Dewicki

Ensuring Performance-Based Contracts Enable Mission Success Scott Dewicki, Rudolph Simpson, Robert St. Thomas IBM Corporation, U.S. Federal Unit Used with permission

Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Emergence of Performance-Based Contracts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Makes A Contract “Performance-Based”? ,[object Object],[object Object],Scope/Length Authority Mission Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Interaction ,[object Object],[object Object],[object Object],Characteristics Outcomes Measures

Fixed-Cost: The “Teeth” In A Performance-Based Contract ,[object Object],[object Object],[object Object],[object Object],[object Object],These steps help reduce inventories and demand, increase service levels, lower costs and improve support

Key Questions For Acquisition Teams ,[object Object],[object Object],[object Object],[object Object]

NASA Policy Presents Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object]

Acquisition Team Composition Commodity Councils ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CC Leader Maintenance Other: IT, Finance, Item Mgt Procurement Program Managers Engineering Supply

Acquisition Team Composition Supplier Relationship Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The set of disciplines and activities that ensure the correct focus for both the agency and contractors

Identifying Areas of Opportunity Market Research ,[object Object],[object Object],[object Object],[object Object],[object Object],A collaborative discipline that seeks to identify market forces and conditions that can be exploited for strategic advantage

Identifying Areas of Opportunity Component Business Modeling (CBM) ,[object Object],[object Object],[object Object],CBM is a diagnostic methodology that links mission, end-state goals, and required capabilities of an enterprise to it’s functional activities NASA Enterprise Strategic Goals

Scoping the Work CBM prioritizes the targets for improvement/investment/outsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],Space Operations Strategic Goals

Defining and Measuring the Desired Outcome The measurable outcome should be meaningful to both the agency and contractor in terms of mission or business objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Planning for Contingencies Uncertainties in cost, demand and mission objectives are some of the principal roadblocks to Fixed Cost PBCs ,[object Object],[object Object],[object Object],[object Object],[object Object]

Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],There are good reasons to preference Performance-Based Contracts By taking the right approach to determining candidate functions to be put on contract, setting the acquisition strategy and desired outcomes, and mitigating risks, NASA can be better assured that its objectives will be realized

Dewicki

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