Premier Facility Solutions

Performance-Base Contracting – It Stands Above the Rest

Last month’s blog post focused on the format of and benefits associated with Performance­-Base Contracting. This time we will take a look at how this system differs from the other options out there, and why it yields better results.

One of the most common alternatives to PFS Performance­-Base Contracting is the Task Matrix Service. The structure of this particular method comes down to a laundry list of tasks for someone to perform at a certain frequency – without observing any product of that effort. The end result is often not the priority to be considered as only the task to be done and the rate of its occurrence are monitored. This system can lead to friction between the client and the service provider, resulting in the blaming of the contractor.

The unnecessary conflict that arises in the Task Matrix Service could be avoided with a more specific approach to defining the desired result. Performance-­Base Contracting addresses this by shifting their main focus to the end product – for example, a wastebasket should never be more than half­-full at any given time. This can consistently ensure a clean, organized appearance at the facility without wasting time on something that doesn’t need to be adjusted – a result that can occur when making frequency the main goal. The end-­product-­focus both saves the client money and gives the contractor the freedom to go after more labor-­intensive tasks. Additionally, the clients themselves could never make sure that each task was being done at every specific interval of time, as there would simply be too much to keep track of; instead, the client is able to walk in at any point and get a global impression of the environment to deem it acceptable.

In order to change from a Task Matrix Service to the Performance­-Base Contracting method, one must allow all of the steps to be initiated ­- sixty­-three in total. The diligence that goes into launching Performance-Base Contracting ensures that once established and functioning, there are no disagreements between parties or kinks to be worked out. If the full conversion is successful, the quality outcome will increase and the cost will decrease by at least twenty percent -­ well worth the changeover from one system to the other.

As mentioned last time, the Trilogy also contributes to the harmony involved in Performance-­Base Contracting: by having a triangular relationship between the client, consultant, and service provider, information and technology can consistently travel between all parties involved, heading­-off any conflicts that could arise. By incorporating the end­-goal priority, the steps involved in setting up the system, and the Trilogy, Performance-­Base Contracting is the more economic and efficient alternative to a Task Matrix Service.

Performance-Base Contracting: Functionality and Benefits

For our latest blog post, we begin with a brief history of what is known as Performance-Base contracting – the founding principle behind the functioning of Premier Facility Solutions – before delving into its format and benefits.

Introduced around WWII, Performance-Base contracting was the solution to overspending on inefficient materials; the contractors themselves were then free to work out the actual costs, resulting in greater relevancy between materials and price. Disappearing for a period during the mid-20th Century in favor of the markets overseas, Performance-Based contracting was then reintroduced by former President Clinton in the late 90s – and here is where Premier Facility Solutions comes into the picture.

In the year 2000, President of PFS John M Moran became the first consultant to use Performance-Base programs, specifically in regard to maintenance contracts with universities and venues. Immediately, he was struck by how the costs were lowered and the relationships were stronger – a direct result of giving contractors the freedom in arriving at an exceptional product. Encouraged by his rapid success, President Moran trademarked several of his Performance-Based programs and established a Flagship Account in 2004.

At this point, you may be asking, “What exactly is a Performance-Based contract comprised of? In what ways is it successful?”

The answer to that begins with the initial assembling of the contract: the first step is to arrange all of a facility’s space into subcategories, with a critical need for accuracy of space, surface detail, and density. It is also crucial to identify any barriers, such as a lack of elevators, or the traffic patterns of the occupants. The second step is to determine what the client’s tolerances are, and where they currently feel they stand from a quality perspective. Once this information is gathered, the client can be given a standard by which the program will be developed.

Next we take into account the structure of the contract, implementing Moran’s triangular relationship branded, The Trilogy, which is unique to this industry.The Trilogy allows for a three-party partnership between the Client, Contractor, and the Consultant – the latter of which is Moran himself, supporting the former two as an Advocate, delivering high-end technical expertise in both service processes and Administrative Management.

Being able to have an open communication between all three parties helps to eliminate normal friction that can occur between the customer and service provider. In this Trilogy design, Moran, with his 40+ years of experience, acts as a neutral partner, cementing a long-term contract relationship, complete with transparency and little-to-no conflict or misrepresentation of standards.

