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ABSTRACT
This article presents a proposed model of performance-based contracting for human services. The model uses an expanded systems framework as an organizing theme, is based on the actual practices of a small purposeful sample of state human service agencies, and includes contractor financial risk and contractor data needs components. The purpose of the model is to provide a conceptual framework that can be used by government human service agencies to assess the various approaches to performance-based contracting and their implications. As prologue, a brief history of contracting for human services is presented. The historical review demonstrates that the current interest with performance-based contracting is the result of evolutionary changes in the concept of "accountability" in human service contracting that have occurred over the past 25 years.
INTRODUCTION
Contract service delivery has a long history in the human services. State human service agencies were making significant use of contracting long before this form of alternative service delivery became fashionable (Benton, Field & Millar, 1978; Mueller, 1978, 1980). For example, an Urban Institute study found that by 1978, state human service agencies were already expending over 50% of their funding through contract service delivery (Benton, Field & Millar, 1978:111-112). Fast forwarding to the present day, contracting continues to be the major mode of human service delivery. Some researchers speculate that by the year 2010 upwards of 80% of all government human service funding will involve contracting (Martin, 2001; Lauffer, 1997). Considering major trends in human service contacting (Martin, 2005; Martin, 2000a; Vinson, 1999; Behn & Kant, 1999; Lahti, 1997; Eggers, 1997a; Kettner and Martin, 1995), the majority of future contracts will most likely be: performance-based (Frumkin, 2001; GAO, 2000; Martin, 2000b; Kamerman & Kahn, 1998).
This article explores the use of performance-based contracting for human services. As background and context, a brief history of human service contracting is first presented. The performance-based contracting experiences of a small purposeful sample of state human service agencies are then reviewed. Based on this review, a proposed model of performance-based contracting for human services is then introduced.
A BRIEF HISTORY OF HUMAN SERVICE CONTRACTING
Using an expanded systems framework (Figure 1) to organize the discussion, the history of human service contracting can be divided into three major periods: the...