What is the primary focus of Performance Contracting in procurement?

The primary focus of Performance Contracting in procurement is on establishing clear performance criteria and outcomes that a contractor must meet. This approach emphasizes accountability, where the contractor is incentivized to deliver specific results rather than simply completing tasks or providing services. In this model, payment is often tied to the achievement of these results, aligning the contractor's performance with the goals of the contracting agency.

The other options relate to different procurement strategies and methodologies. Managed competition involves enabling competition between internal and external providers for services, which does not encapsulate the essence of Performance Contracting. The make-or-buy decision centers on determining whether it is more cost-effective to produce goods or services in-house or to outsource them, which is again outside the scope of Performance Contracting. Competitive sealed bidding focuses on obtaining the best price through a structured bidding process, rather than performance-based outcomes. Therefore, the correct choice highlights the unique focus of Performance Contracting on measurable performance criteria and results.