Sound judgment For Cleanups: Pay For Execution.


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Firm settled value set by offering or arrangement. Expert chooses, outlines the cleanup ... Arranged PFP costs are higher than focused offer costs ...
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Slide 1

Judgment skills For Cleanups: Pay For Performance William H. Foskett OUST/USEPA/HQ foskett.william@epa.gov 703 603-7153 December 5, 2000

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What\'s The Problem With T&M? Moderate to begin, moderate to pay, moderate to close Environmental impacts (MTBE) Business impacts (proprietor, expert) Too much printed material, too little cleanup Economic motivations are topsy turvy Financially erratic

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What\'s the Solution? PFP Pay-For-Performance (PFP) = sound judgment Buy, pay for what you need Buy, pay for pollution diminishments State staff concentrate on ecological results Consultant chooses, oversees innovation PFP rewards, clears route for advancement PFP monetary motivating forces are correct side up Makes cleanups unsurprising in value, time

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Basic Parts Of A PFP Deal Cleanup objectives (set before value) A firm settled value A period limit Contamination-lessening installments Escape provisos, walkaway security

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How PFP Works Site appraisal is a given, frequently done independently Cleanup objectives are set forthright, in the standard ways Firm altered value set by offering or transaction Consultant chooses, plans the cleanup framework Paid at Demo, 25%, half, 75%, Goal, Goal+2Q Prompt installment, 3 - 30 days, negligible printed material Tight estimation, bounce back arrangements Set departure conditions forthright; no change orders

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PFP Is Small Business Friendly For specialists Capital expense is recouped early Minimal printed material Progress installments are made essentially and rapidly Cash inflow surpasses payout amid a large portion of cleanup For webpage proprietor/administrators Price, time predictablility Common-sense terms Faster recuperation of monetary estimation of property

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Strict Application Of Core PFP Principles Is Key To Success Buy a spotless website, not only some perfect wells Set settled , particular tainting decrease objectives in advance Set a firm repaired value front Consultant outlines and runs the cleanup State concentrate entirely on natural results Pay immediately when sullying is diminished Share the money related danger by reasonable break provisions, walkaway insurance

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No PFP Failures, One Default Over 300 PFP cleanups are begun or finished Most PFP locales are on or in front of "calendar" No PFP disappointments, one default so far Several interruptions of offsite crest One endeavor to undermine estimation Several broken webpage evaluations

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Ways To Set PFP Prices: Negotiation Negotiated PFP costs are higher than focused offer costs But lower than T&M costs over long haul Because change-request expansion is abstain from Challenging to manage long haul Uncertain planning Potentially work serious for temporary worker and state

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Ways To Set PFP Prices: Competitive Bidding Open, aggressive offering cuts PFP cleanup costs 30% - half Buying defilement lessening, not proficient administrations Fast, reasonable to regulate

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Site Goals For PFP Cleanups Set however the state at present sets objectives Works with free item expulsion objectives Dovetails with danger based cleanup objectives Compatible with checked normal constriction

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Time Limits For PFP Cleanups Typically a few years May be longer (e.g., MTBE) May be set to achieve an interval objective May be adjusted to screen just destinations

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PFP In FY 2001: stop here Bill PFP National MTBE/Small Business Pilot Scale-up number of PFP locales in "deliberate" projects Strengthen tainting lessening estimation National Governors Association Much more information sharing by means of Internet

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