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Performance/Output Based Specifications (POBS) - An introduction

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This presentation aims to explore and explain Performance / Output Based Specifications (POBS) for Performance Based Contracting, reporting successful practices and outlining benefits and potential challenges.

Presented by Christine Storry - PIPEN Project Manager

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Performance/Output Based Specifications (POBS) - An introduction

  1. 1. Performance/Output-Based Specifications Presented by Christine Storry – PIPEN Project Manager South West England
  2. 2. Sustainable Procurement – to recap
  3. 3. Performance/Output Based Specifications Also known as Outcome-based specifications They are not… Input specifications
  4. 4. POBS • Results-orientated • Focus on – Outputs – Outcomes – Quality • Achievement of specific and measurable performance standards/requirements • Could include monetary and/or non-monetary incentives and disincentives • Specify what needs to be achieved; not how to achieve it • Key to achieving innovation • Market suggests optimum way to meet need
  5. 5. Key Characteristics (1)
  6. 6. Key Characteristics (2)
  7. 7. Key Benefits
  8. 8. 12 Key Steps  Stakeholder engagement and understanding  Identify suitable POBS candidate  Create a team  Context of the tender  Develop the performance specification  Learn from others  Market engagement strategy  Establish performance metrics  Identify incentives/disincentives  Use all of the above to develop tender  Supplier selection  Post-award management
  9. 9. Key Challenges • Lack of clear direction from leaders • Defining appropriate incentive systems • Integrating sustainability objectives • Potentially requiring specialised input – Developing specifications – Evaluation • Undertaking/managing risk • Potentially reducing competition • Lack of baseline data • Intellectual property rights
  10. 10. South West England © 2017, UWE Bristol www.uwe.ac.uk

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