Overview
FAR 42.1502 establishes the mandatory requirements and monetary thresholds for documenting contractor performance in the Contractor Performance Assessment Reporting System (CPARS). It ensures that past performance data is systematically collected annually and at contract completion to inform future government source selection decisions.
Key Rules
- General Frequency: Evaluations must be prepared at least annually and upon completion of the contract or order.
- General Thresholds: Evaluations are mandatory for all contracts and orders exceeding the Simplified Acquisition Threshold (SAT), including instances where a modification increases the contract value above the SAT.
- Specialized Thresholds:
- Construction: Required for contracts $\ge$ $900,000.
- Architect-Engineer: Required for contracts $\ge$ $45,000.
- Default: Any contract terminated for default requires an evaluation regardless of the dollar value.
- Reporting Tool: All past performance information must be entered into CPARS, the official government-wide reporting tool.
- Small Business Subcontracting: For contracts requiring a subcontracting plan, the evaluation must assess the contractor's success in meeting small business goals and document any "unjustified" reduced or untimely payments to small business subcontractors.
- Exclusions: Performance under FAR Subpart 8.7 (AbilityOne) is specifically exempt from these evaluation requirements.
Practical Implications
- Future Award Impact: Because CPARS data is shared government-wide, a single poor evaluation on a current contract can disqualify a contractor from winning unrelated work with different agencies.
- Subcontractor Management: Prime contractors must prioritize timely and accurate payments to small business subcontractors, as three or more unjustified payment issues within a 12-month period will trigger a recorded history of poor performance in the official record.