The objective of this thesis is to assess the transition from traditional service contracting to performance-based service contracting at Department of Defense Field Contracting Activities. There has been an increase in spending on services over the past decade that has forced the Federal Government to review its policy on service contracting. In 1991, the Office of Federal Procurement Policy established policy for the acquisition of services using performance-based contracting. Interviews of Government contracting personnel and review of professional literature highlight barriers to performance-based service contracting. These barriers are: management of cultural change, education and training of Government and contractor personnel, adoption of best commercial practices, writing of performance-based statements of work, and the tasks involved in contract administration. This thesis makes recommendations for overcoming these barriers and provides guidance for successful implementation of performance-based service contracting within the Department of Defense.

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