21.1 Performance-based contracting
21.1.2 PBC objectives
By describing requirements in terms of performance outcomes, and not requiring detailed specifications, agencies can help achieve all of the following objectives:
- Maximize performance—allow a supplier to deliver the required service based on its own best practices and the customer’s desired outcome;
- Maximize competition and innovation—encourage innovation from the supplier base using performance requirements;
- Minimize burdensome reporting requirements and reduce the use of contract provisions and requirements that are unique to the state;
- Shift risk to suppliers so they are responsible for achieving the objectives in the Statement of Work through the use of their own best practices and processes; and
- Achieve cost savings through performance requirements.
Current chapter: Chapter 21 - Performance-Based Contracting and Service Level Agreements
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