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The Evolution and Future of Pay-for-Performance in Florida’s Environmental Cleanup Efforts

Explore the transformative Pay-for-Performance (PFP) approach in Florida's environmental cleanup sector, presented by Brian Dougherty from the Florida Department of Environmental Protection. Discover the shortcomings of traditional reimbursement and preapproval programs that often prioritize cost control over effective cleanup. Learn how to initiate PFP projects by engaging contractors and owners, highlighting benefits, and addressing risks early in the process. Delve into the history, current practices, and future prospects of PFP, including strategies like site bundling and uniform pricing to accelerate cleanup efforts.

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The Evolution and Future of Pay-for-Performance in Florida’s Environmental Cleanup Efforts

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

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

  3. How to Start Up PFP • 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. • Listen • Contractors know how to clean up sites. • A bad deal is a bad deal for everyone.

  4. Overview of PFP in Florida • Voluntary Participation. • Find regulators and contractors that are willing. • Negotiate Prices. • Limit to ‘big ticket’ items. • 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 • 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 DifferenceBid vs Preapproval

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

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