Frequently, building owners and managers outsource most if not all of the operation and maintenance (O&M) services for their building systems. Even companies, educational institutions, medical campuses and state, local & national government agencies with in-house O&M staffs often use outside service contractors to supplement their work. The research required to design and obtain a good O&M service contract, utilizing best business practices; incorporating corporate, legal and/or government regulations; and ensuring the contract is providing the most “bang for your buck” is often confusing and time-consuming.
Over the last decade and a half, performance-based service contracts have become the industry norm. In fact Congress has reformed the laws and policies that govern Federal acquisition requiring agencies use performance-based contracting methods to the maximum extent practicable. The basic intent of performance-based contracts is to describe a need in terms of what is to be achieved, not how it is to be done.
Performance-based service acquisition has many benefits. They include:
- Increased likelihood of meeting mission needs
- Focus on intended results, not process
- Better value and enhanced performance
- Less performance risk
- No detailed specification or process description needed
- Contractor flexibility in proposing solution
- Better competition: not just contractors, but solutions
- Contractor buy-in and shared interests
- Shared incentives permit innovation and cost effectiveness
- Less likelihood of a successful protest
- Surveillance: less frequent, more meaningful
- Results documented for Government Performance and Results Act reporting, as by-product of acquisition
- Variety of solutions from which to choose
Optimizing the benefits of performance-based contracts requires evaluation and analysis of current contracts, careful preparation of future contracts, attention to mission needs and desired outcomes, and an understanding of performance-based acquisition principles and procedures. FEA can enable you to get the highest level of service with the least administrative burden through the use of performance-based contracting. One of the most important first steps in this process is to fully understand what your contracting requirements are and evaluate how your current service contracts are aiding you in effectively and efficiently meeting those requirements. FEA has the knowledge of service contracts, operation and maintenance contracts and performance-based contracting to help you. Our services include contract reviews, contract re-writes, development of costs analysis, alternative recommendations to reduce current contract costs, suggestions to increase contract level of service, and determination of appropriate level of maintenance to improve reliability and system performance.
Our approach focuses on providing the most effective acquisition and contract administration strategies, methods, and techniques that best accommodate your organization’s requirements. FEA takes a holistic view of optimizing service contracts by investigating current conditions; developing and assessing alternatives to reduce current contract costs and provide suggestions to increase level of service and improve reliability; comparing alternate solutions and preparing cost/benefit analyses; and providing recommendations for implementing performance-based contracting principles and industry best-practices.