PERFORMANCE-BASED CONTRACTING


During this unprecedented era of economic challenges, reductions in state revenues and additional burdens on judicial, executive and legislative leaders, traditional approaches to juvenile crime must be reconsidered.

EBA's services are offered as a resourceful and unique solution to system leaders and policy-makers who work with children, youth and families. Together with key stakeholders, the EBA team will help craft the best possible solution for serving a state's high-risk youth. Payment for services is tied directly to EBA's ability to produce positive results. This approach, known as performance-based contracting, provides a modern-day solution to a system that is often riddled with waste, inefficiency and dismal outcomes.

We generate guaranteed outcomes and guaranteed cost savings by ensuring high-quality implementation and fidelity to the model programs we represent. Our proceeds are tied directly to our client's savings. In other words, our contracts are 'performance-based'.

A performance-based contract transfers performance risk to EBA and through EBA's oversight, providers are held accountable for results. Performance-based contracts have a proven history of reducing program costs and increasing desired outcomes.

Features of performance-based contracts include:
  • An emphasis on results and outcomes rather than how the work is performed
  • Payment for services is tied directly to ability to produce positive results
  • Clearly defined objectives and timeframes
  • An outcomes orientation and clearly defined objectives and timeframes
  • Measurable performance standards and quality assurance plans
  • Agreed upon goals must be met for payment to be received
More importantly, with a performance-based contract in place, the savings attained with the programs offered by EBA can, in turn, be reinvested in program expansion—allowing EBA clients to serve more youth and their families with the same amount of (or less) funds.

Performance-Based Contract Example for Juvenile Justice

How does EBA get paid?

EBA has such confidence in the following areas that we structure our payment directly to our results and our client's satisfaction. If we don't produce results, we don't get paid.
  • Project management
  • Work with key system players and community stakeholders
  • Program implementation
  • Ability to train, manage and monitor providers
EBA is paid a fixed rate for each youth served, subject to performance incentives, as well as penalties under our contract performance guarantee.

SAMPLE PAYMENT APPROACH:
  • Model program that serves 300 youth and their families when fully operational
  • Money back guarantee - 100 percent of costs for youth not meeting or exceeding guarantee success rate
  • Guaranteed success rate - at a minimum 10 percent improvement in selected performance metrics (e.g. number of youth placed in residential placement one-year post discharge for new law violations)
  • EBA performance incentives - a stipulated percentage of the system savings generated by performance above the guarantee success rate