37.602 Performance work statement
Source: FAR 37.602 on acquisition.gov
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.
(a) A Performance work statement (PWS) may be prepared by the Government or result from a Statement of objectives (SOO) prepared by the Government where the offeror proposes the PWS.
(b) Agencies shall, to the maximum extent practicable-
(1) Describe the work in terms of the required results rather than either "how" the work is to be accomplished or the number of hours to be provided (see 11.002(a)(2) and 11.101);
(2) Enable assessment of work performance against measurable performance standards;
(3) Rely on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and cost-effective methods of performing the work.
(c) Offerors use the SOO to develop the PWS; however, the SOO does not become part of the contract. The SOO shall, at a minimum, include-
(1) Purpose;
(2) Scope or mission;
(3) Period and place of performance;
(4) Background;
(5) Performance objectives, i.e., required results; and
(6) Any operating constraints.