Past Performance

Full Definition

Past performance refers to a contractor's historical record of conforming to contract requirements, meeting delivery schedules, controlling costs, cooperating with contracting personnel, and maintaining standards of good workmanship. Under FAR 15.305(a)(2), past performance is a mandatory evaluation factor for all competitive negotiated procurements expected to exceed the simplified acquisition threshold ($250,000). Evaluators assess both the relevance (similarity in scope, magnitude, and complexity to the current requirement) and the quality (performance ratings) of prior contracts. The primary source for past performance data is the Contractor Performance Assessment Reporting System (CPARS), where government evaluators rate contractors on a five-point scale: Exceptional, Very Good, Satisfactory, Marginal, and Unsatisfactory. Past performance evaluations cover the most recent three to six years of contract history depending on the solicitation.

Why It Matters

Past performance is typically the second or third most important evaluation factor after technical approach and often carries more weight than price in best-value tradeoff procurements. Building a strong past performance record is the single most important long-term investment a small business can make in government contracting. New contractors without federal past performance history cannot be evaluated favorably or unfavorably — they receive a "neutral" or "unknown confidence" rating per FAR 15.305(a)(2)(iv), which the agency must treat as neither a strength nor a weakness. To build your record, start with subcontracting roles, micro-purchases, and small contracts where you can earn CPARS ratings. Always request a CPARS evaluation from your contracting officer at contract closeout. Proactively monitor your CPARS reports and submit rebuttals to any ratings you believe are inaccurate within the 14-day comment window.

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