Common use of PERFORMANCE BASED PREFERENCE Clause in Contracts

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.