Gov. Gregoire requiring performance-based contracts

For Immediate Release: November 29, 2010

OLYMPIA � Gov. Chris Gregoire today signed an executive order directing state agencies to base all their new contracts on performance and to provide incentives and consequences to ensure that agreed upon value to the state, and taxpayer, is received.

�Accountability is central to our continuing work to transform Washington,� Gregoire said. �Performance contracts are just what they sound like � they identify what we as a state are buying, and make payment contingent on the contractor delivering those results. Performance contracts focus on the job to be done, and they ensure it gets done.�

Gregoire acknowledged that Washington state is already a leader in using performance based contracts � and highlighted the success of the Department of Transportation, which has used these types of contracts to ensure projects are delivered on time and on budget. Over the last seven years, 76 percent of contractors on 1,000 WSDOT projects finished early or found a cheaper way to deliver the project.

�Given the extremely difficult choices we face as we address a $5.7 billion shortfall in the next budget, performance contracts can no longer be a best practice � they must be standard practice,� Gregoire said. �Government must be accountable for each tax dollar, and we must expect the same accountability of every business, contractor or organization that wins a contract for those tax dollars.�

The executive order directs the Office of Financial Management and the Government Management Accountability and Performance office to give a progress report to the governor no later than Dec. 1, 2011, detailing implementation of the executive order as well as results. The executive order also requests the State Auditor to assist with evaluation and training.

To read the executive order, visit: http://www.governor.wa.gov/execorders/eo_10-07.pdf

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