GAO: Performance-Based Contracts Are The Way To Go

Is this the wave of the future for government contracting?

Forbes LogoForbes – 1/27/2015 – Performance-based contracting received a boost this month when the Government Accountability Office found that the U.S. Department of Transportation (DOT) is making progress in moving toward a national performance-based approach.

The key word here is national and to that you can add “better contract management.” Under a typically-named government initiative—Moving Ahead for Progress in the 21st Century (MAP-21)—the DOT recognized the importance of a more progressive approach in the way federal agencies and states do business with each other, with planning organizations and with private vendors.

Linking transportation programs to performance is an idea that’s been around for some time but wide-scale implementation has been slow. That’s why GAO decided to step in.

In the fiscal year 2013, DOT provided about $50 billion to states and other “grantees”—such as metropolitan planning organizations and transit agencies—to support highway and transit infrastructure and safety. However, it is not clear if this funding has improved system performance because, in part, these programs have lacked links to performance and national goals, the watchdog agency said this month in its latest report on the topic.

Read the full article here.