In the light of significant increases in service contract in recent years and several Inspector General reports claiming poor award and cost controls over them, the government has set a goal of having at least half of all service contracts issued by the Department of Defense be performance-based by 2005.  Performance based contracts are XXX.  The guidelines should (1) set results-oriented contractual requirements (2) articulate measurable performance standards in terms of quality, timeliness, quantity and other factors (3) require quality assurance surveillance plans and (4) allow for reductions in price or fees when services are not performed to appropriate standards.  In addition, the guidance is calling for extensive training of the DOD acquisition workforce in performance based acquisitions.

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