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Draft Report

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

response to motorist complaints,

provision of adequate numbers of trained staff to handle operational needs,

provision of trained and polite courtesy patrol workers,

establishment of good working relationships with management,

establishment of good working relationships with external partners, such as other agencies, cities, and state,

compliance with equal opportunity obligations,

quality control programs to reduce equipment failures,

Aaccess restriction of contractor personnel to designated areas,

TMC operator error monitoring, and

posting of the required bond provisions.

In accordance with general good practice in contracting procedures, it is recommended that contracts spell out explicitly what type of situations must be monitored, on what basis, what corrective actions are expected if parameters are exceeded, and what penalties will be assessed.

Mitigating Contractual Risks

Risks are an inherent part of the contracting process.  It should be recognized that risks occur on both sides of the table.  From the contracting agency perspective, a significant risk is that the contractor will not perform to the stated requirements.  Contractual language should be based on requirements, not expectations.  Agency expectations, if present, must be translated to requirements, with precise language, reporting needs, and a carefully considered set of metrics (performance measures) from which to perform an evaluation of the contracted services.

From the perspective of the contractor, risk also is an inherent part of the contracting process.  If performance requirements cannot be met with the estimated personnel, significant cost overruns can occur, leading to financial difficulties.  Under estimating the needs for tasks such as data collection, reporting, and other background work can impose a significant hidden penalty on the workforce necessary to perform the contracted service.

The opposite of risk is reward.  The reward of a well-written contract is a process that ensures that agency needs are being met in a cost-effective manner, which facilitates improvement in the system performance and agency efficiencies, as well as demonstrating good stewardship of agency resources.  One aspect to keep in mind throughout contract development is that in some instances, additional efficiencies may be realized if the contractor has a say in developing the evaluation strategy.  This essentially elevates the contractor to a partner, which can be a significant, but intangible, inducement for excellence in the performance of the contract.

Evaluation Measurement Matrix

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