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1 Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level» Fifth level

2 Contractor Performance Information: Key to the DoD s Superior Supplier Program Click to edit Master text styles Click to edit Master title style Second level B08 Third level Dr. Rene G. Fourth Rendon, level CFCM, CPCM, Fellow Associate Professor,» Fifth level U.S. Naval Postgraduate School John Dobriansky, MS, MBA, CPCM, Fellow Division Chief, Contracting U.S. Army Date: July 27, 2015 Time: 2:30-3:45 1

3 Learning Objectives 1. Understand the importance of contractor performance information in the contract Text management process and its basis for the DoD Superior Supplier Incentive program. 2. Gain an appreciation for the contractor performance assessment process and the major elements of the CPARS report card.

4 4. Learn how the lessons learned and best practices in managing and using contractor performance information can be applied to your own company or organization. Learning Objectives 3. For Buyers, know the importance of conducting accurate contractor performance Text assessments in terms of CPARS ratings and narratives; For Sellers, know the importance of ensuring CPARS report cards accurately reflects your company s performance.

5 Overview DoD Superior Supplier Program Contractor Performance Text Information in the Contract Management Process CPARS and PPIRS Current Issues in Contractor Performance Information Lessons Learned and Best Practices in Managing Contractor Performance Information

6 DoD Superior Supplier Incentive Program Background BBP 2.0: Institute a superior supplier Text incentive program: Recognize and reward contractors who demonstrate superior performance by focusing on cost, schedule, performance, quality, and responsiveness. Pilot program developed by the Navy. (BBP, Nov, 2012)

7 DoD Superior Supplier Incentive Program Background BBP 3.0: Expand the superior supplier Text incentive program: Recognize higherperforming industry partners based on past performance evaluations, with the intent of incentivizing superior performers and creating healthy competition among industry. (BBP, Apr, 2015)

8 DoD Superior Supplier Incentive Program (DoD Better Buying Power 3.0) Suppliers organized by business segment Text Business segments ranked into three tiers Contractor past performance information is the basis for selection of Superior Suppliers Use of a weighting function that significantly weights the most recent year of performance

9 DoD Superior Supplier Incentive Program (DoD Better Buying Power 3.0) Contractors in the top tier will be afforded Text opportunity to "streamline administrative burdens" of contract requirements Improved contract financing? Reduced performance requirements? Reduced administrative requirements?

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11 Past Performance Information An offeror s or contractor s performance on active and physically Text completed contracts (FAR 2.101) Past performance information is relevant information, for future source selection purposes, regarding a contractor s actions under previously awarded contracts or orders (FAR )

12 Past Performance Information It includes the contractor s record of Text Conforming to contract requirements and to standards of good workmanship; Forecasting and controlling costs; Adherence to schedules, including the administrative aspects of performance;

13 Past Performance Information It includes the contractor s record of Text Reasonable and cooperative behavior and commitment to customer satisfaction; Reporting into databases Integrity and business ethics Business-like concern for the interest of the customer.

14 Contract Management Process (Buyer) Procurement Planning Solicitation Planning Solicitation Source Selection Text Contract Administration Contract Closeout Pre-Award Award Post-Award

15 Procurement Planning Contractor past performance information used in contractor responsibility Text determinations FAR Standards of Responsibility

16 Source Selection Contractor past performance information used in source selection process Text Required evaluation factor May be used as a trade-off against price allowing buyers to award to higher-rated performers if the price differential is warranted and considered to be best value. FAR Performance Evaluation

17 Contract Administration Contractor performance documented at the time the work under a contract Text or order is completed. Past performance evaluations are required for contracts and orders for supplies, services, research and development, and contingency operations FAR Contractor Performance Information

18 Contract Closeout Assessments conducted after completion of contract period of performance Text Use of the web-based Contractor Performance Assessment Reporting System (CPARS) CPARs report cards maintained in Past Performance Information Retrieval System (PPIRS) for three years

19 CPARS Primary Objectives Ensure current, complete, and accurate information on contractor performance available for use in source Text selections Support best value source selection decisions contract awards for proven performers Provide up to date documentation of contractor s ability to provide quality, on time products and services that conform to contractual requirements Motivate improved performance support responsibility determinations of prospective contractors

20 Contractor Performance Assessment Factors Technical (quality of product or service). Cost control (n/a for FFP or FP-EPA contracts). Text Schedule/timeliness. Management or business relations. Small business subcontracting (as applicable) Other

21 Contractor Performance Assessment Factors Other (e.g., late or nonpayment to subcontractors, trafficking violations, tax delinquency, failure to report in accordance with contract Text terms and conditions, defective cost or pricing data, terminations, suspension and debarments).

