In some cases, an agency may choose third party service providers to deliver services to its clients based on an evaluation of their quality, effectiveness or value for money in delivering services. It may choose to formalize the measures by which a provider's performance will be assessed in a contract, for example for the purposes of transparency. This can then be used by the agency to make decisions on the extension or termination of the contract.
In CPM, performance measures can be added to provider contracts. The measures can be used by the resource manager to monitor the provider's performance as part of maintaining the contract.
The measures that are defined in the Administration application can be added to the contract. Target values can also be specified for the measures. For example, a flat-rate contact is set up with a provider which pays a total of $10,000. In order to make this contract cost effective, the agency decides that at least a hundred clients should be served by the provider. Therefore the measure 'Total Number of Clients Served' is included on a contract with a target value of 100. At the end of the contract period, the total number of clients that were actually served by the provider comes to 700. Based on this information, the agency decides that the contract wasn't cost effective, and decides not to renew it.