ABSTRACT

One of the growing developments in performance measurement of contracts is the introduction of Payment by Outcomes, or Payment by Results (PbR). There have been some examples of versions being developed of PbR in Government let contracts, notably in the field of welfare to work contracts, such as the various developments following on from the Job Training Partnering Act since 1982 in the USA, the Working Nation programme begun in 1994 in Australia and more recently in the United Kingdom (UK) through the New Deal and its successors. One reflection and result of this has been the change in how performance measures have been used. The change is by no means uniform, but there has been a definite trend away from input-based measures towards output and more recently outcome measures. Contract and rebid teams should constantly challenge themselves to make sure they are not assuming knowledge by the evaluation team of the incumbent's performance or knowledge of the contract.