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  • Question

    My question is does Performance Based Acquisition (PBA) strategy apply only to service acquisitions over $25000 or is it required to be applied to any service contracts regardless of dollar value?


    Answer

    Good Morning, thanks for this great question.  FAR 37.102 (a) and Public Law 106-398, section 821 state that Performance Based Acquisition (see subpart 37.6) is the preferred method for acquiring services and should be used to the maximum extent practicable, with the following exceptions; Architect-engineer services, Construction (see Part 36), Utility services (see Part 41), or Services that are incidental to supply purchases.  Additionally FAR 7.105 states " Acquisition plans for service contracts or orders must describe the strategies for implementing performance-based acquisition methods or must provide rationale for not using those methods."  So to answer your question if your services acquisition does not meet one of the previously stated then PBA is the preferred strategy.  Also I would recommend checking to see if your agency has any supplemental guidance that may provide further direction, for example in AFI 63-138 section 4.3.3. and AFFARS 5337.170-2 the Air Force requires Services Designated Official approval for any action that is not performance based and is above the Simplified Acquisition Threshold.  Hopefully this answers your question, and I hope you have a great day. 

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