Chapter 21 - Performance-Based Contracting and Service Level Agreements

When developing a PBC solicitation or request for quote under a VITA statewide contract, consider including a statement of objective (SOO) where the agency defines results to be achieved, but outputs are not predetermined. The SOO will include performance incentives tied to achievement of performance results (impact of outputs) and may include cost, timeliness, quality and impact of outputs associated with the supplier’s technical solution. The SOO allows maximum flexibility to the supplier on what work is to be done providing opportunity for innovation. A SOO provides the same information to each potential supplier, but then each supplier responds with the specifics as to how it will meet the desired objectives. For the successful supplier, the description of how it will meet the SOO will become a part of the contract, or order issued under a VITA statewide contract. The SOO business or mission objectives become the core of the solicitation, or request for quote under a VITA statewide contract. Suppliers then become responsible to describe how they will achieve the agency’s objectives.