The objectives of Performance-Based Service Contracting (PBSC) clearly call for a business relationship that is based on “shared common goals.” In a performance-based contracting environment, the business case must drive the development of the incentive relationship/strategy.
The implementation of Performance-Based Service Contracting (PBSC) contracting has been the most significant development in federal programs during the 21st century. This new paradigm aims to advance the industry forward through a revolutionary approach - focusing not on how to do the program but instead on what results the program must achieve.
Performance Based Service Contracting is one of the greatest challenges facing proposal professionals today. During the next few years, performance based contracting will largely replace the traditional way of service contracting.