PERFORMANCE BASED CONTRACTING
FOR LANGUAGE TRAINING SERVICES

PERFORMANCE-BASED SERVICE CONTRACTING (PBSC)
WORK STATEMENT


Definitions 
Overview 
Elements of Performance-Based Service Contracting
Introduction to the Work Statement For Foreign Language Training 
Attachment 1: Model Work Statement For Foreign Language Training
Attachment 2: Performance Requirements Summary
Attachment 3: Performance Incentives

Foreword

Performance-based service contracting (PBSC) emphasizes that all aspects of an acquisition are structured around the purpose of the work to be performed as opposed to the manner in which the work is to be performed. PBSC acquisitions are in direct contradiction to broad, imprecise statements of work which preclude an objective assessment of contractor performance. The Work Statement PBSC methodology emphasizes work statements that are designed to ensure that contractors are given freedom to determine how to meet the government 's performance objectives, that appropriate performance quality levels are achieved, and that payment is only made for services which meet these levels. This guide is to be used to assist agencies in implementing PBSC for training services. It contains a model work statement for Performance-Based Service Contracting for Language Training. The guide should not be substituted for applicable policies and regulations. The guide was developed using a variety of resources, including interviews, articles, and existing guidance. We wish to thank the procurement and program officials from the Executive Departments and agencies who provided information on their experiences with Performance-Based Service Contracting. Comments and suggestions should be addressed to the attention of Linda Mesaros, New Executive Office Building, Room 9013, Washington, DC 20503 (Fax 202-395-5105). The Internet address is Mesaros_L@A1.EOP.GOV.
Steve Kelman
Administrator

Definitions

Performance-Based Service Contracting relates to the procurement strategy, methods, and techniques used to acquire the services. PBSC means structuring all aspects of an acquisition around the purpose of the work to be performed. It includes, to the maximum extent practicable, describing requirements in terms of results required rather than the methods of performance of the work and measurable performance standard; a quality assurance plan that recognizes the responsibility of the contractor to carry out its quality control obligations and contains measurable inspection and acceptance criteria corresponding to the performance standards contained in the work statements, and positive and negative incentives. Services are defined as the performance of identifiable tasks rather than the delivery of an end item of supply. Services also include tasks that are to be performed under a contract where the primary purpose of the contract is to provide supplies.

Overview

Historically, government agencies have experienced systemic service contracting problems (i.e., cost overruns, delays, and performance problems). PBSC is an approach intended to correct and to improve the value of contracted services. PBSC methods include the following: work statements consisting of objective and measurable performance standards; quality assurance surveillance plans; and objective positive and negative incentives based on the work statement criteria; selection procedures which include publishing draft solicitations for comment and requiring quality-related evaluation factors, including cost realism and past performance; and conversion from cost reimbursement to fixed price contracts where feasible. It is the policy of the Federal Government that agencies use performance-based contracting methods to the maximum extent practicable when acquiring services, and that agencies carefully select acquisition and contract administration strategies, methods, and techniques that best accommodate the requirements. Incentives for agencies to implement PBSC are numerous. For program personnel, PBSC is a tool that offers improved contractor performance. For budget offices, PBSC has already demonstrated significant cost savings in the range of fifteen percent and sometimes more. For managers, PBSC implements the principles of streamlining and innovation of the National Performance Review, (NPR), as well as the Government Performance and Results Act. In addition, contractors who perform well on initial PBSC efforts will gain an advantage on future solicitations where past performance is a significant evaluation factor. PBSC contracting requires discipline, teamwork, and fundamental knowledge of the process for success. The requirements must be fully identified, and for each requirement a performance standard must be prepared and incorporated in the basic structure of the contract. As the Government develops performance-based standards, it must determine that the services are necessary. For the services that are needed, the level of performance must be addressed. How good must the service be for it to be acceptable? What performance indicators can be evaluated to determine acceptability? Can some level of error be tolerated to achieve overall lower cost? What are the right cost and benefit trade-offs to satisfy the mission need? Answering these questions requires the involvement and commitment of the entire organization; getting the answer right will not only save money, it will also make the organization better by fostering communication, teamwork and mutual understanding. In PBSC, there are clear lines of communication between the contractor and the Government. A performance-based work statement leads to less confusion. The Government monitors contractor performance to ensure it gets what was contained in the performance work statement. The Quality Assurance Surveillance Plan spells out the schedule of inspections the Contracting Officer's Representative will use to monitor performance. Examples of performance-based requirements can vary. For example, the requirements for grounds maintenance of a large Government site could be to maintain the lawn between two and three inches, prevent tree limbs from touching utility wires or buildings, and maintain lawns and sidewalks free from branches and clippings. This contrasts with "how to" requirements such as mow lawn weekly, prune trees each fall and remove clippings after each mowing. Another example: Performance requirements for environmental quality monitoring could be to gather predetermined categories of data from identified sites. This would be done using equipment with prescribed accuracy and reliability and to analyze and report findings at an indicated level of quality.

