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4 Decision Framework
Pages 64-78

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From page 64...
... The outsourcing of management functions for planning, design, and construction activities by federal agencies is a strategic decision that should be considered in the context of an agency's long-term mission. Federal agencies should analyze the relationship of outsourcing decisions to the accomplishment of their missions before outsourcing management functions for planning, design, or construction activities.
From page 65...
... From this point on, federal agencies that provide management functions and private-sector organizations are both considered external organizations. In other words, the decision-making process for outsourcing to a public organization or a private organization is the same.
From page 66...
... / I Yes (Outsource) No / Ownership Yes No > ~ > \ ~ (Do not outsource ~ FIGURE 4-1 Decision framework for outsourcing management functions.
From page 67...
... · If outsourced, will the management function place unjustified and uncontrollable authority in the hands of one private provider over another? If outsourced, will the management function require the external organization to make the service delivery sufficiently proprietary to the point that the agency would be committed solely to that organization for future services?
From page 68...
... Should the management function remain under the direct control of the agency to avoid giving the service provider an unfair advantage over competitors for other functions or services in the project development cycle?
From page 69...
... Cost effectiveness can be determined by a comparative cost analysis of agency costs and those of other federal agencies or private-sector firms. A "major national study suggests that the cost of in-house service delivery is frequently underestimated by as much as 30 percent.
From page 70...
... · If the management function is outsourced on a constant, long-term basis, will a skill vacuum be created in the agency that would jeopardize its ability to conduct future oversight responsibilities? · Will the performance of the management function by an external organization increase the overall costs because of liability concerns or thirdparty fiduciary requirements?
From page 71...
... The committee recommends that federal agencies establish a responsibilities-and-deliverables) matrix to help eliminate overlapping responsibilities, provide accountability, and ensure that, as problems arise, solutions are effectively managed.
From page 72...
... 72 OUTSOURCING MANAGEMENT FUNCTIONS RESPONSIBILITIES-AND-DELIVERABLES MATRIX c~ O ~ 'o .o =E 0 O O ___ A P S S ii~ 1 : ~ ~ 0 ,o ~ ~ .m 0 ~ u' Programming Phase Project request Deliverables/responsibi lities package Conceptual Planning Phase Architect-engineer contracts Detailed requirements Design Phase Conceptual and schematic designs Permits Design development Construction documents Procurement Phase List of bidders and requests for proposals Proposals (submitted) Contract for construction Construction Phase Construction permits Construction management Construction work Final payment (construction complete)
From page 73...
... When management functions for facility acquisitions are outsourced, the principal measures of effectiveness of the entire program and of individual projects should relate to cost, schedule, and safety of the projects, as well as to the functionality and overall quality of the acquired facilities. Figure 4-3 is an example of a simple set of performance measures for individual projects comparing actual costs to estimated costs, actual schedules to estimated schedules, and absolute costs to the costs of similar projects.
From page 74...
... Baselines and Benchmarks If baseline levels of service have already been developed or can be developed empirically, comparing the measures and determining how well outsourcing meets the basic level of expectation should be straightforward. The committee recognizes that some federal agencies may not have baseline data on current or past performance relevant to facility programs.
From page 75...
... An agency that decides to outsource management functions for planning, design, and construction services should be prepared to develop and apply meaningful performance measures to determine if the agency is meeting its stewardship responsibilities. INTERAGENCY COOPERATION Federal agencies involved in facilities acquisition, whether as owners, users, and/or providers, operate in a dynamic environment.
From page 76...
... Once a decision has been made to outsource some or all of the management functions for facility acquisition, an agency should clearly define the roles and responsibilities of all entities involved. The committee recommends that federal agencies establish a responsibilities-and-deliverables matrix to help eliminate overlapping responsibilities, provide accountability, and ensure that solutions are managed effectively as problems arise.
From page 77...
... Federal agencies involved in facility acquisitions operate in a dynamic environment. Sharing lessons learned through networking can be an effective method of identifying best practices for facility acquisition and for outsourcing management functions.
From page 78...
... 1997. Establishing Performance Measures for Outsourcing Projects.


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