This handbook is designed to aid the requiring activity in developing a performance work statement (PWS). Army reliance on contracts for equipment, supplies, and services has significantly increased in recent years. Identifying the requiring activity's requirements and clearly articulating them, in a PWS is critical; nothing is more fundamental to the success of a contract than the PWS. Key lessons: * A PWS defines a unit's contractor support requirement for supplies, services, or construction. * A PWS does not dictate the ways and means of contractor support. * The benefit of a well-written PWS is that the government pays for results, not activity. * The handbook's eight-step process for writing a PWS greatly increases the probability of maximizing contractor performance. The PWS is a detailed set of verifiable performance or quality standards for everything the contractor is required to perform or produce. A PWS must be specific because contracting officers and contractors are not mind readers. A properly-developed PWS is concise in defining the performance parameters and quality of product. Ultimately, an effective PWS is the basis for viable contracts that meet or exceed the user's requirements.