Overview
This section establishes the framework and responsibilities for documenting and managing contractor performance records. It distinguishes these general performance evaluations from the specific procedures used to determine award or incentive fees under FAR Subpart 16.4.
Key Rules
- Purpose: Establishes policies for the formal recording and maintenance of contractor performance data.
- Exclusion: The procedural requirements of this subpart do not govern the specific processes agencies use to calculate award or incentive fees.
- Consistency Mandate: Agencies must ensure that past performance evaluations are consistent with and parallel to the findings used for fee determinations.
- Reflective Value: Total fees paid to a contractor must be a direct reflection of their evaluated performance level.
Practical Implications
- Contracting Officers must ensure there is no "disconnect" between a contractor's CPARS (Contractor Performance Assessment Reporting System) rating and their Award Fee determination to avoid potential protests or audit findings.
- While the process for calculating a fee is separate, the substance of the performance evaluation must support the financial outcome of the contract.