This session is sponsored by the

Federal Acquisition Institute

The primary organization providing knowledge and support to the federal civilian acquisition

workforce.

For more information about FAI, please visit our website at www.fai.gov

Contractor Past Performance Information And How It

Contributes To Your Success

Jan WisorDirector Acquisition Management & Support

DivisionOffice of Procurement Operations, DHS

GSA Training Conference

and Expo 2010

History

Terminology

Why Do We Collect and Report Past Performance Information?

Regulatory Requirements

Responsible Parties

Common Problems

Systems in Use

CPARS

Best Practices

Questions & Answers

References

AGENDA

CPARS – Contractor Performance Assessment Reporting System

COTR – Contracting Officer Technical Representative

DHS OPO – Department of Homeland Security/Office of Procurement Operations

PPI – Past Performance Information

PPIRS (rhymes with jeepers) Past Performance Information Retrieval System

TERMINOLOGY

HISTORY

FASA – 1994 Required OFPP to establish standards for evaluating PP: cost, schedule, compliance and other relevant performance factors All federal departments and agencies required to initiate procedures to record PPI and use PPI in source selection Ensure offerors are afforded opportunity to submit relevant information on PP. Established period PPI would be maintained

HISTORYFASA – 1994 (cont’d)

Neutral - If no past performance, offeror cannot be evaluated favorably or unfavorably for the factor

FARA - Renamed Clinger-Cohen Act of 1996

Provides guidance to ensure a fair and open competitive process  FARA gives contracting officers more discretion when making competitive range determinations Permits the use of Simplified Acquisition Procedures in the

acquisition of commercial items up to $5 M.

HISTORY2008 DoD IG Report “Contractor Past Performance Information" (No. D-2008-057Examined CPARS

39 % of systems contracts registered more than 1 year late68% had past performance assessments reports that were overdue82 % of past performance reports were deficient

Contracting Offices lacked PPI to make informed decisions in source selection

HISTORY 2009 GAO Report of Federal Agencies Use of Past

Performance Reviews completed 2006, 2007 and found little progress made in collection and use of PPIBetter performance data needed to support agency decisionsPast Performance assessments occurred less than 1/3 of contractsAgencies considered past performance information in evaluating contractors for each of the 62 solicitations reviewed

HISTORYOFPP Memo July 2009 - Improving the Use of Contractor Performance Information

establish internal procedures for collecting and reporting past performance information to PPIRS identify agency officials responsible for preparing interim and final performance evaluations; and consider the achievement of small business goals in performance evaluations when the contract includes a Small Business Subcontracting Plan. Beginning February 1, 2010, OFPP will conduct regular compliance assessments and quality reviews

One of the Guiding Principles of the FAR: “(Use) contractors who have a successful track record of past performance...”

Continuing OMB and GAO interest in past performance data collection and reporting

We want to motivate improved performancemotivate improved performance

Promotes robust competitive environment

Promotes transparency and collaboration

WHY DO WE COLLECT & REPORT PPI?

FAR 8.405-1 and -2 – Evaluation of past performance when ordering under Federal Supply Schedules

FAR 9.105-1 – The contracting officer shall consider relevant past performance information when making a determination of responsibility

Past Performance Information Retrieval System (PPIRS)

Excluded Parties List System (EPLS)

Records and experience data

Questionnaire replies

Preaward survey reports

Other sources: Government agencies; business and trade associations

REGULATORY REQUIREMENTS

FAR 12.206 – Use of past performance for commercial items

FAR 13.106-1 and -2 – Contracting officer may use past performance as a basis for award under simplified acquisition procedures

FAR 15.304 and 15.305 – Past performance shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold

FAR 16.505 – Past performance should be considered when placing orders under multiple award contracts

REGULATORY REQUIREMENTS

FAR Subpart 42.15 – Contractor Performance Information

Policies and responsibilities for recording and maintaining contractor performance information

Addresses contractor’s record in conforming to contract requirements, controlling costs, adhering to schedules, exhibiting reasonable and cooperative behavior, committing to customer satisfaction, and demonstrating integrity and ethical behavior.

FAR 42.1502 – Evaluate contractor performance for each award over the simplified acquisition threshold

REGULATORY REQUIREMENTS

The contracting officer and the program office representative (usually COTR) are jointly responsible for assessing contractor performance

The individual responsible for preparing each assessment must consider inputs from the program manager, end user, Contracting Officer, and other parties affected by the item or service

Contractor is motivated to provide best efforts because of power of past performance in source selection, ensures timely and accurate assessment

RESPONSIBLE PARTIES

COMMON PROBLEMS Eligible contracts are not registered Performance reports are not entered in a timely manner Failure to conduct required interim assessments Narratives lack sufficient detail to demonstrate that ratings are credible and justified Narratives provide misleading comments – do not support ratings

Incomplete and missing performance reports negatively impact the source selection process!

Right of contractor to request review by one level above if contractor does not agree with assessment

Two recent U.S. Court of Federal Claims cases* Jurisdiction to hear contractor claims challenging improper past

performance assessments

Ensure accurate evaluations are recorded timely in the database

*National Defense Magazine, March 2009

Contractor Concerns

Contractor Performance Assessment Reporting System (CPARS) (https://www.cpars.csd.disa.mil). Not to be used for Classified and Special Access Programs.

