Chapter 24 - Requests for Proposals and Competitive Negotiations

24.2.2 Performance-based contracts

Solution-based RFPs and performance-based contracts go hand in hand. Solution-based RFPs lead to the formation of performance-based contracts and allow suppliers to propose solutions that provide tangible benefits to both the agency and themselves such as:

• Offering a risk-sharing partnership to achieve the optimum solution.
• Developing clear and robust performance metrics for all critical technical, functional, and Cloud requirements
• Including clear, tangible and fair performance metrics to gauge when the supplier has achieved success and trigger the agency’s obligation to pay for performance.
• Determining how and how often Supplier’s performance will be measured against the metrics
• Offering reasonable enforcement provisions and remedies when requirements or performance milestones are not met, and analysis of, and reporting on, performance metrics at regular intervals during the life of the resulting Contract.