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Performance-Based Contracting Considerations

Performance-Based Contracting Considerations. Sample Logistics and Project Metrics for consideration in a Systems Integration / COTS Software Implementation Program. EITK0604. Contractor Incentives – Basic Rules. Outcome must be tied to performance standards

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Performance-Based Contracting Considerations

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  1. Performance-Based Contracting Considerations Sample Logistics and Project Metrics for consideration in a Systems Integration / COTS Software Implementation Program EITK0604

  2. Contractor Incentives – Basic Rules • Outcome must be tied to performance standards • Standards should be used instead of clauses • Contract line items are based on performance standards • Standards describe required service or outcome and payment associated with performance outcome

  3. Contractor Incentives – Standards Development • Determine types of standards appropriate for the risk and reward inherent in program mission and operational requirements • For programs with schedule as critical factor, performance standards tied to timeliness of delivery • For programs that seek efficiency outcomes, • Tie payment to overall cost savings compared to old system. E.g.. Dept of Ed used “share-in-savings” or • Tie payment to improved amount of sales/revenue generated • For programs that seek increased effectiveness outcomes, tie standards to quality of deliverables or quality of service

  4. Contractor Incentives - Balanced Score Card Official Logistics Scorecard

  5. Contractor Incentives - Balanced Score Card Official Logistics Scorecard

  6. Contractor Incentives – Project Based Metrics Project Based

  7. Contractor Incentives – Project Based Metrics Project Based

  8. Contractor Incentives – Project Based Metrics Project Based

  9. Contractor Incentives – Project Based Metrics Project Based

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