1. Performance/Output-Based
Specifications
Presented by
Christine Storry – PIPEN Project Manager
South West England

2. Sustainable Procurement –
to recap

3. Performance/Output
Based Specifications
Also known as
Outcome-based specifications
They are not…
Input specifications

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. Key Characteristics (1)

6. Key Characteristics (2)

7. Key Benefits

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. 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. South West England
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