Every contract is required to have a description of services, Provider’s proposal, or Scope of Work. This is a
recommended guide to help divisions develop a performance based contract statement of work.
Performance-Based Contract Statement of Work Guide
Performance-based contracting focuses on the goals of the contract rather than how the work is to be
performed. It should describe the requirements of the contract in terms of the results required. When
developing performance-based contract requirements, keep in mind the mission of the division or
Department.
Performance-Based Statement of Work (PBSOW) is comprised of:
A. Background Statement (Provides understanding of problem(s) to be addressed and how it prevents
mission of program/division from being achieved.)
- What is the ultimate goal or mission of the program/division?
- Explains why the service is necessary.
- Gives an overview of what the problem is and why the service is needed.
- How will the service/contract contribute to achieving the target outcome?
B. Purpose (Identifies the mission of the contract, desired outcome of the contract.)
- States the mission of the contract and its relationship with the mission of the division/program.
C. Scope (Describes who and what and when of work.)
- Identifies the target population.
- Who will receive/benefit from the service?
- Identifies what you are trying to accomplish (end-outcome, contract’s ultimate goal).
- What are you trying to accomplish (i.e., what will improve as a result of the service/contract)?
- Identifies the time frame for the contract.
- What are the anticipated start/end dates?
D. Performance Requirements/Standards (Describes intermediate goals and measures of goal attainment.
Identifies what must be changed in the status quo to create the conditions necessary for goal
attainment.)
- Detailed list of expected outcomes/strategies for attaining the goal.
- Define contract’s outcome (and strategies if developed).
- Define timeline for achieving goal.
- Explains what must be accomplished to give the desired result (i.e., performance measures that are
specific, measurable, accountable, results-oriented, and time-bound).
E. Quality of Assurance Plan (Describes how performance will be verified. Focus on how to measure the
accomplishment of the work rather than how the work is to be completed.)
- Define clear, concise, easily understood standards for measuring performance.
- Explain how the desired outcome has been achieved.
- Explain strategies for measuring the performance.
- Define how measures will be collected.
F. Reimbursement and Incentive
- Define the plan for reimbursement of services.
- Where possible, link the payment with meeting the standard measures.
- Define how poor performance will be punished and good performance will be rewarded.
G. Selection and Evaluation Criteria (for use with the RFA and RFP)
- Define the criteria that will be used to select the provider.
- Evaluation criteria should be based upon significant determinates.
H. Summary
- Complete a chart listing the key elements from section A through F. This chart should summarize
your goals, deliverables, measures and terms of payment.
NCDHHS SOW1013 (Attachment B) (rev. 06/10)
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