Thursday, January 4, 2007

SARA panel: Feds need tutorial on performance-based deals


Federal agencies will never make the long-awaited transition to performance-based acquisitions unless they first learn how to measure performance.

That was the conclusion of the Acquisition Advisory Panel, whose draft report strongly urges agencies to shift from time-and-material contracts, which are based on fixed hourly rates, to performance-based contracts, in which vendors are paid for meeting specific metrics.

But that requires program managers to think differently, according to the panel. They must define performance measures and results rather than specific activities and processes.

Too often federal program managers begin with the right intention only to fall back into their old habit of dictating how the work should be done, the report states.

Read the rest of the story: FCW.com News - SARA panel: Feds need tutorial on performance-based deals

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