1. Pay for Performance in Florida Brian Dougherty Florida Department of Environmental Protection The Past, Present & Future of PFP in Florida

2. Why Pay For Performance? t Reimbursement and Preapproval programs do not encourage cleanup. t These programs focus on cost control and adherence to procedures at the expense of cleanup progress. t Regulators are rewarded for nitpicking. t Contractors are rewarded for working the system.

3. How to Start Up PFP t Talk –Find Contractors and Owners that are willing. –Highlight the benefits of PFP. –Acknowledge the risks and limitations. –Discuss as early as possible in cleanup. t Listen –Contractors know how to clean up sites. –A bad deal is a bad deal for everyone.

4. Overview of PFP in Florida t Voluntary Participation. –Find regulators and contractors that are willing. t Negotiate Prices. –Limit to ‘big ticket’ items. t Consider for Every Site. –Start discussion with assessment. –Allow additional assessment and design revisions

5. History of PFP in Florida

6. Summary of PFP in Florida

7. Future of PFP in Florida t Bundling Sites –Spread risk over several sites. –Uniform Pricing. –Master Agreement –Examples: 10 Sites for $135,000 each 15 sites for $167, 000 each 14 sites for an average of $267,000

8. Future of PFP in Florida - Bid! Total Bid Award = $465,544 Total Pre. Est. = $1,281,285

9. Percent Difference Bid vs Preapproval

10. PFP t Why? Encourages Cleanup t How?Cooperation t What Next?Continue to scale up