36C26120Q0369-001.docx

Statement of Work – Palo Alto Health Care System Lean Six Sigma Consultant Services

1. PROJECT TITLE: Lean Six Sigma (LSS) Consultant Services to further develop VA Palo Alto Healthcare System’s (VAPAHCS) Lean Management System branded as the Service Improvement Model.

2. BACKGROUND: VAPAHCS has been on a eight-year lean journey focused on implementing a management system as a standard for how business is conducted throughout the healthcare system. The progression has been to start with project and value stream work and then a focus on building the daily management system.The purpose of this task order is to further the development of VAPAHCS’s Service Improvement Model (SIM). Consultant services are required to assist in the development and execution of the SIM roadmap which will guide the next evolution and continued deployment of SIM.

3. SCOPE

VAPAHCS requires expert consultant services in the areas of executive coaching for organizational performance, development, deployment, and management of strategic initiatives, and maturation of the existing lean management system. Consultants must be flexible to adapt to changing needs of the healthcare system and potential changes to the SIM roadmap.

I. Service Improvement Model (SIM) Overview:

The organization has been focused on implementing a lean management system for the past 8 years and has recently transitioned to Lean Six Sigma in order to become a more data driven organization capable of higher quality root cause analysis. The organization is still fairly novice in the following areas:

· Hoshin planning and goal deployment

· Value Stream management

· Daily performance management

II. Program Descriptions:

Lean Senseis will provide in-house facilitative skills, and Executive and Mid-Level mentoring and training, serving to guide and support deployment of SIM.

The contractor will provide hands-on technical training and mentoring to advance SIM. This is accomplished via an Executive Level Sensei and a Mid-Level Sensei.

A. Executive Level Sensei – The executive level sensei is the principle mentor for Healthcare System Leadership.

1. Primary goals and objectives are to:

a. Enhance Leaderships’ understanding of Lean Six Sigma and their critical role in implementing it throughout the organization.

b. Develop strategic alignment of organizational improvement and resources, and establish the requisite deployment structures. The executive sensei facilitates the enterprise level strategic improvement plan guiding the Leadership team to design, execute, and monitor improvement efforts including development of the SIM Roadmap. The sensei teaches Executives to understand the technical components of LSS so they can hold the rest of the organization accountable for implementation. The sensei teaches and then coaches the Executive Team members direct modeling and transmission of central Lean Six Sigma tenets B. Executive Coaching: Will provide at least 1 hour per week of individual coaching for each member of the Executive Team (7 members). This is in addition to coaching executives on specific improvement initiatives that may be identified at the enterprise level.

C. Mid-Level Sensei – The mid-level sensei facilitates and supports the direct transfer of LSS skills through facilitation and implementation of Rapid Process Improvement Events/Workshops/Projects, and Value Stream Analysis.

1. Primary goal is to enhance the knowledge, understanding and application of LSS principles and tools to front line staff, mid-level managers, and improvement staff.

D. Executive and Mid-Level Sensei Collaboration

1. Senseis work collaboratively sharing information, materials, data, and conversations pertinent to successful deployment of the SIM throughout the healthcare system.

2. Sensei work collaboratively with the Chief, Office of Quality, Safety (QSV), and Value and Director, Office of Process Improvement (OPI)

3. Any issues or concerns impacting SIM deployment or where guidance is needed, senseis will contact the Chief, QSV

III. Scope of Work:

Contractor shall provide all labor, supervision, and other resources required to provide on-site facilitation, education, coaching, and mentoring support in order to further the deployment of SIM in accordance with this Statement of Work at the VA Palo Alto Health Care System. All services should be provided in person. Contractor will provide Executive-Level and Mid- Level Sensei personnel.

Concepts used by the contractor must align with the SIM model of lean at VAPAHCS and must be able to adapt content, materials, trainings, etc. to align with SIM language, terminology and standards.

