48 CFR §37.601

1. (a)Solicitations may use either a performance work statement or a statement of objectives (see 37.602).
2. (b)Performance-based contracts for services shall include—
   1. (1)A performance work statement (PWS);
   2. (2)Measurable performance standards (i.e., in terms of quality, timeliness, quantity, etc.) and the method of assessing contractor performance against performance standards; and
   3. (3)Performance incentives where appropriate. When used, the performance incentives shall correspond to the performance standards set forth in the contract (see 16.402-2).