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Concept

It has been stated that performance-based contracting requires the use of PBRs. Just what is a performancebased requirement? As discussed in SD-15 (See "For Further Study," 2.b), performance-based requirements describe the required results and provide criteria for verifying whether or not these results have been met. Performance-based requirements do not state the methods for achieving the required results. Ideally, they have the following characteristics:

  1. Requirements are stated quantitatively
  2. Requirements are verifiable
  3. Interfaces are stated in sufficient detail to allow interchangeability with parts of a different design
  4. Requirements are material and process independent
Table 1 compares performance-based requirements with non-performance-based requirements. Four types of performance specifications are used by DoD: commercial item descriptions (CIDs), guide specifications (GSs), standard performance specifications (SPSs), and program-unique specifications. Performance specifications are also categorized by the type of item being acquired. There are material specifications, component specifications, and system specifications.

Table 1: Comparing Performance-based Requirements with Non-performance-based Requirements
Area of Comparison Performance-based Requirements Non-performance-based Requirements
Purpose Describe functions product is to perform and level of performance Describe how product is to be designed and manufactured
Key Criteria Describe means for verifying performance Describe means of ensuring specified processes are followed
Design Latitude Given to Contractor Allow contractor to determine best ways to achieve results Force the contractor to use prescribed methods and approaches
Responsibility Responsibility for results clearly belongs to contractor Responsibility for results shared by customer and contractor