Elements of Performance-Based Service Contracting

There are five essential elements of PBSC:
(1)Performance Requirements
(2)Performance Standards
(3)Measurement Techniques
(4)Incentives - Positive and Negative
(5)Evaluation Criteria

Performance Requirements
One of the first steps in developing a Performance Work Statement (PWS) is identifying the
agency's needs and addressing those needs with performance requirements.
Performance requirements will be unique to each agency and the customers it serves.
These requirements are statements describing the required services in terms of output.
The requirements should be stated in clear, concise, commonly used, easily understood,
measurable terms. Detailed procedures should not be included that dictate how the work is
to be accomplished; rather, the requirements should allow the contractor the latitude to
work in a manner best suited for innovation and creativity.
Performance Standards
Performance standards establish the performance level required by the government.
Each agency should ensure that each standard is necessary, carefully described, and not burdensome.
Failure to do so can result in unnecessarily increased contract costs.
Discretion must also be exercised in establishing the quality level at
which performance standards are set. The minimum acceptable performance standard
should rarely be 100 percent, since the standard directly affects the cost of the service.
On the other hand, if the quality level is too low, however, it may act as
a disincentive to good contract performance.
Standards may be published or well recognized industry wide standards, or may be
developed by the agency based on past workloads or best practices.
Agency standards should have industry input to ensure that they are realistic and effective.
Measurement Techniques
Measurement techniques should be clearly stated in the quality assurance plan (QAP).
The QAP defines what the government must do to ensure that the contractor
has performed in accordance with the PBSC performance standards.
It is needed to ensure the government receives the quality of services called for
under the contract, and pays only for an acceptable level of services.
A good QAP should include a surveillance schedule and clearly state the
surveillance method(s) to be used.
Incentives - Positive and Negative
Incentives should be used to encourage quality performance and may be either positive,
negative, or a combination of both. Positive incentives are actions taken if the work
meet or exceeds the standards. Negative incentives are actions taken if the work does
not meet standards. Positive incentives should be set at challenging yet reasonably
attainable levels. Incentives should be applied selectively to motivate contractor
efforts that might not otherwise be emphasized, and to encourage efficiency.
The definitions of standard performance, maximum positive and negative performance
incentives, and the units of measurement should be established in the solicitation.
They will vary from contract to contract and are subject to discussion during a source selection.
Incentives should correlate with results. Follow-up is necessary to ensure that desired results
are achieved, i.e., ensure that incentives actually encourage good performance and discourage
unsatisfactory performance. Where negative incentives are used, the deduction should represent as
closely as possible the value of the service lost. Avoid rewarding contractors for simply
meeting minimum standards of contract performance, and create a balance between cost,
performance, and schedule incentives.
Evaluation Criteria
Evaluation criteria that are used to assess offerors' proposals and select the contractor
should typically strive to select the offeror that will most likely provide the best value
(combination of price, technical, and past performance) to the agency. Evaluation criteria
should be kept to a minimum to help ensure that selection decisions are based on significant
determinants, and each of the criteria used should receive significant weighting.
However, the relative emphasis given to each of the criteria must be determined in advance
by the agency.

