Performance measurement is critical to PFPs because the Government is procuring a service of specified quantity, quality and availability. The Government needs to be in a position to confirm that the private party is performing according to the output specifications in the contract. If this is not the case, the Government will need to take corrective measures.
We looked at whether:
■ the incentives for performance are appropriate and have appropriate benchmarks
■ there are appropriate payment deductions for sub-standard performance
■ the reporting and monitoring system is appropriate for the task
■ there are adequate processes if conditions change markedly from that envisaged
■ there was assurance that DET's resources would be adequate for the task.