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Performance/Output Based Specifications (POBS) - An introduction
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
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
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
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