Introduction to the Work Statement For Foreign Language Training


The Office of Management and Budget's Office of Federal Procurement Policy (OFPP) 
coordinated an interagency group to develop a Performance-Based Service Contracting (PBSC) 
model for training services.
Language training was chosen as a suitable model for PBSC because the outcome of language 
training is measurable, the standards of language proficiency and performance are quantifiable 
and broadly recognized, the learning outcomes are predictable, and training  in languages has 
broad application in Government service.
The basic requirements of language training for PBSC are as follows:




Measurable Outcome - The extent of what the student has learned can be measured by testing.  
The student's knowledge can be tested prior to obtaining the training (pretest), and again 
after course completion (post-testing). The improvement or increase in knowledge and ability is 
the measurable outcome, the learning achieved.

Quantifiable Training Standards - Recognized standards of language proficiency exist that, 
when applied to training requirements, can be usedto quantify the effectiveness of training. 
Language proficiency is quantifiable by standards defined by the Office of Personnel Management 
into various levels (such as Elementary, Intermediate,and Advanced Levels 0 through 4) 
with associated "target (testing results) scores" which can be used to establish desired outcomes.

Training Performance can be Predicted or Statistically Projected - Apredictable basis 
for measuring language abilities has been documented by linguistic specialists. An educator 
or language training specialist can tell you whether (historically or statistically) "X" percent 
of students can or will achieve the highest level of proficiency, that "Y" percentage can or will 
achieve the second highest proficiency, or that "Z" percent will have no measurable benefit from 
language training, and so on. The positive or negative deviation from these historical or 
statistical predictors can be affected by the use of positive or negative incentives. 
Falling below the desired standard will result in the application of a negative incentive; 
achieving above the desired standard will result in the application of positive incentives.

Language Proficiency has Broad Application in Government Service - Several federal agencies 
and military services employ personnel that require foreign language training for the performance 
of their duties. Requirementsand opportunities for foreign language training may arise at any level 
of Government for which performance-based training can be easily adapted.



MODELWORK STATEMENT (PWS)

 FORFOREIGN LANGUAGE TRAINING

Section C

C.1 SCOPE

This paragraph provides a broad overview of the work statement .  
Generally, the scope statement should address the questions of what the work is, and 
where it is to be done.  The scope of work must be broad enough to allow all work 
requirements to be included, while specific enough to provide potential contractors 
with a clear understanding of the requirement.  The scope section should also summarize 
the outcomes, completion impacts on other efforts, and any constraints to performance.  
For example:
The Contractor shall provide foreign language instruction to adult students that is 
focused on the [describe desired contextual requirement, i.e., medical and professional 
fields, political and economic fields, general interest and conversational skills] typically 
found in mass-media publications available to the desired foreign language speaking public.  
Instruction shall include the development of speaking, listening, and reading skills to 
[insert required standard, e.g., permit comprehension of relevant media or face-to-face 
conversation].  Instruction of job relevant language terminology and usage [of the
designated field of interest] is required in all instruction.
Instruction shall be based on proficiency and communication oriented linguistic and 
academic educational principles as used in such foreign language learning institutions such 
as the Department of State, Foreign Service Institute; the Department of Defense, Defense 
Language Institute; or [insert or substitute other recognized foreign language training 
centers if so desired].  The language proficiency levels identified as desired outcomes, 
are as defined by the Office of Personnel Management, and as measured by the Foreign Service 
Instituted Language Proficiency Test [or substitute other desired testing standard].

