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