TOP-LEVEL GUIDING PRINCIPLES

Use performance-based methods to the maximum extent practicable for acquiring services. Encourage commercial contractors to conduct business with DoD by using the complementary strategies of fixed-price, performance-based commercial service acquisitions. Utilize a multifunctional acquisition team to the maximum extent practicable, and support it with a knowledge management infrastructure. Realize that early planning is essential in determining requirements and assessing market conditions. Be sure to include the user and as many relevant acquisition team members as possible in this planning. Understand that Performance-Based Services Acquisition (PBSA) is not a “one size fits all” process; and, to maximize returns for all stakeholders, acquisition strategies should be tailored on the basis of experience, market research, and risk. Strive to define requirements in clear, concise language. Focus on specific work outcomes and ensure that they are measurable to the fullest extent. Remember that templates are only a partial solution. Sample work statements should be individually tailored to the requirement; and, for more complex requirements, work statements should be uniquely crafted. Seek industry comment and suggestions regarding performance objectives, standards, and incentives through market research, public meetings, and draft solicitations. Use incentives to motivate a contractor to achieve performance levels of the highest quality consistent with economic efficiency. Ensure that the incentives are effective and that they reflect value, both to the government and to the contractor. Focus on the outcome rather than on the contractor’s processes when developing a contractor performance assessment (the process known as “quality assurance”). Also, concentrate on having insight into the contractor’s performance, not having oversight. Ensure that the periodic assessment of contractor performance emphasizes clear communication, encourages and maintains high standards of performance, and is consistent with past performance assessments.