Synopsis

Performance Based Contract (PBC), also known as Performance Based Logistics (PBL) in the US and "Contracting for Availability" in the UK, 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 current generation 3 PBCs go even further whereby, rewards and remedies are taken into account for both quantitative and qualitative performance measures.  The Government has recently accepted the use of PBC in contracts that involve maintenance, repair and overhaul (MRO) of complex systems/equipment such as aircraft, ship, heavy vehicles and trains.  To date, contracts for MRO of the Fire & Rescue Department (Jabatan Bomba) helicopters and the Malaysian Maritime Enforcement Agency (MMEA) amphibious aircraft are executed based on PBC.  Since PBC provides practical solution to the needs of the system/equipment end users as well as catalyst advancement of high-tech industry, the Ministry of Finance is expected to gradually convert the existing standard traditional contracts to PBC in the years to come. In this 1-day introductory course, participants will go through 4 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 covered.  Those that involve in acquisition/procurement policy, buyer of services, and seller of services, contract managers and contract implementers should greatly benefit from this course.


Biodata of Speaker

Datuk Ir Kamarulzaman Zainal graduated with BSc (Mechanical Engineering) in 1985 from the University of Texas at Austin, USA.  He later served the Royal Malaysian Air Force (RMAF) performing various technical duties in the areas of aircraft maintenance, repair and overhaul (MRO); weapon systems logistics management; design & development as well as airworthiness regulation.  During his tour of duty under the Malaysia-Australia Joint Defence Program 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 with the Malaysian Industry-Government Group for High Technology (MIGHT); an organization under the Prime Ministers’ Department.  He held the Senior Vice President (Industry Intelligence) position responsible for developing the nation’s strategies for the advancement of aerospace, maritime and rail industries and was the main writer of the Malaysian Aerospace Industry Blueprint 2030, Malaysian Shipbuilding Ship Repair Strategic Plan 2020 and Malaysian Rail Supporting Industry Roadmap 2030.  Apart from his advisory role to universities and polytechnics to prepare the future human capital for the industry, Kamarulzaman’s expertise in Complex Materiel “acquisition” and “through-life support” was benefited by the Government through his contributions in the areas of Offset Management (defence and non-defence) as well as Performance Based Contracting.