42.1502
Policy
FAR 42.1502 mandates timely, standardized past performance evaluations for most federal contracts and orders, with strict thresholds and requirements for reporting in CPARS.
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 or 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 plans and payment practices. Agencies must not evaluate contracts awarded under FAR subpart 8.7, and must promptly report other contractor information as required.
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 Evaluation
- Required for contracts and orders exceeding the simplified acquisition threshold, construction contracts ≥ $750,000, and architect-engineer contracts ≥ $35,000, with exceptions for terminations for default.
- Orders Under Multiple-Agency and Single-Agency Contracts
- Evaluations required for orders exceeding thresholds under multiple-agency contracts; optional for single-agency contracts if more useful for source selection.
- Small Business Subcontracting and Payment Practices
- Evaluations must assess performance against small business subcontracting plans and unjustified reduced/untimely payments to small business subcontractors.
- Exclusions and Reporting
- No evaluations for contracts under subpart 8.7; other contractor information must be reported per 42.1503(h).
Responsibilities
- Contracting Officers: Ensure timely preparation and submission of evaluations, assess small business subcontracting and payment practices, and report required information.
- Contractors: Comply with performance requirements, small business subcontracting plans, and maintain timely, justified payments to small business subcontractors.
- Agencies: Oversee compliance, ensure evaluations are entered into CPARS, and avoid evaluating contracts under subpart 8.7.
Practical Implications
- This section ensures consistent, timely, and comprehensive documentation of contractor performance, which is critical for future source selections and accountability. Failure to comply can impact contractor eligibility for future awards and agency compliance audits. Common pitfalls include missing evaluation deadlines, incomplete CPARS entries, and inadequate documentation of payment practices to small business subcontractors.