Skip to Main Content
Program Management Curriculum Hero Image

Performance-Based Contracting Course

Available Modalities:

  • e-Training
  • Public Classroom
  • On Site
  • Virtual Classroom
Delivery Method PDU Total Technical PMP/PgMp Leadership Strategy PMI RMP PMI SP PMI ACP PfMP PMI PBA
Instructor-Led Training 18 18 0 0 0 0 0 0 0
Virtual Instructor-Led Training 18 18 0 0 0 0 0 0 0
Delivery Method Instructor-Led Training Virtual Instructor-Led Training
PDU Total 18 18
Technical PMP/PgMp 18 18
Leadership 0 0
Strategy 0 0
PMI SP 0 0
PfMP 0 0
  • CEUs: 1.8

Service contracts have been widely criticized for being plagued by cost overruns, delays, and other problems. Performance-based contracting is increasingly being invoked as a means of overcoming these problems and ensuring value for money. Does the approach live up to its promise? It can—if it is properly employed.

This course demonstrates how to lay a solid foundation for any service contract by establishing a sound performance-based approach from the start. You’ll learn the critical steps to take in procurement planning and request for proposals preparation to implement the performance-based approach.

Emphasizing preparation of a performance-based work statement, the course focuses on the use of draft solicitations; team development of the work breakdown structure and task identifications; conversion of cost-plus requirements to fixed-price; use of incentives, deductions and penalties in connection with performance goals; and application of specific cost and performance measurement techniques, quality assurance surveillance plans and quality-related evaluation factors. You’ll learn to incorporate proven best practices in performance-based service contracting, and you’ll tackle issues in a hands-on environment emphasizing real-life, in-the-workplace skills.

If you are responsible for obtaining, pricing or administering service contracts, this course will help you achieve results. Our instructors have developed and managed performance-based contracts for both the government and industry. Their ability to teach the procedures and techniques required for performance-driven contracting will give you the perspective and detailed guidance you need to make this approach work for you.

  • Write performance work statements that clearly describe your requirements
  • Establish measurable, realistic standards of performance
  • Develop clear and solid evaluation factors that are tailored to the acquisition
  • Use incentives and penalties to your advantage
  • Use strategies, criteria and advantages for converting cost-plus requirements into fixed-price requirements
  • Develop and manage the PBA team — who should be involved, work breakdown and task identification
  • Evaluate performance results against performance standards

This course uses digital materials.

  • Policy on Contracting
    • OFPP requirements
    • Performance-based contracting
    • Specifications and work statements
    • Procurement planning
    • Contract interpretation
    • Teamwork in performance-based contracting
    • Elements in performance-based contracting
    • Draft PWSs and RFPs
    • Pre-solicitation announcements
    • Holding a pre-solicitation conference
  • Team Approach
    • Top management approach
    • Internal team
    • Program manager
    • Contracting officer
    • Technical and engineering personnel
    • Contract administrator
    • Budget and legal personnel
  • Market Research and Analysis
    • Previous sources
    • Industry marketing
    • Sources sought
    • Informational requests for proposal
    • Job Analysis
    • Work Analysis
    • Analyze the requirement
    • Develop the work breakdown structure
    • Performance analysis
    • Develop performance standards
    • Determine acceptable quality levels
    • Identify incentives
    • Create a performance requirements summary
    • Evaluation analysis
    • Establish performance measurements
    • cost estimation
  • Incentives and Deductions Penalties
    • Fixed-price and cost-type contract implications
    • Goals vs. performance indicators
    • Application to objective and subjective measurement standards
    • Myths
    • Best practices - OMB's Seven Step Guide
    • Innovations
  • Writing the Performance-Based Work Statement
    • Do’s and don’ts
    • Application of performance-based goals
    • Typical problems with PWSs
    • Steps in preparation
    • Legal writing requirements
    • Active voice statements
    • Task-oriented statements
    • Clear, concise wording
    • Precise terms
    • Measurement of outputs
  • The Quality Assurance Plan
    • Elements
    • Examples
    • Application