Authority/Reference(s) Texas Human Resources Code §40.058
Revision Date March 1, 2018


It is the policy of the Texas Department of Family and Protective Services (DFPS) to ensure Performance Based Contracts are maintained and managed effectively and in a manner that is aligned with state and agency strategic goals.

Performance based contracts are used by DFPS to focus on meeting clearly defined performance measures, outcomes and outputs, at optimal value. The concept of performance based contracting is to specify desired performance, allowing the contractor the latitude to determine the most efficient way to achieve the target(s).

Elements in Performance Based Contracts:

  • Well defined and clearly written performance measures in the Statement of Work (SOW);
  • Measurable and achievable performance measures;
  • Systemic efforts to track and collect data on the progress of performance measures;
  • Direct correlation between contract payment and performance, as specified in the contract, through use of:
    • Incentives for meeting targeted performance measures; and
    • Consequences or remedies for not meeting targeted performance measures.