Reliance on the private sector for commerically available services is a long-standing Government policy. This policy is currently embodied in OMB circular A-76. The formulation of a Performance Work Statement (PWS) is a critical part of the A-76. The formulation of a Performance Work Statement (PWS) is a critical part of the A-76 study process and becomes the key to success in specifying service requirements. This research examines the major problems encountered in developing a PWS and its conversion to contract technical specifications. The study, through actual drafting of a PWS for Air Terminal Services, determined that the problems encountered in PWS formulation can be minimized by development of standardized, baseline PWS documents and permanent assignment of a A-76 study teams at the command or area level. The PWS for Air Terminal Services included in the report provides the standardized, baseline PWS document for Navy-operated Millitary Airlift Command aerial ports. Keywords: CA: Contracted services; Statement of work; Air terminals; Air transportation; Performance standards.