What is Share-In-Savings?

• Most prominent form of performance based contracting;
• Shifts performance risk to industry-increases chance of success;
• Minimal investment from government;
• Payment from accrued savings or revenue;
• Measures tied to improvement in efficiency; and
• Agencies can retain a portion of the savings for other investment.

Most Prominent Applications

• Systems Consolidation (e-gov, payroll, data centers, reverse auctions)
• Audit Recovery (wireless communications, telephone lines)
• Revenue Enhancement (fee based services)
• Unit Price Savings for Recurring Goods and Services (reverse auctions)

What is the legal authority?

E-Government Act of 2002, Sections 210 and 317

What is GSA's role?

Congress has designated GSA to play a leadership role in developing and institutionalizing the share-in-savings concept governmentwide. In response, GSA has established a program office to assist prospective customers with:

• Identifying "right" opportunities;
• Developing a business case;
• Developing a statement of work;
• Developing and validating baselines;
• Procurement support;
• Independent Validation and Verification (IV&V) during performance;
• Coordinating with Hill/OMB, as necessary; and 
• Promulgating FAR guidance.

7 Steps

The following steps mirror those developed for Performance Based Contracting.  Working case studies that demonstrated how these steps are implemented can be requested from the Share in Savings office.

• Assemble an Integrated Project Team,
• Develop the Business Case,
• Develop a Performance Based Statement of Work,
• Develop the Acquisition Strategy,
• Solicit and Evaluate Proposals,
• Award Contract, and
• Manage Performance.