FAR 37.6—Subpart 37.6

Scope of subpart.

FAR 37.600 is the scope statement for FAR Subpart 37.6, and it tells readers what the subpart is about: policies and procedures for acquiring services using performance-based acquisition methods. In practice, this means the subpart governs how agencies should structure service acquisitions so the government buys results, outcomes, or measurable performance rather than simply paying for effort or staffing levels. Although this section is brief, it is important because it frames the entire subpart and signals that the rules that follow are intended to support performance-based service contracting. For contracting officers, program offices, and acquisition teams, the practical significance is that service requirements should be planned and managed with performance outcomes in mind, not just task completion. This scope also helps distinguish performance-based acquisition from other service-buying approaches and sets the foundation for later requirements in the subpart.

General.

FAR 37.601 explains the basic content requirements for service solicitations and performance-based service contracts. It covers two acceptable solicitation approaches—a performance work statement (PWS) or a statement of objectives (SOO)—and then sets the minimum elements that must appear in a performance-based contract for services. Those required elements are a PWS, measurable performance standards, a method for assessing contractor performance against those standards, and performance incentives when appropriate. The section also ties incentives to the performance standards in the contract, with a cross-reference to FAR 16.402-2 for incentive contract principles. In practice, this section is meant to push agencies away from vague, input-based service descriptions and toward clear, outcome-based requirements that can be measured, managed, and enforced.

Performance work statement.

FAR 37.602 explains how agencies should develop a Performance Work Statement (PWS) and, when appropriate, how a Statement of Objectives (SOO) can be used as the starting point for an offeror-developed PWS. The section is about writing requirements in terms of outcomes and measurable results, rather than prescribing the exact method, staffing level, or hours of effort to be used. It also requires agencies, to the maximum extent practicable, to build performance-based acquisitions around measurable performance standards and financial incentives so contractors have room to propose innovative, cost-effective solutions. In addition, it identifies the minimum content of an SOO—purpose, scope or mission, period and place of performance, background, performance objectives, and operating constraints—and clarifies that the SOO itself does not become part of the contract. Practically, this section matters because it shapes how service requirements are competed, how proposals are evaluated, and how performance will be measured after award. A well-written PWS or SOO can improve competition, encourage innovation, and reduce disputes over whether the contractor met the Government’s actual needs.

Performance standards.

FAR 37.603 explains how performance standards work in service acquisitions that use a Statement of Objectives (SOO). It covers two core topics: first, what performance standards are and how they must be written; and second, how agencies must evaluate performance standards proposed by offerors in response to a SOO. The rule exists to ensure the Government can clearly measure whether the contractor is meeting the contract’s required outcomes, rather than relying on vague or subjective expectations. In practice, this means the standards must be tied to the contract requirements, be measurable, and be organized so the Government can assess performance during contract administration. It also means agencies cannot simply accept contractor-proposed standards at face value; they must review them to confirm they actually satisfy agency needs. For contractors, this section matters because it shapes how they should draft proposed standards and how their proposals will be judged. For contracting officers and program officials, it is a safeguard against poorly defined requirements that are hard to monitor, enforce, or evaluate.

Quality assurance surveillance plans.

FAR 37.604 addresses quality assurance surveillance plans, or QASPs, in service contracting. It points readers to subpart 46.4 for the detailed requirements governing both quality assurance and QASPs, and it establishes a basic policy choice for the Government: the agency may either prepare the QASP itself or require offerors to submit a proposed QASP for the Government to use as a starting point in developing the final Government plan. In practice, this section matters because the QASP is the Government’s roadmap for monitoring contractor performance and verifying that services meet contract requirements. It helps ensure the Government knows what it will inspect, how often it will inspect, what performance standards apply, and how it will document results. For contractors, this section signals that surveillance expectations may be shaped during the solicitation and proposal stage, not only after award. For contracting officers and program staff, it reinforces that the QASP is a planning tool tied to the broader quality assurance framework in FAR subpart 46.4, rather than a standalone requirement with its own detailed procedures in this section.