C.2 DEFINITIONS

A definitions section includes all special terms and phrases used in the work statement. The definition section should clearly describe how and where the definitions will be provided in the PWS, e.g. after first usage, footnote, or separate glossary as an attachment or appendix in Section J. The definition must clearly establish what is meant. Each definition provided should be carefully considered, for that definition becomes binding for all requirements in the contract. Problems can be introduced unintentionally when a definition is provided for a word or phrase which differs from the meaning intended in some of the standard clauses or in other parts of the work statement or parts incorporated by reference. This section should also contain a complete listing of all acronyms used, giving both the acronyms and the words represented by the acronym. For example: Vocabulary: As specified in the contract, the listing of words, terms, sentences, phrases, or expressions which must be mastered by the student at completion of the language training. PBSC: Performance Based Service Contract

C.3 GOVERNMENT-FURNISHED PROPERTY AND INFORMATION

If the Government is to provide any property, services, or information to the contractor, this section is used to describe what will be provided. If the list or lists are fairly extensive, they should be made into a technical exhibit or attachment which is listed in Section J or in the Applicable Documents section, such as Section C.6. In accordance with the "Government Furnished Property (Fixed-Price Contracts)" clause in Section I, the Government will provide the Contractor the option of using certain Government owned facilities and utilities for use only in connection with this contract. For example, the Government may furnish such property, materials, and information such as Government classrooms, foreign language magazines, audio-visual equipment, student population position descriptions and standards, listing of duty assignments by language, etc.

C.4 CONTRACTOR FURNISHED ITEMS

In this section, the analyst describes property or services that the contractor shall provide. As with Government-furnished property, if the list or lists are lengthy, they should be included as a technical exhibit and referenced in this section. For example: C.4.1 The Contractor shall provide all necessary instructional materials including texts, class exercises, handouts, tests, and audio-visual media. C.4.2 The Contractor shall provide all necessary site support materials and equipment, including such items as flip chart and easel, chalkboard or erasable marker-whiteboard, videocassette player, overhead projector, and expendable/consumable classroom supplies such as paper, pencils, pens, chalk, markers and binders. The Contractor shall replenish such expendable/consumable items as needed to provide for the performance of the work. C.4.3 The Contractor shall provide, within X miles or X minutes of the location specified in Section G, all needed classroom space, and if necessary or desired, private or separate preparation space for contractor instructor(s), to include all furnishings necessary for a proper learning atmosphere. C.4.4 The Contractor shall provide qualified instructor(s), who are well versed in all topics to be covered, who are capable of answering in-depth questions on each topic, and who will provide the required training in accordance with the contract, in a classroom setting, based on the schedule of training modules or lessons and the objectives and goals for that training. C.4.5 The Contractor shall provide instructor supervisor(s) who will supervise the performance of work under the contract, and who will perform quality assurance in meeting the objectives and goals for that training. C.4.6 The Contractor shall provide other required classroom materials such as newspapers, magazines, dictionaries, or photocopied materials, written in the designated language for use by students in exercises or testing.

