The final step of the seven steps of performance-based acquisition is the most important. Unlike legacy processes where the contract is awarded and the team disperses, there is a growing realization that "the real work" of acquisition is in contract management. This requires that agencies allocate sufficient resources, in both the contracting or program offices, to do the job well.

This is largely a problem of resource allocation and education. Again, legacy processes are much to blame. Many contracting staff learned their job when the culture was to maintain an arm's length distance (or more) from contractors... and, by all means, limit the amount of contact the contractor has with program people. That approach won't work in today's environment and especially not in performance-based acquisition. The contractor must be part of the acquisition team itself... a reality recognized by the guiding principles of the federal acquisition system. FAR 1.102(c) provides:

The Acquisition Team consists of all participants in Government acquisition including not only representatives of the technical, supply, and procurement communities but also the customers they serve, and the contractors who provide the products and services.

Effective contract management is a mission-critical agency function. This goes to the heart of the need to maintain sufficient core capability in the federal government to manage its programs. If the contractor is flying blind in performance, then the agency will soon fly blind and without landing gear when the contract is over.

This step, contract performance, is guided far less by law, regulation, and policy than those described in the preceding steps. To a large degree, the management of contract performance is guided by the contract's terms and conditions and is achieved with the support of the business relationships and communications established between the contractor and the integrated project team. It is in the best interest of all parties concerned that the contract be successful.