Policy
Past performance evaluations are mandatory for most contracts and orders above the simplified acquisition threshold and must be entered into CPARS, with special attention to small business subcontracting performance and payment practices.
Overview
FAR 42.1502 establishes the policy for preparing and submitting past performance evaluations for government contracts and orders. These evaluations are required at least annually and at contract/order completion, and must be entered into the Contractor Performance Assessment Reporting System (CPARS). The regulation specifies thresholds and types of contracts/orders that require evaluations, including construction and architect-engineer contracts, and details special requirements for small business subcontracting performance. Exceptions and special cases, such as contracts under subpart 8.7, are also addressed.
Key Rules
- Annual and Completion Evaluations
- Past performance evaluations must be prepared at least annually and at contract/order completion, and entered into CPARS.
- Thresholds for Evaluations
- Required for contracts and orders exceeding the simplified acquisition threshold, construction contracts ≥ $900,000, and architect-engineer contracts ≥ $45,000, with certain exceptions and allowances for lower-value contracts.
- Multiple-Agency and Single-Agency Orders
- Evaluations are required for orders over the threshold under multiple-agency contracts; for single-agency contracts, evaluations may be required if more useful for source selection.
- Small Business Subcontracting Assessment
- Evaluations must assess performance against small business subcontracting plans and unjustified reduced/untimely payments to small business subcontractors.
- Exceptions
- No evaluations for contracts under subpart 8.7; special reporting for contracts terminated for default.
Responsibilities
- Contracting Officers: Ensure timely preparation and submission of evaluations, assess small business subcontracting performance, and determine justification for payment issues.
- Contractors: Provide explanations for payment issues and comply with small business subcontracting plans.
- Agencies: Oversee compliance, ensure evaluations are entered into CPARS, and report other contractor information as required.
Practical Implications
This section ensures that contractor performance is systematically evaluated and documented, impacting future source selections and accountability. Contractors must be proactive in managing performance and subcontractor relationships, while agencies must maintain rigorous evaluation and reporting processes. Common pitfalls include missing evaluation deadlines, incomplete CPARS entries, and inadequate documentation of payment issues or subcontracting performance.