Chapter 30 - High Risk IT Solicitations and Contracts

30.3.1 Performance Measures

Performance measures are quantifiable metrics of expected service provision, and are the backbone of a successful contract.

Strong performance measures are:

• Clear – The standards by which the Supplier are contractually bound are explicit and leave no room for ambiguity;

• Distinct - Capture inputs/outputs, outcomes, quality, and timeliness in relation to identified performance measures

• Calculable – Metrics are quantifiable, and are tied to a methodology which can accurately measure performance against the contract;

Performance measures should be tailored to provide accurate and reliable data on the Supplier's performance against agreed upon service provisions. The metrics chosen should be able to correctly identify how well, and to what extent, the Supplier regularly meets the expected levels of service outlined in the original agreement.

Performance measures should be tailored to render the maximum value of the contract. When crafting performance measures, some important questions to ask are:

• Which aspects of service delivery are most important to procurement success?

• What aspects of performance will indicate that the project is effectively fulfilling its intended purpose?

• What aspects of performance indicate the intended value-add of the project for the Commonwealth? and,

• What things are measurable that would indicate contract failure?

Common examples of performance measure areas are: webpage uptime, incident response time/mean time to repair (MTTP), customer service/satisfaction, and prompt delivery of all hardware/software necessary to begin services.