---
kind: "section"
citation: "20 C.F.R. § 683.500"
title: "20"
number: "683.500"
heading: "What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?"
url: "https://uscodex.org/cfr/20/683.500"
---

# §683.500. What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?

- (a) A WIOA Pay-for-Performance contract strategy is a specific type of performance-based contract strategy that has four distinct characteristics:
  - (1) It is a strategy to use WIOA Pay-for-Performance contracts as they are described in [§ 683.510](/cfr/20/683.510.md);
  - (2) It must include the identification of the workforce development problem and target populations for which a local area will pursue a WIOA Pay-for-Performance contract strategy; the outcomes the local area would hope to achieve through a Pay-for-Performance contract relative to baseline performance; and the acceptable cost to government associated with achieving these outcomes;
  - (3) It must include a strategy for independently validating the performance outcomes achieved under each contract within the strategy prior to payment occurring; and
  - (4) It must include a description of how the State or local area will reallocate funds to other activities under the contract strategy in the event a service provider does not achieve performance benchmarks under a WIOA Pay-for-Performance contract.
- (b) Prior to the implementation of a WIOA Pay-for-Performance contract strategy, a local area must conduct a feasibility study to determine whether the intervention is suitable for a WIOA Pay-for-Performance contract strategy.
- (c) The WIOA Pay-for-Performance contract strategy must be developed in accordance with guidance issued by the Secretary.

## Notes

### Authority

Authority: Secs. 102, 116, 121, 127, 128, 132, 133, 147, 167, 169, 171, 181, 185, 186, 189, 195, 503, Public Law 113-128, 128 Stat. 1425 (Jul. 22, 2014).

### Source

Source: 81 FR 56410, Aug. 19, 2016, unless otherwise noted.