Is it possible to use a performance-based contract to acquire an end item?
A14 Yes, though performance-based acquisition is primarily focused on services. Many acquisitions that involve system development (software or weapon system, for example) have a deliverable at the end of the contract term, but the work of developing the system is all services. These types of acquisitions should be performance-based. That being said, there are two aspects of end products that are very appropriate for the application of PBA. The first deals with the services component of end products. On-time delivery, post-delivery support (e.g., installation, maintenance, repair, etc.) can all benefit from performance-based measurement and monitoring. Perhaps even more important is the basic premise of PBA: We should not be buying ‘end products,’ but rather the results of the products. This is especially true for information technology. We are not buying financial management software, for example, we are buying the results of that software – clean audits, closing the books within xx da
