This page provides further information on Performance Based Contracting (PBC) through links to articles, papers, books and websites that I have found useful in my PBC Journal.
Please feel free to add your own favourites or let me know what you thoughts of these.
Why Use a PBC?
- BOYCE, J. and BANGHART, A., “Performance Based Logistics and Project Proof Point – A Study of PBL Effectiveness”, Defense AT&L: Product Support Issue, March-April 2012 (available at http://www.dau.mil/pubscats/ATL%20Docs/Mar_Apr_2012/Boyce_Banghart.pdf)
- Guajardo, J.A.; Cohen, M.A.; Netessine, S and Kim S-H “Impact of Performance-Based Contracting on Product Reliability: An Empirical Analysis”, July 2009, revised February 2010, INSEAD Working Paper No. 2011/49/TOM (available at SSRN: http://ssrn.com/abstract=1807049 or http://dx.doi.org/10.2139/ssrn.1807049)
- International Association for Contract & Commercial Management (IACCM) study into performance or outcome based contracts (available at http://www.iaccm.com/resources/?id=8541&cb=1434806417).
PBC / PBL Materials including manuals, handbooks, etc.
- Australian Defence Materiel Organisation (DMO) has a range of materials including a draft contract template (part of the Australian Standard for Defence Contracts (ASDEFCON) series) designed for the support of Defence materials available at http://www.defence.gov.au/dmo/DoingBusiness/ProcurementDefence/ContractinginDMO/ProductivityAndPerformanceBasedContracting/
- US Federal Acquisition Regulation (FARs) offer guidance on the polices and procedures for the use of Performance Based Contracting methods available at http://www.acquisition.gov/far/01-07/html/Subpart_37_6.html
- US Department of Defence (DoD) Acqusition Community Connection which is part of the US Defence Acquisition University (DAU) has a range of materials as part of it’s Performance Based Logistics Community of Practice (PBL CoP) available at https://acc.dau.mil/pbl
- US Whitehouse guide to best practices for Performance-Based Service Contracts (PCSBs) is available at http://www.whitehouse.gov/omb/procurement_guide_pbsc
- US Department of Energy’s guide to Performance Based Contracting is available at http://www.acquisition.gov/sevensteps/library/DOEpb-contracting.pdf
- World Health Organisation (WHO) guidance on Performance Based Contracting is available at http://www.who.int/management/resources/finances/Section2-3.pdf
- Principles and Practices of Public Procurement has a concise paper on Performance Based Contracting (PBC) available at http://principlesandpractices.org/wp-content/uploads/2013/04/PerformanceBased.pdf
- US Department of Defense Product Support Business Case Analysis (BCA) Guidebook is available at https://acc.dau.mil/bca-guidebook
Behavioural Economics
“Nudge: Improving Decisions About Health, Wealth, and Happiness” by Thaler and Sunstein is a fabulous book which coined the phrase “choice architecture” and describes how we can “nudge” individuals and groups; a must read if you are serious about using behavioural economics in Performance Based Contracting (PBC)
“Carrots and Sticks: Unlock the Power of Incentives to Get Things Done” by Ayres which is the book that describes the concept of disabling and guiding choice which is central to the Performance Based Contracting concept of escalation (see my post on Designing Successful PBCs)
“Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions” by Ariely
“Sway: The Irresistible Pull of Irrational Behavior” by Ori Brafman and Rom Brafman (Author)
“Misbehaving – The making of Behavioural Economics”, by Richard Thaler is a fantastic new book (2015) which describes a variety of the important facts in behavioural economics and the history of how they evolved from traditional economics. Similar to Nudge, a must read if you are serious about using behavioural economics in Performance Based Contracting (PBC)
Reliability, Availability and Maintainability (RAM)
“Practical Reliability Engineering”, 5th Ed., by O’Connor and Kleyner provides a great summary of both the theory and practice of RAM engineering while also providing guidance on organisational processes; my go to RAM book for RAM practicses
“An Introduction of Reliability and Maintainability Engineering”, 2nd Ed., by Ebeling provides a great summary of RAM mathematics including many worked examples; my go to book for RAM maths
