Your browser does not support JavaScript!

Chapter 21 - Performance-Based Contracting and Service Level Agreements

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.