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The President Office of Management and Budget Office of Federal Procurement Policy Foreword Performance-based service acquisition (PBSA) has been articulated in regulation, guidance, and policy for over two decades. During that time, agencies have made moderate progress in implementing PBSA, also known as performance-based service contracting and performance-based contracting, but have experienced difficulties in applying PBSA effectively. In April 2002, the Office of Federal Procurement Poli.
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2005 FAQ
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However, an outcomes based contract can include both performance and relational elements. Alternatively, PBCs can focus on the delivery of outcomes, including enterprise outcomes, which include collaborative behaviours.
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Performance-based contracts contain. (see FAR 37.601): (a) Requirements described in terms of results required rather than the methods of. performance of the work; (b) Measurable performance standards (i.e., terms of quality, timeliness, quantity, etc.)
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A SOW is typically used when the task is well-known and can be described in specific terms. Statement of Objective (SOO) and Performance Work Statement (PWS) emphasize performance-based concepts such as desired service outcomes and performance standards.
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The key elements of a PBSC PWS are: a statement of the required services in terms of output; a measurable performance standard for the output; and an AQL or allowable error rate.
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(a) A Performance work statement (PWS) may be prepared by the Government or result from a Statement of objectives (SOO) prepared by the Government where the offeror proposes the PWS.
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Maximize competition and innovation: Encouraging innovation from the supplier base by using performance requirements maximizes opportunities for competitive alternatives instead of government-directed solutions. Since PBSA allows for greater innovation, it has the potential to attract a broader industry base.
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An example would be a road maintenance contractor that is paid for the results of his work. If a contractor is tasked to fill potholes, their contract might be based on performance. If no potholes remain, they have fully met the performance expectations and payment will be made as per the contract.
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Performance-based Service Acquisition (PBA) means an acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed.
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