Tom Romeo, general manager of U.S. federal services business at Maximus, has said agencies should adopt an outcomes-based contracting model as the Trump administration calls for the federal government to improve the delivery of services to citizens amid scant resources.
Romeo, an inductee into Executive Mosaic“™s Wash100 for 2017, wrote in a Government Executive article published July 26 that such a model works to encourage “tight collaboration” between contractors and agencies by aligning contractors“™ compensation with program outcomes and goals.
“Outcomes-based contracting offers a risk-sharing mechanism that allows agencies to contract for measurable results while relieving them of the responsibility of paying for services that do not meet expectations,“ he noted.
“This accountability helps agencies validate that taxpayer-funded programs are achieving value for citizens.“
Agencies that intend to adopt the outcomes-based structure must determine and prioritize their desired outcomes in request for proposals as well as know their performance metrics that could be used as “benchmarks“ for contractors“™ compensation, Romeo said.
“The RFP should not be overly prescriptive so as to not limit the contractor“™s ability to innovate in achieving the desired outcomes,“ he added.