1.102-2 Performance standards.

(a) Satisfy the customer in terms of cost, quality, and timeliness of the delivered product or service.

(1) The principal customers for the product or service provided by the System are the users and line

managers, acting on behalf of the American taxpayer.

(2) The System must be responsive and adaptive to customer needs, concerns, and feedback.

Implementation of acquisition policies and procedures, as well as consideration of timeliness,

quality, and cost throughout the process, must take into account the perspective of the user of the

product or service.

(3) When selecting contractors to provide products or perform services, the Government will use

contractors who have a track record of successful past performance or who demonstrate a current

superior ability to perform.

(4) The Government must not hesitate to communicate with industry as early as possible in the

acquisition cycle to help the Government determine the capabilities available in the marketplace.

Government acquisition personnel are permitted and encouraged to engage in responsible and

constructive exchanges with industry ( e.g., see 10.002 and 15.201), so long as those exchanges are

consistent with existing laws and regulations, and do not promote an unfair competitive advantage

to particular firms.

(5) The Government will maximize its use of commercial products and commercial services in

meeting Government requirements.

(6) It is the policy of the System to promote competition in the acquisition process.

(7) The System must perform in a timely, high quality, and cost-effective manner.

(8) All members of the Team are required to employ planning as an integral part of the overall

process of acquiring products or services. Although advance planning is required, each member of

the Team must be flexible in order to accommodate changing or unforeseen mission needs. Planning

is a tool for the accomplishment of tasks, and application of its discipline should be commensurate

with the size and nature of a given task.

(b) Minimize administrative operating costs.

(1) In order to ensure that maximum efficiency is obtained, rules, regulations, and policies should be

promulgated only when their benefits clearly exceed the costs of their development, implementation,

administration, and enforcement. This applies to internal administrative processes, including

reviews, and to rules and procedures applied to the contractor community.

(2) The System must provide uniformity where it contributes to efficiency or where fairness or

predictability is essential. The System should also, however, encourage innovation, and local

adaptation where uniformity is not essential.

(c) Conduct business with integrity, fairness, and openness.
(1) An essential consideration in every aspect of the System is maintaining the public’s trust. Not

only must the System have integrity, but the actions of each member of the Team must reflect

integrity, fairness, and openness. The foundation of integrity within the System is a competent,

experienced, and well-trained, professional workforce. Accordingly, each member of the Team is

responsible and accountable for the wise use of public resources as well as acting in a manner which

maintains the public’s trust. Fairness and openness require open communication among team

members, internal and external customers, and the public.

(2) To achieve efficient operations, the System must shift its focus from "risk avoidance" to one of

"risk management." The cost to the taxpayer of attempting to eliminate all risk is prohibitive. The

Executive Branch will accept and manage the risk associated with empowering local procurement

officials to take independent action based on their professional judgment.

(3) The Government shall exercise discretion, use sound business judgment, and comply with

applicable laws and regulations in dealing with contractors and prospective contractors. All

contractors and prospective contractors shall be treated fairly and impartially but need not be

treated the same.

(d) Fulfill public policy objectives. The System must support the attainment of public policy goals

adopted by the Congress and the President. In attaining these goals, and in its overall operations,

the process shall ensure the efficient use of public resources.

Parent topic: 1.102 Statement of guiding principles for the Federal Acquisition System.