Contract Expenditures
Success Contracts

The Success Contract Payments Trust Fund is established as a trust fund outside of the State Treasury with the Texas Comptroller of Public Accounts as trustee. Together a state agency and the Comptroller’s office may enter into a success contract with a vendor if:

• A contract payment is primarily based on the contractor meeting or exceeding specified performance measures
• The defined objective procedure is included and used by an independent evaluator to determine whether the measures have been met or exceeded
• A schedule of the amounts and timing of the payments to be earned by the contractor during each year (or another specified period) of the contract that indicates the payment amounts based on meeting or exceeding the specified performance measures is included

The Comptroller’s office shall make the contract payments for the success contracts only from the trust fund and in accordance with the terms of the success contracts. To administer success contracts, the Comptroller’s office may adopt rules as needed.

Source for definitions [+]