Brief: Share-in-savings is tough

Share-in-savings contracting can be effective in motivating contractors to generate savings and revenue for their clients, but it's hard to do in the federal government, according to a recent GAO report.

With share-in-savings contracting, the contractor invests in the project upfront and is compensated from the client's savings or increased revenue. Four elements are necessary for success: a clear outcome, such as savings; incentives for both the contractor and the client; baseline and performance metrics; and client commitment.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.