[Code of Federal Regulations]
[Title 48, Volume 7]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR2937.602]

[Page 44-45]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                     CHAPTER 29--DEPARTMENT OF LABOR
 
Sec. 2937.602  Elements of performance-based contracting.

    (a) Performance-based contracting is defined in FAR 37.101 and 
discussed in FAR 37.6. Although FAR Part 37 primarily addresses services 
contracts, PBC is not limited to these contracts. PBC is the preferred 
way of contracting for services. (See exceptions listed in FAR 37.102.) 
Generally, when contract performance risk under a PBC specification can 
be shifted to the contractor to allow for the operation of objective 
incentives, a contract type with objectively measurable incentives 
(e.g., Firm-Fixed-Price, Fixed-Price-Incentive-Fee, or Cost-Plus-
Incentive-Fee) is appropriate. However, when contractor performance 
(e.g., cost control, schedule, or quality/technical) is best evaluated 
subjectively using qualitative measures, a Cost-Plus-Award-Fee contract 
may be used.
    (b) A labor hour level-of-effort contract is not considered a PBC.

                       PARTS 2938-2941 [RESERVED]

[[Page 45]]

                    SUBCHAPTER G_CONTRACT MANAGEMENT

          PART 2942_CONTRACT ADMINISTRATION AND AUDIT SERVICES

                 Subpart 2942.1_Contract Audit Services

Sec.

Sec. 2942.101 Policy.

           Subpart 2942.15_Contractor Performance Information


Sec. 2942.1501 Scope.

Sec. 2942.1502 Policy.

Sec. 2942.1503 Procedures.

    Authority: 5 U.S.C. 301, 40 U.S.C. 486(c).

    Source: 69 FR 22991, Apr. 27, 2004, unless otherwise noted.

                 Subpart 2942.1_Contract Audit Services