About PBC

(Effective 1st July 2022)

The Performance Based Contract (PBC) Policy and Guidelines which has been published as PK 1.8 by the Government of Malaysia effective 1st July 2022 is crucial in order to further enhance the implementation of the PBC method in Government Procurement especially in Maintenance, Repair, and Overhaul (MRO) Contracts to all Government Agencies.

Policy can be downloaded here or directly at the Portal Pekeliling Perbendaharaan

To know more about PBC, please write to pbc.cor@tda.my

PBC GENERAL OVERVIEW

PBC is an outcomes based contracting method that ties a range of monetary and non-monetary consequences to the contractor based on their accomplishment of measurable and non achievable performance.

The idea behind Performance-Based Contracting is one buys the result of a product use (e.g. value creation), not the part of repair services required to restore or maintain a product.

The simplified PBC Model shows the PBC process helps to determine the outcome and Performance Management Framework (PMF) resulting in a stronger strategic partnership between agency & contractor.

PBC model has evolved from the First and Second Generation PBC and currently into Third Generation PBC with additional new features which comprise of:

  1. Key Performance Indicators (KPIs)
  2. System Health Indicators (SHIs)
  3. Strategic Performance Measures (SPMs)

This has transformed the contractor from a mere “seller” to “supplier” and ultimately “partner” to the Government (See Figure 1).

KPI

Key Performance Indicator

Monthly Monitoring

 
  • Monetary rewards
  • Quantitative
  • Measure how well contractors meet specific requirements
  • Lag indicators

SHI

System Health Indicator

Quarterly Monitoring


  • Non Monetary Reward
  • Qualitative
  • Provide confidence to the buyer
  • Lead indicator

SPM

Strategic Performance Measures

Half Yearly Monitoring


  • Non-monetary rewards
  • Qualitative
  • Long term behavior
  • Lag indicator

Depending on the type of contact, there is 4 stages of PBC application to produce the desired operational performance

Traditional way of writing a contract is no longer valid, where relevant stakeholder must be involved in drafting a PBC

To ensure performance measures that precisely evaluate the contract outcome & contractor’s behavior are incorporated in a PBC, a working group comprising of personnel from various disciplines are required.

  • Planners
  • Operators
  • Engineers
  • Maintainers
  • Procurements
  • Finance

BENEFITS

Based on experience, successful PBCs have proven its benefits by:

Enhanced ability to meet operational needs through consistent availability and reliability

Establish long-term relationships to ensure sustainable asset retention

Motivating contractors to achieve the levels set

Reduced Total Cost of Ownership

OUR CLIENTS

MINDEF

Kementerian Pertahanan Malaysia

KPKT

Kementerian Perumahan dan Kerajaan Tempatan

TUDM

Tentera Udara Diraja Malaysia

KASTAM

Kastam Diraja Malaysia

MOT

Kementerian Pengangkutan Malaysia

KKM

Kementerian Kesihatan Malaysia

BOMBA

Jabatan Bomba dan Penyelamat Malaysia

JKNP

Jabatan Kesihatan Negeri Pahang

KDN

Kementerian Dalam Negeri

MEDAC

Kementerian Pembangunan Usahawan dan Koperasi

APMM

Agensi Penguatkuasaan Maritim Malaysia

THE CONTRACTORS

GALAXY AEROSPACE

Galaxy Aerospace Sdn. Bhd.

ATSC

Aerospace Technology System Corporation

HEITECH PADU

HeiTech Padu Berhad

DESTINI

Destini Berhad

AAT

Advanced Air Traffic System

IKRAMATIC

Ikramatic Systems Sdn Bhd.

SAPURA

Sapura Secured Technologies

ZETRO

Zetro Services Sdn. Bhd.

INFOMINA

Infomina Sdn. Bhd.

AIROD

Airod Sdn. Bhd.

AIROD

AIROD TECHNO POWER

DTECH

Document Technologies Sdn. Bhd.

PBC ACHIEVEMENTS

Sukhoi
Su-30 MKM

PC7 Mk II

T56 Engine for C-130

Helikopter AW109

Helikopter AW189

Helikopter MI-17

Helikopter AW139

Helikopter AW139

CL - 415

Helikopter AW139

Sistem Kawalan Trafik Udara

Helikopter AW139

CL - 415

Helikopter Dauphin AS356N3

Cargo Scanner

Reagen & Analyser

Photocopy Machine

PBC EVENTS GALLERY

PBC Policy Workshop
with Ministry & Government Agency
Interaction Session
with Government Agency & GLC
Interaction Session
with Industry Player
PBC Training
with Jabatan Kesihatan Negeri Pahang
PBC Workshop
with Tentera Udara Diraja Malaysia
Site Visit
at Pangkalan Tentera Udara Diraja Malaysia (TUDM)
PBC Tender Briefing
with Jabatan Kesihatan Negeri Pahang
PBC Seminar
with Governent Agency & GLC
PBC Awareness
with MinDef
Previous
Next