The results of the reviews indicated that service contracting practices and capabilities are uneven across the Executive branch and that various common management problems need to be addressed. In addition to the Director's review, the National Performance Review has found that improved support for customers of the procurement system is needed. To do this, it is important that procurement officials work closely with program and other officials to develop clear and precise statements of work for the products and services being acquired. Contracting for services is especially complex and demands close collaboration between procurement personnel and the users of the service to ensure that contractor performance meets contract requirements and performance standards. One way to achieve excellence in contractor performance is to improve the acquisition, management, and administration of service contracts.
Services are identifiable tasks to be performed, rather than the delivery of an end item of supply.
For purposes of this Policy Letter, only services obtained under nonpersonal services contracts are covered. For purposes of this Policy Letter, best practices are techniques that agencies may use to help detect problems in the acquisition, management, and administration of service contracts. Best practices are practical techniques gained from experience that agencies may use to improve the procurement process. Also excluded from coverage of this Policy Letter are services obtained under contracts below the small purchase threshold, and services incidental to supply contracts. However, agencies should ensure that they are in compliance with appropriate OFPP Policy Letters applicable to service contracting and use good management practices and contract administration techniques when using these contracting methods to obtain services.