C.5 SPECIFIC TASKS

Specific tasks are the heart of the work statement. For example: The contractor shall provide instructional Foreign Language Training services, at the fixed prices shown in Section B of the contract. The objectives of each training module or lesson obtained under this contract is to prepare all students as efficiently and effectively as possible to accomplish the goals of the specific training module or lesson as ordered under the contract. [The selected goals and behaviors presented below are simplistic examples of desired outcomes. When preparing an SOW for foreign language training, the desired outcomes for your specific requirements must be clearly stated in fully developed requirements for performance.] C.5.1 GOALS OF FOREIGN LANGUAGE TRAINING The goal of each training module or lesson is to provide the student with the skills and knowledge necessary to [describe the required standard: i.e. "rapidly reach the desired level of performance"] as identified in the training modules or lessons identified below: C.5.1.1 VERBAL RECOGNITION AND RESPONSE MODULE, LESSON 1 Each student, at the completion of training, shall be able to perform the following required behavior(s) to the required level of proficiency. C.5.1.1.1 RECEPTION AND INITIAL CONTACT, BEHAVIOR 1 When addressed in [the desired language], the student will be able to recognize designated commonly encountered phrases and questions contained in the selected vocabulary appropriate for the position and duties which will bring the student into contact with [the desired language] speaking public. The student must then respond appropriately, providing acceptably worded and pronounced verbal responses, answering the questions asked, or providing information as needed. The required level of proficiency is stated as 90% percent of the students completing training for each class will be able to recognize and respond appropriately to at least 95% of the selected vocabulary, in 95% of the occurrences in which the selected vocabulary is presented. C.5.1.1.2 SOCIAL CONVERSATION, BEHAVIOR 2 When engaged in social conversation, the student will be able to communicate with [the desired language] speaking public, carrying on an appropriately worded and pronounced dialogue in the colloquial casual vernacular. The required level of proficiency is stated as 85% of the students tested in each class shall be able to answer correctly at least 90% of the selected vocabulary questions when used in conversational exchange. C.5.1.2 READING COMPREHENSION MODULE, LESSON 2 Each student, at the completion of training, shall be able to perform the following required behavior(s) to the required level of proficiency. C.5.1.2.1 RECOGNITION AND SUBJECT MATTER COMPREHENSION, BEHAVIOR 1 Upon reading or review of written communication or letters in [the desired language], the student will be able to recognize designated key phrases or questions from the selected vocabulary appropriate for the functions and responsibilities of the position and duties which will bring the student into contact with [the desired language]. The student must then respond appropriately, providing the requested information by selecting the correct programmed reply, or by properly identifying the functional organization who the written communication was intended. The required level of proficiency is stated as 85% of the students completing training for each class will be able to comprehend and appropriately respond to, or to determine the intended addressee for, at least 90% of the written communications in which the selected vocabulary is presented. C.5.1.2.2 TRANSLATION, SUMMARIZATION, AND RESPONSE SELECTION, BEHAVIOR 2 Upon reading communications, messages, or letters written in [the desired language], the student will be able to comprehend, translate, and correctly summarize the purpose and content of the written communication which was provided. The student must be able to translate the requested information or pre-planned reply , and prepare a written response to the selected communication. The required level of proficiency is stated as 75% of the students completing training for each class will correctly recognize, comprehend, and summarize the written communication, and to translate the correct response to the written communication in at least 85% of the written communications presented. C.5.1.3 STUDENT TESTING Knowledge and proficiency testing shall be a required element of evaluating the student's progress in the training module or lesson in which they are being instructed. Testing shall be administered periodically to determine the student's progress in training, to identify areas of weakness where supplemental or remedial training may be needed, and to quantify the student's then-current level of knowledge and proficiency. Initial testing will be used to establish a baseline for measurement of knowledge and proficiency obtained, and may be used in a predictive manner to facilitate personal training planning. All testing, to include the use of Computerized Adaptive Testing if so selected, shall be performed using tests which are approved by the Foreign Service Institute, or the Defense Language Institute, or by recognized and accepted by national professional associations and organizations, such as the Modern Language Association of America, the American Council on the Teaching of Foreign Languages, the Foreign Service Institute, the Defense Language Institute Foreign Language Center, the Federal Interagency Language Round table, or other nationally recognized foreign language professional bodies. C.5.1.4 STUDENT PROGRESS DOCUMENTATION AND TRAINING RECOMMENDATIONS The Contractor's instructor(s) shall be responsible for documenting each student's progress in training, and for preparing a training recommendation for each student. The student's progress will be reported weekly and will document the student's progress as measured performance under each lesson module and behavior. The training recommendations should state specific plans for remedial, or supplementary use of supportive training materials, or use of tutoring and personalized training techniques. C.5.1.5 STUDENT COUNSELING The Contractor's instructor(s) shall be responsible for counseling each student in the student's performance, and for preparing and discussing with the student any corrective actions which may assist the student in the improvement of their performance. The student's progress will be discussed with the student on a bi-weekly basis, and the Instructor will document the training recommendations made to direct the student's progress. All students considered in danger of failing the proficiency tests, will receive counseling on a weekly basis. The counseling sessions should result in specific tasking for remedial, or supplementary use of supportive training materials, or use of tutoring and personalized training techniques, as needed to improve student performance.

