Outcome-based Procurement

It is an approach to procurement that replaces specifications with a problem statement or description of the desired outcome with varying degrees of openness to allow suppliers to propose different delivery or financing models.

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When you put outcomes before specifications you create bids that are open to new ideas or financing models, increasing competition and diversity.

You can use many established paths to take a more open question to market.


Barcelona wanted to tackle endemic bicycle theft to increase ownership and use of bikes in the city. The tender, with an allocated budget of about EUR 170k, described the problem and measures of success, as well as prior attempts. An ideas competition pre-qualified bidders for a negotiated procedure and market research was published to help suppliers find partners. The city simplified its standard T&C to a concise plain language version to open the tender up to a wider community. Residents founded new companies to present their ideas. The winning solution, Vadebike, is a collaboration between outdoor furniture, a tech and an insurance companies offering an integrated, insured parking solution sustained by user fees.

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Procurement path

Select a procurement path that will deliver the best outcomes at manageable effort. Design all the key steps in the process.

Test evaluation criteria

Develop evaluation scenarios using market research to test criteria that will deliver the right outcomes.

Review standard T&C

Check standard Terms & Conditions for barriers to the diversity of solutions and suppliers you are targeting.

Produce outcomes-focused tender package

The problem / needs statement should take center stage in this tender, together with the evaluation criteria. Be selective in the filters you use to mitigate risk.

Supplier matchmaking

If you want suppliers to partner to offer more complete solutions, take initiative to facilitate matchmaking.

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