Increasing the Use of Performance-Based Service Acquisition†
In July 2003, the Office of Federal Procurement Policy (OFPP) issued a report, “Performance-Based Service Acquisition: Contracting for the Future,” outlining recommendations to improve the quality and increase the use of performance-based service acquisition (PBSA). An interagency task force representing agencies that award a significant dollar amount of service contracts and task orders developed these recommendations. The purpose of this memorandum is to implement several of the task force’s suggestions, including new instructions for reporting and querying the Federal Procurement Data System (FPDS). Unless otherwise stated in this memorandum, these changes are effective October 1, 2004.
Target Achievement Levels
Agencies should apply PBSA methods on 40 percent of eligible service actions over $25,000, to include contracts, task orders, modifications, and options, awarded in fiscal year (FY) 2005, as measured in dollars. OFPP, in consultation with the Chief Acquisition Officers Council, will re-evaluate the target achievement levels for future years based on agencies’ FY 2005 performance.