Performance Based Agreements

NASA has reduced the cost of the Space Shuttle program by approximately $350 million since GJ 90 using special contractual incentives. These incentives included special incentive charges, such as . B, premium fees for one-off fees and value engineering provisions. The premium fees for one-off costs are intended to encourage the contractor to innovate, implement cost management measures and cost-cutting measures that reduce operating costs while maintaining excellent performance. The bonus is gradually earned during the performance and is available in addition to all other fees available in the contract and only if the contractor receives an excellent performance rating for the bonus period. The amount of the royalty earned is based on a formula defined by the contract and no royalty can be earned during a period during which the actual cost of the contract exceeds the estimate. It is important to identify all the results of the tasks and partial tasks necessary for the contractor. If this is not the case, the result is incomplete or ambiguous contractual requirements, which may be difficult to enforce or result in misinterpretation of the contractor and poor performance. The following checklist is provided in the form of a guide that can contribute to the development of a performance-based call, contract or series of tasks and determine whether an existing request, contract or task can be properly considered performance-based. This checklist is not intended to measure contractors or to respect authority over the structuring of an acquisition. However, the further an acquisition deviates from compliance with the checklist, the more likely the Agency will be to achieve the benefits of improved contractor performance and a lower price that PBSC can offer. This technical guide provides the reasons for the use of results-based agreements (ABAs) and proposes the possibility of including results-based objectives and incentives in existing lending and grant agreements. This guide focuses on APPs for retail financial service providers, but some of this advice can also be applied to other non-retail projects.

Fixed-price contracts are suitable for services that can be objectively defined in the invitation and for which the risk of performance is manageable. For such acquisitions, defined benefit work returns, measurable performance standards and monitoring plans are appropriate. The contractor is motivated to find improved performance methods to increase profits. Note: This taxonomy is based solely on the structure of the agreements. All types of agreements mentioned above may exist not only between companies and health organizations, but also between companies and other types of institutions that constitute a health system, including government agencies or national authorities responsible for making coverage or pricing decisions and/or evaluating health technologies (HTA), regional health authorities, health care providers, etc.