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Pay for Performance in Florida

Pay for Performance in Florida. The Past, Present & Future of PFP in Florida. Brian Dougherty Florida Department of Environmental Protection. Why Pay For Performance?. Reimbursement and Preapproval programs do not encourage cleanup.

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Pay for Performance in Florida

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  1. Pay for Performance in Florida The Past, Present & Future of PFP in Florida Brian Dougherty Florida Department of Environmental Protection

  2. Why Pay For Performance? • Reimbursement and Preapproval programs do not encourage cleanup. • These programs focus on cost control and adherence to procedures at the expense of cleanup progress. • Regulators are rewarded for nitpicking. • Contractors are rewarded for working the system.

  3. How to Start Up PFP • Talk • Find Contractors and Owners that are willing. • Highlight the benefits of PFP. • Acknowledge the risks and limitations. • Discuss as early as possible in cleanup. • Listen • Contractors know how to clean up sites. • A bad deal is a bad deal for everyone.

  4. Overview of PFP in Florida • Voluntary Participation. • Find regulators and contractors that are willing. • Negotiate Prices. • Limit to ‘big ticket’ items. • Consider for Every Site. • Start discussion with assessment. • Allow additional assessment and design revisions

  5. History of PFP in Florida

  6. Summary of PFP in Florida

  7. Future of PFP in Florida • Bundling Sites • Spread risk over several sites. • Uniform Pricing. • Master Agreement • Examples: • 10 Sites for $135,000 each • 15 sites for $167, 000 each • 14 sites for an average of $267,000

  8. Future of PFP in Florida - Bid! Total Bid Award = $465,544 Total Pre. Est. = $1,281,285

  9. Percent DifferenceBid vs Preapproval

  10. PFP • Why? Encourages Cleanup • How? Cooperation • What Next? Continue to scale up

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