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A Quick Step-By-Step Approach To PFP Implementation

State underground storage tank (UST) agencies using Pay For Performance (PFP) contracting in their cleanup programs report to EPA that PFP produces faster, lower-priced cleanups with much less paperwork than the traditional time-and-materials contracts. A PFP cleanup has a firm fixed price and a time limit for reaching its environmental goal. The cleanup contractor gets paid incrementally as contamination levels decline to levels specified in the contract. Reasonable escape clauses in the contract protect legitimate interests of the state, the contractor, and the responsible party. A state PFP pilot program including 15 - 20 cleanup sites and several contractors is a good introduction to PFP for UST cleanup stakeholders. Starting a PFP program entails taking the following steps:

This is a "quick start" list only. The various sections of the PFP Toolbox contain much greater detail and explanation of each of these steps.


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