Performance work statement
Describe contract requirements in terms of measurable results and performance standards, not methods, to drive innovation and accountability in performance-based acquisitions.
Overview
FAR 37.602 outlines the requirements for preparing a Performance Work Statement (PWS) in performance-based acquisitions. The PWS can be developed by the government or by the offeror in response to a Statement of Objectives (SOO) provided by the government. The regulation emphasizes describing work in terms of required results, not prescribing methods or labor hours, and mandates the use of measurable performance standards and financial incentives to promote innovation and cost-effectiveness. The SOO, which is used by offerors to develop the PWS, must include specific elements such as purpose, scope, period and place of performance, background, performance objectives, and any operating constraints. The SOO itself does not become part of the contract.