The article examines the performance-based contracts in residential foster care in terms of inputs and outcomes. The term input means that standards stipulated in the contract have been achieved. In group foster care, the information involves both basic maintenance functions and services given. Further, performance of contracts is also measured in terms of treatment outcomes and posttreatment outcome. Treatment outcome measures the progress in the child behavior and the family during the time the child is under group residential care. Posttreatment outcome evaluates the performance of the child in the posttreatment setting, which refers to the setting given in the permanency plan.