purchase-of-service (POS) agreements

A fiscal arrangement or contract between two or more organizations; one organization agrees in advance to pay a specified amount to the other for providing a predetermined number of services within a specified time period. Purchaser organizations are thus able to extend services to their clientele, and provider agencies can increase their budgets, extend their services, and in some cases increase their profits. Such agreements are often between government entities as the purchaser and social agencies as providers. This term is also known as purchase of service contracts (POSCs).