Certified Public Procurement Officer (CPPO) Practice Test 2025 - Free CPPO Practice Questions and Study Guide

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What type of contract requires the contractor primarily to achieve specific results rather than follow prescribed methods?

Managed competition.

Performance Contracting.

Performance contracting is designed to focus on achieving specific outcomes or results rather than dictating the methods by which those results are achieved. In this type of contract, the contractor is held accountable for meeting predefined performance standards or results, such as energy savings or operational effectiveness. This approach allows for flexibility in the contractor's methods, enabling them to choose the most efficient or innovative means to achieve the designated results.

This is particularly useful in situations where the necessary outcomes may be complex and where detailing every method may limit the contractor's ability to employ the best solutions. It encourages initiative and creativity, ensuring that the contractor aligns their processes with the client's objectives without being constrained by rigid guidelines.

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Traditional contracting.

Competitive bidding.

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