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• In situations where there is an industry standard or best practice, it can be interpolated to the current function.

• In situations where the same or similar function has been contracted to another claimancy or base, that contract can be interpolated to the current function.

Step 5—Performance Work Statement Review

Once the PWS “draft” has been completed, the users and major claimant should review it to determine if it meets their needs. In particular they should agree to or modify the PWS as follows:

• The threshold PWS is acceptable, and they are willing to accept the restrictions and/or assistance that is required if necessary.

• The objective PWS is what they expect in normal situations and what they are willing to support for funding.

• The enhanced PWS meets their requirements for special situations and what they are willing to pay for additional funding.

One of the principal benefits of this step is that the user and the major claimant “buy in” to the process.

Step 6—Prioritization and Reconciliation with the Budget

Together with the users, major claimant, regional commander, and program managers, all of the functions are prioritized by function and level of service (threshold, objective, enhanced) and compared with the budget or program across the Future Years Defense Plan (FYDP). Where there is a shortfall, either the priorities can be changed or, by going back to step 3, the PWS can be restructured. There is also the opportunity for the user to agree to shift resources from his or her budget to the region to procure required services.

Although this may seem to be a long and laborious process, it provides a clear definition of what goods and services will be provided, what they will cost, and what the real opportunities for savings are. There is also a clear definition of what capability is lost when the “requirement” exceeds the budget.

Step 7—Execution

Once a budget and level of service have been agreed to by all concerned, the person responsible for providing the service must be given the incentive to produce the service at the agreed-to cost. This may include personal performance reviews, opportunity for promotion and/or advancement, or sharing in any additional cost savings.

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