Third-party Evaluation Finds Outcomes Based Contracts Can Improve Student Outcomes

WestEd study of eight early-adopter districts finds outcomes based contracting strengthens district-provider partnerships and builds lasting capacity when implemented with integrity

ATLANTA, Aug. 4, 2026 /PRNewswire/ -- Learning interventions implemented under outcomes based contracts (OBC) can improve student outcomes, strengthen partnerships between school districts and service providers, and build district capacity, according to an evaluation released today by WestEd, a nonpartisan research, development, and service agency.

Outcomes based contracting is a procurement approach that aligns districts and service providers around shared student outcomes, with payments tied in part to whether an intervention achieves defined results rather than solely to the delivery of services. The evaluation represents the most rigorous third-party examination to date of how OBC functions in practice.

"We commissioned this evaluation because districts and providers deserve rigorous, third-party evidence about what outcomes based contracting can and can't do, and we believe in using evidence to inform improvement," said Brittany Miller, executive director and chief innovation officer for The Center for Outcomes Based Contracting. "These findings show that when OBC is implemented with integrity, it can have a causal impact on student outcomes. It can also help districts and providers build the partnerships, practices, and capacity needed to continuously improve on behalf of students."

The multi-year evaluation examined eight early-adopter districts across California, Florida, Mississippi, and Texas implementing tutoring and educational technology interventions through OBC agreements. Using interviews, observations, document reviews, and quantitative analyses of implementation and student achievement data, WestEd identified the conditions under which OBC is most effective and the organizational changes associated with the model.

Key findings include:

• Student outcomes improved under OBC. In districts where rigorous causal analyses were possible and interventions were delivered for their intended duration, OBC generated positive causal effects on student outcomes in reading and math. The findings also highlighted the importance of implementation integrity, the ability of districts and providers to maintain the core elements of an intervention while adapting to local needs.
• OBC strengthened district-provider partnerships and accountability. OBC created stronger mutual accountability between the two parties, driven by clearer contracts, more frequent communication, and greater shared use of data to inform decisions to identify challenges, adjust implementation in real time, and improve results.
• OBC built district capacity that extends beyond a single intervention. District leaders reported stronger implementation routines, continuous improvement practices, and data-use processes, as well as a shift toward greater self-efficacy and accountability. These findings suggest OBC may strengthen how districts approach future contracts and improvement efforts beyond the specific intervention being evaluated.
• Coaching enabled success: District leaders credited the Center's coaching and TA with driving successful OBC development and implementation — most valuable early on, and most present where implementation integrity was strongest.

The evaluation also has important limitations. First, rigorous causal analyses were possible for only a subset of district-provider partnerships because districts and schools had discretion in assigning students to interventions. Additionally, the effect of OBC cannot be disentangled from the effect of the intervention. All findings point to the effect of the intervention under an OBC.

"One of the most important contributions of this evaluation is that it examines outcomes based contracting in practice—within the complex environments where districts, schools, and providers actually operate. The findings offer insight into both the potential of the model and the organizational conditions that influence success," said Kelsey Krausen, director of education finance at WestEd and co-author of the evaluation. "As outcomes based contracting continues to evolve, continued research, thoughtful implementation, and learning across districts and providers will be critical to understanding how the approach can best support improved outcomes for students."

The Center for Outcomes Based Contracting works with districts and providers to design, implement, and evaluate OBC agreements against its Standards of Excellence^TM, with the goal of ensuring students receive services that are both effectively implemented and designed to achieve meaningful outcomes.

The full evaluation report is available here.

About the Center for Outcomes Based Contracting
The Center for Outcomes Based Contracting is a nonprofit organization that helps districts and providers implement outcomes based contracting with a focus on innovation, mutual accountability, and continuous improvement. By embedding measurable student outcomes into contracts, the OBC model ensures that districts can make strategic, data-driven decisions even amid resource constraints—keeping student learning at the forefront. Through direct support, research insights, public resources, technical assistance, and cohort-based learning, the Center equips districts and providers with the knowledge and tools to implement OBC effectively. Additionally, the Standards of Excellence for Outcomes Based Contracting™ establish clear benchmarks for outcomes based contracting across the K–12 landscape, balancing the need for robust support with accountability for maintaining high-quality contracts that drive meaningful outcomes for districts, educators, and students.

SOURCE The Center for Outcomes Based Contracting