Gain Sharing: Transformational Procurement

Well-Managed, Performance-Based Projects Benefit Government And Industry

with Bradford J. Holmes, Sara E. McAulay

Executive Summary (This is a document excerpt)

Gain sharing is performance-based contracting on steroids — government agencies make a minimal investment, industry takes on projects' financial risks, and both parties recoup project-generated funds. However, these projects require more than a change of funding model. This radical new approach to procurement and the unprecedented amount of trust and partnership with external service providers amounts to a major culture change for the government organizations that go down this path. Gain-sharing projects can be transformational and highly beneficial for project sponsors as long as they pay careful attention to the lessons learned by gain-sharing pioneers.

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NOTES & RESOURCES

Government IT Leaders Use Innovative Contracts To Increase Impact

Gain-Sharing Projects Shatter The Project Funding Model

Gain Sharing Refined: Two Distinct Business Models

GSA Has Paved The Way For US Federal Gain Sharing

Gain Sharing Brings Both Benefits And Risks

How Do You Pick A Winner?

Revamping Procurement Means Changing The Culture

The Endgame? A True Partnership

Agencies Must Re-Engineer Their Business Processes For Maximum Gain

What Does Success Look Like?

Win-Win Is The Only Viable Goal

recommendations

Build On Others' Successes

WHAT IT MEANS

Public-Private Partnerships Enter The 21st Century

Supplemental Material

Forrester interviewed four vendors and three government organizations including: BearingPoint, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), CGI-AMS, Computer Sciences Corporation (CSC), Electronic Data Systems (EDS), SRA International, US General Services Administration (GSA), and Virginia Department of Taxation.

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This document falls under the following categories. Click on a link below to find similar documents.

Analyst:	Gene Leganza
Technology:	IT Management, IT Spending & Budgeting, Sourcing & Procurement, Sourcing & Procurement Applications
Industry:	Government
Geography:	Asia Pacific, Europe, North America

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