Performance-Based Service Acquisition: Contracting for the Future

Interagency Task Force on Performance-Based Service Acquisition


Modifying the FAR.

Recommendation No. 1: Modify the FAR Part 2 to include definitions for: 1) performance work statement, 2) quality assurance surveillance plan, 3) statement of objectives, and 4) statement of work to support changes to Part 37. Modify FAR Parts 11 and 37 to broaden the scope of PBSA and give agencies more flexibility in applying PBSA to contracts and orders of varying complexity.

Modifying Reporting Requirements and Procedures.

Recommendation No. 2: Modify the list of eligible service codes for PBSA, as articulated in the Federal Procurement Data System (FPDS) or FPDS B Next Generation (FPDS-NG) manual, to more accurately reflect services to which PBSA can be applied. Agencies are not prohibited from using PBSA on other contracts, but for the purposes of data collection, agencies will not be evaluated on their application of PBSA to efforts that are not considered eligible service contracts.

Recommendation No. 3: Revise FPDS instructions to ensure agencies code contracts and orders as PBSA if more than 50 percent of the requirement is performance based, as opposed to the current 80 percent requirement.

Recommendation No. 4: Allow agencies that do not input data to FPDS to submit supplemental reports in order to accurately reflect their progress toward meeting the goals.

Recommendation No. 5: Consider allowing agencies to establish interim goals, but expect agencies to apply PBSA to 50 percent of their eligible service contracts (see recommendation 2 above) by 2005, in line with DOD policy.

Improving Guidance.

Recommendation No. 6: OFPP should rescind its 1998 Best Practices Guide and consider developing web-based guidance to assist agencies in implementing PBSA. This guidance should be kept current and should include practical information, such as samples and templates that agencies would find useful. The website should include AThe 7-Steps to Performance-Based Services Acquisition Guide@ and may include elements of existing guidance. The working group will explore the development a web-based PBSA site for guidance, samples, and templates.

Questions and/or comments may be addressed to Lesley Field (, OFPP, or Bill Timperley (, Office of the Secretary of Defense.

(Executive Summary)