21.2 Elements of PBCs

21.2.0 Elements of PBCs

At a minimum, there are four elements of performance-based contracting:

  • Statement of work: a written document describing the technical, functional and/or service requirements and customer expectations in terms of measurable outcomes rather than by means of prescriptive methods.
  • Measurable performance standards: written definition of what is considered acceptable performance to determine whether performance outcomes are met.
  • Quality control plan: a written document describing how the supplier's actual performance will be monitored and measured against the contractually established performance standards.
  • Incentive plan: written procedures addressing how met and unmet contractual performance standards will be resolved, escalated, remediated and/or remunerated. Incentives may be linked to price or fee adjustments. While not mandatory, incentives can be used, where appropriate, to encourage performance that will exceed the established performance standards.


Enter your search query for BUY IT: