Definition: Performance-based service contracting (PBSC) emphasizes that all aspects of an acquisition be structured around the purpose of the work to be performed as opposed to the manner in which the work is to be performed or broad, imprecise statements of work which preclude an objective assessment of contractor performance.
Application: It is designed to ensure that contractors are given the freedom to determine how to meet the Government's performance objectives; that appropriate performance quality levels are achieved; and that payment is made only for services meeting these levels.