Tasks Include:

Teach, mentor and use Lean Six Sigma analytical and modeling tools using software tools such as SPC XL, SPSS Analytics:

· Value Stream Mapping

· Quality Functional Deployment

· Probability

· Total Productive Maintenance

· Correlation and Regression Analysis

· ANOVA

· Kano Analysis

· Failure Mode and Effects Analysis

· Basic and Intermediate Design of Experiment

· Parametric and non-parametric statistics

· Measurement System Analysis

· Design for Six Sigma

· Rapid Process Assessment

· ROI

· Control charts

· Process Performance Teach, mentor and use Lean Six Sigma process design for Value Stream or Process Improvement:

· Value Stream performance improvement

· Pull Systems / one-piece flow

· First time quality

· Error-proofing / poka yoke

· Set up reduction time

· Reduction in change over time

· Heijunka

· Critical Change Project Management

· Sustainment of improvement using a management system

Training and coaching Executive Team members on their role in a Lean Six Sigma organizational transformation:

· Demonstrated experience in implementing Change Management techniques for LSS transformation

· Demonstrated experience in training and coaching Executive team members in leading LSS transformation

· Hoishin planning and Goal Deployment

· Coaching and positioning OPI and QSV leaders to coach Executive Team members

· Provide 1 hour per week of individual, on-site coaching for each member of the Executive Team (7 members/ 7 hours)

Train and coach the internal LSS consultant office (Office of Process Improvement OPI):

· Training, mentoring and certifying internal LSS staff to Black Belt and then Master Black Belt certification

· Mentoring internal LSS staff to develop KPIs and process standards

· Teaching, mentoring internal LSS staff to consult/assist with Goal Deployment

· Consulting on LSS deployment plan (in this case SIM Roadmap)

Provide facility wide LSS Black Belt Training:

· Training, mentoring and certifying all levels of staff to Black Belt certification. Ensuring any LSS training program incorporates the local methods and standards (in this case SIM)

A. The contractor shall alert Chief QSV of any events or emergencies impacting the fulfillment of duties or impacting a scheduled site visit as soon as it is known. Communication must be via telephone and not via email communication.

B. The contractor shall hold Monthly status meetings with Chief QSV to discuss the Monthly Status Report. The contractor shall keep minutes of monthly meeting and distribute for participant review no later than seven (7) calendar days after the meeting.

C. The contractor shall obtain electronic copies of documents generated during improvement work (e.g. A3s, Standard Work, planning documents and progress reports etc.) and upload to QSV sharedrive.

D. Transition-Out: The contractor shall facilitate a seamless transition from the incumbent to an incoming contractor or Government personnel at the expiration of the Task Order. This will be in the form of a formal document identifying each area of work, progress of the work, and plans for transition.

IV. Period of Performance:

The Performance Period of this Task Order is for one Base Period of twelve (12) months plus 4 option years after award of the Task Order. Exact period of performance is determined at award of the Task Order.

V. Contractor Key Personnel Requirements:

A. Contractor shall use no more than one (1) key personnel individual to provide Executive and three (3) key personnel individual Mid-Level Sensei support at this site. When practicable, the same individual will provide Executive or Mid-Level Sensei services throughout the period of performance.

B. Sensei Personnel for performance of this contract must demonstrate the following:

1. Preferred five (5) years of applying LSS in healthcare organizations.

2. Minimum of ten (10) years experience facilitating large-scale enterprise level LSS transformation.

3. Experience and ability to successfully teach Lean Six Sigma course materials to all levels of student knowledge and experience (beginning, intermediate, and advanced) to achieve course objectives.

4. Ability to plan, multi-task, and deliver services on schedule; ability to provide on-site support for work.

5. Contractor employees shall abide by the rules and regulations concerning the maintenance of personal standards for instructor integrity, grooming, conduct, speech, and fraternization.

6. Contractor employees must be able to write and speak in clear English so as the employees can be clearly understood by Government personnel.

7. Contractor employees shall present a professional appearance at all times and their conduct shall not reflect discredit upon the United States, the Department of Veterans Affairs (DVA), its policies, leadership or staff.