C.6 APPLICABLE DOCUMENTS

If required, this section will provide a listing of applicable technical orders, specifications, regulations, and manuals which are required in the performance of the contract. The applicable dates and revision numbers of the documents to be used should be verified and included in the work statement, and should be cross referenced to the Section of the SOW in which the applicable document is cited or is applicable. It should also be stated whether each directive is mandatory for contractor compliance or advisory only. Under performance based service contracts (PBSC) the applicable documents, such as specifications, regulations, and manuals should be kept to an absolute minimum, and should be used when no other means of stating the requirement can be substituted. One goal of PBSC contracting is to eliminate any application of unnecessary or restrictive specifications and standards. Items too voluminous or bulky to be included in Section C of the work statement, should be provided as an attachment or appendix in Section J of the contract.

PERFORMANCE REQUIREMENTS SUMMARY:
Model PWS for Foreign Language Training (Attachment 2)

Example: Listening Proficiency

PERFORMANCE REQUIREMENT

PERFORMANCE STANDARD

PERFORMANCE MEASUREMENT

Verbal Recognition and Response Module, Lesson 1

Section C.5.1.1.1 Reception and Initial Contact, Behavior 1

Required Proficiency Level:

Not less than 90% of the students tested in each class shall be able to answer correctly at least 95% of the selected vocabulary questions used in context.

Performance will be measured by standardized oral testing, administered periodically to track student development, and training outcomes.

Verbal Recognition and Response Module, Lesson 1

Section C.5.1.1.2 Social Conversation, Behavior 2

Required Proficiency Level:

Not less than 85% of the students tested in each class shall be able to answer correctly at least 90% of the selected vocabulary questions when used in conversational exchange.

Performance will be measured by standardized oral testing, administered periodically to track student development, and training outcomes.

Example: Reading Comprehension

PERFORMANCE REQUIREMENT

PERFORMANCE STANDARD

PERFORMANCE MEASUREMENT

Reading Comprehension Module, Lesson 2

C.5.1.2.1 Recognition and Subject Matter Comprehension, Behavior 1

Required Proficiency Level:

Not less than 85% of the students tested in each class shall be able to comprehend and correctly respond to at least 90% of the written communications questions in which the selected vocabulary is presented..

Performance will be measured by standardized written testing, administered periodically to track student development, and training outcomes.

Reading Comprehension Module, Lesson 2

C.5.1.2.1 Recognition and Subject Matter Comprehension, Behavior 1

Required Proficiency Level:

Not less than 75% of the students tested in each class will correctly comprehend, summarize, and translate the correct response to the written communication in at least 85% of the written communications presented.

Performance will be measured by standardized written testing, administered periodically to track student development, and training outcomes.

Example: Quality of Supervision

PERFORMANCE REQUIREMENT	PERFORMANCE STANDARD	PERFORMANCE MEASUREMENT
*C.4.4 Instructor Supervision.*	*COTR shall receive no more than x valid complaints concerning quality of instruction, received during a one month period.*	*Review complaint logs, review quality control activities and results, observation, and Government-conducted customer survey.*

Example: Documentation and Reporting Requirements

PERFORMANCE REQUIREMENT	PERFORMANCE STANDARD	PERFORMANCE MEASUREMENT
*C.5.1.3 Student Testing: Administer standardized tests, gather required information on testing results, and analyze results.*	*Each report containing statistical or required information is accurately prepared and presented. At least x% of the information gathered must be relevant and accurate.*	*Review records and reports, randomly verify testing procedures, observation, and detailed analysis.*
*C.5.1.4 Student Progress Documentation and Training Recommendations.*	*No more than x (or x%) of the student progress reports required during the reporting period were received late or were missing.*	*Review operational logs, data bases, statistics, or through observation.*

