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New FAR Rule Standardizes Past Performance Evaluations
Practical Law Legal Update 8-536-4185 (Approx. 3 pages)
New FAR Rule Standardizes Past Performance Evaluations
by Practical Law Commercial
| Published on 05 Aug 2013 • USA (National/Federal) |
The Federal Acquisition Regulations (FAR) Council issued a final rule standardizing past performance evaluations of government contractors.
On August 1, 2013 the Federal Acquisition Regulations (FAR) Council issued a final rule to streamline government contractor evaluation processes and enhance contractor metrics.
Background
Generally, regarding individual contracts, contracting officers for government agencies must prepare:
- At least one annual evaluation.
- An evaluation at the conclusion of the contract.
Traditionally, federal agencies had the option of entering these evaluations into various past performance reporting feeder systems. Among these systems, the rating categories and factors are inconsistent.
The New Uniform Approach
Starting September 3, 2013, each federal agency's contracting officers must enter past performance evaluations into the contractor performance assessment reporting system (CPARS).
Also, the rule establishes uniform:
- Rating categories, which the government contracting officer must use in evaluating each contractor's past performance. These categories include:
- exceptional;
- very good;
- marginal; and
- unsatisfactory.
- Rating factors, which the government contracting officer must consider when evaluating each contractor's past performance. These factors include:
- technical;
- cost control;
- schedule or timeliness;
- management and business relations; and
- small business subcontracting.
Contractors can challenge an evaluation after the 30-day comment period. However, the FAR Council noted that the agencies need not delay posting an evaluation based on an existing appeal. Once the agency posts an evaluation all federal agencies can view it, which can significantly impact the agencies' future contract award decisions. Therefore, contractors should try to respond as quickly as possible after receiving notification that their evaluations are available for comment.
For more information on government contracting, see Practice Note, Government Contracts: Reduced Risk Through Commercial Item Contracting.