Progress in Improving Project Management at the Department of Energy 2001 Assessment (2001) / Chapter Skim
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7 Acquisition and Contracting
7 Acquisition and Contracting
Pages 64-73
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From page 64... ...
contractors that maintain operations at sites such as the Nevada Test Site or perform cleanups of hazardous and radioactive waste at places such as Rocky Flats, Colorado. Under an M&O contract, the contractor/subcontractor team performs much of the work under a cost-plus, award-fee contracting arrangement.
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From page 65... ...
DOE has included this technique as part of its own contractreform agenda and has been using a performance-based approach for major projects at Rocky Flats, Oak Ridge, the Nevada Test Site, and elsewhere. Successful PBC is based on defining existing conditions, specific requirements, and the desired results or outcomes, along with objective, meaningful, and measurable performance and quality standards.
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From page 66... ...
Balanced Scorecard The DOE Office of Procurement and Assistance Management has conducted its own study of this area and has required headquarters review of the various performance metrics and incentives being used. In addition, a department-wide balanced scorecard self-assessment training program includes PBC.
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From page 67... ...
The following subsections suggest the information that might be included in the draft PPM manual, along with examples of PBC applicability to the DOE environment. Define Desired Outcomes Outcome definition should be functional and substantive, using terms that can be easily understood by an external stakeholder and focused on results rather than on work processes.
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From page 68... ...
In determining the specific quantitative metrics, consider the cost/benefit of achieving varying levels of performance. Industry standards, departmental policies, and regulations that the government requires the contractor to comply with may be used as performance standards.
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From page 69... ...
In the DOE context, with a relatively limited base of bidders, an award term approach may further limit competition and therefore may not be as suitable as it is at other agencies. Frequently, in the DOE context, timeliness incentives are critical, whether they involve speeding cleanup operations at a site like Rocky Flats or an additional fee for accelerating a schedule, as is the case for the new contract at Yucca Mountain.
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From page 70... ...
This matrix will display desired business results, performance metrics, and performance monitoring or surveillance methods, as well as incentives or disincentives associated with the contract all in one easily readable and understandable document. The matrix in effect serves as the work statement for the contractor and should be incorporated into the resulting contract or task order.
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From page 71... ...
Also, the risk of delays, schedule overruns, or quality of the facility may devolve to the government unless the required performance and desired outcomes are clearly defined and monetary or other incentives provided for superior performance. Risks may also revert to the government if there are changed conditions or design changes for which the government may be held responsible.
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From page 72... ...
The Phase II report noted that the DOE bidder pool was shrinking and recommended that DOE act to arrest and reverse this trend. In 2001, a report by the DOE Contract Reform and Privatization Project Office, Analysis of the DOE Contractor Base: Readiness, Willingness, Profitability, and Trends: A Focus on the Environmental Management Program, showed that for EM, at least, the contractor base has shrunk even further since 1999 (DOE, 2001~.
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From page 73... ...
2001. Analysis of the DOE Contractor Base: Readiness, Willingness, Profitability, and Trends: A Focus on the Environmental Management Program.
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