[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: 48CFR37.601] [Page 765-766] 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. (a) 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 or outcomes achieved meet contract standards. Performance-based contracts or task orders-- (1) Describe the requirements in terms of results required rather than the methods of performance of the work; (2) Use measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and quality assurance surveillance plans (see 46.103(a) and 46.401(a)); (3) 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 (4) Include performance incentives where appropriate. [[Page 766]] (b) See 12.102(g) for the use of Part 12 procedures for performance- based contracting. [48 FR 42365, Sept. 19, 1983, as amended at 69 FR 34227, June 18, 2004]