Department of the Interior Acquisition Policy Release 1997- 10

Subject: PERFORMANCE-BASED SERVICE CONTRACT (PBSC) REPORTING

1. Purposes:

a. To establish a tracking and reporting system to monitor the use of performance-based service contracting methods.

b. To update the status of actions planned for FY 1997.

c. To collect data on conversion of actions.

d. To measure the proportion of performance-based contracting for services above $500,000.

e. To track the degree of usage of the various performance contracting methods.

f. To promote use of these methods during contract planning.

2. Effective Date:

Immediately

3. Expiration:

This policy release remains effective until canceled or superseded.

4. Background:

By memorandum dated April 28, 1997, the Office of Management and Budget directed Federal agencies to establish methods for tracking and reporting progress with performance-based service contracting. The memorandum also stated that savings realized from conversion to performance-based contracting may remain with program offices. By memorandum dated May 12, 1997, OMB indicated that agency strategic plans and annual performance plans required by the Government Performance and Results Act need to include procurement performance measures for the use of performance-based service contracting. This policy release establishes a reporting system to measure this usage consistent with OMB guidelines.

5. Action Required:

a. By October 31, 1997, Bureaus and Offices are to report on FY 1997 service contract actions as provided in Attachment 1 (FY 1997 Perfomance-Based Service Contract (PBSC) Report). Reporting is required on all actions with an individual value of $500,000 or more and includes the planned actions reported through the budget passback survey conducted earlier this year. The kinds of actions covered are defined in the attached reporting format.

b. Subsequent reporting in FY 1998 is to be completed semi-annually for service contracting actions at or above $500,000. FY 1998 reports, using the format in Attachment 2 (Service Contract Action Register and FY 1998 Performance-Based Service Contract (PBSC) Report), are due to this office April 15, 1998, and October 30, 1998.

c. The mid-year report due April 15, 1998, must include actions planned for the remainder of FY 1998 as well as actions awarded to date in FY 1998.

d. Contract performance reports will be used to track the general benefits of using these techniques with respect to price, performance, and customer satisfaction. See DIAPR 1997-5 and FAR 42.1502. (Note that the $1 million threshold for contract performance reporting is not being changed by this policy release.) Final contract performance reports will be used for benefit comparisons on conversions. Use of the term conversion in this context is as defined in the attached reporting formats.

e. Service Contract Action Register: The format for Attachment 2 is the same as Attachment 1 only renamed for use in FY 1998. The reporting burden will be minimized if contracting officers record actions on the register as they are completed rather than having to review records of the last six months or year to complete the report. The contract register is provided, therefore, for this purpose. We suggest that managers and supervisors assure that the register is used and kept current to avoid the need for more time consuming data collection when reports are due.

f. Bureau Procurement Chiefs are to provide summary reports for all their contractingactivities. The reports are to be sent to this office via E-mail followed by a confirming paper copy.