Presentation on theme: "Contract Performance Assessment Report"— Presentation transcript:
1 Contract Performance Assessment Report Project Manager Training Course
2 What you will need… Contract Performance Assessment Report CPAR Evaluation AreasNotepad and pencilPlease allow 1 hour for this training.
3 What is a CPAR?Designed by the Department of Defense as a method of collecting meaningful information on contract performance, the CPAR is an annual assessment tool used to evaluate the effectiveness and improvement capacity of contractors.Official CPAR information is cataloged for research by potential customers.
4 Why use the CPAR?Establishing clear communication lines and bringing both the client and LAI to the same place of understanding on performance only serves to improve the relationship and quality of product provided.Creating annual reviews assists in the creation of Past Performance documents for future contract proposal bid packages.
5 Why use the CPAR?There are a number of formats for contract evaluation in use by various government agencies; however, the CPAR takes the most holistic approach to assessment, allows for both narrative and numerical ratings, and is suggested to be one of the industry standards in coming years.
6 Uses for the CPARInternally, CPAR’s will be included in the rating process of PMs on the Project Manager scorecard, used to evaluate overall contract performance in general, and used to compile past performance information.Externally, the CPAR will be used as a communication tool and differentiator, demonstrating LAI’s commitment to quality.
7 Completing CPARsCPARs will be completed for signature by the CO/COR at the conclusion of each contract year; however, PMs are asked to keep a running CPAR for review quarterly along with the PM Scorecard.At the conclusion of a contract, a CPAR will be completed summing the contract in its entirety.
8 Completing CPARsThe PM will complete the narrative portion of the CPAR. Narratives should be written to demonstrate the work completed and aspire to the highest rating possible.The written narrative will be reviewed by headquarters and then presented, by the PM, to headquarters and then presented to the CO/COR.The CO/COR will provide rating for each section using the numerical rating system and will be allowed to make any revisions desired on the narratives.
9 Completing CPARsOnce both the CO/COR and the PM agree on the narratives (which should reflect why a numerical rating was selected), both sign the document.One copy of the CPAR is given to the client, one copy filed with the contract, and one copy included in the PM’s personnel file for annual evaluation purposes.
10 How ToBegin by filling out the identification information on the CPAR.The “Contract Effort Description” section is important for two reasons.First, it is a succinct understanding of the scope of the contract without restating the SOW.Second, by signing this document, the PM and the CO/COR affirm that this is their understanding of the scope on which expectations are based for the contract.
11 Areas of AssessmentThe CPAR is broken into 6 sections based directly on the DoD version.Quality of Product or ServiceScheduleCost ControlBusiness RelationsManagement of Key PersonnelUtilization of Small Business
12 Rating SystemEach assessment area includes a narrative description of the work completed during the assessment period and a quality rating of that work on a five point scale.1—Inadequate Performance2—Needs Improvement3—Fulfills Requirements4—Exceeds Requirements5—Superior Performance
13 Quality of Product or Service Each contract has specific deliverables; their qualities are rated in this section.Only the quality of the deliverables should be assessed—peripheral items like timeliness and staff are included in other sections.The narrative should describe efforts made to provide and the quality of deliverables.
14 Quality of Product or Service 5—Superior Performance: deliverables exceed expectations and have been provided in a manner that created greater efficiency.4—Exceeds Requirements: deliverables are provided at a quality higher than stipulated by the contract and the expectations of the CO/COR.
15 Quality of Product or Service 3—Fulfills Requirements: deliverables meet the guidelines/standards set forth in the contract.2—Need Improvement: deliverables are not meeting the quality standard dictated by the contract, but are being delivered.1—Inadequate Performance: deliverables are unacceptable and have to be reworked.
16 ScheduleThis section assesses the timeliness deliverables and the overall adherence to milestones established in the project management plan.Deviations from timelines occur regularly, but they should be documented and approved by the client.The narrative for this assessment should note achieved and missed milestones and whether they were completed before, on, or after deadlines.
17 Schedule5—Superior Performance: Deliverables and milestones are completed well ahead of deadlines established by the CO/COR or project management plan.4—Exceeds Requirements: Deliverables and milestones are completed in a timely manner, often before deadlines.
18 Schedule3—Fulfills Requirements: Deliverables and milestones are completed on time as outlined by the CO/COR and the project management plan.2—Needs Improvement: Many deadlines are met, but often work is late or incomplete.1—Inadequate: LAI is unable to meet deadlines and milestones as established.
19 Cost ControlBoth the contract and project management plan outline spending in various capacities, this section assesses the PM’s/LAI’s ability to maintain low costs or to provide ample documentation justifying overages.The ability to save money through thrifty spending differentiates LAI from other contractors and is vitally important to clients.The narrative should describe special costs saving efforts implemented in the assessment period.
20 Cost Control5—Superior Performance: Contract work is accomplished frequently under budget.4—Exceeds Requirements: Contract work is completed to established budget parameters, occasionally at costs less than those budgeted.3—Fulfills Requirements: Contract work is completed at established cost parameters.
