New Road Map For Performance-Based Acquisition The Federal Acquisition Regulation councils have adopted a final rule governing performance-based acquisition and requiring its use “to the maximum extent practicable” in contracts and task orders for services. The Office of Management and Budget has been pushing performance-based contracting for years, but officials have acknowledged there is considerable confusion about what it means. So the FAR councils defined it: “Performance-based 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.” The rule, effective Feb. 2, says agencies must “(d)escribe the work in terms of the required results rather than either ‘how’ the work is to be accomplished or the number of hours to be provided.” In a performance-based solicitation for services, the rule says the contracting officer may prepare a performance work statement (PWS) or issue a statement of objectives and allow the offeror to propose a PWS. The solicitation must also include “(m)easurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and the method of assessing contractor performance against performance standards;” and performance incentives where appropriate. The rule is FAC 2005-07; FAR Case 2003-018. Other FAR changes: *The FAR councils have adopted an interim rule exempting acquisitions of information technology that are commercial items from the Buy American Act. This implement Section 517 of the 2005 Consolidated Appropriations Act. The exemption was first put into effect in 2004. The interim rule, FAC 2005-07, FAR case 2005-022, was effective Jan. 3. Comments are due March 6. *A final rule requires agencies to buy from Federal Prison Industries only if FPI’s product or service “provides the best value to the buying agency.” This implements a provision of the 2005 Consolidated Appropriations Act that abolished FPI’s mandatory source status. The rule is FAC 2005-07; FAR Case 2003-023. *A final rule provides that prime contractors are no longer required to notify the agency when they award certain subcontracts. The rule, effective Jan. 3, implements Section 842 of the 2004 Defense Authorization Act. It applies to contracts with the Defense Department, Coast Guard and NASA. The rule is FAR Case 2003-024. *A final rule abolishes the Very Small Business Pilot Program because legal authority for the program has expired and Congress did not renew it.