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Programs and Services » Personalized Learning » Outcomes Based Contracting (OBC)

Outcomes Based Contracting (OBC)

OBC & ESC20
Education Service Center, Region 20, is partnering with the Center for Outcomes-Based Contracting (OBC) at the Southern Education Foundation and the Texas Education Agency (TEA) to provide technical assistance and guidance to districts interested in implementing an outcomes-based contract with a vendor of their choice. Together, we are launching the first Texas-led cohort, which includes seven local education agencies (LEAs) from across the state.
 
Defining Outcomes Based Contracting:
 
OBC empowers partnerships to contract for clear student outcomes and compels mutual accountability for achieving them.
 
Clear Outcomes & Responsibilities - Districts and providers agree upfront on specific student goals and define who's responsible for what, creating true partnership.
 
Cost Effectiveness Model - Districts pay full contract value when students show meaningful progress, providing clear understanding of investment value.
 
Payment Tied to Results - At least 40 percent of the overall contract value is contingent on meeting agreed-upon outcome, ensuring focus on student success.

Innovation Incentives - Districts determine what they'll pay for success, incentivizing providers to find the best ways to help students learn.