Which element is essential for developing a sound contract strategy?

Defining performance outcome measures is essential for developing a sound contract strategy because it establishes clear expectations for what the contract should achieve. These measures provide a framework for assessing the effectiveness and success of the contract after it has been awarded. By clearly defining the desired outcomes, both the contracting organization and the contractor have a shared understanding of the goals and objectives that need to be met.

This clarity helps to mitigate risks by ensuring that all parties are aligned on key performance indicators. It also facilitates better monitoring and evaluation throughout the contract lifecycle, as these measures serve as benchmark criteria for performance assessments. Without well-defined performance outcomes, it can be challenging to hold parties accountable or to make informed decisions about modifications or renewals.

In contrast, while identifying subject experts can enhance the contracting process by ensuring that the right knowledge is applied, it does not directly shape the contract strategy. Determining maximum contract duration may be important for compliance and planning, but it does not address the contract's goals. Similarly, choosing fixed bidders could limit competition and flexibility, which are often essential for creating robust contract strategies. Thus, defining performance outcome measures stands out as the foundational element in developing a sound contract strategy.