Learning from History

Here are tips for using and collecting past performance information when selecting and managing contractors.

• During, or at least after, a contract, evaluate the contractor's performance in terms of quality, cost, schedule, business relations and customer satisfaction. Involve the technical and contracting offices and users where appropriate. Evaluate performance periodically during contracts lasting more than a year.
• In choosing a contractor, past performance should be as important as any other non-cost factor; it should count for 25 percent of a bidder's overall selection score.
• Make clear in the solicitation what past performance you will evaluate and how you will weigh it. Ask for performance references on contracts within the past three years-agencies can't keep past performance information about a contractor for longer than that. Get at least two references on each past contract.
• Contractors with no previous performance record cannot be evaluated favorably or unfavorably on past performance.
• Use the Office of Federal Procurement Policy's contractor performance report form or some other method to ensure information is collected and evaluated consistently. No matter what performance rating system you use, make sure it can translate into excellent, good, fair, poor and unsatisfactory, plus an exceptional rating.
• Give contractors no less than 30 days to respond to their past performance ratings. If the contractor disputes the rating, someone above the contracting officer level must review it, and the contractor's rebuttal must be attached to the evaluation report. Don't release evaluations to anyone except government personnel and the contractor whose performance is being evaluated.