FAR 42.1501—General.
Plain-English Summary
FAR 42.1501 explains what “past performance information” is, why it matters, and how agencies are expected to manage it. It identifies the types of contractor performance that may be considered in future source selections, including conformance to requirements and workmanship, cost control, schedule adherence, administrative performance, reasonable and cooperative behavior, customer satisfaction, compliance with small business subcontracting plans, required reporting into government databases, integrity and business ethics, and overall business-like concern for the customer’s interests. The section also ties past performance to the broader evaluation framework in FAR 42.1502 and makes clear that agencies must monitor their compliance with past performance evaluation requirements. In practice, this means contractors should treat performance records as a major competitive factor, because ratings and narratives can influence future award decisions. It also means contracting activities must collect, report, and maintain timely, quality performance data through CPARS, which is identified here as the official source for past performance information.
Key Rules
Past performance is source selection data
Past performance information, including ratings and supporting narratives, is relevant for future source selection. Agencies may use it to assess how a contractor performed on prior contracts or orders when deciding whether to award future work.
Performance record covers multiple dimensions
The rule lists specific performance areas that may be evaluated, including quality of work, cost control, schedule performance, administrative compliance, cooperation, customer satisfaction, ethics, and overall business judgment. The list is illustrative and shows the breadth of conduct that can affect a contractor’s reputation.
Small business plan compliance matters
A contractor’s compliance with its small business subcontracting plan is part of past performance. The section also points to favorable consideration for certain mentor-protégé arrangements involving SBA-approved agreements and qualifying protégé businesses.
Reporting obligations are part of performance
Past performance includes whether the contractor complied with reporting requirements into government databases and with solicitation provisions and clauses that require reporting. Failure to report accurately and on time can therefore affect future evaluations.
Agencies must monitor evaluation compliance
Agencies are required to monitor their compliance with the past performance evaluation requirements in FAR 42.1502. This is an internal control obligation meant to ensure evaluations are completed consistently and on time.
CPARS is the official source
The section states that CPARS is the official source for past performance information. Agencies must use CPARS metric tools to measure the quality and timeliness of past performance reporting.
Responsibilities
Contracting Officer / Agency evaluators
Collect, document, and report past performance information accurately and on time; ensure evaluations address the required performance areas; use CPARS as the official repository/source; and monitor compliance with the evaluation requirements in FAR 42.1502.
Agency management
Oversee compliance with past performance evaluation requirements, use CPARS metric tools to track reporting quality and timeliness, and ensure the agency’s evaluation process is functioning consistently.
Contractor
Perform in a way that supports favorable past performance ratings by meeting requirements, controlling costs, staying on schedule, cooperating with the customer, maintaining integrity and business ethics, complying with subcontracting plan obligations, and satisfying reporting requirements.
Small business subcontracting participants
Comply with applicable small business subcontracting plan requirements; where applicable, mentor-protégé arrangements and qualifying protégé status may receive favorable consideration in the past performance context.
Practical Implications
Past performance can strongly affect future award chances, so contractors should manage every contract as if it will be reviewed in the next competition.
Poor documentation or late CPARS reporting can hurt both the contractor and the agency, because the system is the official source and timeliness/quality are monitored.
The evaluation is broader than technical quality alone; schedule slips, weak customer communication, ethics issues, and reporting failures can all matter.
Contractors should pay close attention to subcontracting plan compliance and required database reporting, since these are explicitly part of the past performance record.
Agencies should treat CPARS administration as a compliance function, not just a paperwork task, because incomplete or inconsistent reporting can undermine source selections and create audit risk.
Official Regulatory Text
(a) Past performance information (including the ratings and supporting narratives) is relevant information, for future source selection purposes, regarding a contractor’s actions under previously awarded contracts or orders. It includes, for example, the contractor’s record of- (1) Conforming to requirements and to standards of good workmanship; (2) Forecasting and controlling costs; (3) Adherence to schedules, including the administrative aspects of performance; (4) Reasonable and cooperative behavior and commitment to customer satisfaction; (5) Complying with the requirements of the small business subcontracting plan (see 19.705-7 (b)), including favorable consideration of a mentor with an SBA-approved mentor-protégé agreement (see 13 CFR 125.9 ) that subcontracts to its protégé, and that protégé is a covered territory business or that protégé's principal office is located in the Commonwealth of Puerto Rico (see 15 U.S.C. 657r(a) ); (6) Reporting into databases (see subpart 4.14 , and reporting requirements in the solicitation provisions and clauses referenced in 9.104-7 ); (7) Integrity and business ethics; and (8) Business-like concern for the interest of the customer. (b) Agencies shall monitor their compliance with the past performance evaluation requirements (see 42.1502 ), and use the Contractor Performance Assessment Reporting System (CPARS) metric tools to measure the quality and timely reporting of past performance information. CPARS is the official source for past performance information.