New Report: Exploring Outcomes Based Contracting for EdTech – Digital Promise

New Report: Exploring Outcomes Based Contracting for EdTech

A man in a suit stands with a clipboard and pen in front of a classroom students using laptops.

March 16, 2026 | By and

Key Ideas

  • A new report shares learnings from the first cohort of districts to use Outcomes Based Contracting for edtech procurement and implementation.
  • The Outcomes Based Contracting model enabled districts to define their instructional goals with edtech, create an implementation plan to meet dosage requirements, and establish clear expectations about the learning gains from product implementation.
  • By deepening partnerships between districts, schools, and providers, the model drove usage rates 10 times higher than those typically seen under traditional contracts.
As available funding to support edtech procurement shrinks, districts are scrutinizing their edtech spending to determine if the tools under consideration are the right fit for their needs (Mollenkamp, 2024). The Center for Outcomes Based Contracting’s (COBC) model offers districts new opportunities to reimagine edtech procurement. While traditional contracting promotes a one-way seller-client relationship, Outcomes Based Contracting (OBC) fosters a two-way partnership based on mutual accountability.

Traditionally, edtech contracts establish payment terms based on a set number of licenses, regardless of impact on learning. The OBC model is an innovative approach to edtech contracting in which payment terms are partially predicated on meeting agreed-upon student outcome benchmarks. The model encourages district leaders, school teams, and provider teams to work together to continuously monitor usage, troubleshoot as implementation challenges arise, and position the product to best achieve the intended outcomes. The theory behind this model enables districts to clearly evaluate whether an edtech tool successfully drove improved learner outcomes.

“This is helping us think about how we are working with providers more broadly. Focusing on what the problem or need is and then pinpointing that with having goals. This is a major step in the right direction […] Looking at the goal, not 50 prescriptive things but what are the top few things you can do—that mindset shift has been wonderful.” – District Leader

Early Lessons from the Field

Digital Promise engaged with the COBC team as a research partner to investigate the impact of this model on the first cohort of districts to test OBC with edtech products. Through our research, we identified multiple findings about the impact this model had on the procurement, implementation, and measurement processes:

1. OBC development creates collaborative, data-driven decision making.

District teams worked collaboratively across roles and with their provider to define the terms that would best serve their learners. Overall, districts reported meaningful partnerships with their providers that supported joint contract development. Many districts struggled to select an assessment for evaluating payment outcomes and generally lacked infrastructure to work across departments to create a contract. Additionally, the OBC model requires a market pricing transparency that is not currently available in edtech, making it difficult for districts to determine fair performance-based contract amounts.

2. The OBC model benefits from clearly defined roles and shared responsibility.

An outcomes based contract includes mutual accountability terms, which help districts and providers align on an implementation strategy before a tool even enters the classroom. However, implementation challenges were common as the recommended dosage from providers does not always translate smoothly into the classroom environment. Still, providers and districts collaborated to address arising challenges and create iterative implementation plans for authentic learning contexts.

“[The OBC] brings the parties together for an actual conversation that is a partnership. It’s not just a transaction. It is a conversation about student achievement that centers how students are going to grow.” – Edtech Provider

The districts that were most successful in mitigating challenges relied on cross-functional teams with clearly defined roles and strong working relationships. Districts and providers also shared that in the future, they will include a greater level of detail in the mutual accountability terms to ensure the support is in place for successful implementation.

3. OBCs drove increased edtech implementation rates, despite related challenges.

Participating districts met dosage requirements for 50 to 95% of the participating students, a startling outcome compared to the norm of more than 65% of purchased edtech licenses going unused (Dukes & Eroh, 2023; Baker & Gowda, 2018). The OBC model likely drove this increased rate of implementation fidelity due to buy-in across provider, district, and school teams, commitment from all parties to translate recommended dosage to practical classroom implementation, and reliance on real-time data across partners to monitor usage. Participants shared challenges with time constraints, additional work for staff, and lack of clarity in contract terms. Many of these challenges can be addressed by a more robust mutual accountability section of the contract and the inclusion of school teams in designing the implementation plan.

4. OBCs drove a systemic shift for district and school teams to monitor and leverage data for continuous improvement to implementation.

