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Title 48 Part 2937 → Subpart 2937.6

Title 48 → Chapter 29 → Subchapter E → Part 2937 → Subpart 2937.6

Electronic Code of Federal Regulations e-CFR

Title 48 Part 2937 → Subpart 2937.6

e-CFR data is current as of November 18, 2019

Title 48Chapter 29Subchapter EPart 2937 → Subpart 2937.6


Title 48: Federal Acquisition Regulations System
PART 2937—SERVICE CONTRACTING


Subpart 2937.6—Preference for Performance-Based Contracting (PBC)


Contents
2937.602   Elements of performance-based contracting.

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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.

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