Overview
This section outlines the management and oversight responsibilities of agency heads or their designees to ensure service contracts are effectively defined, legally compliant, and fiscally responsible. It focuses on maintaining the integrity of the acquisition process by distinguishing between contracted services and inherently governmental functions.
Key Rules
- Definition and Standards: Requirements for services must be clearly defined with appropriate performance standards so offerors understand expectations and the agency's needs are met.
- Fiscal and Schedule Oversight: Agency heads must ensure that service contracts are awarded and managed to deliver results within budget and on a timely basis.
- Inherently Governmental Functions: Specific procedures must be established prior to contracting to guarantee that functions reserved for government personnel are not outsourced to contractors.
- Strategic Implementation: Agencies are responsible for developing implementation strategies and providing necessary staff training to satisfy the service contracting policies established in FAR 37.102.
Practical Implications
- Performance-Based Focus: This section drives the use of Performance Work Statements (PWS) and Quality Assurance Surveillance Plans (QASP) to meet the requirement for "clearly defined" performance standards.
- Compliance Checkpoints: Program managers and contracting officers must perform rigorous "inherently governmental function" determinations (often documented in the acquisition plan) before a requirement can move to solicitation.