PerformanceBased Contracting Considerations

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Performance-Based Contracting Considerations

• Sample Logistics and Project Metrics for
  consideration in a Systems Integration / COTS
  Software Implementation Program

EITK0604
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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

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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

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Contractor Incentives - Balanced Score Card
Official Logistics Scorecard
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Contractor Incentives - Balanced Score Card
Official Logistics Scorecard
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Contractor Incentives Project Based Metrics
Project Based
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Contractor Incentives Project Based Metrics
Project Based
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Contractor Incentives Project Based Metrics
Project Based
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Contractor Incentives Project Based Metrics
Project Based