NCHRP GUIDELINES DETAIL INNOVATIVE CONTRACTING METHODS

The National Cooperative Highway Research Program (NCHRP) commissioned researchers to explore innovative alternatives to traditional contracting methods and to produce comprehensive implementation guidelines for their use. The guidelines outline three innovative contracting methods: warranty, multiparameter, and best value contracting. Each method focuses on a different aspect of cost-effective contract management, but all are intended to fulfill the same goals. Warranty contracting includes an extended warranty that places responsibility for product performance on the contractor, generating a longer lasting product and lower overall maintenance costs. In multiparameter contracting, agencies determine contract winners based on the lowest combination of cost, time, and other parameters. Best value contracting focuses on such factors as technical excellence, management capability, past performance, and personnel qualifications.