---
kind: "section"
citation: "48 C.F.R. § 37.601"
title: "48"
number: "37.601"
heading: "General."
url: "https://uscodex.org/cfr/48/37.601"
---

# §37.601. General.

- (a) Solicitations may use either a performance work statement or a statement of objectives (see 37.602).
- (b) Performance-based contracts for services shall include—
  - (1) A performance work statement (PWS);
  - (2) Measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and the method of assessing contractor performance against performance standards; and
  - (3) **Performance incentives where appropriate.** When used, the performance incentives shall correspond to the performance standards set forth in the contract (see 16.402-2).

## Notes

### Amendments

[71 FR 218, Jan. 3, 2006, as amended at 86 FR 61030, Nov. 4, 2021]

### Source

Source: 71 FR 218, Jan. 3, 2006, unless otherwise noted.

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42365, Sept. 19, 1983, unless otherwise noted.

### Amendments

[71 FR 218, Jan. 3, 2006, as amended at 86 FR 61030, Nov. 4, 2021]