Conversion to a Performance Based Service Contract

If both the Government and the contractor agree, a task order can be converted from a labor hours contract to a fixed price completion performance based service contract after the initial period of performance. The conversion is accomplished as follows:

1. Within ninety calendar days prior to the end of the task order's initial period of performance, the contractor shall prepare and submit for Government review, comment and concurrence:
   • A performance work statement (PWS) that captures all of the types of effort performed during the base year of performance, and
   • A quality assurance plan (QAP). The QAP will address performance standards which relate to the performance requirements; how the contractor's performance will be measured against the performance standards, and surveillance schedules and methods. The QAP may either be included as part of the PWS or as a separate document.
2. Within sixty calendar days prior to the end of the task order's initial period of performance, the government and the contractor will resolve to their mutual satisfaction any comments or concerns on the PWS and/or QAP. Upon exercise of the option for the first follow-on period of performance, the Government has the unilateral right to modify the task order to incorporate the agreed to documents to accomplish the conversion to a performance based contract.

In the event that the Government and the contractor are unsuccessful in reaching agreement on a PWS, QAP, performance standards, surveillance schedule, and surveillance methods, the parties will if appropriate use an accelerated form of the Alternate Disputes Resolution (ADR) process outlined in Special Contract Requirement H-6 ALTERNATIVE DISPUTE RESOLUTION. If the parties are still unable to reach agreement, the task order option(s) will not be exercised and the task order will be re-competed among all MAC holders.