Procurement term
Past Performance
An evaluation factor in US federal procurement that assesses how well a contractor performed on relevant prior contracts.
What is Past Performance?
Past performance is the record of how a contractor has performed on previous, relevant contracts, used by the government to gauge the likelihood of successful performance on a new requirement. In negotiated procurements (FAR Part 15), past performance is commonly a stated evaluation factor, and the FAR generally requires its consideration in competitive negotiated acquisitions above defined thresholds. It is distinct from technical approach (what the offeror proposes to do) and from responsibility (whether the firm is capable and eligible to be awarded).
The government collects performance information in the Contractor Performance Assessment Reporting System (CPARS), where agencies rate completed and ongoing contracts on factors such as quality, schedule, cost control, and management. Offerors also submit past-performance references in proposals, which the evaluation team may verify. Where an offeror has no relevant record, the FAR provides that it cannot be evaluated favorably or unfavorably and is given a neutral rating.
For vendors, building a strong, documented past-performance record is a long-term asset — it directly affects competitiveness on future best-value awards. Tracking CPARS ratings, addressing negative assessments through the comment process, and curating relevant references for each proposal are core federal capture activities.
Example
On a best-value source selection, two offerors are close on technical approach and price, so the agency's evaluation of past performance — drawing on CPARS ratings — becomes the deciding discriminator.
Related terms
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