37.603
Performance standards
Performance standards in performance-based acquisitions must be measurable and structured to enable objective assessment of contractor performance, and agencies must ensure proposed standards meet their needs.
Overview
FAR 37.603 outlines the requirements for establishing performance standards in performance-based acquisitions. Performance standards define the level of performance the Government expects from contractors to fulfill contract requirements. These standards must be measurable and structured to allow for objective assessment of contractor performance. When a Statement of Objectives (SOO) is used and offerors propose their own performance standards, agencies are responsible for evaluating these standards to ensure they align with agency needs and contract objectives.
Key Rules
- Establishment of Performance Standards
- Performance standards must be clearly defined, measurable, and structured to facilitate assessment of contractor performance.
- Evaluation of Proposed Standards
- When offerors propose performance standards in response to a SOO, agencies must evaluate these standards to ensure they meet the agency’s requirements.
Responsibilities
- Contracting Officers: Ensure that performance standards are included in solicitations and contracts, and that they are measurable and assessable. Evaluate proposed standards from offerors for adequacy.
- Contractors: Propose clear, measurable performance standards when responding to a SOO and ensure these standards meet the stated objectives.
- Agencies: Review and assess proposed performance standards to confirm they satisfy agency needs and contract requirements.
Practical Implications
- This section ensures that contract performance can be objectively measured and assessed, reducing ambiguity and disputes.
- Contractors must be diligent in proposing standards that are both ambitious and realistic, while agencies must rigorously evaluate these proposals.
- Common pitfalls include vague or unmeasurable standards, which can lead to performance issues or contract disputes.