Past Performance Information Retrieval System (PPIRS) http://www.ppirs.gov. The “central warehouse” for receipt of performance assessment reports from Federal performance evaluation collection systems. CPARS “feeds” PPIRS. COs shall not use past performance information that is more than three years old (six for construction and architect-engineer contracts).

Architect-Engineer Contract Administration Support System (ACASS) Construction Contractor Appraisal Support System (CCASS)

SYSTEMS IN USE

Contractor Performance System (CPS) https://cps.nih.gov Multiple Agency, Shared File Subscription System: Designed, developed,

and implemented by the NIH Center for Information Technology (CIT)

NASA Past Performance Data Base (PPDB) -NASA has also developed a past performance database to track contractor's performance on NASA contracts

SYSTEMS IN USE

Initial Report Required if Period of Performance > 365 Days Not Required if Period of Performance ≤ 365 Days – Write Final CPAR Only Covers No More Than 12 Months of Actual Performance Assessment Period May Begin After Contract Award Date

Protests Delayed Starts Note the date in the Effective Date field in CPARS

CPARS REPORTING FREQUENCY

Intermediate Reports Required every 12 months Complete with Other Reviews When They Coincide

Option Exercise Award Fee Determinations Program Milestones

Not Cumulative: Assess Only Performance Occurring After Last Assessment Period Required Upon Transfer of Program Management Responsibility Outside Original

Buying Activity

CPARS REPORTING FREQUENCY

Out-of-Cycle Report (Optional) Written if Significant Change in Performance

Contractor May Request in Writing Written at Government’s Discretion

Address Only Those Areas That Have Changes No More Than Once Out-of-Cycle Report Completed Per Cycle

Year

CPARS REPORTING FREQUENCY

Final Report Required at Contract Completion

Delivery of Final End Item End of Period of Performance

Required Upon Contract Termination Not Cumulative: Assess Only Performance Occurring After Last

Assessment Period

CPARS REPORTING FREQUENCY

Addendum Report (Optional) Evaluate Contract Close-Out

Timeliness of Providing Documents

Evaluate Warranty Performance Evaluate Performance with Respect to Other Administrative

Requirements Written at Government’s Discretion

CPARS REPORTING FREQUENCY

Must Complete Individual CPAR for Each Task/Delivery Order That Meets or Exceeds the Reporting Threshold The Basic Indefinite-Delivery/Indefinite-Quantity (IDIQ)

contract, Basic Ordering Agreement (BOA), or Blanket Purchasing Agreement (BPA) Does Not Need to be in CPARS to Enter an Order

REPORTING TASK/DELIVERY ORDERS

Orders under Federal Supply Schedule (FSS) contracts That Meet or Exceed the Reporting Threshold Are Reported Individually The base contract does not need to be in CPARS to enter an order When registering a FSS contract in CPARS, the FSS contract number

should be entered in the contract number field and the order number is placed in the order number field. An order number is required when registering FSS contracts.

GSA Prepares the Assessment for the Base Contract

REPORTING FSS ORDERS

Prior to Definitization Address Performance Beginning with Date the UCA Was Issued Address Contractor’s Ability to Remain Within UCA Cost Limitations

Following Definitization Address Contractor’s Efforts in Promoting Contract Definitization If Definitized as Cost-Type or Time-and-Materials (T&M)/Labor Hour

Contract, Continue to Address Cost Control If Definitized as Firm-Fixed-Price Contract, Only Address Cost Control

Efforts Prior to Definitization

REPORTING UCAs

Discuss performance expectations in the initial post - award meeting/provide CPARS Guides to Contractors and Evaluators

Conduct discussions early in the performance of work so contractors have an opportunity to improve performance

Maintain open communications with the contractor about the Government's requirements and how the contractor can best meet them

BEST PRACTICES

Keep a timely performance record of quality, cost, schedule, and business relations

If available, use award fee board, earned value management system, Quality Assurance Surveillance Plan, or other similar contract administration records...then include contractor discussion and comments on the evaluation...Don’t reinvent the wheel!

BEST PRACTICES

For orders against MACs:

– Use past performance as an initial screen to determine which awardees will receive further consideration for a task or delivery order

– Conduct interim evaluations and customer satisfaction surveys

– Hold meetings with contractors experiencing performance and quality problem

– Consider “out of cycle” reporting

BEST PRACTICES

Give the contractor a draft report of evaluation prior to publishing

COTRS - Maintain a performance record, on the prime contractor’s performance report, of the major subcontractors and any team or joint venture partners on the contract

If evaluation subfactors are used, tailor them to match the requirement and capture the key performance criteria in the statement of work

BEST PRACTICES

COTRS

Focus on useful training outside of the required 40 hours

Develop a COTR program

Appoint PM as the Source Selection Official

Add PPI Registration and Assessment metrics to Performance Plans to measure timeliness and accuracy

BEST PRACTICES

QUESTIONS

IG report, "Contractor Past Performance Information" (No. D-2008-057), is available at: http://www.dodig.osd.mil/Audit/reports/fy08/08-057.pdf.

Federal Contractors: Better Performance Information Needed to Support Agency Contract Award Decisions GAO-09-374 April 23, 2009 http://www.gao.gov/products/GAO-09-374

OFPP Memorandum for the Chief Acquisition Officers Senior Procurement Executives July 29, 2009 http://www.whitehouse.gov/omb/assets/procurement/improving_use_of_contractor_perf_info.pdf

References