My colleague Matthew Weigelt recently wrote an article about share-in-savings contracting. Tom Davis, the former Northern Virginia Congressman and moderate Republican leader in the House, had noted in a speech that government needs to look for innovative contracting methods to get work done in lean times.\r
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The basic idea of share-in-savings contracting is that the government pays a contractor fully, or partly, in the form of giving the contractor a share of the savings the contracted effort generates. No savings means no (or limited) payment, while big savings means big payments. This ultimate form of results-based contracting should be part of the government's arsenal even in good times, but, as Davis noted, in these times it is particularly appropriate.
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