DATE:

October 6, 2000

SUBJECT:

ACTION:  Performance-Based Service Contracting (PBSC) Program

FROM:


{original signed by}
The Deputy Secretary

TO:


Heads of Operating Administrations
Secretarial Officers
Director, Transportation Administrative Service Center


Last October, I designated PBSC as a ONE-DOT priority and included it in performance agreements with senior leadership.  I am pleased to note that the quarterly report data clearly indicates that there has been an increase in the use of the PBSC approach for the Department overall, and I applaud the strides you have taken to date.  However, the commitment to PBSC appears uneven throughout the Department and we have a lot of work ahead of us to meet our goals.

Each year, DOT contracts for over $1.5 billion in services.  Translate that into labor years and we are talking about a contractor work force of over 10,000 people.  Our goal of 80 percent of applicable service contract dollars and actions being PBSC by the end of FY 2004 is still in all DOT senior leadership performance agreements and I would like to see this goal flow down into performance agreements for all senior managers in the program, budget and procurement organizations.  This is a governmentwide initiative and everyone involved needs to understand how quality improvements, productivity increases and savings resulting from PBSC could help stretch limited budgets further in support of program activities.  Please provide your continued support to your PBSC Advocate and encourage your Advocate to have discussions with senior managers to expand the use of PBSC within their programs.

Thank you for your support and commitment towards the PBSC initiative.

cc:  PBSC Advocates