using Performance Based methods. Congress and OMB continue to emphasise the importance of this method of procurement, as noted in Public Law 107-107 and in the Service Acquisition Reform Act (SARA). Performance-Based Services Acquisiton is not new; however, the importance of PBSA and the emphasis being placed on it by the highest levels of Government is significant, and requirements for compliance with performance-based techniques are now mandatory for all agencies of the Federal Government. More over, realization of the benefits from PBSA is fast becoming a necessity, rather than an option. In general for a variety of reasons, service contracting requirements are increasing, in-house resources for administration are decreasing, and service contracting budgest are being cut. If we are to survivie these pressures on both ends of services needs, we must be able to do more with less and still meet our mission needs. PBSA is a way to achieve this goal.

The Office of Federal Procurement Policy (OFPP) and DoD have indicated that agencies should use the web based guidance for PBSA on the site at "Seven Steps to Performance-Based Services Acquisition, a web based guide at www.acqnet.gov/comp/seven_steps/introduction.html or http://www.arnet.gov/comp/seven_steps/index.html

In the Department of Defense, a minimum of at least 50 percent of service acquisitions, measured both in dollars and actions, are to be performance-based. For an acquisition to be counted in this assessment, the Office of Federal Procurement Policy has issued guidelines stating that the contract must be at least 50% performance-based in terms of work scope and dollars. To help achieve this goal the Secretary of Defense issued in March of 2001, a "Guidebook for PBSA in the Department of Defense." In this guidebook DOD describes the the PBSA approach to service contracting and some of the changes needed in the traditional approach to meet DOD's goals. In addition to the empahasis on using performance-based methods in acquiring services, another significant change in in the process requires the use of commercial item acquisition procedures for the procurement of routine installation support and operation and maintenance services. All service contracts for such "commercial items" must be fixed price type contracts and incorporate to the maximum extent possible "commercial" practices and procdures.

So what is a performance-based contract? The objective of Performance Based Services Acquisition is to give the contractor the maximum flexibility in terms of methods and means of performance in satisfying Government needs. In a performance-based contract, the requirements must be stated to the maximum extent possible as "performance" oriented requirments telling the contractor what the needs of the government are and the outcomes required to meet those needs. In the traditional approach, the requirements document - a Performance Work Statement (PWS ) - describes work in terms of "what" the required service is rather than "how" to perform the work, and measurable performance standards to be met must be included to the extent that it is possible. In the absence of a specified performance standard, the commercially acceptable practice applies, and in all cases, the contractor has an implied warranty to deliver services that satisfy the intent of the contract requirements. Most contracts for base operations or facility support services are complex in nature and will necessarily include requirements that must conform with directives and are hence "design" or "proscriptive" in nature and cannot be "performance-based." The requirement in PBSA, is to limit such "design" requirements to those that are mandoatory by law, regulation, or directive and to those requirements where the collective experience and judgement of the organization dictate that a requirment be performaed in a prescibed manner. Again, such design requirements must be less than half of the total scope of work in thers of work effort and dollars for the contract be conisdered as "performance based" contract..

For a contract to be performance-based, the FAR also requires that it include a Performance Plan or a Qaulity Assurance Surveillance Plan and appropriate incentives to encourage contractors to develop innovative and cost-effective methods of performing the work. The Federal Acquisition Regulations have made Performance-Based Services Acquisition mandatory for all services where it is feasible to do so. The new PBSA approach combines the requirements for Performance-Based Services Acquisition with the use of Commercial Item acquisition procedures and makes it mandatory for most operation and installation support service requirements. The PBSA approach to contracting brings customers, functional personnel and contracting staff together as a team for planning the acquisition, awarding the contract, and then administering the contact. In PBSA, Government agencies are encouraged to be flexible in developing a Performance Work Statement (PWS); to explore the commercial market place and adopt the successful practices found there that can be used.

Market research is the cornerstone of efforts to shift acquisition strategy towards commercial practices. Market research is used to determine whether or not a commercial product or service is available that might satisfy the Government need. It requires the efforts of both contracting and functional personnel to identify and adapt commercial practices related to Government needs. By going into the market place, the Government can find what truly works best.