Data is a crucial piece of the puzzle, with product use data serving as a formative indicator of what is working and where more focus is needed. Through the OBC model, district and school leaders, administrators, and educators were using real-time data reports to ensure they met the implementation requirements described in the mutual accountability terms of the contract. Challenges with data reports included issues with permissions and access and, in some cases, the need for additional professional learning to effectively use and understand the data reports. Testing the data reports at the beginning of the school year can mitigate these challenges and drive a stronger commitment to using data to monitor implementation.

5. The OBC model enabled districts to better establish instructional coherence, support increased student engagement, and assess associated outcomes.

Provider success no longer ends with a signed contract, but continues until positive student outcomes are realized. Districts are accountable for implementing the tool at the intended dosage and are empowered to work with the provider to ensure streamlined implementation. These mindset shifts often translated to more effective use of the tools, supported by the clarity around expectations and alignment to instructional goals and related benchmarks. This cohort demonstrated that the OBC model increased intentionality and purpose with edtech, as well as helped districts rethink and expand their definitions around success. Future districts will benefit from including school staff in contract development, both to gain a deep understanding of the purpose, as well as to ensure a meaningful implementation plan aligns with their classroom contexts. Similarly, continuing to empower districts to see their providers as partners will encourage greater collaboration to support effective use of the product.

6. Providers gained super users for their product, increasing their understanding of how to support districts beyond OBCs with effective use of the tool.

The OBC model drove higher-quality implementation with robust data reporting, which offered providers new opportunities to measure the effectiveness of their products. This enabled providers to gain meaningful learning about their tool’s impact on learner outcomes, as well as feedback on the design of the product itself for more effective use across all users. These results are exciting and should offer additional incentives to providers considering engaging with an OBC.

Ready to explore OBC?

The results of the first edtech cohort demonstrate that the OBC model addresses many of the core challenges that exist in traditional edtech procurement. The implementation rates for the participating districts were startling compared to usage outside of OBCs. Under OBCs, learners used the tools as prescribed at rates 10 times or more than we expect to see under traditional edtech contracts. Additionally, the clarity in intentionality and coherence in purpose across each district demonstrated an ability to better home in on what success looks like and how leaders can work with partners to achieve it.

We’ve pulled together readiness assessments for both districts and providers. Start with these questions to gauge whether OBC is right for your organization.

District Readiness Assessment

Do you have the data needed to select the schools, populations, and outcomes for this contract?

Before engaging in OBC, take stock of what data you already have and what gaps you need to fill. It is important to understand your current edtech piloting processes to build connections to any existing infrastructure you might be able to leverage. Districts that struggle to identify target populations or set realistic outcome goals often run into trouble down the line, such as setting the bar too low or misaligning expectations with their provider.

Do you have strong communication channels across schools?

Mutual accountability requires widespread buy-in. Without it, most of the districts in this cohort met a major hurdle. To determine if your district is ready to engage in an OBC, think through the ways that you already share strategy, vision, and procurement decisions across schools, and how you might strengthen communication channels to ensure alignment and shared commitment throughout the district.

What does on-the-ground support look like at each school?

OBC implementation only works if the people closest to students, including school leaders, coaches, and educators, are set up to succeed. Before setting up the contract, create a plan for how the district will support staff throughout implementation, including channels for escalating questions or requesting additional help. This preparation will lead to a smoother rollout.

What is the data culture?

Through engagement with the OBC model, districts learn to better leverage data day to day. To set up a clearly-defined contract from the beginning, think through and commit to the types of data that will be needed across roles. Setting these expectations for which data are collected for which purposes will lead to a strong data culture throughout the contract.

District Readiness Assessment

Do you have the data needed to select the schools, populations, and outcomes for this contract?

Before engaging in OBC, take stock of what data you already have and what gaps you need to fill. It is important to understand your current edtech piloting processes to build connections to any existing infrastructure you might be able to leverage. Districts that struggle to identify target populations or set realistic outcome goals often run into trouble down the line, such as setting the bar too low or misaligning expectations with their provider.

District Readiness Assessment

Do you have strong communication channels across schools?

