Outcome-based contracting is a procurement strategy in which payment is contingent upon achieving pre-defined outcomes, rather than specific inputs or activities. This approach shifts the focus from outputs, or simply completing tasks, to outcomes, which are the desired results or impact of the project or program. In outcome-based contracting, the contractor is incentivized to perform efficiently and effectively in order to achieve the desired outcomes, as their payment is tied to the success of the project. This can lead to improved accountability, innovation, and quality of services, as well as better alignment of incentives between the contractor and the client. Overall, outcome-based contracting aims to ensure that public funds are used more effectively and efficiently, by focusing on achieving tangible results rather than simply completing tasks. This approach is particularly common in social services, healthcare, and education sectors where outcomes are especially important.