Performance
Based Contracting
Performance based contracting
is not a new acquisition strategy, but a strategy
gaining increased interest and momentum due to government
mandates to meet schedules set by the President's
Management Agenda. Performance based contracting establishes
how a vendor's performance will be measured, how often
and by whom. With this performance based approach,
government agencies specify the outcome desired, with
contractors proposing solutions tied to performance
standards with associated incentives and penalties.
This acquisition
strategy must be understood by both government agencies
and contractors and has been meeting resistance as
well as failure due to a lack of sufficient skill
and knowledge in deploying this acquisition strategy.
P3S Corporation can help both government
and industry execute performance based contracts with
exceptional success by conducting risk assessments
and defining penalties; assisting with requirements
definition strategies; and establishing performance
evaluation criteria.
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