FAR 12.206—Use of past performance.
Plain-English Summary
FAR 12.206 explains how past performance must be used when buying commercial products and commercial services. It states that past performance should be an important element in every evaluation and contract award for commercial acquisitions, and it directs contracting officers to look beyond a single source of information by considering past performance data from a wide variety of sources inside and outside the Federal Government. The section also ties this requirement to the acquisition procedures in FAR subpart 9.1, FAR 13.106, and FAR subpart 15.3, depending on the acquisition method being used. In practice, this means agencies should not treat past performance as optional or narrowly defined; instead, they should gather and assess relevant performance history from government systems, prior contracts, and other credible sources to support a reasonable award decision. The purpose is to improve award quality, reduce performance risk, and ensure that commercial item source selections reflect how well a vendor has performed on similar work in the past.
Key Rules
Past performance is important
For commercial products and commercial services, past performance should be an important element of every evaluation and contract award. This means it is expected to be a meaningful factor, not an afterthought.
Use multiple sources
Contracting officers should consider past performance data from a wide variety of sources, both inside and outside the Federal Government. The rule encourages a broad, balanced review rather than reliance on a single report or database.
Follow applicable procedures
The way past performance is collected and used must follow the policies and procedures in FAR subpart 9.1, 13.106, or subpart 15.3, as applicable. The acquisition method determines the specific evaluation framework.
Commercial buys still need performance review
Even though commercial acquisitions are generally streamlined, past performance remains a core evaluation consideration. The commercial-item context does not eliminate the need to assess contractor history.
Relevant data should drive the evaluation
The section implies that contracting officers should use information that is relevant to the current acquisition and the offeror’s likely ability to perform. The focus is on informed judgment, not mechanical scoring alone.
Responsibilities
Contracting Officer
Treat past performance as an important evaluation element for commercial product and service awards, gather and review data from a broad range of sources, and apply the procedures required by the applicable FAR acquisition method.
Agency
Provide the systems, records, and acquisition support needed to collect and use past performance information, including access to internal and external sources where appropriate.
Offerors/Contractors
Maintain a record of satisfactory performance and be prepared for the government to review prior contract history, references, and other credible performance information during source selection.
Practical Implications
Past performance should be built into the evaluation plan early, not added at the end of the procurement.
Contracting officers should not rely only on one database or only on federal records; they should look for relevant information from multiple credible sources.
A weak or incomplete past performance record can affect award even in commercial buys, so contractors should actively manage performance quality and customer relationships.
The applicable acquisition procedure matters: simplified acquisition, commercial procedures, and negotiated procedures may handle past performance differently, but all require attention to it.
Common pitfalls include using stale or irrelevant performance data, failing to document how the information was considered, or treating past performance as a box-checking exercise rather than a substantive risk indicator.
Official Regulatory Text
Past performance should be an important element of every evaluation and contract award for commercial products and commercial services. Contracting officers should consider past performance data from a wide variety of sources both inside and outside the Federal Government in accordance with the policies and procedures contained in subpart 9.1 , 13.106 , or subpart 15.3 , as applicable.