Performance-Based Contracting Update . Julia Wise General Services Administration Office of Acquisition Policy (202)[email protected] What - Definition . A contract structured around the solutions or results desired. FAR 2.101 Problem to be solved? Outcome to be achieved?
Government Solves the Problem
Contractor Solves the ProblemOld Versus New Process
Change in service
Proposing to amend the Federal Acquisition Regulation (FAR) by
1) changing the term performance-based contracting (PBC) and performance-based service contracting (PBSC) to performance-based acquisition (PBA) or performance-based service acquisition (PBSA) in FAR Parts 2, 7, 11, 37, and 39, where appropriate;
2) adding applicable PBSA definitions to FAR Part 2; revising FAR Part 11 to clarify the order of precedence for requirements; and
3) modifying FAR Part 37 to broaden the scope of PBA and give agencies more flexibility in applying PBSA methods to contracts and orders of varying complexity and reduce the burden of force-fitting contracts and orders into PBA, when it is not appropriate.
1 – PBC is New.
2 – PBC is a type and method of Contract.
3 – It is a contracting duty.
4 – PBCs use broad PWS and the contractor defines the outcome.
5 – PBC fits every service.
1 - It is not new. We bought the first
airplanes from the Wright Brothers
using a performance based SOW.
2 - It is not a type of contract. It is an acquisition
strategy that describes your requirement in terms
of results. Any contract type may be used.
3 – It is the duty of the Program Manager
but the Acquisition Team should be involved
upfront to help define the problem to be
4 – The Government clearly states the
OUTCOMES NOT OUTPUTS soliciting the
best solution from industry.
5 - PBC is not a one size fits all strategy. It is only applied to eligible services.Myths/Realty
Tip: Form the team as early as possible.
Why – Service $$$? Future
1. OFPP Policy Documents: go to PBSC section. http://www.acqnet.gov/Library/OFPP/PolicyDocs/
2. GSA PBC Website: (underconstruction)
3. Seven Steps to PBSA website: www.acqnet.gov
See vetted sampled under the Library