Para 4.1.1 — NONCONSULT_MANUAL

5. Input Admeasured Contracts – Risks and Mitigations:

Risk Mitigation a) The quality and Scope of the Output/ deliverables is not linked to the payment. There may be tendency for the service provider to ignore the quality and scope of the services. Disputes may arise due to different possible interpretations of quality and scope of contract. The contract should include provision for evaluation of quality, methodology and scope of deliverables and certificate for its acceptability may be recorded. Payments should be released only against such certificates. Therefore, Service Level Agreement (SLA) becomes very important in such contracts. b) Productivity of inputs deployed is not linked to the payment. There may be tendency for the service provider to use paid staff in a dilatory and un-productive manner. This may lead to Time and Cost over-runs. Such contracts need to be closely monitored and administered by the 'Procuring Entity' to ensure that the progress of the contract is commensurate with the time spent and that the resources for which payment is claimed have actually efficiently and productively been deployed on the contract during the

4.1.1. Input Admeasurement 1. The quantum of services can be ascertained by measurement of the inputs (Personnel, Equipment, Materials, and miscellaneous inputs) deployed during a period (say per month) by the service provider. 2. The contract specifies the unit rate and the estimated quantum (per period – say per day/ month) of various inputs required to be deployed to deliver the required quantum of services (of requisite performance standards). The contract would also specify the service charges (including profits, overheads, etc.) and taxes over and above such input unit rates. The financial evaluation is based on the total price of the indicated quantum of various inputs at the contracted unit rate plus service charges and taxes. 3. Input admeasurement requires more vigilant and constant monitoring of inputs deployed. The procuring entity must also monitor the performance standards, methodology employed and productivity of inputs to ensure value for money. 4. Input admeasurement is frequently used in Time-based and Indefinite Delivery type of contracts (as described in following paras) for Services like – upkeep and maintenance of office/ buildings/ estates (other than Civil & Electrical Works, etc.), Security Services, Horticultural Services, Janitor/ Cooking/ Catering/ Management Services for Hostels and Guest Houses, Cleaning/ Housekeeping Services, Errand/ Messenger Services etc.

Chapter 4: Bidding Design for Non-Consultancy Services

Risk Mitigation period. It may be worthwhile to lay down productivity linkage between the quantum of the output of services to input deployed in a period (say, cleaning of a quantum of area per day per cleaner deployed) as part of Performance Standards. A system of monthly reporting of payouts and the quantum of work achieved by the service provider to CA should be instituted to enable supervision. Such contracts should include an upper limit of total payments to be made to the service providers for the contract to safeguard against excessive prolonging of time and payments. After this limit is reached or the period of completion is exceeded, the CA should review the justification for the extension of the contract.