Implementation of Performance-Based Acquisition in Non-Western Countries

Performance-based acquisition (PBA)" means an acquisition structured around the results to be achieved as opposed to the manner by which the work is to be performed. Performance Based Acquisition is a results-oriented acquisition strategy used to achieve innovative solutions in agency programs. Most military systems have been used for decades, so future planning of defense procurement is critically important. Performance Based Acquisition is a strategic method to manage business by promoting flexibility and innovation and creating win/win solutions through effective communication, organizational goal alignment, and clear accountability among the buyer, seller(s), and subcontractors. In this century, many governments are transitioning their acquisition strategy from traditional methods to performance based methods. In 2000, the U.S. Department of Defense set a goal that a minimum of 50% of the service acquisitions would use Performance-Based Acquisition methods by 2005. Do cultural differences have significant importance to the success of this new acquisition method? Applying PBA methods in those Western countries have shown successful results. What results can be obtained from applying this new strategy in non-Western countries? This study focuses on the success of Performance Based Acquisitions in non-Western countries.

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