Para 4.1.2 - Output Admeasurement | KartavyaDesk
Original Rule Text
4.1.2. Output-Admeasurement 1. Alternatively, the quantum of services can be ascertained by measurement of the quantum of outputs delivered of the required performance standards (output admeasurement – numbers, length, area, volume, weight, value, etc., or a combination thereof), say the area of office cleaned or tonne-Kilometre of transportation or value of goods inspected. Since contracts based on Out-put admeasurement specify the unit rate of service output, it is referred to as Unit-Rate contracts also. 2. The contract specifies a unit rate of the output of services, and the financial evaluation is done based on the total price of the indicated quantum of service at the contracted unit rate plus taxes. In actual practice, this could be more complex – as in taxi hiring for 8 hours with a maximum kilometre of 250 Km included in the price, but every additional Km/ hour may be charged extra. There may also be additional charges for night duty, etc. 3. Output admeasurement contracts are simpler to administer since the procuring entity will only ascertain performance standards and the quantum. It need not monitor the inputs deployed and the methodology employed. Therefore, wherever feasible, output admeasurement should be the preferred choice. 4. However, in many services, it may be part of the quality assurance plan and Service Level Agreement (SLA) to ensure that specified quantum of inputs is deployed for the services, although payments are still based on output admeasurement. 5. Depending on the situation, output admeasurement may be suitable mainly for Lump-sum and Percentage Based types of contracts (as described in following paras) and in special circumstances for Time-based and Indefinite Delivery type of contracts. Output admeasurement may be suitable for Services like - transport services, logistics, clearing and forwarding, courier services, drilling, aerial photography, satellite imagery, mapping, and similar operations.
What This Means
Para 4.1.2 of the Manual for Procurement of Non-Consultancy Services deals with 'Output-Admeasurement' contracts. Think of it like paying for results, not just effort. Instead of focusing on how many people or resources a contractor uses, you pay based on the actual output they deliver, measured in units like area cleaned, kilometers traveled, or items inspected. This is also known as a Unit-Rate contract because you agree on a price per unit of output. This method is preferred because it simplifies contract management for the government, allowing you to focus on the quality and quantity of the delivered service rather than micromanaging the contractor's methods.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Payment is based on the quantity of outputs delivered, measured in units (e.g., area, length, weight).
- •Also known as Unit-Rate contracts, specifying a unit price for each output.
- •Simplifies contract administration by focusing on performance standards and output quantity.
- •Suitable for Lump-sum, Percentage Based, and sometimes Time-based or Indefinite Delivery contracts.
- •Commonly used for services like transport, logistics, and mapping.
Practical Example
The Ministry of Rural Development needs to hire a company to clean office spaces across several district offices. Instead of paying based on the number of cleaning staff or hours worked, they use an output-admeasurement contract. They agree to pay M/s CleanSweep ₹5 per square meter of office space cleaned to a specified standard of cleanliness. If CleanSweep cleans 10,000 square meters in a month, they will be paid ₹50,000 plus applicable taxes, provided the cleaning meets the agreed-upon standards. The ministry only needs to verify the area cleaned and the quality of cleaning, not how many staff CleanSweep employed or what cleaning products they used.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the main advantage of using output admeasurement?▼
When is output admeasurement most suitable?▼
What are Unit-Rate contracts?▼
Does output admeasurement mean we completely ignore the inputs used by the contractor?▼
Can output admeasurement be used for all types of contracts?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 4.1.2 of the Manual for Procurement of Non-Consultancy Services, what is the primary basis for payment in an Output-Admeasurement contract?
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