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NCHRP Synthesis 389: Performance-Based Contracting for Maintenance (2009)
National Cooperative Highway Research Program Synthesis Program (NCHRPSYN)

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Hyman, William A, Transportation Research Board. "Lessons Learned." NCHRP Synthesis 389: Performance-Based Contracting for Maintenance. Washington, DC: The National Academies Press, 2009.

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Page
70
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Page
70
NCHRP Synthesis 389 - Performance-Based Contracting for Maintenance (1-1)
Transportation Research Board 2009 Executive Committee (2-2)
Performance-Based Contracting for Maintenance (3-3)
About the National Cooperative Highway Research Program (4-4)
About the National Academies (5-5)
NHCRP Committee for Project 20-5 (6-6)
Preface (7-8)
Contents (9-10)
Summary (11-13)
Report Approach (14-14)
Key Issues (15-15)
Organization of Report (16-16)
Brief Overview of International Experience (17-18)
Impediments to Performance-Based Maintenance Contracting (19-19)
BenefitCost Framework (20-22)
Basic Steps of Performance-Based Maintenance Contracting (23-23)
Types of Performance-Based Contracts (24-24)
Linkage Between Objectives, Measures, Measurement, and Performance (25-25)
Basic Categories of Measures (26-26)
Example Measures, Measurement Procedures, and Standards Used in Performance-Based Contracting (27-27)
Incentives and Disincentives (28-28)
Contractor Selection Criteria (29-29)
Internal Agency Support and Unions (30-30)
Partnering and Framework for Performance-Based Maintenance Contracting (31-31)
Contract Term and Renewals (32-32)
Lessons Learned (33-33)
Evolution Toward Contracting Based on Customer-Driven Outcomes (34-35)
Historical Context of Performance-Based Maintenance Contracting (36-36)
International Experience (37-42)
Domestic Experience (43-47)
Summary of Selected Performance-Based Maintenance Contracts (48-50)
Performance-Based Contracting in the Federal Government (51-51)
Basic Steps of Performance-Based Maintenance Contracting from the Federal Literature (52-59)
Involvement in Performance-Based Maintenance Contracting (60-61)
Market Research, Partnering, and Procurement (62-63)
Maintenance Quality Assurance and Benchmarking (64-64)
Examples of Performance-Based Maintenance Contracts (65-67)
Other Survey Questions (68-69)
Lessons Learned (70-70)
Private Sector Survey (71-73)
Chapter Five - Conclusions and Future Research Needs (74-75)
References (76-79)
Bibliography (80-82)
Abbreviations (83-83)
Glossary (84-87)
Appendix A - Questionnaires (88-106)
Appendix B - Sample Procurement and Contract Documents (107-109)
Appendix C - Evidence on Changes in Levels of Service and Cost Savings (110-117)

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OCR for page 70
60 UTAH DOT Type of Contract: Lump-Sum, Fixed Price for Rest Area Maintenance; disincentives for any service not meeting minimum performance standards. Scope: Statewide maintenance for rest area buildings and grounds. Contractor Selection Criteria: Price, experience, capacity Length of Contract: Base number of years Extension years Max. duration 2 3 5 Maximum award amount for base period plus extension(s) Max. base award Max. award base + extensions $3,300,000 $10,000,000 Performance Measures Measures Methods Targets Fresh smell Sniff air in rest room Janitorial Services No litter Look around rest room and in stalls No graffiti Observe rest area open times Open 24 hr/day Operation Observe if attendant is on duty during contract times 100% attendant coverage Steps of the Business Process to Carry out this PBMC Description of Action Who Does It? Publish RFP State Purchasing Division Receive written questions State Purchasing Division Put out addendum UDOT Maintenance Division Receive proposals State Purchasing Division Interview each company UDOT Maintenance Division Make selection UDOT Maintenance Division Notify contractor of award State Purchasing Division Receive performance bond UDOT Maintenance Division Contract is signed UDOT Maintenance Division Notice to proceed UDOT Maintenance Division Lessons Learned Agency needs to be specific on con- Threat of invoking disincentives Repairs under $500 are paid after the tract requirements and performance seems to have little effect on perfor- repairs are completed and documented. standards wherever possible. mance outcomes. Repairs are invoiced monthly. FIGURE 11 Information on UDOT's performance-based contracts for rest areas. · Hybrid contracts The responses to these questions appear in Table 24. · The ability of PBMC to foster innovation · The allocation of certain types of risk · The feasibility of incorporating PBMC in multiphase LESSONS LEARNED contracts · Simplification of contract administration Respondents were given an opportunity to provide up to · Cost savings three lessons learned regarding their experience with PBMC. · QC Table 25 presents the lessons various agencies offered. · Legal issues.