How does the Government view Performance Base Contracting?

Happy New Year to All!

I hope this year brings success to your respected companies and these Monday Morning Contracting Tips supports your efforts. 

Doing business with the Federal Government requires companies to understand how the government operate under their Acquisition Process.

How does the Government view Performance Base Contracting.   

When government consider performance based contracting, they do not lose sight of the reason for using this technique. Its purpose is to obtain better performance or lower costs or both. In other

words, things should work better and cost less.

Contractor Capability

Basic to the concept of performance-based contracting is to adopt contracting specifications and procedures permitting the contractor to devise the most efficient and effective way to perform the work. However, drafting of statements of work which enable contractors to use their initiative is only part of the task. Choosing a capable and trustworthy contractor is absolutely essential. Thus, past performance evaluations and partnering are necessary ingredients to selecting the contractor and working with it.

There are Seven Steps that the Federal Government use in Performance Based Acquisitions

1.            Establish the Team

2.            Decide what problem needs solving

3.            Examine private-sector and public-sector solutions

4.            Develop a PWS or SOO

5.            Manage Performance 

All the Best