Part 4: Performance Evaluation at the End of the Year The fourth and final step is taken at the end of years 2-5, when we look at the achievements of the Operator and compare them with the criteria values and determine the composite score reflecting – overall performance of the Operator. A hypothetical example of the above system, including the calculation of the composite score is given below: Sample Management Contract Targets at the Beginning of the Year of Year x Criterion Units Weight Criterion Values 1 2 3 4 5 Reduction of unaccounted % .30 55 57 59 61 63 for water Collection efficiency % .40 35 37 39 41 43 Metering coverage % .30 30 28 26 24 22 The following table demonstrates the procedure for the calculation of the Performance “Composite if at the end of the year the achievements of the Operator are as follows: Score,” i) Reduction of unaccounted for water 57 ii) Collection efficiency 36 iii) Metering coverage 30 Calculation of Composite Performance Score Raw Weighted Criterion Units Weight Achievement Score Score Reduction of unaccounted for % .30 57 2 .6 water Collection efficiency % .40 36 1.5 .6 Metering coverage % .30 30 1 .3 Composite Performance Score 1.5 H.7 The Method for Incentive Compensation Payments The Operator will be paid Incentive Compensation based on the following formula: Annual Incentive 3.5 - Composite Maximum Annual Incentive = X Compensation Payment Score Compensation 2.5 The method for calculating the Composite Score is given in section 6 of this Appendix.
Part 4: Performance Evaluation at the End of the Year The fourth and final step is taken at the end of years 2-5, when we look at the achievements of the Operator and compare them with the criteria values and determine the composite score – reflecting overall performance of the Operator. A hypothetical example of the above system, including the calculation of the composite score is given below: Sample Management Contract Targets at the Beginning of the Year of Year x Criterion Units Weight Criterion Values 1 2 3 4 5 Reduction of unaccounted for water % .30 55 57 59 61 63 Collection efficiency % .40 35 37 39 41 43 Metering coverage % .30 30 28 26 24 22 The following table demonstrates the procedure for the calculation of the “Composite Performance Score,” if at the end of the year the achievements of the Operator are as follows: i) Reduction of unaccounted for water 57 ii) Collection efficiency 36 iii) Metering coverage 30 Calculation of Composite Performance Score Criterion Units Weight Achievement Raw Score Weighted Score Reduction of unaccounted for water % .30 57 2 .6 Collection efficiency % .40 36 1.5 .6 Metering coverage % .30 30 1 .3 Composite Performance Score 1.5 H.7 The Method for Incentive Compensation Payments The Operator will be paid Incentive Compensation based on the following formula: Annual Incentive Compensation Payment = 3.5 - Composite Score X Maximum Annual Incentive Compensation 2.5 The method for calculating the Composite Score is given in section 6 of this Appendix.
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