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.
- Suggesting clear, tangible and fair metrics to gauge when the supplier has achieved success and trigger the agency’s obligation to pay for performance.
- Offering procedures for price and/or fee reductions when requirements or performance milestones are not met.