Subpart 37.6
Performance-Based Acquisition
Performance-Based Acquisition requires agencies and contractors to focus on measurable outcomes, clear performance standards, and robust quality assurance to ensure effective service delivery.
Overview
FAR Subpart 37.6 establishes the requirements and procedures for Performance-Based Acquisition (PBA) in federal service contracting. The subpart outlines the principles and mandatory elements of PBA, emphasizing results-oriented contracting by focusing on outcomes, measurable performance standards, and quality assurance. It covers the development of performance work statements (PWS), the establishment of performance standards, and the creation of quality assurance surveillance plans (QASP) to ensure contractor performance meets agency needs. The subpart applies to most service contracts and is designed to improve efficiency, accountability, and value in government acquisitions.
Key Rules
- Performance Work Statement (PWS)
- Agencies must develop a clear PWS that defines the required results, not just the process, allowing contractors flexibility in achieving outcomes.
- Performance Standards
- Contracts must include measurable performance standards to assess contractor success and ensure deliverables meet agency requirements.
- Quality Assurance Surveillance Plans (QASP)
- Agencies are required to implement QASPs to monitor, evaluate, and document contractor performance against established standards.
- General Principles
- PBA should be the preferred method for acquiring services, focusing on outcomes and measurable results.
Responsibilities
- Contracting Officers: Must ensure solicitations and contracts include PWS, performance standards, and QASPs; oversee compliance and performance monitoring.
- Contractors: Must deliver services in accordance with the PWS and meet or exceed performance standards; cooperate with agency quality assurance efforts.
- Agencies: Responsible for developing effective PWS, establishing clear standards, and conducting ongoing surveillance and evaluation of contractor performance.
Practical Implications
- PBA shifts the focus from how work is performed to what results are achieved, promoting innovation and efficiency.
- Contractors must understand and align with outcome-based requirements and be prepared for rigorous performance monitoring.
- Common pitfalls include vague PWS, poorly defined standards, and inadequate surveillance, which can lead to disputes or performance issues.