SYNOPSIS

Performance Based Contract (PBC) is a concept centered on a contract instrument that defines performance expectations in regards to outcomes (or results) of which a contractor is responsible for.  Under PBC, payment to the contractor is determined based on the contractor's performance in reference to the agreed performance level specified in a performance matrix.  The 3rd generation PBCs go even further in which rewards and remedies are determined based on both quantitative and qualitative performance measures.

The Government has accepted the use of PBC in contracts that involve maintenance, repair and overhaul (MRO) of complex moveable asset such as aircraft, ships/vessels, vehicles and rolling stocks.  As a result, outsourced MRO of assets under the Fire & Rescue Department (Bomba), Malaysian Maritime Enforcement Agency (APMM), Keretapi Tanah Melayu Berhad (KTMB) and Royal Malaysian Air Force (TUDM) are already using PBC.  Soon, a new policy guideline will be released by the Ministry of Finance to expand the use of 3rd generation PBC in Works and Supply contracts, inclusive of maintenance of non-moveable assets.

This 1-day introductory course comprise of four modules namely, In-service Support Contracting, Introduction to PBC, Essential Components of PBC and Mechanics of PBC.  Items such as, Performance Management Framework, contract outcome, performance measures, performance matrix, payment regime, performance levels, payment curves and rewards and remedies will be emphasized.  Personnel involved in acquisition/procurement, operation/maintenance of moveable/non-moveable assets, and contract managers/implementers, either from public or private sectors, should greatly benefit from this course.


SPEAKER’S PROFILE

Datuk Ir. Kamarulzaman Zainal graduated with BSc (Mechanical Engineering) in 1985 from the University of Texas at Austin, USA.  He served the Royal Malaysian Air Force (RMAF) performing various technical duties in the areas of aircraft maintenance; aircraft through-life support; design & development as well as airworthiness regulation.  During his tour of duty in Australia in 1995, he served the Royal Australian Air Force (RAAF) for 1½ years.  Kamarulzaman retired after 21 years of military service at the rank of Lieutenant Colonel RMAF.  From 2002 to 2016, Kamarulzaman was the Senior Vice President (Industry Intelligence) of the Malaysian Industry-Government Group for High Technology (MIGHT); an organization under the Prime Ministers’ Department responsible for the nation’s strategies for the advancement of Malaysia’s high tech industries.  Subsequently until 2018, he was the Senior Associate of the Technology Depository Agency (TDA); an organization under the Ministry of Finance where he successfully drafted, negotiated and concluded a total of nine PBCs for four government agencies.