Risk management system implemented at the US Army Medical Command

Abstract

PurposeTo describe the implementation of the Performance Information Risk Management System (PIRMS) to indefinite delivery indefinite quantity (IDIQ) general contractors in the US Army Medical Command (MEDCOM) 26 sites, 150 projects/year, and $250m/year maintenance and repair construction program.Design/methodology/approachTo test the hypothesis that facility owner management, control, and decision making is a source of risk, and that the transfer of risk and control to the contractors will minimise the risk.FindingsInclude minimising construction management by 33 percent, motivated contractors to regulate their own contracts, minimised unresolved issues by 50 percent, minimised contractor generated change orders by 20 percent, and moving from doing quality control to quality assurance.Research limitations/implicationsThe authors see no constraints in the implementation of PIRMS in other organisations. This paper reflects the perceptions of the Arizona State University research team, and publicly available test results, and not the views or policy of the USA Medical Command.Originality/valueIncludes the use of dominant performance/risk information from the contractor's weekly risk reports to create accurate performance and risk information on all ongoing projects, the IDIQ contractors, and on the client's/buyer's personnel. Risk information is being used to streamline a large organisation's organisational structure, minimising decision making and transactions, and transferring risk and control to the party who can minimise the technical risk.