(a) Solicitations may use either a performance work statement or a statement of objectives (see 37.602).(b) Performance-based contracts for services shall include-(1) A performance work statement (PWS);(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) Performance incentives where appropriate. When used, the performance incentives shall correspond to the performance standards set forth in the contract (see 16.402-2). 71 FR 218 , Jan. 3, 2006, as amended at 86 FR 61030 , Nov. 4, 2021