In planning the acquisition, PBSA also encourages industry involvement. Industry comments on draft SOWs and other Government initiatives will often lead to a better way of doing business. It is important to keep industry involved throughout the acquisition cycle. Government and industry partnerships are encouraged in PBSA. Partnering is a mutually beneficial relationship and an agreement of trust to share risks in a cooperative attitude to deliver the service with efficiency and effectiveness. After contract award, Partnering Agreements can be formalized to promote mutual efforts to improve the process, to align the contractor's interests with the Government's. The partnering agreement should center on mutual goals and objectives driven toward the purpose of the contract.

DOD guidance for implementation of this new approach to service contracting includes the following guiding principles:

• Use performance-based methods to the maximum extent practicable for acquiring services.
• Encourage commercial contractors to conduct business with DoD by using the complementary strategies of fixed-price, performance-based commercial service acquisitions.
• Utilize a multifunctional acquisition team to the maximum extent practicable, and support it with a knowledge management infrastructure.
• Realize that early planning is essential in determining requirements and assessing market conditions. Be sure to include the user and as many relevant acquisition team members as possible in this planning.
• Understand that Performance-Based Services Acquisition (PBSA) is not a "one size fits all" process; and, to maximize returns for all stakeholders, acquisition strategies should be tailored on the basis of experience, market research, and risk.
• Strive to define requirements in clear, concise language. Focus on specific work outcomes and ensure that they are measurable to the fullest extent.
• Remember that templates are only a partial solution. Sample work statements should be individually tailored to the requirement; and, for more complex requirements, work statements should be uniquely crafted.
• Seek industry comment and suggestions regarding performance objectives, standards, and incentives through market research, public meetings, and draft solicitations.
• Use incentives to motivate a contractor to achieve performance levels of the highest quality consistent with economic efficiency. Ensure that the incentives are effective and that they reflect value, both to the government and to the contractor.
• Focus on the outcome rather than on the contractor's processes when developing a contractor performance assessment (the process known as "quality assurance"). Also, concentrate on having insight into the contractor's performance, not having oversight.
• Ensure that the periodic assessment of contractor performance emphasizes clear communication, encourages and maintains high standards of performance, and is consistent with past performance assessments.

PBSA contract templates have been prepared for a number of typical service contracts. These templates, while helpful, must be used with caution, and edited significantly to tailor them to specific installation needs. To assist in planning for new services acquisitions, templates are available for conducting market research, developing the pricing schedule, developing the Performance Work Statement, developing the Quality Assurance Surveillance Plan, and developing an Award Fee Plan. The most important template, of course, is that for the Performance Work Statement, which becomes the heart of any contract awarded. Again, templates are available on the internet in both the Air Force and the Navy, but all of them must be used with caution because they are not consistent, well structured, not properly performance-based. Their real value is that they offer good ideas for consideration in the analysis of needs for a new acquisiton.

There is no mandatory format for a Performance Work Statement; however, a standard format should be used for a number of reasons. Standardization facilitates both the preparation and understanding of the requirements document. Usage over time also improves performance and ultimately, reduces the cost of performance which is of benefit to both the contractor and the government. A recommended format in four parts follows:

1. Description of Services

The "Description of Services" paragraph is the heart of the PWS. This is a simple statement of the needs of the government and a statement of the standards of performance necessary to satisfy the mission functions addressed.

2. Requirements Summary

The Requirements Summary captures the work from the Performance Work Statement in terms of Performance Objectives and Performance Thresholds. For each required service described in paragraph one, it identifies in simple terms the objectives to be met and the overall threshold of performance to be maintained for services to be considered as acceptable.

3. Government-Furnished Property and Services

This is a list any government provided property and services needed to do the work.

4. General Information

In this section information is provided to address such topics as quality control, quality assurance, government remedies, hours of operation, security requirements for the installation (not those otherwise in security clauses or special provisions in the solicitation clauses), special personnel qualifications, partnering agreement, and other topics that the contractor needs to know about which may impact on service delivery.

Appendices

Attachments and appendices are last in the Performance Work Statement. Appendices are used to provide amplifying information needed to address such topics as estimated workload data, maps or site plans, government furnished property and services, and other topics to support any part of the Performance Work Statement.