Mutual accountability requires widespread buy-in. Without it, most of the districts in this cohort met a major hurdle. To determine if your district is ready to engage in an OBC, think through the ways that you already share strategy, vision, and procurement decisions across schools, and how you might strengthen communication channels to ensure alignment and shared commitment throughout the district.

District Readiness Assessment

What does on-the-ground support look like at each school?

OBC implementation only works if the people closest to students, including school leaders, coaches, and educators, are set up to succeed. Before setting up the contract, create a plan for how the district will support staff throughout implementation, including channels for escalating questions or requesting additional help. This preparation will lead to a smoother rollout.

District Readiness Assessment

What is the data culture?

Through engagement with the OBC model, districts learn to better leverage data day to day. To set up a clearly-defined contract from the beginning, think through and commit to the types of data that will be needed across roles. Setting these expectations for which data are collected for which purposes will lead to a strong data culture throughout the contract.

Provider Readiness Assessment

What’s the team’s baseline knowledge about OBC?

OBC is a newer model, and it’s worth taking time to make sure provider team members have a strong understanding before diving in. While the mutual accountability piece tends to click quickly, teams may have more concerns about potential financial risks associated with these contracts. Helping the full provider team, beyond sales and legal departments, evaluate their baseline knowledge and offering resources to build their understanding will help set them up for meaningful district partnerships.

Do you have the research and data to help guide related outcomes and the dosage needed to achieve them?

Providers in the cohort highlighted the hurdles to engaging in an OBC, particularly for newer products. Before starting with OBC, be sure to conduct impact and efficacy studies to establish dosage recommendations and clearly articulate which outcomes will realistically be met by implementing the tool with fidelity. Without data supporting expected outcomes or necessary dosage, negotiating a contract based on outcomes is not feasible.

Do you have the capacity to implement an OBC?

OBC takes real organizational bandwidth, so it must be carefully considered. Providers that have not engaged in research to establish dosage requirements will carry a greater risk due to the high bar of field exposure and staff capacity needed to support implementation planning and realistic outcomes.

Provider Readiness Assessment

What’s the team’s baseline knowledge about OBC?

OBC is a newer model, and it’s worth taking time to make sure provider team members have a strong understanding before diving in. While the mutual accountability piece tends to click quickly, teams may have more concerns about potential financial risks associated with these contracts. Helping the full provider team, beyond sales and legal departments, evaluate their baseline knowledge and offering resources to build their understanding will help set them up for meaningful district partnerships.

Provider Readiness Assessment

Do you have the research and data to help guide related outcomes and the dosage needed to achieve them?

Providers in the cohort highlighted the hurdles to engaging in an OBC, particularly for newer products. Before starting with OBC, be sure to conduct impact and efficacy studies to establish dosage recommendations and clearly articulate which outcomes will realistically be met by implementing the tool with fidelity. Without data supporting expected outcomes or necessary dosage, negotiating a contract based on outcomes is not feasible.

Provider Readiness Assessment

Do you have the capacity to implement an OBC?

OBC takes real organizational bandwidth, so it must be carefully considered. Providers that have not engaged in research to establish dosage requirements will carry a greater risk due to the high bar of field exposure and staff capacity needed to support implementation planning and realistic outcomes.

Learn More

References:

Baker, R. S., & Gowda, S. M. (2018). The 2018 technology & learning insights report: Towards understanding app effectiveness and cost. Retrieved November 18, 2023. https://oetc.org/wp-content/uploads/2020/08/TL-Insights-Report-2018.pdf

Dukes, M, & Eroh, L. (2023, August 11). When It Comes To Purchasing EdTech Solutions, Evidence-Based Decision-Making Is More Important Than Ever. Overdeck Family Foundation. https://overdeck.org/news-and-resources/article/when-it-comes-to-purchasing-edtech-solutions-evidence-based-decision-making-is-more-important-than-ever/

Mollenkamp, D. (2024, August 28). As Federal Dollars Vanish, Districts Weigh Which Edtech Tools to Drop. EdSurge. Retrieved January 15, 2026. https://www.edsurge.com/news/2024-08-28-as-federal-dollars-vanish-districts-weighwhich-edtech-tools-to-drop

Sign Up For Updates! Email
Loading...