Effective Use of Performance Based Acquisition

The Effective Use of Performance Based Acquisition

Abstract

Performance Based Acquisition is often misrepresented as being too labor intensive to execute during performance of a contract. This paper examines the use of Performance Based Acquisition (PBA) strategies within the Government acquisition community. It addresses the seemingly lack of enthusiasm contracting officers possess in their effort to employ PBA techniques and offers several alternatives to infuse interest and boost the use of PBA. The intent of this paper is to discuss and recommend appropriate PBA performance goals and to identify PBA learning assets, including training opportunities, to enable the effective use of this acquisition strategy.

Effective Use of Performance Based Acquisitions

Problem Statement

There is resistance and confusion regarding the use of Performance Based Acquisition within Department of Defense (DoD) and its use as stated in Defense Federal Acquisitions Regulations Supplement (DFAR) 237.170 to meet the Office of Federal Procurement Policy (OFPP) 50% goal. The DoD is not receiving the best value for contracted products and services resulting in lesser quality and efficiencies. A minimum of 50% of all new service contracts and delivery/task orders are performance based by 1 March 2012 and sustained thereafter.

Background

The United States Government contracts for a large part of its mission support, particularly in a contingency and combat environment. Many of the contracts awarded are for services performed in the daily operations such as food, water, waste water and power generation. As such many of the contracts offer an award or incentive fee for performance above and beyond the basic requirements of the contract. Performance-Based Acquisition (PBA) is defined by the PBA Center of Excellence as “a technique for structuring all aspects of an acquisition around the purpose and outcome desired as opposed to the process by which the work is to be performed”...