Performance Based Service Acquisition

Federal procurement has typically focused much of its efforts on the acquisition of products, with acquisition of services not being held in as high of regard. However, recent changes have required the Department of Defense and the US Air Force (USAF) to increase spending on services. This significant increase in spending on services suggests a need to ensure acquisition professionals are prepared to apply sound business judgment to Performance Based Service Acquisition (PBSA) strategies. PBSA involves acquisition strategies, methods, and techniques that describe and communicate measurable outcomes rather than direct performance processes. The Secretary of Defense, in order to ensure the success of PBSA, has established a goal of 50% of all service acquisitions meet PBSA requirements by 2005. This thesis looks the current status of PBSA with the USAF, if goals are being met, are there any trends to suggest future usage of PBSA, and what factors, if any, are related to whether a contract is classified as having been awarded using PBSA strategies. A combination of demographics, nominal logistical regression, and contingency tables will used in order to determine if the USAF is in compliance and if there are correlations within PBSA that affect its use. The results of this thesis will serve as a starting point from which further research can develop and provide information that can help utilize PBSA in the future.