Performance-Based Contracting: Results, Performance Standards, Incentives

Author(s):

Ronald L. Straight
Ronald L. Straight, Professor, Howard University, (202/806-1531); rstraight@howard.edu

91st Annual International Conference Proceedings - 2006 - Minneapolis, MN

Abstract

Performance-based contracting (PBC), sometimes referred to as performance based service contracting (PBSC) or performance-based service acquisition (PBSA), is a good method and often fits especially well when buying services.

The primary essential elements for using PBC are: (1) Describing the requirements in terms of results rather than methods of performance, (2) Using measurable performance standards (e.g., terms of quality, timeliness, etc.) and quality assurance surveillance plans, (3) Including performance incentives where appropriate (positive and negative).