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The Promiseand Pitfalls of Performance-BasedContracting
Seedco
Innovations in Community Development 
 
By:
Dennis C. SmithNYU/WagnerWilliam J. GrinkerSeedco
 June, 2004
 
 The Promise and Pitfalls of Performance-BasedContracting
Dennis C. SmithAssociate Professor of Public PolicyRobert F. Wagner Graduate School of Public ServiceNew York UniversityWilliam J. GrinkerChief Executive OfficerSeedco
Prepared for presentation at the 25th Annual Research Conference of theAssociation for Public Policy Analysis and Management (APPAM)Washington, D.C. November 5-8, 2003
Please do not quote or cite without the permission of the authors:dennis.smith@nyu.edu and wgrinker@seedco.org
Structured Employment Economic Development Corporation (Seedco), 2004
 
 2
The Promises and Pitfalls of Performance-Based ContractingTABLE OF CONTENTSPage
Introduction…………………………………………………………… 3The Lexicon of Reform……………………….………………...…….… 7The New York Experience…………………………….………………… 12Experiments in Performance Management………………….. 12Performance-Based Contracting in New York City…………. 17The Conceptual Challenges Facing New York…………………………..… 24Case Studies of Experiences with Performance-Based Contracting …27Government Agencies……………….……………………... 28Nonprofit Provider Agencies………………….………….….. 35Conclusion……………………………………………………………… 45Bibliography…………………………………………………………….. 47
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