41 U.S.C. § 437 : US Code - Section 437: Incentives for efficient performance of services contracts

Search 41 U.S.C. § 437 : US Code - Section 437: Incentives for efficient performance of services contracts

(a) Incentive for use of performance-based services contracts
A performance-based contract for the procurement of services
entered into by an executive agency or a performance-based task
order for services issued by an executive agency may be treated as
a contract for the procurement of commercial items if -
(1) the value of the contract or task order is estimated not to
exceed $25,000,000;
(2) the contract or task order sets forth specifically each
task to be performed and, for each task -
(A) defines the task in measurable, mission-related terms;
(B) identifies the specific end products or output to be
achieved; and
(C) contains firm, fixed prices for specific tasks to be
performed or outcomes to be achieved; and
(3) the source of the services provides similar services to the
general public under terms and conditions similar to those
offered to the Federal Government.
(b) Regulations
The regulations implementing this section shall require agencies
to collect and maintain reliable data sufficient to identify the
contracts or task orders treated as contracts for commercial items
using the authority of this section. The data may be collected
using the Federal Procurement Data System or other reporting
mechanism.
(c) Report
Not later than two years after November 24, 2003, the Director of
the Office of Management and Budget shall prepare and submit to the
Committees on Governmental Affairs and on Armed Services of the
Senate and the Committees on Government Reform and on Armed
Services of the House of Representatives a report on the contracts
or task orders treated as contracts for commercial items using the
authority of this section. The report shall include data on the use
of such authority both government-wide and for each department and
agency.
(d) Expiration
The authority under this section shall expire 10 years after
November 24, 2003.