FAR and DFARS › FAR Part 37: Service Contracting › Subpart 37.6
FAR 37.601 General.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains that solicitations for services can use either a performance work statement or a statement of objectives. For performance-based contracts, it requires a performance work statement, measurable performance standards, a method to assess contractor performance, and performance incentives when appropriate.
Applies to: Solicitations and performance-based contracts for services
What it requires
- Include a performance work statement in performance-based contracts for services.
- Include measurable performance standards and the method of assessing contractor performance against those standards.
- Include performance incentives where appropriate, corresponding to the performance standards.
Key terms: performance work statement · statement of objectives · performance-based contracts · performance standards · performance incentives
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Solicitations may use either a performance work statement or a statement of objectives (see 37.602).
(b) Performance-based contracts for services shall include—
(1) A performance work statement (PWS);
(2) Measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and the method of assessing contractor performance against performance standards; and
(3) Performance incentives where appropriate. When used, the performance incentives shall correspond to the performance standards set forth in the contract (see 16.402-2).
← 37.600 Scope of subpart. · 37.602 Performance work statement. →
Rule changes for FAR Part 37
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Sustainable Procurement ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.