In addition to the changes in the acquisition process, the Guidebook for PBSA addresses a new approach to contract administration, the cornerstone being partnering with the contractor. The new procedures emphasize working with the contractor to identify meaningful performance objectives and thresholds for all services delivered under the terms of the contract.

In the past the Government has used 100 percent inspection, random sampling, periodic inspection, customer complaints, or a combination of these traditional surveillance methods aimed at problem identification, that is detecting nonconformances and defective units of service. Under PBSA, this approach is being de-emphasized. Under the new PBSA approach, the Government is now placing more reliance on contractor metrics. Rather than spend a lot of time and effort evaluating specific service deliveries by the contractor, the Government now spends more time in assessing the contractor's management and performance metrics. As in the past, when defects are found, reperformance by the contractor is the preferred action rather than accept the defective service and reduce the payment. In the past, in dealing with marginal or unsatisfactory contractors, the Government spent a lot of time identifying defective service and calculating payment deductions to reflect the lost value. Under the PBSA, approach the emphasis on payment deductions is gone. In its place is a completely new set of processes and procedures which allow the Government to select contractors with proven performance records. The Government selects the contractor that offers the best value to the Government and enters into a partnership with that contractor to ensure that service delivery is satisfactory, so that payment deductions are not necessary. In the event these new procedures do not work and a contract fails, the old procedures may be necessary, but they are not intended for use any longer.

Under the PBSA approach, quality control and quality assurance is a partnership between the contractor and the Government. It is true that the contractor remains responsible for quality control and the Government must initiate corrective action whenever it discovers defects in service delivery. However, under the new procedures, the partnership with the contractor begins even before award by working with industry to discover the best of commercial practices that may be applied to contract requirements. The Government continues to work closely with the contractor both during source selection and after award to establish meaningful performance objectives and thresholds to satisfy the Government's specified needs. During the initial contract performance period, Government functional managers, quality personnel, and customers must work together with the contractor to validate and modify, as needed the performance objectives, standards, and thresholds. Once the contractor has achieved a satisfactory level of performance, the primary element of Government surveillance then is to continuously evaluate the contractors control of quality.

Evaluation of the contractor's quality control program is an on-going effort and the nature of the validation effort changes with time. Changes occur in the service delivery environment continuously and these changes impact on the contractor's ability to control quality. The contractor's management and labor mix changes as employees are reassigned, quit, retire, or are hired and fired to account for increases and decreases in workload. Worn and broken tools and equipment are replaced, often with newer and more state-of-the-art items which must be addressed in the processes, procedures, and training programs underlying the contractor's service delivery efforts. Likewise facilities change with time, along with regulatory requirements, the availability of supplies and materials, the contractor's financial condition, and a host of other elements, any of which can impact significantly on the quality of service output. A contractor with a successful past performance record will routinely account for such changes in the continuing effort to control quality. The Government must be assured that the contractor is successful in this effort and must insist on the contractor's maintenance of the system in an acceptable manner at all times during the contract performance period. To do this, the Government measures the contractor's control of quality by establishing a performance threshold for each required service. Service output that does not meet the established performance threshold is unsatisfactory. This means that the contractor's control of quality for that service, during that observation period, is unacceptable. When performance is thus found to be unacceptable, the record must objectively document the failure to control quality. Quality control for a service period, once performed, cannot be reperformed, so unsatisfactory quality control for any given observation period for a required service becomes a part of the contractor's permanent past performance record. Government should identify the nonconformances which were the basis for the unsatisfacory quality control finding and require corrective action, both to correct the observed nonconformances and more importantly, the root cause of the nonconformances.

The primary element of the Government Contract Quality Assurance Program is simply to validate the contractor's quality control system and monitor contractor metrics. This approach to performance assessment requires less effort on the part of Government quality personnel and yet it still presents acceptable risk. The risk of accepting unsatisfactory service delivery is greatest during the initial phase in period of contract performance. It is during this period that the Government must work diligently with the contractor to establish meaningful expectations and metrics for the required services.

PBSA is new, it is here now, and it is mandatory.

Article written by James E. Hutcheson, of MSC Associates, Inc.