It seems like you're trying to shield yourself from "complete dead weight contractors" which should be easy enough to spot. Certainly don't need a dystopian monitoring system to pluck up their monitors every 10 minutes, and have months of research on trailing data to come to the conclusion that a contractor is dead weight.
I am myself a contractor so I’m not trying to shield myself from anything. They are however not simple to spot at all. I mean, I can spot them quite easily (at least I think I can). But I tend to work for people who hire me because they lack the skills that I have (or at least the skills I convince them I have). Their ability to evaluate the quality of my work, or reason about the problems I report to have with their systems, is close to non-existent. If I did terrible work it could take them quite a long time to notice, and then they’d just get themselves stuck trying to figure out if it was my terrible work, or the terrible work of a different contractor, or the terrible work of some of their employees, or simply the consequence of some other terrible work somebody else did 20 years ago. All of whom have a rather clear incentive to point the finger at each other. But don’t worry, whenever projects like that fail to deliver their planned value, there’s always some middle manager near by to say that the problem “should have been easy” to avoid.
They can give an indication that work is at least being done, or perhaps the pace at which it’s being done. Which as I said isn’t a great metric either. But it does to some extent help with something which is legitimately a problem for a lot of businesses who end up being taken for a ride by unscrupulous contractors.