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
juvenile justice system leaders and policy-makers. 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 expansionallowing EBA clients
to serve more youth and their families with the same amount of
(or less) funds.
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