8. PERFERRED REQUIREMENT: Master Black Belt level certification (preferably from an American Society for Quality accredited institution)

Contractor must demonstrate the following experience and success for both the Executive and Mid-level senseis:

Demonstrated experience and success in applying Lean Six Sigma analytical and modeling tools using software tools such as SPC XL, SPSS Analytics:

· Value Stream Mapping

· Quality Functional Deployment

· Probability

· Total Productive Maintenance

· Correlation and Regression Analysis

· ANOVA

· Kano Analysis

· Failure Mode and Effects Analysis

· Basic and Intermediate Design of Experiment

· Parametric and non-parametric statistics

· Measurement System Analysis

· Design for Six Sigma

· Rapid Process Assessment

· ROI

· Control charts

· Process Performance

Demonstrated experience and success in implementing Lean Six Sigma process design for Value Stream or Process Improvement:

· Value Stream performance improvement

· Pull Systems / one-piece flow

· First time quality

· Error-proofing / poka yoke

· Set up reduction time

· Reduction in change over time

· Heijunka

· Critical Change Project Management

· Sustainment of improvement using a management system

Demonstrated experience and success in training and coaching Executive Team members on their role in a Lean Six Sigma organizational transformation (Executive level sensei only)

· Demonstrated experience in implementing Change Management techniques for LSS transformation

· Demonstrated experience in training and coaching Executive team members in leading LSS transformation

· Hoishin planning and Goal Deployment

Demonstrated experience and success in training and coaching the internal LSS consultant office (Office of Process Improvement OPI):

· Training, mentoring and certifying OPI staff to Black Belt and then Master Black Belt certification

· Positioning OPI to move into Executive Coaching role

· Mentoring internal OPI staff to develop KPIs and process standards

· Teaching, mentoring OPI staff to consult/assist with Goal Deployment

· Consulting on LSS deployment plan (in this case SIM Roadmap)

Demonstrated experience and success in training facility wide LSS Black Belts:

· Training, mentoring and certifying all levels of staff to Black Belt certification

C. Ensuring any LSS training program incorporates the local methods and standards (in this case SIM)The Government may, at its sole discretion, direct the contractor to remove any contractor employee from performance of this contract. Removal does not relieve the contractor of the responsibility to continue providing the services required under this task order. Within seven (7) calendar days, the Contracting Officer (CO) will provide the contractor with a written explanation to support any request to remove an employee. Any personnel the contractor offers as substitutes shall have the ability and qualifications equal to or better than the key personnel that are being replaced.

D. The contractor agrees that the key personnel shall not be removed, diverted, or replaced from work without approval of the CO. Any personnel the contractor offers as substitutes shall have the ability and qualifications equal to or better than the key personnel that are being replaced. Requests to substitute personnel shall be approved by the CO. All requests for approval of substitutions in key personnel shall be submitted to the Chief, QSV and the CO within 30 calendar days prior to making any change in key personnel. The request shall be written and provide a detailed explanation of the circumstances necessitating the proposed substitution. The contractor shall submit a complete resume for the proposed substitute and any other information requested by the CO needed to approve or disapprove the proposed substitution. The CO will evaluate such requests and promptly notify the contractor of approval or disapproval thereof in writing.

VI. Lean Management System Core Materials:

A. SIM orientation and training will be provided to selected contractor through a variety of methods including but not limited to face to face orientation and printed/electronic materials. Access to all materials including Lean educational presentation materials, forms, templates, Lean event specific materials, agendas, and any Lean training supplies will be provided to the contractor by QSV.

VII. Contract Deliverables:

1. Contractor will provide 30 days (240 hours) of consulting services per month on average not to exceed 2,880 hours per contract year. Exact number of hours used per month will be decided in agreement with the QSV Chief based on predicted activities at the beginning of each month and reconciled the following month.

2. Monthly Status Report – Due 5 business Days after close of the month. Contractor will provide an overall Project Work Plan that includes current state assessment and planning, work redesign, and milestones for implementation. Status during reporting period (Note: Include documentation of activities performed i.e. Meeting Minutes, Class Evaluations and Rosters, RPIE/RPIW materials or minutes, etc.)

