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OCR for page 9
Contents 1 SUMMARY 4 CHAPTER ONE INTRODUCTION Performance-Based Maintenance Contracting, 4 Problem Work Statement and Scope of Work, 4 Report Approach, 4 Key Issues, 5 Organization of Report, 6 7 CHAPTER TWO OVERVIEW OF PERFORMANCE-BASED MAINTENANCE CONTRACTING What Is Performance-Based Maintenance Contracting?, 7 Brief Overview of U.S. Experience, 7 Brief Overview of International Experience, 7 Reasons for Doing Performance-Based Maintenance Contracting, 9 Impediments to Performance-Based Maintenance Contracting, 9 Advantages and Disadvantages of Performance-Based Maintenance Contracting, 10 BenefitCost Framework, 10 Allocation of Risks, 13 Basic Steps of Performance-Based Maintenance Contracting, 13 Acquisition Process, 14 Types of Performance-Based Contracts, 14 Linkage Between Objectives, Measures, Measurement, and Performance, 15 Basic Categories of Measures, 16 A Few Good Measures Versus Many Measures, 17 Commonly Recognized Measures, 17 Maintenance Quality Assurance, 17 Example Measures, Measurement Procedures, and Standards Used in Performance-Based Contracting, 17 Establishment of Performance Levels, 18 Incentives and Disincentives, 18 Roles and Risks of Key Players, 19 Contractor Selection Criteria, 19 Internal Agency Support and Unions, 20 Partnering and Framework for Performance-Based Maintenance Contracting, 21 Monitoring and Evaluation of Contractor, 22 Training, 22 Contract Term and Renewals, 22 Maintenance, Resource, and Financial Management Systems, 23 Additional Observations, 23 Lessons Learned, 23 Evolution Toward Contracting Based on Customer-Driven Outcomes, 24 26 CHAPTER THREE INSIGHTS FROM LITERATURE Historical Context of Performance-Based Maintenance Contracting, 26 International Experience, 27

OCR for page 9
Domestic Experience, 33 Summary of Selected Performance-Based Maintenance Contracts, 38 Performance-Based Contracting in the Federal Government, 41 Basic Steps of Performance-Based Maintenance Contracting from the Federal Literature, 42 50 CHAPTER FOUR INSIGHTS FROM SURVEY Involvement in Performance-Based Maintenance Contracting, 50 Reasons for Not Doing Performance-Based Maintenance Contracting, 52 Plans, Performance Measures, and Targets, 52 Motivation for Performance-Based Contracting, 52 Market Research, Partnering, and Procurement, 52 Maintenance Quality Assurance and Benchmarking, 54 Examples of Performance-Based Maintenance Contracts, 55 Other Survey Questions, 58 Lessons Learned, 60 Contractual Provisions, 61 Agency Perception of Contractor and Feedback with Regard to Service and Price, 61 Private Sector Survey, 61 64 CHAPTER FIVE CONCLUSIONS AND FUTURE RESEARCH NEEDS 66 REFERENCES 70 BIBLIOGRAPHY 73 ABBREVIATIONS 74 GLOSSARY 78 APPENDIX A QUESTIONNAIRES 97 APPENDIX B SAMPLE PROCUREMENT AND CONTRACT DOCUMENTS 100 APPENDIX C EVIDENCE ON CHANGES IN LEVELS OF SERVICE AND COST SAVINGS