What is pay for performance (PFP)?
“Pay for performance” (PFP) as used in this toolbox refers to a contracting system that a public or private entity can use to contract for environmental cleanups. In this toolbox, all of the information provided about PFP refers specifically to cleanups at leaking underground storage tank (LUST) sites. (This does not mean that the use of PFP principles at other types of environmental cleanup sites is not possible-only that that information is not provided here.) Customarily, cleanups at LUST sites are conducted on a “time-and-materials” (T&M) basis. The contractor performs the work and bills for the hours recorded and the cost of equipment and materials used during the billing period-regardless of the environmental results. In such a system, spending for environmental cleanups by private and government entities has been difficult to contain and actual contamination reduction has been slow. Pay for performance cleanups are an alternative way to contract for environmental cleanups. Pay f