1) Ongoing Activities

2) Completed Activities

3) New Activities identified

4) Reports Number of hours billed

5) Predicted number of hours and activities for the following month

6) Problems and Corrective Actions Taken (include potential issues or concerns with proposed resolutions)

7) Changes in Personnel, to include Security Clearance

8) Government actions required

9) Progressed SIM Schedule

Upon completion of events listed in the table below, contractor shall include the deliverable(s) listed for that event in the Monthly Status Report for that reporting period.

Special Delivery Instructions:

1. Instructional Material: All materials shall be provided in softcopy and hardcopy format.

1. Softcopy format: Softcopy materials shall be in Microsoft Excel, Microsoft PowerPoint, or Microsoft Word format.

1. Hardcopy format:

0. The material shall be legible (especially tables and figures).

0. Materials shall be provided in compact, durable formats (for example, double sided when possible).

3. Transition-Out Plan / Close Out Report – Due 30 calendar days prior to expiration of Task Order

a. The Transition-Out plan shall demonstrate how the contractor will coordinate with an incoming contractor for a seamless transition that provides for minimal disruption of the SIM activities ongoing.

b. The Transition-Out plan will address the following at minimum: i.History and background of the site lean journey

ii. Project Management Processes

iii. Points of Contact

iv. Location of Technical and Project Management documentation

v. Status of ongoing Technical Initiatives and historical perspective of all initiatives

vi. Value Stream Schedules and Milestones

vii. Government actions required

VIII. Travel:

VAPAHCS is comprised of 11 sites within commuting distance. Services will primarily be provided at the main campus in Palo Alto, CA. Travel to other sites may be required as part of this contract. Travel would be limited to less than 15% of the time. Contractor is responsible for travel to VAPAHCS sites to provide consulting services as required by this contract.

IX. Security:

Contractors will require access to VA facilities and VA network systems for performance of duties and will be required to obtain a VA Personal Identity Verification (PIV) card.

HSPD-12 directs all federal agencies and departments to issue identity cards to provide government workers, contractors, and affiliates with a credential that provides the attributes of security, authentication, trust, and privacy and can be used to verify identities in order to enter federal buildings or gain access to federal computer networks.

PIV Cards may be issued to employees, contractors, and affiliates, including foreign nationals, who have a verified need to access VA physical and/or logical resources for a period of more than 180 concurrent or aggregate days in a 365 day period and require unsupervised access to VA facilities or information systems.

All contractor employees who require access to the Department of Veterans Affairs’ computer systems shall be the subject of a background investigation and must receive a favorable adjudication from the VA Office of Security and Law Enforcement prior to contract performance. The contractor must take the required TMS training to get access to the computer system. This requirement is applicable to subcontractor personnel requiring the same access.

1. Position Sensitivity – The position sensitivity has been designated as Low Risk.

2. Background Investigation – The level of background investigation commensurate with the required level of access is a National Agency Check with Written Inquiries.

3. Contractor Responsibilities -

a) The contractor shall prescreen all personnel, to include non-U.S. Nationals requiring access to the computer systems to ensure they are able to pass the Special Agreement Check, and are able to read, write, speak and understand the English language. The term “United States National” includes both U.S. Citizens and U.S. non-citizen nationals (i.e. American Samoans).

b) The contractor shall submit the following information to the CO within 5 days of receipt of contract award:

c) (i) Applicant’s full name to include complete middle names

(ii) SSN

(iii) Date of birth (DOB) and place of birth to include city, state, country

(iv) Occupation

(v) Email address of company’s POC to send results and resolve issues

d) The contractor, when notified of an unfavorable determination by the Government, shall withdraw the employee from consideration from working under the contract.

e) Failure to comply with the contractor personnel security requirements may result in termination of the contract for default.

f) The required TMS training for computer access is: Privacy and HIPAA training, VA Privacy and Information Security Awareness and Rules of Behavior.