U.S. flag

An official website of the United States government, Department of Justice.

Reducing Recidivism and Homelessness through Outcomes-based Contracting

Award Information

Award #
Funding Category
Competitive Discretionary
Congressional District
Funding First Awarded
Total funding (to date)

Description of original award (Fiscal Year 2019, $2,180,250)

The purpose of this program is to assist local, state, and tribal governments in converting reentry and permanent supportive housing (PSH) service contracts into outcomes-based contracts in order to ensure accountability and improve performance with regard to recidivism reduction (categories 1 and 2) and increasing nights housed and emergency service savings (Category 2).

The Second Chance Act Pay For Success Initiative: Outcomes-based Contracting To Lower Recidivism And Homelessness will provide assistance and funding to state, local, and tribal governments to price, write, negotiate, fund, and manage contracts that pay for these services in a way that ensures accountability of the contract service providers, and incentivizes improved performance over time. Contracted services that may be purchased with grant funds include reentry services which are tailored to individuals leaving incarceration who are at moderate to high risk for recidivism in the community and services available to individuals living in permanent supportive housing units.

The overall goal of the FY 2019 Second Chance Act Pay For Success Initiative: Outcomes-based Contracting To Lower Recidivism And Homelessness (SCA OBC) is to improve the capacity and effectiveness of governments to pay for outcomes rather than inputs and outputs. The goal of these outcomes-based contracts is to improve recidivism, housing, and functional outcomes (increases in number of nights housed in a permanent supportive housing unit and reduction in number of nights spent in emergency facilities) for service recipients while improving public safety and saving taxpayer dollars.

The objectives of this program are as follows: enter into an outcomes-based contract to provide individualized reentry services for people leaving incarceration who are identified through a validated risk tool as being at moderate to high risk to reoffend in the community, manage the outcomes-based reentry service contract, including data and report collection, regular performance and outcome reviews between the governments and service provider, on and off-site monitoring, outcomes validation, and incentive payment approvals, and ensure government staff and service providers have adequate training on SCA OBC procurement, reentry service/intervention, data collection, and outcomes validation.

The recipient will use award funds to actively address reducing recidivism and meeting offenders' needs through reentry, rehabilitation, and support programs; thereby decreasing further victimization. The recipient will establish an outcomes based contract to deliver evidence-based reentry services through an integrated inter-disciplinary team to address the physical, mental, and emotional obstacles for 180 high risk individuals returning from incarceration. An independent evaluator will measure the project performance.


Date Created: February 10, 2020