This research paper will discuss what Performance-Based Contracting is, who are the people involved in Performance-Based Contracting process, and the purpose of using Performance-Based Contracting. Performance-based contracting or performance-based acquisition is the fundamental process of how the federal government does business with the private sector also known as contractors. When it comes to the Department of Defense (Dodd) they have adopted a whole philosophy behind performance-based acquisition in order for the government to get the best contractor able to fulfill the requirements of the contract and at a fair price for the contract requirements. This is all done by a team of people that handle the whole process of the contract from the cradle to the grave so to speak. “Performance-based contracting will help to correct problems commonly associated with services contracts and identified in numerous audits, including cost overruns, scheduled delays, failure to achieve specified results, and other performance problems.” (McKinzie & Philpott, 2010, p. 19) With this in mind one has the team has to set the wheels in motion before a Request For Information (RFI) or a Request For Proposal (RFP) can be issued and offers entertained. For the performance-based acquisition to have merit and be considered worthy as acquisition requirement, the document should have some basic requirements so the potential contractor is aware of what is expected of them and how they can accomplish the requirements set out. • The performance work statement (PWS) is the guideline by which one should operate. It is the yard stick that the contract can use to ensure they are meeting the requirement and achieving the results expected. • Measurable perfor... ... middle of paper ... ...es the contract and will determine the acquisition that will take place. The types of contract requirements can determine the type of contract that will be assigned to the acquisition process. The contracting team will determine what type of contract best suites the requirements from the project manager. This can be Firm-Fixed Price, Previously Acquired Services, Cost Reimbursements, Time and Material/Labor Hour. Each of which have unique aspects that the CO should advise which one to select. In closing, this research paper will discuss what Performance-Based Contracting is, who are the people involved in Performance-Based Contracting process, and the purpose of using Performance-Based Contracting. There is much more in depth information to this process at details all aspects, this is a general view of what the process is and a basic understanding of how is works.
Based on the textbook and my understanding, whenever there are negotiations between a procurer and a supplier regarding a competitive bidding, the first thing that might be favored is the scope of the project, meaning both will sit down and discuss the entire project prior the work begins. Meanwhile, during the negotiations, evaluation criteria should be clear, and stated and defined. As the evaluation is based on the criteria stated and the procurer can request or ask the supplier’s opinions on certain specifications and where things can be improved.
The preference for a Firm Fixed type contract is influenced by various factors other than the huge costs associated with other types of contracts. One of the major factors contributing to this preference is the significant increase in federal obligations in other types of contracts. This increase is coupled with the lack of a clear and complete picture of the use of cost-reimbursement contracts by the federal government. Actually, a considerable increase in federal obligations has been reported for contracts involving the use of combination strategies. Secondly, the government seems to prefer Firm Fixed type contract because of the recent decision to remove the use of combination strategies. This decision was made as part of initiatives to enhance the effectiveness of all new contract awards from the beginning of the 2010 financial year (“Extent of Federal Spending”, 2009). Third, preference for a Firm Fixed type contract was brought by the difficulties in determining rationales for using other types of contracts.
The performance bond protects the general contractor (obligee on a subcontract bond) from losses in the event that the subcontractor fails to perform the contract. The payment bond guarantees that the subcontractor will pay their workers, subcontractors, and materials suppliers and that the project will be a lien free project. Requiring performance and payments bonds from your subcontractors transfers the risk of a subcontractor’s non-performance and non-payment to the surety
In the following, we review some of the important contracts found in recent supply chain literature, the significant assumptions made while deriving the different contract types, the practical use and limitations of each type of contract. Through this section, we aim to develop an essential vocabulary of the state of the art in supply chain contracts and to use this knowledge to develop optimal, coordinating contractual structures for the problems in this dissertation.( Cachon et al. (2003)).
International City Management Association. Service Delivery in the 90's: Alternative Approaches for Local Governments: Washington D.C.: International City Management Association, 1989.
The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit.
It provides performance improvement practitioners, performance technology consultants, human resource specialists, quality leaders and others interested in improvement with framework foe accountability and integrity. It is based on RSVP – the four essentials for successful performance improvement practices and the first four performance technology standards:
P&G uses the W&DP in giving performance appraisals. The employee and his immediate superior agree on the work and development plan for the next year. The W&DP document is reviewed on a quarterly basis to monitor the employee’s performance. In order to manage compensation and career progression competitively based on performance, P&G uses ratings to assess employees relative to another employee at the same job
According toMusau (2015), procurement performance entails how well organizational procurement objectives have been attained. The extent to which procurement function is able toobtain best value for spent organizational money to purchase products and services is the best indicator of procurement performance. Procurement performance entails two major aspects that is;efficiencyandeffectiveness. Effectiveness in procurementis essentially the extent to which previously stated firm purchasing goals and objectives have been met, on the other hand, procurement efficiency is the associationthat exists between planned and actual required resources needed to realize formulated goals and objectives as well as their related activities.Effectiveness in procurement
In general, there are different types of procurement type for various situations, due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, which will be advised to use. However, each method has different advantages and disadvantages. First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project. There are several advantages of this traditional route in the construction industry.
...e steps that are required to be addressed while coming to deal with vendors. The Proposed idea, looks satisfactory in meeting the outcomes. One thing that should be ensured is that they should incorporate the clauses pertaining to risk in the plan.
Performance management is a process that guarantees an organisation and all of its available resources are working collectively and effectively towards achieving the organisation’s mission or goal. Performance management affords an understanding of what drives an individuals, and even organisations, performance at all levels. An understanding of performance management allows for the identification and minimisation of unproductive areas of an organisation, as well as an ability to predict future performance. It is a powerful tool that can be used by managers at all levels of an organisation to help improve a company’s productivity.
Generally, people have undisputed faith in travelling to their destinations by plane. However, terrible incidents can happen; may it be an emergency landing in waters or a plane that crashes into the World Trade Center in New York, people then start to feel anxious to fly. Due to this fact, many cancelled their flights to the US in September 2001 after the terrorist attack. The following questions thus arise: Is it even possible to cancel a flight based on “uncertainty” and will the ticket be refunded?
The acquisitions process starts from obtaining the necessary raw materials to make a product and ends with the delivery of the product to the buyer. Acquisition and Supply Chain Management encompasses activities such as contract administration, product procurement and manufacturing, and logistics.
This makes all employees across all divisions equal when it comes to performance and development planning. Also, by implementing categories for each employee, supervisors can use the scoring system to see exactly where gaps and weaknesses are in the team. Once gaps and weaknesses are identified, performance and development planning can be constructed accordingly. Basically the new performance management system allows supervisors of the organization to identify, address, and resolve any sort of employee performance issues or concerns. This can lead to higher buy-in of the organization, and an increase in overall