Howard Steinman, a partner and leader for the Americas region public sector practice at A.T. Kearney, has saidÂ the Trump administration should revisit the idea ofÂ a results-based contracting approach as part of the government’s efforts toÂ mitigate risks and meet project goals.
Steinman wrote in a guest pieceÂ published Friday on Government Executive that the share-in-savings methodÂ would require the government to make a minimal upfront investment to start a project, then pay the contractor when established objectives are met.
He added the approach couldÂ incentivize contractors to save publicÂ funds andÂ keep the government from paying for low-quality work.
“In our experience, the best project candidates are those with large, measurable expected benefits, and with the parties having some ability to control implementation,” Steinman noted
He said that gain-sharing contractsÂ can also work with information technology cost reduction efforts through modernization, facilities rationalization, procurement and shared services arrangements.
Steinman recommended thatÂ government leaders andÂ consultants work with theÂ Office of Management and Budget and the General Services Administration to establish clear guidance that will support the implementation of a share-in-savings strategy for government acquisition programs.