How to share
- By Michael Hardy
- Jul 12, 2004
A proposed rule offers guidance for agency officials interested in using share-in-savings contracts. It includes measures to:
Consider share-in-savings contracts for projects for which significant innovation or process transformation is involved.
Develop a business case, including a preliminary baseline analysis of the cost of the processes being changed. The baseline will provide a standard against which to measure savings.
Make certain when developing a solicitation that the contractor's share of savings reflects the risks involved and the market conditions, and that the government gets the best value.
Negotiate the amount to be paid for the cancellation or termination of the contract when the contract is awarded.