Dive Brief:
- When some school districts implemented outcomes-based contracting for tutoring and ed tech interventions, there were positive effects on academic performance, according to a new study by WestEd, a nonprofit research and technical assistance organization.
- Outcomes-based contracting is a type of procurement process in which districts tie a portion of an ed tech provider’s compensation to the measurable results they can produce for a select group of students.
- Among the small sample of districts in its analysis, WestEd found that these school systems were spending similar amounts on services through outcomes-based contracting as they were in traditional contracts. That finding suggests “districts may receive greater intensity of services for a comparable cost,” the report said.
Dive Insight:
WestEd’s findings on outcomes-based contracting come at a time when schools are facing more public scrutiny over their use of technology — and as district budgets are tightening with widespread enrollment declines.
The organization conducted the independent study in partnership with the Center for Outcomes Based Contracting, a nonprofit that assists districts and providers to implement this newer type of procurement process.
Districts spend about $100 billion annually on contracted or purchased services, the WestEd study said, citing 2024 data from the U.S. Department of Education’s National Center for Education Statistics. That makes such services the second-largest portion of schools’ expenditures — following staff compensation, the study added.
In recent years, WestEd said that outcomes-based contracting is gaining steam among some districts, with the number of completed contracts growing from 5 to 46 between 2022 and 2025. Additionally, 87 school systems are participating in outcomes-based contracting.
However, studies on the practice have been scarce.
The WestEd study examined eight districts that were early adopters of outcomes-based contracting from the 2022-23 to 2024-25 school years across four states — California, Florida, Mississippi and Texas. The analysis included interviews with leaders from seven districts in the study sample, six tutoring providers, three ed tech providers and 12 school leaders.
Researchers examined district interventions that included high-dosage tutoring for reading or math, provided in-person or virtually through a live tutor, as well as ed tech services for reading or math, often implemented during the school day.
Among the studied interventions, WestEd said it was able to show that in three districts, using services through outcomes-based contracting caused positive student results.
For example, in one district, an artificial-intelligence-based platform for English language arts tutoring saw large proficiency gains for eligible 2nd grade students. In another district, literacy tutoring helped substantially increase the likelihood that students achieved typical reading growth targets. In a third district’s intervention using math tutoring, some strong gains could be at least partially attributed to the tutoring services.
Other positive impacts from outcomes-based contracting include strengthening relationships between districts and providers by ensuring accountability with both groups, the study found.
“These findings show that when OBC is implemented with integrity, it can have a causal impact on student outcomes,” said Brittany Miller, executive director and chief innovation officer for The Center for Outcomes Based Contracting, in a Tuesday statement. “It can also help districts and providers build the partnerships, practices, and capacity needed to continuously improve on behalf of students.”
To make an outcomes-based contracting process successful, WestEd said, the contract needs to be clear and detailed, and there should be strong communication and data use between districts and providers in order to improve classroom implementation.