22 Contractor Performance Assessment Ratings Exceptional Very Good Satisfactory Marginal Unsatisfactory Text Narrative Assessment

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26 Contractor Review of Assessment Report Contractors shall be afforded up to 14 calendar days from the date of notification of availability of the past performance evaluation to submit comments, rebutting statements, or additional Text information. Agencies shall provide for review at a level above the contracting officer to consider disagreements between the parties regarding the evaluation. The ultimate conclusion on the performance evaluation is a decision of the contracting agency. Agencies may have formal decision review processes at levels through the Head of the Contracting Activity (HCA).

27 Contractor Performance Assessment Copies of the evaluation, contractor response, and review comments, if any, shall be retained as part of the evaluation. Text These evaluations may be used to support future award decisions, and should therefore be marked Source Selection Information.

28 Challenges in Contractor Performance Assessments (GAO ) Federal agencies not utilizing past performance Lack of confidence in Text objectivity Lack of timeliness, accuracy, and reliability

29 Issues with inputting contractor past performance Lack of organizational priority Lack of standardized evaluation ratings Text Lack of CPARS central oversight

30 Best Practices in Contractor Evaluation (Pre-Performance) Be up front Identify expectations Text Discuss areas to be evaluated Provide evaluation guidance to contractors and evaluators during post award conference and prior to annual evaluation

31 Best Practices in Contractor Evaluation (During Performance) Communicate with contractor Provide feedback Text Document performance regularly Identify contractor performance issues as they happen, not later Use status reports Include earned value management data, award fee evaluations, and contract incentives

32 Characteristics of a Effective Contractor Performance Evaluation Fair Relevant Comprehensive Repeatable Process Timely Accurate Consistent Text

33 Summary Importance of contractor performance information in the contract management process and its basis for the DoD Superior Supplier Incentive program. The contractor performance Text assessment process and the major elements of the CPARS report card. Importance of conducting accurate contractor performance assessments in terms of CPARS ratings and narratives; The importance of ensuring CPARS report cards accurately reflects your company s performance. Lessons learned and best practices in managing and using contractor performance information

34 Click Contact to edit Information Master title style Dr. Rene G. Rendon Click to edit Master text styles Second level John Dobriansky Third level Fourth level Fifth level 33

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36 FAR Standards of Responsibility Have a satisfactory performance record. A prospective contractor Text shall not be determined responsible or nonresponsible solely on the basis of a lack of relevant performance history, except as provided in ;

37 FAR Standards of Responsibility A prospective contractor that is or recently has been seriously deficient in contract performance shall be Text presumed to be nonresponsible, unless the contracting officer determines that the circumstances were properly beyond the contractor s control, or that the contractor has taken appropriate corrective action.

38 FAR Standards of Responsibility Past failure to apply sufficient tenacity and perseverance to perform acceptably is strong evidence Text of nonresponsibility. Failure to meet the quality requirements of the contract is a significant factor to consider in determining satisfactory performance. The contracting officer shall consider the number of contracts involved and the extent of deficient performance in each contract when making this determination.

39 Past Performance Evaluation (FAR ) Past performance information is one indicator of an offeror s ability to perform the contract successfully. Text The currency and relevance of the information, source of the information, context of the data, and general trends in contractor s performance shall be considered. This comparative assessment of past performance information is separate from the responsibility determination required under Subpart 9.1.

40 Past Performance Evaluation (FAR ) The solicitation shall describe the approach for evaluating past performance, including evaluating Text offerors with no relevant performance history, and shall provide offerors an opportunity to identify past or current contracts for efforts similar to the Government requirement. The solicitation shall also authorize offerors to provide information on problems encountered on the identified contracts and the offeror corrective actions.

41 Past Performance Evaluation (FAR ) The Government shall consider this information, as well as information obtained from any other sources, Text when evaluating the offeror past performance. The source selection authority shall determine the relevance of similar past performance information.

42 Past Performance Evaluation (FAR ) The evaluation should take into account past performance information regarding predecessor companies, key personnel Text who have relevant experience, or subcontractors that will perform major or critical aspects of the requirement when such information is relevant to the instant acquisition.

43 Past Performance Evaluation (FAR ) In the case of an offeror without a record of relevant past performance or for whom information on past performance is not available, Text the offeror may not be evaluated favorably or unfavorably on past performance.

44 FAR Contractor Performance Information Past performance evaluations shall be prepared at least annually and at the time the work under a contract or order is completed. Past Text performance evaluations are required for contracts and orders for supplies, services, research and development, and contingency operations, including contracts and orders performed inside and outside the United States

45 FAR Contractor Performance Information Past performance information shall be entered into CPARS, the Governmentwide evaluation reporting tool for all past performance Text reports on contracts and orders. Instructions for submitting evaluations into CPARS are available at