The Army has use performance-based contracts as far back as 2001. The Cleanup PBA program has continued to evolve over time based on lessons learned and changes in the Federal Acquisition Regulations.
In 2003, the PBA initiative for active Army Installations was initiated by the Army Chief of Staff for Installation Management (ACSIM). The ACSIM tasked the US Army Environmental Command (AEC) with the technical implementation of the PBA initiative. Within the Army’s framework of PBA implementation, performance-based contracts exhibit the following characteristics:
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Contract for “what,” not how;
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Utilize a performance work statement (PWS) to define performance objectives, metrics, and standards;
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Generally use fixed-price contracts;
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Use competition whenever possible;
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Use a quality assurance surveillance plan (QASP) to track and document performance;
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Provide flexibility and ensure accountability for results.
Although PBAs generally use fixed-price contracts, other contract mechanisms (such as cost-reimbursement contracts) may be considered for a PBA as long as many of the characteristics described above can be incorporated (e.g., clearly defined performance objectives and standards, non-prescriptive scope, QASP is developed and used). Cost-Plus-Award-Fee (CPAF) and Cost-Plus-Incentive-Fee (CPIF) contracts are two examples of cost-reimbursement contracts that may be tailored to incorporate PBA elements. The specific type of PBA used for a particular contract is based on the characteristics of the sites included in the PBA (e.g., contaminants and media, phase of remediation, uncertainty). This determination is made through a process that includes AEC working with the Installation Restoration Managers.
The USAEC maintains an oversight role of the Army cleanup program. A component of this role is to be a member of the project team that prepared the acquisitions package being used to procure all contracting actions. AEC also has a multi-level internal review process to ensure the documents are clear and understandable, the identified requirements meet the needs, the proper type of acquisition is being procured (which is critical to assess whether non-PBA efforts are warranted) and if the cost estimate appears reasonable.