### Question
Can you define what pay-for-performance contract strategy means?


### Answer
**Pay-for-performance contract strategy** is defined as the following in *29 U.S.C. § 3102*:

> a procurement strategy that uses pay-for-performance contracts in the provision of training services described in section 3174(c)(3) of this title or activities described in section 3164(c)(2) of this title, and includes—


(A) contracts, each of which shall specify a fixed amount that will be paid to an eligible service provider (which may include a local or national community-based organization or intermediary, community college, or other training provider, that is eligible under section 3152 or 3153 of this title, as appropriate) based on the achievement of specified levels of performance on the primary indicators of performance described in section 3141(b)(2)(A) of this title for target populations as identified by the local board (including individuals with barriers to employment), within a defined timetable, and which may provide for bonus payments to such service provider to expand capacity to provide effective training

#### Citation:
  - *29 U.S.C. § 3102*
  - Heading: **CHAPTER 32-WORKFORCE INNOVATION AND OPPORTUNITY**