21 Cost Control2—Needs Improvement: Contract work is completed, but occasionally exceeds budget.1—Inadequate Performance: Contract work is completed, frequently exceeding budgeted amounts.
22 Business RelationsThis section assesses LAI’s professional attitude in all of its dealings, whether with the client/client staff, other contracts, or prime/subcontractors.In addition, the PM’s ability to render adequate, accurate, and timely reports (progress, financial, etc.) is assessed.The narrative for the section should include any accolades/issues that have come from the performance of LAI staff.
23 Business Relations5—Superior Performance: LAI exudes professionalism, collegiality, and collaboration in all of its interchanges. All reported information is accurate and thorough.4—Exceeds Requirements: LAI exudes professionalism and submits accurate and thorough reports in a very timely manner.
24 Business Relations3—Fulfills Requirements: LAI interacts well with those it encounters and meets the requirements established for reporting.2—Needs Improvement: LAI presents a nonchalant attitude and sometimes has to correct reported information.1—Inadequate Performance: LAI’s demeanor is unapproachable and reports are frequently inaccurate.
25 Management of Key Personnel The PM’s role as manager of staff is evaluated by HQ, but the CO/COR has a greater day-to-day interaction to evaluate performance. This section allows the CO/COR to rate the PM’s skills.The narrative section allows the PM to complete a brief self-assessment—caution this is one area where folks are less objective and either are too hard or too soft on themselves!
26 Management of Key Personnel 5—Superior Performance: Exceeds expectations for the role of PM, accomplishing all work in a timely manner, well directing staff.4—Exceeds Requirements: Directs staff well and occasionally goes above and beyond to assist the client.
27 Management of Key Personnel 3—Fulfills Requirements: Adequately meets the expectations of the client and manages staff well.2—Needs Improvement: Does not always meet client expectations and has managerial issues with staff.1—Inadequate Performance: Is unable to complete tasks to the client’s satisfaction and has little control over assigned staff.
28 Utilization of Small Business LAI is a small business. So, when accomplishing a contract without the assistance of subcontractors of other teaming partners, fulfills the requirements of this assessment.This section allows the CO/COR to assess how LAI leverages its teaming partners and subcontractors, as well as its ability to identify small businesses for these positions.
29 Utilization of Small Business 5—Superior Performance: LAI uses it contracts to seek and develop other small businesses in a manner beneficial to the client. LAI works well with the teaming partners and subcontracts with whom it currently has agreements.4—Exceeds Requirements: LAI contracts, when possible, with small businesses and works well with current partners.
30 Utilization of Small Business 3—Fulfills Requirements: LAI works well with its current teaming partners and subcontractors.2—Needs Improvement: LAI demonstrates difficulty in producing deliverables through its teaming partners and subcontracts.1—Inadequate Performance: LAI’s partnerships are dysfunctional.
31 Other?Specific contracts may denote the need for an additional section or sections of assessment in the CPAR.If other sections are used, when the contract commences the PM and CO/COR should establish rating parameters.Generally, to provide a universal application, it is advised to avoid additional assessment sections.
32 SignaturesThe PM is required to sign the CPAR as an affirmation of the information included therein. The assessment is a reflection on both LAI and the PM and will be used in annual evaluations.The CO/COR’s signature on the CPAR confirms that client’s understanding of LAI’s performance and establishes both a historical record and thermometer for client satisfaction.
33 CPAR StrategyTo make sure that all significant events within an assessment period are included in the CPAR, PMs should update the document regularly (quarterly at a minimum).The running CPAR does not need to be written like the final product but simply include bullets for accomplishments and shortcomings.
34 CPAR StrategyDemonstrating improvement over time is appealing to both LAI and the client. While no PM should receive ratings less than “Fulfills Requirements”, it is unrealistic to receive “Superiors” in all assessment areas when completing the narrative.Over the period of the contract, CPARs with continual improvements reflect LAI’s dedication to quality improvement and demonstrate a greater understanding of the client’s directives.
35 CPAR StrategyNo PM should deliberately under value the accomplishments made on a contract, but should be very critical of performance to realistically portray the state of the contract in the CPAR.Establishing a willingness to be critical of one’s self builds rapport and trust with the client while increasing contract quality.
36 CPAR StrategyHaving historical information from each contract year that demonstrates performance as agreed upon by the CO/COR and LAI provides negotiating tools for contract disputes, extensions, and renewals.Creating an aggressive quality assurance program differentiates LAI from its competitors.
37 CPAR StrategyA PM who can critically evaluate the progress of his/her contract in an objective manner is capable of identifying areas for improvement, which creates cost savings and greater efficiency.
38 ConclusionA running CPAR should be updated at a minimum on a quarterly basis.CPARs should be completed at the conclusion of the contract year and signed by both the CO/COR and the PM.CPARs will be used as evaluation tools for PM performance, as well as indicators of contract status.