Category Archives: Definition

Definitions used within the field of Performance Based Contracting (PBC).

Supportability Performance Measures

Posted on Sat 31 Mar 2018 by Andrew Jacopino

“If you don’t understand how to run an efficient operation, new machinery will just give you new problems of operation and maintenance. The sure way to increase productivity is to better administrate man and machine.” Edwards Deming In earlier articles I … Continue reading →

Posted in Definition, Outcome, Performance Measure, the How | Tagged Key Performance Indicator, KPI, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance indicators, Performance Measure, performance measure hierarchy, performance measures | 1 Comment

Revisiting Performance Based Contracts vs. Outcome Based Contracts vs. Relational Contracts

Posted on Sun 11 Mar 2018 by Andrew Jacopino

When a man’s suit fits, when the construction is beautiful, when the sewing and fabrics are there… in the end, you’ll look the best in it. John Varvatos, American Designer In a previous article (see Performance Based Contracting vs Outcomes … Continue reading →

Posted in Behaviours, Definition, Outcome, the How | Tagged Outcomes Based Contracting, PBC, Performance Based Contracting, Relational Contracting | 1 Comment

Carrot and Stick (Part 2)

Posted on Fri 01 Jan 2016 by Andrew Jacopino

In part 1 of this article we spoke about the 2 types of approaches to incentives; Approach 1 being negative incentives (stick) and Approach 2 being positive incentives (carrot). We also introduced a behaviour called loss aversion which describes how … Continue reading →

Posted in Basis of Payment, Definition, the Why | Tagged Basis of Payment, PBC, PBL, Performance Based Contracting, Performance Based Logistics | Leave a comment

Performance Based Contract vs. Outcomes Based Contract vs. Relational Contract

Posted on Sun 06 Dec 2015 by Andrew Jacopino

My colleagues and I, probably like a number of you, have been to a number of presentations recently that have spoken about future of contracting being ‘outcomes’ based contracting. There are also a number of people talking about relational contracting. … Continue reading →

Posted in Behaviours, Definition, Uncategorized | Tagged behaviours, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance indicators, Performance Measure, performance measures, subjective performance measures | 1 Comment

PBC Penalty Shoot-Out!

Posted on Sat 25 Jul 2015 by Andrew Jacopino

In recent months I have been involved in a number of Performance Based Contracting (PBC) discussions between buyers and sellers. One consistent point of heated discussion is around the application of a reduction in seller payment as part of the … Continue reading →

Posted in Basis of Payment, Consequence Analysis, Definition, the How | Tagged Matt McDonald, negative incentive, PBC, PBL, penalty, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | Leave a comment

Objective vs Subjective Performance Measures

Posted on Wed 18 Mar 2015 by Andrew Jacopino

No sane person should believe that something is subjective merely because it cannot be settled beyond controversy . Hilary Putnam, American Philosopher In choosing ideal performance measures to be used in Performance Based Contracts (PBCs) there is much debate on … Continue reading →

Posted in Definition, Performance Measure | Tagged contractor performance, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Measure, performance measures, subjective performance measures | 5 Comments

Is Your Contract Fun?

Posted on Sat 21 Feb 2015 by Andrew Jacopino

Katherine Milkman, an associate professor at Wharton, University of Pennsylvania, starts her behavioural economics class with the following video. . Having watched this you may be wondering what this has to do with PBC? Let me explain. If you agree … Continue reading →

Posted in Behaviours, Definition, the Why | Tagged Behavioural Economics, Cass Sunstein, Choice Architecture, Katherine Milkman, Nudge, PBL, Performance Based Contracting, Performance Based Logistics, performance management, Performance Management Framework, Richard Thaler | 2 Comments

Defining a Performance Based Contract (PBC)

Posted on Mon 09 Feb 2015 by Andrew Jacopino

Over the past 12 months articles[1] have discussed the virtues of Performance Based Contracting (PBC), but may have led the reader to believe that PBCs are neither well understood nor used. This is not entirely true since forms of PBCs … Continue reading →

Posted in Definition, the What, Uncategorized | Tagged contractor performance, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | 5 Comments

Designing Successful Performance Based Contracts

Posted on Sun 25 Jan 2015 by Andrew Jacopino

Successful contracts deliver the desired outcomes of both the buyers and seller through a form of commercial construct. This is the classic “win-win” outcome that we all strive for. In Performance Based Contracting (PBC) our goal is the same; delivering … Continue reading →

Posted in Definition, the How | Tagged Ian Ayres, PBC, PBL, Performance Based Contracting, Performance Management Framework | 7 Comments

Measuring and Incentivising Sustainment in the Age of Asset Management

Posted on Mon 12 Jan 2015 by Andrew Jacopino

In the early 1990’s when various western defence organisations started outsourcing the sustainment of complex materiel[1] they focused heavily on measuring and incentivising the four related “ilities“; that is availability, reliability, maintainability and supportability. Through the “ilities” we make sure that … Continue reading →

Posted in Asset Management, Behaviours, Definition, Performance Measure, the How | Tagged Asset Management, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Measure, sustainment | 1 Comment