Why Use Performance Based Contracting Performance Measure vs - PowerPoint PPT Presentation

Why Use Performance Based Contracting • Performance Measure vs Performance Based Contracting • Used to Achieve Agency Goals & Objectives • Outcome Based Service • Intended to Drive Contractor Behavior • Penalties Must be Reasonable: Number and Amount • Not Intended to Replace Contract Specifications • Documents, Cleanliness, Meetings, etc

Types of Performance Measures • Service Level Agreements (SLA) • Contractor Fully Responsible for Outcome • Typically Associated with Penalties or Incentives • Key Performance Indicators (KPI) • Contractor Partially Responsible for Outcome • Used to Measure Effectiveness without Penalties • Data Points • Measurement Worth Study and Evaluation • Could Become a KPI or SLA

Driving Contract Behavior (Example) • Scenario #1: Provide 10 SSP Vehicles Operating Between 6am-10pm • Contractor ensures 10 drivers are on roadway within operating hours • Scenario #2: Clear 90% of All Incidents Within 30 Mins • Hunting for Incidents: Scanning videos, technology, etc • Staging of SSP vehicles • Data Analytics (“HOT Spots”) • Agency relationships and operating agreements • Post incident analysis and continuous improvement • Individual Performance Measures

What Do We Measure