General services administration tests the best value pips paradigm

The General Services Administration (GSA) Heartland Region is testing a best value process (which minimizes time and cost deviations 98% of the time.) The best value Performance Information Procurement System (PIPS) has been tested and optimized for the past 16 years. The significance of the test includes that huge impact on the contracting paradigm when the client assumes that the vendor is an expert. It allows of the transfer of risk and control to the vendor. It allows the implementation of quality control and contractor risk management and the implementation of a quality assurance based project management model by the client. It minimized the decision making in the delivery process. It forces the paradigm to concentrate on preplanning instead of construction management. It also motivates the contractor to manage and minimize the risk that the contractor does not control, and to not depend on the contract for leverage but to use preplanning to maximize vendor profit. The General Services Administration has also been very interested in measuring their project management performance, and they are very interested in the concept of having the performance and value measurement system not dependent on project managers to continually update the performance metrics. The implementation of PIPS also implements the concept from Edward Deming of using the minimization of deviation instead of minimum standards to increase value and performance. The impact of this paradigm shift in one of the largest agencies in the U.S. federal government addresses several issues of large government organizations including can a very large bureaucratic organization change paradigms.