[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR37.601]

[Page 741]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 37_SERVICE CONTRACTING--Table of Contents
 
               Subpart 37.6_Performance-Based Contracting
 
Sec.  37.601  General.

    Performance-based contracting methods are intended to ensure that 
required performance quality levels are achieved and that total payment 
is related to the degree that services performed meet contract 
standards. Performance-based contracts--
    (a) Describe the requirements in terms of results required rather 
than the methods of performance of the work;
    (b) Use measurable performance standards (i.e., terms of quality, 
timeliness, quantity, etc.) and quality assurance surveillance plans 
(see 46.103(a) and 46.401(a));
    (c) Specify procedures for reductions of fee or for reductions to 
the price of a fixed-price contract when services are not performed or 
do not meet contract requirements (see 46.407); and
    (d) Include performance incentives where appropriate.

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