Contractor Past Performance

December 6, 2022

Contractor Past Performance

 

What is Contractor Past Performance Information?

Contractor Past Performance Information (PPI) is information regarding a contractor’s actions taken under a previous contract. This is an indicator of future performance and experience — the most relevant factors officials use to award a contract.

Evaluation systems used:

  • Self-reported information
  • Past Performance Retrieval System (PPIRS)
  • Other sources – phone calls to agencies of previous employment.

 

Past Performance Principles for Evaluation

The past performance evaluation should consider:

  • Program issues
  • Technical issues
  • Cost control
  • Business management
  • Socio-economic programs
  • Fulfilment of contract requirements

Evaluations of a contractor’s past performance should utilize a team approach, involving other specialists to conduct the most thorough and effective assessment.

This helps the government as the Department of Energy Acquisition Regulation (DEAR) requires the Contracting Officer (CO) to assess whether choosing a contractor is in the government’s best interest.

 

Federal Acquisition Regulation

The Federal Acquisition Regulation (FAR) define past performance as information on the contractor’s past awarded contracts provided to GOEs for source selection. According to the FAR, past performance should be an important element of every evaluation and contract award.

In 2013, the FAR issued the New Uniform Approach to standardize the PPI evaluation process.

COs must prepare:

  • One annual evaluation
  • One evaluation upon concluding the contract

 

The Past Performance Evaluation Model

Before obtaining the evaluation, you must have:

  • Team of qualified reviewers
  • Resources to utilize all information-providing sources

 

The evaluation should include a review of:

  • Contract file documentation
  • Contract documentation
  • Old performance assessments
  • Interviews with contractor’s personnel
  • The contractor’s performance regarding:
  • Meeting contract objectives – good workmanship
  • Health and Safety
  • Safeguarding
  • Security
  • Socio-economic programs
  • Controlling costs
  • Job Safety – workplace injuries
  • Quality assurance
  • Meeting customer needs

Upon concluding the evaluation, a written report should be conducted identifying the method and the findings of the contractor’s PPI. Then, there should be an identification of the contractor’s strengths and weaknesses to help in the overall decision-making.

Ultimately, the report should go to the Head of the Contracting Activity and the Headquarters Office of Contract Management.

When the Technical Evaluation Panel (TEP)/CO receives the contractor’s proposal and PPI, they will assign them a performance risk rating reflecting the contractor’s ability to meet job demands. A negative/null finding can produce a high performance risk rating.

 

Good References?

Government Owned Entities (GOE) rely on PPIRSs and other sources to evaluate a contractor’s past performance.

Many agencies not listed as references can still be contacted for information regarding a contractor’s previous employment. However, the references a contractor does provide must be warned early in advance.

A contractor will need to:

  • Choose favorable references – good references are highly valued.
  • Verify contact information – people change jobs!
  • Ensure that there are no issues with another contract while referencing takes place

 

Past Performance during the Solicitation Processes

In the majority of government solicitations, the contracting organization requires a minimum of three references.

They also require a rating of:

  • Quality of Service
  • Schedule
  • Cost Control
  • Business Relations
  • Overall Customer Satisfaction

The CO will evaluate a contractor’s ability to meet these requirements and enter the information into the PPIRS through the Contractor Performance Assessment Reporting System (CPARS) for future sourcing requirements.

 

Government Past Performance Rating Guidelines

As aforementioned, COs must evaluate the quality of service, meeting schedule deadlines, effective cost control, good business relations and meeting overall customer satisfaction.

These categories are rated using either:

  • Exceptional – all performance requirements are met.
  • Very good – minor problems (corrected effectively)
  • Satisfactory – minor problems (corrected satisfactorily)
  • Marginal – performance reflects serious problems
  • Unsatisfactory – most requirements are not met (almost unrecoverable)

 

Presenting your PPI

Key things to remember:

  • Choose references based on relevance and recency
  • Document all of your PPI to respond quickly to solicitations
  • Format using a clear, concise template

 

Let’s sum it up!

  • PPI is necessary for being awarded a contract
  • The evaluation considers all aspects of contract fulfilment
  • Favourable references are key
  • Null findings can result in a high performance risk rating
  • Format your PPI in a clear and concise manner
  • Keep records safe and document the process

 

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