There are two ways to develop a specification for a performance-based acquisition: by using a performance work statement (PWS) or a statement of objectives (SOO).
The PWS process is discussed in most existing guides on performance-based acquisition. Among its key processes are the conduct of a job analysis and development of a performance work statement and quality assurance and surveillance plan... When people talk about performance-based acquisition, this is typically the model they have in mind.
The alternative process -- use of a SOO -- is a more recent methodology that turns the acquisition process around and requires competing contractors to develop the performance work statement, performance metrics and measurement plan, and quality assurance plan... all of which should be evaluated before contract award. If the SOO approach is used, FAR 37.602(c) directs us to remove the SOO when the contract or task order is awarded, and replace it with the awardee's winning PWS. The SOO approach is described briefly in the Department of Defense "Handbook for Preparation of Statement of Work (SOW)," Section 5, for example:
"Statement of Objectives (SOO)" means a Government-prepared document incorporated into the solicitation that states the overall performance objectives. It is used in solicitations when the Government intends to provide the maximum flexibility to each offeror to propose an innovative approach.
The SOO is a very short document (e.g., under ten pages) that provides the basic, high-level objectives of the acquisition. It is provided in the solicitation in lieu of a government-written statement of work or performance work statement.
In this approach, the contractors' proposals contain statements of work and performance metrics and measures (which are based on their proposed solutions and existing commercial practices). Clearly, use of a SOO opens the acquisition up to a wider range of potential solutions. The Veterans Benefits Administration loan servicing acquisition discussed under step two and in this step was conducted (very successfully) using a SOO.
The integrated project team should consider these two approaches and determine which is more suitable:
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