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Contract Terms

Pay for performance can be implemented in a variety of ways to fit the context of a program. Contract terms in pay for performance transactions can be adjusted to balance the financial and performance risk between the buyer and producer. Striking the appropriate balance between risk and reward can result in a vibrant competition to deliver environmental outcomes that inspires private parties to identify high value conservation opportunities at reasonable costs.

How to Use the Tools

The guidance provided here is based off of a partial pay for performance strategy and is meant to be a starting point for buyers interested in using pay for performance.

The contract terms include standard procurement language that can be modified to suit the needs of the user. However, the terms exclude boilerplate language, which is typically unique to the procurement guidelines for each individual organization and is not essential to the defining characteristics of pay for performance contracts. The terms are intended to be tailored, using the guidance provided, to the desires of the program.

Download the Pay for Performance Contract Terms and Guidance document for standard, customizable text to include in pay for performance contracts and the associated components to include in solicitations.