The National Electrical Manufacturers Association (NEMA) together with the Intelligent Transportation Society of America (ITS America) recently released a white paper that describes the key characteristics of an Outcomes Based Contracting (OBC) approach, tips for its implementation, and selected case studies that highlight its effectiveness.

The collaboration stems from an MOU between the organizations to work together to share information, promote shared policy objectives, and scale the deployment of intelligent transportation systems across the United States.

The paper, “Procurement Solutions for Modern Transportation Technologies,” was created by a task force of members from both ITS America and NEMA. It highlights the role and path forward of the federal government in advancing OBC adoption, making a compelling case for OBC as a “transformative solution to modernize infrastructure procurement, streamline innovation, and deliver better public value.”

Key highlights of the paper include:

• An in-depth explanation of OBC principles: identification, alignment, measurement, and adjustment

   

• Case studies from Alpharetta, Georgia; the Virginia Department of Transportation; and Southern Nevada demonstrating OBC’s effectiveness in real-world applications

   

• Guidance for federal leadership in aligning policies and funding mechanisms with modern infrastructure needs

   

• Recommendations to help state and local agencies address cybersecurity, software licensing, and resource challenges

“Public agencies are grappling with outdated procurement models in a digital-first transportation era,” said Bobby McCurdy, ITS America vice president of policy and advocacy. “This paper provides a practical roadmap to unlock innovation and improve performance, from traffic signal systems to integrated crash response platforms.”

Access more information on NEMA’s news webpage.