Steps for revolutionizing federal services through outcome-driven agreements
In a bid to revolutionise the way government services are delivered, Mike Raker, the Chief Technology Officer at Maximus, has proposed a six-step approach to establish a solid outcome-based contracting model between federal agencies and government contractors. This shift, Raker believes, is crucial for a fundamental mindset change beyond traditional procurement methods.
- Shift Mindset from Inputs to Outcomes
The first step is to move away from procuring services or inputs and focus on defining clear, measurable outcomes that demonstrate value and impact for the agency and citizens. This approach requires a shift from concentrating on the process to focusing on the end goal.
- Collaborative Outcome Definition
To ensure alignment with agency missions and public needs, it is essential to engage both federal agencies and contractors early in the process to collaboratively define realistic, achievable outcomes.
- Implement Transparent Metrics and Measurement
Developing objective, data-driven metrics is crucial for tracking progress and success. These metrics allow for real-time monitoring and accountability, ensuring that both parties are working towards the same goal.
- Incentivize Desired Results
Structuring contracts to reward contractors based on their performance against the agreed outcomes encourages innovation and continuous improvement. Outcome-based incentives, such as payment tied to measurable results like throughput, quality, speed, and customer satisfaction, motivate vendors to invest in better tools and technologies.
- Leverage Technology and Data Analytics
Utilising AI and other technological tools can help evaluate performance, optimise service delivery, and support decision-making throughout the contract lifecycle. This leveraging of technology not only enhances service delivery but also informs public policy decisions.
- Iterative Improvement and Flexibility
Designing contracts with built-in flexibility allows for adaptability and refinement of outcomes and processes based on ongoing feedback and results data. This iterative approach ensures that the contract evolves with the real-time needs and mission goals.
This approach demands a fundamental cultural and operational transformation within procurement teams and contractors alike, emphasising value delivery over process compliance. Raker emphasises that outcome-based contracting is "more than a procurement process; it demands a fundamental shift in mindset."
By implementing this model effectively, public services can be significantly improved through enhanced accountability, innovation, and alignment with citizen needs. Both federal agencies and vendors can benefit from this contracting model, leading to strategic investments in partnerships with innovative companies. This model also fosters transparency, enabling the identification of areas where improvements can be made and lessons can be learnt.
The federal workforce must collaborate with contractors to define outcomes that reflect the agency's mission and the public's needs using technology-driven data analytics (Collaborative Outcome Definition). In this framework, contracts incentivize the adoption of cutting-edge technologies and tools by tying performance rewards to measurable results like throughput, quality, speed, and customer satisfaction (Incentivize Desired Results).
