Performance-based acquisitions down in fiscal 2006

Federal Data Procurement System - Next Generation

Related Links

The government slipped slightly last year in making performance-based purchases, according to fiscal 2006 federal procurement figures.

Departments slid to 49 percent, down from 50.9 percent in fiscal 2005, the Federal Procurement Data System-Next Generation (FPDS-NG) found.

The decline amounts to a $5.6 billion difference from fiscal 2005. The government used $72.3 billion of eligible dollars in fiscal 2006, compared with $77.9 billion in 2005, according to the data, which is updated through Dec. 12, 2006.

In fiscal 2006, departments had $147.2 billion eligible for performance-based acquisitions, the data shows.

After a steady climb in performance-based acquisitions since 2001, departments leaped 10 percentage points in 2005 to 50.9 percent, the FPDS-NG numbers show. In fiscal 2001, only 26.2 percent — or $31.8 billion — of eligible funds were used as performance-based acquisitions.

The government nevertheless has continued to exceed its annual percentage goal for performance-based acquisitions, according to the report. The goal has been 40 percent since fiscal 2004.

The innovative contracting style is a staple of government acquisitions. Performance-based contracts are often structured so that companies are paid for reaching certain performance benchmarks or penalized for failing to meet them.

Featured

  • Defense
    The Pentagon (Photo by Ivan Cholakov / Shutterstock)

    DOD CIO hits pause on JEDI cloud acquisition

    Dana Deasy set cloud as his office's top priority. But when it comes to the JEDI request for proposal, he's directed staff to "pause" to compile a comprehensive review.

  • Cybersecurity
    By Gorodenkoff shutterstock ID 761940757

    Waging cyber war without a rulebook

    As the U.S. looks to go on the offense in the cyber domain, critical questions remain unanswered around who will take the lead and how clearly to draw the rules of engagement.

  • Government Innovation Awards
    Government Innovation Awards - https://governmentinnovationawards.com

    Deadline extended for Rising Star nominations

    You now have until July 18 to help us identify the early-career innovators and change agents in government IT.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.