Ingenieur Vol 76 ingenieur 2018 October | Page 78

INGENIEUR PBC Capability Sustainment of: Stage % Saving 1. Bomba Mi-17 Helicopter 3 6.35 2. Bomba Agusta A109/AW139 Helicopter 3 5.54 3. APMM CL-415 Maritime Patrol Aircraft 3 1.48 4. APMM Dauphin AS356N3 Helicopter 3 0.6 5. APMM Agusta AW139 Helicopter 3 0.82 6. KTMB GE Locomotive Class 26 3 10.42 7. KTMB Rolling Stock Wheel Component 1 0 8. KTMB Traction Motor Component 1 0 9. TUDM Air Traffic Control Systems 3 7.15 Table 4: Government capability sustainment PBCs as of July 2018 to examine the contractor’s overall report card which summarises the result of all performance measures (KPI, SPM and SHI). The committee is to deliberate in greater detail the result of the SPMs especially those that touch the behavioural aspects and how the contractor contributed towards the achievement of the buyer’s Enterprise Outcome and mission success. The key decision of this committee is the rewards and remedies, mainly in terms of prolonging or shortening the contract tenure. This committee is to be chaired by the head of the buyer’s organisation. It is important to note that every sustainment contract is different and hence must be tailor- made based on its unique requirements. In other words, a PMF for one contract cannot be made a template for another unless a full analysis is done. Today, where open tender is the order of business, the Government must specify PBC requirements upfront as part of the tender process. As such, PMF is the additional document that will be packaged in Government tenders, along with the rest of the specifications. 6 76 VOL 2018 VOL 76 55 OCTOBER-DECEMBER JUNE 2013 IMPLEMENTATION Over the last six years since its first implementation in 2012, more than RM12 million have been saved by the Government through nine capability sustainment PBCs. The saving is actually the payment that should be made to contractors but was forfeited due to underperformance. Behaviour change is one of the key outcomes expected from 3 rd Generation PBC. Based on the implementation of the above contracts, although at first some contractors took the new contracting approach casually, their behaviour changed over time to satisfy the KPIs. The self-regulating PBC has also eliminated the “blame” culture amongst the contractors as well as improving the contractors’ attitude towards the buyer. Experience shows that irrespective of the value at- risk of a PBC, contractors having positive attitudes have fewer problems in satisfying the KPIs to receive full payments, compared to contractors with negative attitudes who are normally unco- operative or arrogant. Those who always “hide behind the contract” will not easily adopt the PBC approach and will be difficult to work with.