“We’re mutually aligned in terms of incentives. If a project fails, we fail together. And there’s no debate as to whether or not it was a success,” said Mike Raker, Chief Technology Officer at Maximus.
Federal agencies wrestling with cost overruns, failed deliveries, and renewed pressure from the White House, Congress, and constituents are taking a hard look at outcomes based contracting. Widely used in healthcare, pharmaceuticals, and education, the model shifts payment and accountability away from measures such as hours worked toward mission impact and the actual value delivered. Under outcomes based contracting, the contract pays out only when what was promised contractually is delivered in actuality.
Mike Raker’s six-step roadmap and the move from inputs to outcomes
As Maximus moved to outcomes based contracts, Mike Raker tracked what worked and where there were friction points, then created a six-step roadmap to guide the transition from traditional inputs/outputs contracting to outcomes based agreements. The published summary includes the first three steps of that roadmap, underscoring that adoption is more than drafting new contract language — it requires process change and alignment.
Step 1: Start with clear outcomes
Raker emphasizes that the work begins by defining a shared understanding of the desired mission or business impact — not merely technical goals. “One of the first steps with any good customer relationship is making sure that we have a clear view of what the outcome is that we’re trying to deliver,” he said. “You have to start with a clear identification of what are those outcomes that determine success.” Vendors are expected to help agencies translate mission objectives into contractual outcomes.
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Get a security leadStep 2: Use multidimensional metrics
Raker recommends layered, multidimensional metrics that capture elements such as cost, innovation, uptime, and quality, and then ranking those variables by relative importance. “Often, what we’ll do is talk about the different attributes of the outcomes,” he said. He suggested tools like a radar diagram to detail the multiple elements that contribute to an outcome and to prioritize tactics while still pushing vendors toward strong solutions. “It may be more important to deliver the same service at a lower cost, but at the same time, we want to bring innovation to the table with the agility to change and adapt overtime based on the needs and priorities of the customer,” Raker added.
Step 3: Run stakeholder workshops
Bringing decision makers, end users, and operators together is the next step in Raker’s roadmap. Agencies and vendors are advised to run workshops to identify true beneficiaries and to surface the most relevant metrics. “We often facilitate workshops with our customers and our customer experience…” the guidance notes, indicating a collaborative process to align measurement to real-world benefit.
What this means for agencies, contractors, and end users
- Agencies: With a renewed focus over the last 18 months on eliminating fraud, waste, and abuse, agencies are considering outcomes based contracting as a way to link payment to mission impact rather than inputs or hours.
- Contractors: The model aligns incentives and shares risk and reward, which Raker says builds trust, deepens relationships, and encourages ongoing investment in tools and technologies.
- End users: Workshops that include operators and decision makers are intended to surface who benefits and which metrics matter, steering contracts toward measurable mission value rather than abstract requirements.
Proponents say outcomes based contracting can reduce debate over success and speed adoption of innovative solutions, but Raker cautions that the transition requires careful design — the roadmap, tracking friction points, and joint measurement are essential. While “all signs point to ‘yes’” on adoption, success depends on starting with clear outcomes, measuring across multiple dimensions, and running collaborative workshops to align incentives and definitions of value.
