Performance
Based Service Acquisition (PBSA) is a quickly
growing concept that takes standard service
level agreements with supply chain and logistics
service providers to the next level by focusing
almost exclusively on the results of the
service being offered, and less on how that
result is achieved. It’s “pay
for performance” at a whole new level.
The
approach has been aggressively adopted by
the US Department of Defense over the past
few years, for example (See Raytheon
has to Deliver in Spare Parts Delivery Contract
for the Navy).
As
evidence of the growing interest in PBSA,
it was recently announced that the
University
of Tennessee,
in conjunction with the Defense
Acquisition
University,
has been chartered to identify commercial
best practices in Performance-based Service
Acquisition. The researchers are seeking
companies who have experience or emerging
best practices for procuring services through
a performance-based approach to participate
in the study.
The goal
of the research is to improve the adoption
of PBSA techniques for services within the
U.S. Department of Defense and to teach
DOD personnel how to be better customers
in order to achieve maximum benefit and
leverage from available commercial suppliers
of services.
The research
is fully funded by the U.S. Department of
Defense and there is no cost to companies
that participate outside of a one-day time
commitment to host a UT or DAU research
faculty member to interview key individuals
within the company who are associated with
the company’s performance-based service
acquisitions. In return for
participating, UT will provide a summary
report that shares all of the best practices.
Tools, techniques, and databases used within
individual companies will be kept strictly
confidential, as well as individual company
names/findings.
Companies
interested in potentially participating
should contact research team member Dr.
Karl Manrodt, Associate Professor of Logistics
at Georgia Southern University, at kmanrodt@georgiasouthern.edu
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