Overview
FAR 37.603 defines the role and characteristics of performance standards in performance-based acquisitions, requiring them to be measurable benchmarks for assessing contractor success.
Key Rules
- Definition: Standards represent the specific performance level the Government requires to satisfy the contract requirements.
- Measurability: All standards must be objective and measurable rather than subjective.
- Assessment Structure: Standards must be formatted in a way that allows the Government to conduct a formal assessment of the contractor’s actual performance against the requirement.
- Evaluation of Offeror Proposals: If a Statement of Objectives (SOO) is used and offerors propose their own standards, the agency is required to evaluate those standards to ensure they align with the agency's actual needs.
Practical Implications
- Quality Assurance: These standards form the backbone of the Quality Assurance Surveillance Plan (QASP), providing the criteria used to determine if a contractor earns incentives or faces deductions.
- Shift in Responsibility: By requiring measurable standards—especially when proposed by offerors—the FAR shifts the focus from "how" the work is done to the "results" achieved, allowing for contractor innovation while maintaining Government oversight.