Presented by Michael W. Sydow, PE Chief, Environmental and IIS Management Branch USAED Savannah Performance Based Contracting A USACE Perspective

(3) Nov00same.ppt Why PBC l Government Performance and Results Act of l Federal Acquisition Streamlining Act of l Utilized successfully in private sector since the 70’s. l DOD Business Initiatives Council adopts concept in l ACSIM/ODEP deploy PBC as a matter of Army policy in –Defense Planning Guidance –Army Environmental Strategic Cleanup Plan –FUDS Program Policy (ER )

(3) Nov00same.ppt Why PBC l Current process employed to date is inherently phase focused and process driven. –Not viewing the problem in a holistic manner. l PBC is based on achieving an Exit Strategy –Incorporates Life Cycle Project Management. –Incorporates future land use planning. –Affords greater flexibility in meeting changing project requirements.

(3) Nov00same.ppt What PBC Does Not Do! l Does not change applicable laws or regulations. l Does not relieve DOD of it’s liability. l Does not negate Federal Facilities Agreements or Cooperative Agreements. l Does not eliminate the Partnering Concept. l Does not mean the contractor is turned loose with no technical or administrative oversight. It is simply a new Business Process!

(3) Nov00same.ppt PBC Defined l Objective is to define the “What” not the “How” –Focus on the End Point and not the Process. l Army Policy –Fixed Price Contracts only. –Incentives and Insurance may be applied based upon the amount of risk and uncertainty. –Competitive bid process with a minimum of three qualified vendors. –Can be used for all project phases, from RI through RAO and LTM.

(3) Nov00same.ppt FUDS Programmatic Goals l Funds Obligation –FY05 7.5% –FY06 15% –FY07 25% –FY10 50% l DPG Goals for Responses in Place (RIP) and Response Complete (RC) –FY07 High Relative Risk Sites –FY11 Medium Relative Risk Sites –FY20 Low Relative Risk Sites

(3) Nov00same.ppt FUDS Challenges l Budget Limitations –Averages $250M per FY. –Number of States and Territories competing for funds. –Number of eligible sites competing for funds. l Private Property Owners l Potentially Responsible Party (PRP) Issues l Competition for Regulatory Agency resources l New Business Process

(3) Nov00same.ppt USACE Initiatives l Developed and deployed PBC Training l Established USACE Contract Acquisition Working Group –Developing national contract strategies. –Share Lessons Learned. –Leverage resources from across USACE. –Obtained Industry input. l Developing After Action Reports for established contracts l Participate in Interagency Forums

(3) Nov00same.ppt How Do We Make It Work? l Proper Project Planning –Site selection. –Sound Performance Work Statement with Measurable Performance Standards. –Development of Transition Plan from current contract actions to PBC. l Engage the Regulatory Community –Includes Planning and Contract Acquisition phases. l Educate the entire Team –What changes, what doesn’t, and what are the impacts? –Roles and Responsibilities.

(3) 10 30Nov00same.ppt How Do We Make It Work? l Communication must be open and continuous –Need a well developed Project Management Plan that clearly identifies Exit Strategies and Major Milestone Dates. –May require frequent Project Meetings and/or Teleconferences. –Allows all Team Member organizations to determine and plan resource requirements. l Seek process efficiencies –Number, type and format of submittals. –Concurrent reviews. –Authority for approval.

Questions?