Tag Archives: Performance Based Logistics

Perverse Incentive Follow-up

In earlier articles (see Perverse Incentives – Part 1 and Part 2,  and Unintended and Perverse Outcomes) I discussed the importance of checking the Performance Management Framework (PMF) within your Performance Based Contract (PBC) to watch for perverse incentives.  Those … Continue reading

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Award Term – Part 3

Having described the both the key elements and operation of an Award Term in the previous 2 posts (see Award Term – Part 1 and Award Term – Part 2), to aid in our understanding I will now look at … Continue reading

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Award Term – Part 2

In the earlier post (see Award Term – Part 1) I looked at the key elements of an Award Term.  In this post let’s look at how the buyer determines whether to grant an Award Term to the seller. Award … Continue reading

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Award Term – Part 1

Central to the use of Performance Based Contracts (PBC) is the balancing of buyer needs with seller (contract) consequences, referring to the variety of commercial rewards and remedies that apply as part of a PBC and can include contract extension, … Continue reading

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Comparing Performance Across Cultural Divides

As part of teaching in the United Kingdom (UK) one of the attendees mentioned a common issue found in Performance Based Contracting (PBC); the wish to compare performance across cultural boundaries.  In this case the attendee mentioned their organisation was … Continue reading

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Perverse Incentives – Part 1

“Common sense is not so common.” Voltaire In a previous article (see Designing Successful Performance Based Contracts) I highlighted three tests for a highly successful Performance Based Contract (PBC).  These were: Does the PBC drives the right behaviour in the … Continue reading

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Happy 2018 Holidays to all the Performance Based Contracting (PBC) Blog Readers

2018 has been a remarkable year for Performance Based Contracting. During the past 12 months I have seen PBCs becoming more conventional and mainstream with many discussions within our contract and commercial communities.  Everything from the usual Defence and aerospace equipment … Continue reading

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