Example: Student Counseling

PERFORMANCE REQUIREMENT	PERFORMANCE STANDARD	PERFORMANCE MEASUREMENT
*C.5.1.5 Counsel students on performance and recommending corrective actions, if required.*	*Not less than x (or x%) of the students assigned, and all students considered in danger of failing proficiency tests, will receive counseling each week.*	*Review records and contact reports, randomly verify through student surveys, observation, and individual interviews.*

Example: Materials and Equipment

PERFORMANCE REQUIREMENT

PERFORMANCE STANDARD

PERFORMANCE MEASUREMENT

C.3 and C.4 Maintain Government-furnished or Contractor-furnished equipment and materials as required.

Provide maintenance in accordance with equipment manufacturers maintenance requirements. Equipment failures, absence of needed materials or equipment, or adequacy of materials shall not interfere with training more than x (or x%) of available classroom instruction time during [state period].

Review complaint logs, review quality control activities and results, observation, and Government-run customer survey.

Example: Facilities

PERFORMANCE REQUIREMENT

PERFORMANCE STANDARD

PERFORMANCE MEASUREMENT

C.4.3 Provide and maintain facilities for instruction as required.

Provide maintenance in accordance with equipment manufacturers maintenance requirements. Equipment failures, absence of needed furnishings, or adequacy of facilities shall not interfere with training more than x (or x%) of available classroom instruction time during [state period].

Review complaint logs, review quality control activities and results, observation, and Government-run customer survey.

PERFORMANCE INCENTIVES:
Model PWS for Foreign Language Training (Attachment 3)

The incentives (positive and negative) identified below are representativeof the manner in which incentives may be applied. Specific incentivesshould take into account the criticality and frequency of therequired performance in determining the monetary value of theincentive when applied. - Positive incentives should adequately reward performance which1) more than just fulfills the requirements of the contract fully(the performance must be above the required standards) , or 2)as a result of innovation, creativity, resourcefulness, crisisresponse, etc. yields results which are beyond what is expectedfor full performance and compliance. The value of the incentivesearned should also be commensurate with the actual value thatthe above-standard performance represents. Positive incentivesshould be attainable and should require more effort than merelysatisfactory performance, but should not require greater expenditureof efforts and cost than the positive incentive would yield benefits. - Negative incentives should not serve as penalties or punishment,but should serve to encourage the Contractor to eliminate andcorrect below standard performance. Excessive negative incentivesmay actually discourage the Contractor from attempting correctiveaction (i.e., the Contractor would just as soon abandon the contractbecause the effort required to meet the standard is simply toohigh to be realistically attainable, and the Contractor wouldstill be subject to the negative incentives). A negative incentiveshould be equal to or slightly more than the cost of not performingits associated requirement at all, but should not be so largeas to result in a cost impact that degrades performance on otherrequirements, or leaves no incentive to commit resources to correctiveaction.

Example: Listening Proficiency

PERFORMANCE REQUIREMENT

POSITIVE INCENTIVE

NEGATIVE INCENTIVE

Verbal Recognition and Response Module, Lesson 1

Section C.5.1.1.1 Reception and Initial Contact, Behavior 1

If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.

If performance falls below the required standard, require the Contractor to perform remedial instruction at contractor expense.

Verbal Recognition and Response Module, Lesson 1

Section C.5.1.1.2 Social Conversation, Behavior 2

If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.

If performance falls below the required standard, require the Contractor to perform remedial instruction at contractor expense.

