A New Availability-Payment Model for Pricing Performance-Based Logistics Contracts

Report Number: UMD-CM-14-175

Series: Acquisition Management

Category: Public-Private Partnerships (PPPs)

Report Series: Sponsored Report

Authors: Peter Sandborn, Amir Reza Kashani-Pour, Xinyuan Zhu and Qingbin Cui

Title: A New Availability-Payment Model for Pricing Performance-Based Logistics Contracts

Published: 2014-06-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2014/UMD-CM-14-175.pdf

Keywords: Public-Private Partnerships (PPPs), contract, pricing, Performance-Based Logistics (PBL)

Abstract:

This report describes the adoption and extension of availability payment concepts currently in use for civil infrastructure Public-Private Partnerships (PPPs) to contract design and pricing for Performance-Based Logistics (PBL) contracts. Availability payment models for civil infrastructure PPPs require the private sector to take responsibility for designing, building, financing, operating and maintaining an asset (most common).