Overview
FAR 37.601 establishes the foundational requirements for performance-based service acquisitions, emphasizing results-oriented contracting through the use of defined outcomes and measurable standards.
Key Rules
- Solicitation Flexibility: Agencies may use either a Performance Work Statement (PWS) or a Statement of Objectives (SOO) to initiate a procurement.
- Mandatory PWS: All performance-based service contracts must ultimately include a PWS.
- Measurable Standards: Contracts must define clear performance standards based on quality, timeliness, and quantity.
- Assessment Methodology: The contract must explicitly state the method used to evaluate the contractor's performance against the established standards.
- Incentive Alignment: While performance incentives are optional, they must correspond directly to the contract's performance standards and comply with FAR 16.402-2 if utilized.
Practical Implications
- Contracting Officers must shift focus from "how" a task is performed to "what" the final outcome should be, allowing contractors more flexibility in their technical approach.
- The requirement for measurable standards ensures that performance evaluations are objective and defensible, reducing the risk of disputes during the Quality Assurance Surveillance Plan (QASP) process.