What is a characteristic of performance-based acquisition strategy?

A performance-based acquisition strategy is characterized by its emphasis on obtaining results, rather than just deliverables. This approach ensures that contracts are structured around performance outcomes and the achievement of specific goals.

The correct response indicates that a performance-based acquisition strategy requires at least a certain level of performance indicator, which aligns with the foundational principle of this strategy. By establishing performance indicators, the government and contractors can create clear expectations for performance measurement. This ensures accountability and encourages innovation because contractors are motivated to meet the established performance criteria.

In performance-based contracts, the focus is on the outcomes and results rather than strictly following predefined processes or specifications. This helps to align the interests of both parties - the government wants a successful outcome, while the contractor wants to deliver it efficiently, often leading to better value for the taxpayer as well.

The other options do not reflect the true essence of performance-based acquisition. For example, the idea of eliminating all risk factors is unrealistic in contracting, as some level of risk is inherent in any acquisition. Similarly, focusing solely on cost control does not address the importance of achieving quality and effectiveness in performance, which is central to performance-based strategies.