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Search all opportunities →Performance-based acquisition is the government's preferred method for buying services. At the heart of this approach are two key documents: the Performance Work Statement (PWS) and the Statement of Objectives (SOO). Understanding the difference is critical for both writing and responding to solicitations.
FAR 37.6 and OMB policy direct agencies to use performance-based methods to the maximum extent practicable. This guide explains how each document works and how contractors should respond to each.
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A Performance Work Statement describes the required results in terms of measurable outcomes. Unlike a traditional SOW that tells the contractor how to perform, a PWS tells the contractor what to achieve. The contractor has the freedom to determine the best methods, staffing, and tools to meet the performance standards.
The key elements of a PWS include:
What the government needs accomplished, expressed as outcomes not tasks.
Measurable criteria defining acceptable performance (e.g., 99.9% uptime, 4-hour response time, 95% customer satisfaction).
The minimum acceptable level of performance. Falling below the AQL triggers corrective action, payment deductions, or other remedies.
Performance above or below standards may trigger financial incentives, award fees, or deductions.
The PWS is always accompanied by a Quality Assurance Surveillance Plan (QASP) that defines how the government will monitor and evaluate contractor performance against the PWS standards. Together, the PWS and QASP form the backbone of a performance-based contract.
FAR 37.6 requires agencies to use performance-based acquisition methods to the maximum extent practicable for services. This means the default approach for service contracts should be a PWS, not a SOW. Agencies that choose to use a SOW instead must justify the decision.
A Statement of Objectives is the most flexible work description in government contracting. Rather than defining performance standards or tasks, the SOO states only the government's high-level objectives and desired end state. It asks offerors to propose both the technical approach and the performance metrics they will use to demonstrate success.
When a solicitation uses a SOO, the winning contractor typically develops a full PWS as part of their proposal. This contractor-developed PWS then becomes part of the contract. The government reviews and negotiates the proposed PWS to ensure it adequately addresses the objectives stated in the SOO.
SOOs are particularly effective when:
A SOO is typically much shorter than a PWS — often just 2 to 5 pages compared to 20 to 50 pages for a detailed PWS. The brevity is intentional: it forces offerors to think deeply about the problem and propose solutions rather than simply responding to a checklist of requirements.
When responding to a PWS, your proposal should demonstrate that your approach will reliably meet or exceed the stated performance standards. Focus on:
When responding to a SOO, you are proposing the entire solution — approach, metrics, and work statement. This is more work but also more opportunity to differentiate. Focus on:
Performance-based acquisition is governed by several sections of the Federal Acquisition Regulation:
The primary FAR subpart governing performance-based contracting. Requires agencies to use performance-based methods to the maximum extent practicable. Defines the elements of performance-based acquisition: PWS or SOO, measurable performance standards, and a QASP.
Specific guidance on developing PWS documents. Requires that work statements describe requirements in terms of results rather than methods. Emphasizes measurable performance standards and outcomes.
Establishes the policy that performance-based acquisition is the preferred method for acquiring services. Defines key terms and establishes the framework for performance-based contracts.
Governs quality assurance requirements including the development and implementation of QASPs for performance-based contracts.
A Performance Work Statement (PWS) is a government document that describes required results in terms of measurable outcomes rather than prescribing how to do the work. It defines performance standards, acceptable quality levels, and how performance will be monitored. The PWS is the cornerstone of performance-based acquisition as required by FAR 37.6. Unlike a SOW, which tells the contractor how to perform, a PWS tells the contractor what to achieve.
A Statement of Objectives (SOO) is the most flexible type of work description in government contracting. It states only the high-level objectives and desired outcomes, leaving it to the offerors to propose both the technical approach and the performance metrics. When a SOO is used, the winning contractor typically develops the PWS as part of their proposal, which then becomes part of the contract.
A PWS is best when the government understands the work well enough to define measurable performance standards but wants the contractor to decide the approach. A SOO is best when the government knows what outcomes it wants but is open to innovative approaches and does not want to constrain offerors with predefined metrics. SOOs are common in IT modernization, consulting, and R&D where the government benefits from industry creativity.
Technically yes, but in practice they are paired. FAR 37.6 requires a QASP for performance-based acquisitions that use a PWS. The QASP defines how the government will monitor and evaluate the contractor against the performance standards in the PWS. Without a QASP, the PWS performance standards have no enforcement mechanism. Without a PWS, the QASP has no standards to monitor against.
Search active solicitations using PWS and SOO documents across SAM.gov and FPDS. Identify performance-based contracts in your domain with Bureauify.