Example: Reading Comprehension

PERFORMANCE REQUIREMENT	POSITIVE INCENTIVE	NEGATIVE INCENTIVE
*Reading Comprehension Module, Lesson 2* C.5.1.2.1 Recognition and Subject Matter Comprehension, Behavior 1	*If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.*	*If performance falls below the required standard, require the Contractor to perform remedial instruction at contractor expense.*
*Reading Comprehension Module, Lesson 2* C.5.1.2.1 Recognition and Subject Matter Comprehension, Behavior 1	*If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.*	*If performance falls below the required standard, require the Contractor to perform remedial instruction at contractor expense.*

Example: Quality of Supervision

PERFORMANCE REQUIREMENT

POSITIVE INCENTIVE

NEGATIVE INCENTIVE

C.4.4 Instructor Supervision.

If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.

If defects are greater than the maximum allowable standard for the month, the Government will increase oversight, and will require additional Contractor Quality Assurance monitoring.

Example: Documentation and Reporting Requirements

PERFORMANCE REQUIREMENT

POSITIVE INCENTIVE

NEGATIVE INCENTIVE

C.5.1.3 Student Testing: Administer standardized tests, gather required information on testing results, and analyze results.

If testing results exceed the minimum required standard for during that month, the Government may reduce oversight, or decrease the required frequency of reporting.

If testing results are below the minimum required standard for the month, the Government will increase oversight, and will increase the required frequency of reporting.

C.5.1.4 Student Progress Documentation and Training Recommendations.

If performance is above required minimum standard for the month, the Government may reduce oversight.

If performance is below the minimum required standard for the month, the Government will increase oversight, and will increase the required frequency of reporting at the Contractor's expense.

Example: Student Counseling

PERFORMANCE REQUIREMENT

POSITIVE INCENTIVE

NEGATIVE INCENTIVE

C.5.1.5 Counsel students on performance and recommending corrective actions, if required.

If performance exceeds minimum numerical standard, pay x% of monthly payment into pool. At end of [state period] pay Contractor amount in pool.

If performance is below the minimum required frequency for the month, the Government will increase oversight, and will require the Contractor to perform remedial counseling, or increase the frequency of counseling at the Contractor's expense.

Example: Materials and Equipment

PERFORMANCE REQUIREMENT

POSITIVE INCENTIVE

NEGATIVE INCENTIVE

Maintain Government-furnished or Contractor-furnished equipment and materials as required.

If performance is above numerical standard, details will be recorded on "past performance report card".

If performance falls below numerical standard, details will be recorded on "past performance report card".

Example: Facilities

PERFORMANCE REQUIREMENT	POSITIVE INCENTIVE	NEGATIVE INCENTIVE
Provide an maintain facilities for instruction as required.	*If performance is above numerical standard, details will be recorded on "past performance report card".*	*If performance falls below numerical standard, details will be recorded on "past performance report card"*



Last Updated: May 28, 1997 


TOP OF PAGE

PERFORMANCE BASED CONTRACTING FOR LANGUAGE TRAINING SERVICES

PERFORMANCE-BASED SERVICE CONTRACTING (PBSC) WORK STATEMENT

Table of Contents

Foreword

Definitions

Overview

Elements of Performance-Based Service Contracting

Introduction to the Work Statement For Foreign Language Training

Section C

C.1 SCOPE

C.2 DEFINITIONS

C.3 GOVERNMENT-FURNISHED PROPERTY AND INFORMATION

C.4 CONTRACTOR FURNISHED ITEMS

C.5 SPECIFIC TASKS

C.6 APPLICABLE DOCUMENTS

PERFORMANCE REQUIREMENTS SUMMARY: Model PWS for Foreign Language Training (Attachment 2)

PERFORMANCE INCENTIVES: Model PWS for Foreign Language Training (Attachment 3)

PERFORMANCE BASED CONTRACTING
FOR LANGUAGE TRAINING SERVICES

PERFORMANCE-BASED SERVICE CONTRACTING (PBSC)
WORK STATEMENT

PERFORMANCE REQUIREMENTS SUMMARY:
Model PWS for Foreign Language Training (Attachment 2)

PERFORMANCE INCENTIVES:
Model PWS for Foreign Language Training (Attachment 3)