The dispute resolution procedure requires the Contractor and the Agency to take the necessary steps to resolve their disputes as soon as it is clear that the dispute cannot be resolved in the ordinary course of business. Dispute resolution clauses usually state that if the Agency and the contractor cannot resolve their disputes through direct discussion and negotiation, disputes may be resolved by a neutral third party, resolved by the final decision of the Agency`s Chief Procurement Officer, or resolved in court. 37,600 Scope of subsection This subsection describes policies and procedures for purchasing services using performance-based collection methods. 37.601 General. (a) Calls may use either a declaration of performance or a declaration of objectives (see 37.602). b) Performance-based service contracts must include: (1) a Performance Statement of Work (PWS); (2) measurable performance standards (i.e., quality, timeliness, quantity, etc.) and method of evaluating the contractor`s performance against performance standards; and (3) performance incentives, where applicable. When used, performance incentives must meet the performance standards set out in the contract (see 16.402-2). (c) See paragraph 12.102(g) on the application of Part 12 procedures for performance-related acquisitions. 37,602 Performance instructions. (a) A performance statement of work may be prepared by the government or result from a statement of objectives prepared by the government when the supplier proposes the WPS. (b) Organizations should, to the extent possible, (1) describe the work in relation to the required results and not „how“ the work is to be performed or the number of hours to be performed (see 11,002(a)(2) and 11,101); (2) allow the evaluation of work performance against measurable performance standards; (3) Rely on the use of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and implement innovative and cost-effective methods to carry out the work. (c) Suppliers use the SOO to develop the PWS; However, the SOO is not part of the contract.
The SOO must include at least – (1) the objective; (2) the scope or mandate; (3) Duration and place of performance; (4) Background; (5) the performance objectives, that is to say, the required results; and (6) any operational restrictions. 37,603 performance standards. a) Performance standards determine the level of performance required by the government to meet the requirements of the contract. The standards shall be measurable and structured in such a way as to allow an evaluation of the contractor`s performance. (b) Where suppliers propose performance standards in response to an SOO, agencies shall assess the proposed standards to determine whether they meet the needs of the Agency. 37,604 quality assurance monitoring plans. The requirements for quality assurance and quality assurance monitoring plans are set out in paragraph 46.4. The government may either prepare the quality assurance monitoring plan or require suppliers to submit a proposal for a quality assurance monitoring plan that it can consider when developing the government plan. If established standards are not available, authorities should define contractor requirements so that performance can be monitored against known acceptance levels. Examples: 37,500 scope of the subsection. This paragraph sets out the responsibilities related to the implementation of the Federal Procurement Policy Office policy letter (PFO93-1, Oversight of the Management of Service Contracts). 37.501 Definition.
Best practices, such as those used in this subsection, are techniques that organizations can use to identify issues related to the acquisition, management and management of service contracts. Best practices are practical techniques that have been gained through experience and that organizations can use to improve the procurement process. 37,502 Exclusions. (a) This subsection shall not apply to services obtained: – (1) through staff appointments and advisory committees; (2) Obtained through personal service contracts authorized by law; (3) For construction as defined in point 2.101; or (4) through inter-agency agreements where the work is performed by internal federal employees. (b) services provided under contracts below the simplified procurement threshold and services related to supply contracts shall also be exempted from the requirements of this Part. However, good management practices and contract management techniques should be applied regardless of the method of awarding contracts. 37,503 Responsibilities of the Agency manager. The head or head of the Agency should ensure that: (a) service requirements are clearly defined and appropriate performance standards are developed so that agency requirements can be understood by potential suppliers and that delivery in accordance with the terms of the contract is consistent with agency requirements; (b) service contracts are awarded and managed in such a way as to provide the Customer with its supplies and services within budget and in a timely manner; (c) Special procedures are in place prior to the implementation of service contracts to ensure that government functions are performed by government personnel; and (d) strategies are developed and the necessary training of staff is initiated to ensure the effective implementation of the policies referred to in 37.102 […].