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Draft Report

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

The overall TMC goal for monitoring contracted services should be to ensure quality and to manage/reduce costs.  Monitoring can also be used to establish result-based payment schedules.  In essence, a monitoring program supports the determination of the following ‘big-picture’ questions in assessing contractor performance.

Are we accomplishing the desired end result from this contract?

Are they meeting the performance goals established for the contract?

Are tasks being carried out with an appropriate level of quality, timeliness, and reliability?

Are we meeting our contracting goals?

Are we operating efficiently?

Are we operating cost-effectively?

In general, when a good monitoring program is achieved occurs, a TMC can achieve the following:

Increase their likelihood of meeting mission needs;

Focus on the intended results, not the process;

Provide better value and enhanced performance;

Reduce performance risk;

Provide for better competition and contractor flexibility in proposing solutions.

The Performance Measurement Process

In terms of evaluating a contracted service, the overall evaluation typically will focus on three main areas:

Identifying compliance to the contract terms,

Identifying variations in quality and the associated impacts, and

Identifying if the contracting agency is satisfied with the service.  

The underlying support mechanism to these evaluation points is the actual performance measurement process.  Establishing the process is what allows the TMC to create a fair, rigorous, and transparent evaluation mechanism for contracted services.  The process can typically be formalized in nine steps, as identified below.

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