PERFORMANCE BASED PREFERENCE Clause Samples
A Performance Based Preference clause establishes that certain preferences, such as contract awards or benefits, are granted based on the achievement of specific performance criteria. In practice, this means that a party may receive preferential treatment—such as additional compensation, contract extensions, or priority consideration—if they meet or exceed defined performance benchmarks, like quality standards or delivery timelines. This clause incentivizes high performance and ensures that rewards or advantages are allocated to those who demonstrably fulfill or surpass contractual expectations, thereby promoting efficiency and accountability.
PERFORMANCE BASED PREFERENCE. Through the direction of the Office of Management and Budget (OMB), Office of Federal Procurement Policy (OFPP), performance-based contracting techniques will be applied to Task Orders issued under this contract to the “maximum extent practicable.” For information about performance based service contracts, refer to OFPP’s Best Practices Handbook located at ▇▇▇.▇▇▇▇▇▇▇▇▇▇.▇▇▇/▇▇▇. Pursuant to FAR 37.102(a)(2), the Ordering Contracting Officer will use performance- based acquisition methods to the maximum extent practicable using the following order of precedence:
(1) A Firm-Fixed Price Performance-Based Task Order;
(2) A Performance-Based Task Order that is not Firm-Fixed Price;
(3) A Task Order that is not Performance-Based.
PERFORMANCE BASED PREFERENCE. Pursuant to FAR 37.102(a)(2), the OCO should use performance-based acquisition methods to the maximum extent practicable using the following order of precedence:
(1) A Firm-Fixed Price Performance-Based Order;
(2) A Performance-Based Order that is not Firm-Fixed Price;
(3) An Order that is not Performance-Based.
PERFORMANCE BASED PREFERENCE.
(1) A Firm-Fixed Price Performance-Based Task Order;
(2) A Performance-Based Task Order that is not Firm-Fixed Price;
(3) A Task Order that is not Performance-Based.
PERFORMANCE BASED PREFERENCE. Pursuant to FAR 37.102(a)(2), the OCO should use performance-based acquisition methods to the maximum extent practicable using the following order of precedence:
(1) A Firm-Fixed Price Performance-Based Order;
(2) A Performance-Based Order that is not Firm-Fixed Price;
(3) An Order that is not Performance-Based. B.7 ORDER PRICING (ALL ORDER TYPES) The OCO is responsible for the determination of cost or price reasonableness for each Order type. When adequate price competition exists (see FAR 15.403-1(b)(1)), generally no additional information is necessary to determine the reasonableness of cost or price. If adequate price competition does not exist and no other exceptions apply (see FAR 15.403-1(b)), the OCO must request a Certificate of Current Cost and Pricing Data in accordance with FAR 15.403-4. If a Contractor does not have an approved purchasing system, the Contractor shall request and receive OCO consent to subcontract in accordance with FAR 44.2 Consent to Subcontracts, and FAR 52.244-2, Subcontracts.
PERFORMANCE BASED PREFERENCE. Pursuant to FAR 37.102(a), the Ordering Contracting Officer (OCO) (See Section G.2.3) must use performance-based acquisition methods to the maximum extent practicable.