Using Performance-Based Acquisition to Meet Program Needs – Performance Goals, Guidance, and Training



Performance-based acquisition (PBA) is a results-oriented acquisition strategy used to achieve innovative solutions in agency programs. The purpose of this memorandum is to recommend appropriate PBA performance goals and identify PBA learning assets, including useful guides and training opportunities, to ensure this acquisition strategy is used effectively. PBA is also discussed in the report issued by the Acquisition Advisory Panel (referred to as the Panel), established under the Services Acquisition Reform Act of 2003. The Panel’s report includes specific recommendations to improve the effectiveness and appropriate use of PBA, and this memorandum discusses our plan for implementing some of the Panel’s recommendations.

Performance Goals

The PBA performance goal is used to measure agencies’ use of PBA, and agencies should use this goal to encourage the acquisition workforce, including program and project managers, to employ PBA methods on service acquisitions. In fiscal year (FY) 2006, agencies were required to apply PBA methods on 40 percent or more of their eligible service actions over $25,000, to include contracts, task orders, modifications, and options, as measured in dollars. According to the Federal Procurement Data System (FPDS), most agencies met or exceeded the goal, awarding over 45 percent of their eligible service contract actions. Agencies should continue to report PBA actions accurately in FPDS and should review the new report format to assess PBA performance goals, available at