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Title:

Effects of Outsourcing and Performance-Based Contracting on Innovations
Cover of Effects of Outsourcing and Performance-Based Contracting on Innovations

Accession Number:

01023293

Record Type:

Component

Availability:

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Order URL: http://worldcat.org/isbn/0309099579

Abstract:

A savings of 13% to 28% was recorded as outsourcing and performance-based contracting were introduced in Swedish highway maintenance, in line with 21% gained in Massachusetts and 12% in Virginia. Few negative effects on service, environment, and quality were noted. However, there is concern that a slowdown of research and development (R&D) and innovations may lead to higher costs and a less effective transport system in the long run. France has used a benchmark for the effects on technical development, with an in-house policy similar to Sweden’s before the reform. Initial results of an explorative study are that France has continued to produce technical development in the same period while it seems to have stalled in Sweden. This international comparison tends to support that outsourcing has lowered the pace of R&D compared with a situation if the in-house production system prevailed. However, innovation frequency is not a goal itself, so further study is needed to find the optimal mix of measures to develop an effective transport system. Professionals and politicians representing the Swedish taxpayers are reluctant to return to in-house production just to produce perhaps unnecessary technical development. Instead, the policy to develop complementary innovation promotion within the outsourcing model will continue. Measures within or complementary to the model are multicriteria bid evaluation, alternative bids, on-line monitoring, bonus, penalties and profit sharing, competence development, partnering, and weather-regulated performance-based contracting. Such measures are used and evaluated continuously.

Monograph Accession #:

01031686

Language:

English

Authors:

Stenbeck, Torbjorn

Pagination:

pp 3-8

Publication Date:

2006

Serial:

Transportation Research Record: Journal of the Transportation Research Board

Issue Number: 1948
Publisher: Transportation Research Board
ISSN: 0361-1981

ISBN:

0309099579

Media Type:

Print

Features:

Figures (3) ; Photos (1) ; References (18)

Geographic Terms:

Subject Areas:

Economics; Highways; Maintenance and Preservation; Research; I60: Maintenance

Files:

TRIS, TRB, ATRI

Created Date:

Mar 3 2006 10:59AM

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