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Draft Report

Procuring, Managing, and Evaluating the Performance of Contracted TMC Services

There are several variables that may influence which management practices are appropriate for the various TMC services being outsourced.  This section provides a discussion on the relationships of management structure, TMC function, and contract type.  Each of the TMC functions is presented with guidance on management structure and contract types.

Daily TMC Operations

Management Structures

o

Could be handled by any of the structures: public managed, private managed, blended management, or on-call.   On-call contracts would be most appropriate for handling peak staffing loads.

Contracting Types

o

Performance-based contracting would be more amenable to private managed structure, as it provides the private sector more authority over the resources needed to meet performance goals.  Could also be accomplished through time and materials, cost-plus, or fixed-fee types of contracts.  

Hardware / IT Support

Management Structures

o

Could be handled by any of the structures: public managed, private managed, blended management, or on-call.

Contracting Types

o

The type of contract would be dependent on how much control the contracted agency/firm has over the equipment and network.  Performance-based and fixed-fee contracting would be difficult if the contracted agency/firm did not have control over this.  With the uncertainty of problems that would arise (i.e., hardware failures, communication failures, etc.) time and materials or cost-plus may be more appropriate.

Software Development and Maintenance

Management Structures

o

Could be handled by public managed, private managed, or blended management structures.  Not appropriate for on-call structure.

Contracting Types

o

The type of contract would be dependent on how well software requirements were written to reduce the risk in software design and development.  Performance-based and fixed-fee contracting would be difficult if the contracted agency/firm

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