Chapter 21 - Performance-Based Contracting and Service Level Agreements

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.