Finally we look at how this design benefits both the contractor and the client.

First, the contractor benefits by having an extra set of eyes at the site: consultant Moran, who can give suggestions on new ways to improve performance and productivity. This eases the conversation between contractor and service provider, allowing for more direct and coherent communication.

Then, the client receives an independent assessment that measures their outcome and contract – this results in a lower budget and higher, more stable quality. The client also benefits from the monitoring process, Performance-Q-Based, which is customized specifically to every client. There are twenty-four different options to how a building can be monitored, allowing for increased precision to the client’s needs. The client forms a strong relationship with the contractor and consultant, resulting in efficient work that meets expectations. Historically client administration has been overwhelmed in communicating and monitoring traditional contract specifications; Moran’s process and partnership relieves Administration of tedious operation conflicts and subjective measurements of service delivery, allowing them to focus on more pressing and creative initiatives.

If you’re wondering how successful Moran and Premier Facility Solutions has been, the answer is, “very”: over the past fourteen years, PFS has had twenty-six clients who have never lost a contracting-provider service. The relationship that has developed is one associated with brand-loyalty, specifically due to quality and cost-effectiveness. Moran’s Performance-Base contracting system has worked out well for both him and his clients, included in whom are a number of prestigious universities and healthcare facilities in sixteen U.S. states – and his business is only continuing to grow.

Check back next week for a discussion on how the PFS Performance-Base contracting varies from other methods, and the benefits of Performance-Base contracting over those alternatives.

Safe Practices for Flu Season

Greetings, Partners in Quality Service Outcome,

Now that we have the holidays behind us, we are now in the the thick of the cold and flu season.  It is recommended by the Center for disease control and Prevention that everyone takes advantage of the “flu shot” to lessen the likelihood of catching the flu, or if we do catch it, to lower the high-risk complications and symptoms that are associated with influenza.

The cold and flu season are responsible for lost time at work and study, it is estimated that the average person will lose an average of six days of productive time per year as a result of cold and flu viruses.

Facilities of Higher Education are among the higher risk populations as students usually do not eat, sleep or practice proper sanitation techniques.  The fact that so many live within dormitory facilities that are poorly ventilated, humidity controlled, and in some cases poorly-cleaned adds to not only the risk of illness but also to cross-contamination of higher pathogenic strains as the Nero Virus, Streptococcus and Aspergillums.

We, members of the Facilities Management Action Team, can lower such risk and the lost time of our own staff memberships as a result of such exposure by practicing well-defined cleaning methodologies and inspection processes.  The following list of surfaces should be on every housekeeper’s daily surveillance list, as they are the front line infantry of the battle against microbial warfare.

The following surfaces should be inspected, cleaned and re-inspected daily:

  • Restroom entry door contact surfaces
  • Partition stall latches and grab points, remember after using a toilet the door is handled prior to possible hand washing
  • Manual sink faucet levers, ideally hands free are available
  • Flushometer and toilet tank levers (ideally, auto-flush technology is present)
  • Hand dryer air intake vents and air discharge throats (ideally paper toweling is used instead of air dryers)
  • Restroom waste container cabinet trap doors (ideally a free gravity depository is available for intended discards)
  • Elevator call buttons
  • Elevator car control panel buttons and telephones
  • All public and private phone keypads and handsets
  • Building and space entry door hardware and panic bars throughout the building
  • Vending machine selection buttons and ATM key pads
  • Laundry appliances, folding tables and lint traps
  • Locker room benches and locker interiors

In addition to protecting the campus community from these high risk contact surfaces, we need to protect our staff by providing adequate inventories of PPE’s and one of the most important factors, PROPER AND FREQUENT HAND WASHING, COMBINED WITH MODEST USE OF HAND SANITIZERS.  It has been revealed that overuse of hand sanitizers is much like the over use of antibiotics: the microbes we are combating become smart microbes with higher resistance to bactericidal and bacteria static approaches.

I look forward to addressing any specific concerns you may have as we move into the most critical time of the year.

I would like to take this opportunity to wish each of you and your families the most peaceful, bountiful, and fulfilling New Year.


John M Moran, President