[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR37.102]



[Page 756-757]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 37_SERVICE CONTRACTING--Table of Contents

 

                 Subpart 37.1_Service Contracts_General

 

Sec. 37.102  Policy.



    (a) Performance-based contracting (see Subpart 37.6) is the 

preferred method for acquiring services (Public Law 106-398, section 

821). When acquiring services, including those acquired under supply 

contracts, agencies must--

    (1) Use performance-based contracting methods to the maximum extent 

practicable, except for--

    (i) Architect-engineer services acquired in accordance with 40 

U.S.C. 1101 et seq. (see part 36);

    (ii) Construction (see part 36);

    (iii) Utility services (see part 41); or

    (iv) Services that are incidental to supply purchases; and

    (2) Use the following order of precedence (Public Law 106-398, 

section 821(a));

    (i) A firm-fixed price performance-based contract or task order.

    (ii) A performance-based contract or task order that is not firm-

fixed price.

    (iii) A contract or task order that is not performance-based.

    (b) Agencies shall generally rely on the private sector for 

commercial services (see OMB Circular No. A-76, Performance of 

Commercial Activities and subpart 7.3).

    (c) Agencies shall not award a contract for the performance of an 

inherently governmental function (see subpart 7.5).

    (d) Non-personal service contracts are proper under general 

contracting authority.

    (e) Agency program officials are responsible for accurately 

describing the need to be filled, or problem to be resolved, through 

service contracting in a manner that ensures full understanding and 

responsive performance by contractors and, in so doing, should obtain 

assistance from contracting officials, as needed.

    (f) Agencies shall establish effective management practices in 

accordance with Office of Federal Procurement



[[Page 757]]



Policy (OFPP) Policy Letter 93-1, Management Oversight of Service 

Contracting, to prevent fraud, waste, and abuse in service contracting.

    (g) Services are to be obtained in the most cost-effective manner, 

without barriers to full and open competition, and free of any potential 

conflicts of interest.

    (h) Agencies shall ensure that sufficiently trained and experienced 

officials are available within the agency to manage and oversee the 

contract administration function.



[61 FR 2630, Jan. 26, 1996, as amended at 62 FR 12694, Mar. 17, 1997; 62 

FR 44815, Aug. 22, 1997; 66 FR 22083, May 2, 2001; 70 FR 57454, Sept. 

30, 2005]