Outcome-based contracting (OBC) edtech rate cards tying payment to measured learner outcomes¶

Element · All elements
Evidence · 2 claims (1 for, 1 mixed) · 4 studies (4 qualitative), q2 · 0 of 4 report an effect size · 1 claim rests on one study

Description¶

The presentation presents OBC edtech contracts structured as rate cards in which vendors are paid per student for achieving defined outcome metrics, alongside a base payment for services delivered. The worked example ties payments to FAST ELA results: Outcome 1 pays $6 per student for a percentile rank increase from PM1 to PM2 with a $12,250 cap, Outcome 4 pays $21 for Level 3 or above on 24-25 FAST PM3 ELA, and a base payment of $18 per student totals $65 per student and $122,500 overall. A second example rate card ties payments to TELPAS composite growth levels. Contracts also specify process outcomes such as usage of 45 min/week per module, progress-monitoring assessment windows, and Personalized Learning Plan progress tracked bi-weekly.

Design Implications¶

Context¶

Requirements¶

• Districts must define payment outcome metrics, assessment timeframes, and process outcomes (usage, progress monitoring, personalized learning plan progress) with data collection timeframes

Constraints¶

• Outcome payments are capped per outcome (e.g., $12,250 for Outcome 1), and the TELPAS example excludes students in Appendix B, which has a cap of $5,000

Target Learners¶

• K-12 students, including English learners (TELPAS example) and elementary ELA students (FAST example)

Target Learning Goals¶

• ELA achievement growth and English language proficiency growth tied to vendor payment

Claims¶

• Developing outcomes-based contracts enabled districts to engage in collaborative, data-driven decision-making processes to select populations, outcomes, and pricing. [+M]
• Lack of pricing transparency in the edtech market made OBC pricing decisions challenging, with pricing varying up to 40% between districts. [~W]

Related Elements¶

• Product certifications as a baseline filter for evidence-based edtech procurement

Examples¶

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Key Sources¶

• Van Nostrand, P., Shell, A., & Noakes, S. (2024). Empowering Education Leaders in Edtech Procurement. Digital Promise. https://digitalpromise.dspacedirect.org/items/47852ca7-537f-4f37-84c2-47c4031ef337