10. Results-Driven Contracting

10.1: There is a statewide policy (law, administrative rule or policy, executive order, etc) that encourages results-focused contracts and/or active contract management

10.2: The state has a policy (law, administrative rule or guidance, executive order, etc) that requires procurement contracts to, wherever practicable, prioritize proposals that meet the needs of communities most in need.

Maryland

Leading Example

In 2024, Maryland launched major procurement reforms to strengthen accountability and equity in how state contracts are managed. Governor Moore’s executive order established a centralized platform and modernized processes to improve contract oversight, performance tracking, and transparency across agencies. These changes help ensure that state dollars are used effectively and deliver meaningful results for Marylanders. At the same time, the reforms embed equity into procurement by directing agencies to set socioeconomic participation goals and prioritize proposals that expand opportunities for small, disadvantaged, and minority-owned businesses. By tying procurement decisions more closely to community impact, Maryland is working to make state contracting both more efficient and more responsive to residents who have historically faced barriers to opportunity.

Promising Examples

Colorado

In 2015, the Colorado General Assembly passed HB 15-1317, which authorized the Governor’s Office of State Planning and Budgeting (OSPB) to enter into Pay for Success (PFS) agreements. Colorado continues its Pay for Success programs to improve outcomes for youth at risk of out-of-home placements. These contracts seek to achieve equitable outcomes by targeting youth “involved in the child welfare system or juvenile justice system”, which are systems that disproportionately impact low-income populations and youth of color. Evaluation metrics include attendance rates, reductions in suspensions, and improvement in credit accumulation; and research by The Brookings Institute and other entities show strong correlation between high school education attainment and upward economic mobility.

Additionally, the Code of Colorado Regulations states that “it is the policy of this State that all procurement offices shall make a special effort to solicit and encourage minority-owned and women-owned business participation for state contracts and awards.” The regulations also state that evaluation factors for RFPs include preferences for veterans of military service.

Connecticut

Public Act 25-168 Sections 212-241 create a spending allocation program for small contractors or minority business enterprises with annual spending goals for goods and services by industry category and contract spending goals for public works contracts.

Delaware

29 Del. C. c. 69 Pay for Success Contracts authorizes Pay for success contracts in Delaware. Under these contracts, outcome-based performance is sought, investors provide funding to state agencies that agree to repay investors if the program or service meets the performance measures and outcomes in the agreement. The Delaware Office of Management and Budget/Government Support Services Procurement Manual has Chapter 6 which covers active contract administration: corrective action reports, regular reporting by vendors and feedback loops prior to rebid or extension decisions.

Ohio

The Encouraging Diversity, Growth, and Equity (EDGE) program examines internal procurement policies, procedures, and practices to remove those adversely impacting economically and socially disadvantaged businesses, as described in R.C. 122.922. In developing the procurement strategy, the Procurement Team meets to discuss several key topics, including, but not limited to: Performance Measures, Procurement Methods, Scope, and Constraints and Risks.

Contract Administration Plan (CAP) defines how a contract will be administered. During the contract administration phase of the procurement life cycle, contracts are monitored to ensure compliance with terms and conditions, correct supplier invoices, performance measures are being met, and payments to suppliers are made timely.

Rhode Island

Rhode Island supports results-focused contracting through regulatory and procedural mechanisms embedded in the state’s General Conditions of Purchase (220-RICR-30-00-13). These require contract performance prior to payment, allow for damages in cases of non-performance, and permit pre-award evaluation of vendor capacity and past performance. Training and support for agencies in procurement planning and contract oversight further advance active contract management.

Additionally, Rhode Island’s Division of Purchases provides contract managers with a self-guided curriculum, PROC 301, designed to instruct best practices for active contract management. The materials guide users on how to identify contract performance expectations and get best contract performance outcomes, including through the use of active contract management.

Rhode Island General Law § 37-14.1 and related procurement rules require a portion of contracts to be awarded to certified enterprises, with provisions for preference within a competitive range. This structure reflects a commitment to more inclusive economic opportunity.

Utah

The State of Utah Division of Purchasing has created the new Office of Contract Management Support (OCMS) in order to improve the overall efficacy of contracts and contract management throughout the State. OCMS is being implemented with a focus on creating and continuing partnership relations and being a value-add resource. It aims to accomplish this through multiple focus areas; creation of contract management standards, proactive engagement and support to agencies, trend analysis, vendor scoring.

As part of the statewide performance measurement system, funds that are allocated to contracted vendor services require metrics to track those results and report them accordingly.

Washington

In order to improve outcomes and eliminate disparities, the Washington State Department of Children, Youth, and Families (DCYF) is shifting its entire contracted client services portfolio to performance-based contracts, a key priority in the agency’s 2021–2026 Racial Equity and Strategic Plan. The project intentionally focuses on deepening stakeholder engagement, using Performance-Based Contracting as a tool to identify and address disproportionality and outcome disparities, and facilitating continuous improvement through data and research. DCYF has successfully initiated the shift in over 70% of its portfolio, which includes over 1,000 contracts that invest approximately $1 billion each biennium in services to children, youth, and families. Statewide, the Department of Enterprise Services has provided a series of enterprise contracts and procurement training that include performance-based contract practices. This is required training for all employees who manage, monitor, or serve as subject matter experts on contracts.

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