If contractors pay for repairs in a Direct Sales Public-Private Partnership (PPP), they should be incentivized to __________.
Understand the Problem
The question is asking us to fill in the blank regarding what contractors should be incentivized to do in a Public-Private Partnership context. It presents options that relate to the number and cost of repairs contractors should focus on.
Answer
Reduce the number and cost of repairs.
The final answer is: Reduce the number and cost of repairs.
Answer for screen readers
The final answer is: Reduce the number and cost of repairs.
More Information
In PPPs, when contractors are responsible for repairs, they are typically incentivized to minimize both the quantity and expense of repairs to increase efficiency and profitability.
Tips
A common mistake is assuming all incentives increase costs; however, cost control is often a key goal in contractual partnerships.
Sources
- Performance-Based Logistics (PBL) Guidebook – 27 May 2014 - acqnotes.com
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