A contractor's past performance record is arguably the key indicator for predicting future performance. As such, it is to the agency's advantage to use past performance in evaluating and selecting contractors for award. Evaluation of past performance is particularly important for service contracts. Properly conducted, the collection and use of such information provides significant benefits. It enhances the government's ability to predict both the performance quality and customer satisfaction. It also provides a powerful incentive for current contractors to maximize performance and customer satisfaction.

Past performance information can come from multiple sources. The two most familiar methods are asking the offerors to provide references and seeking information from past performance information databases. The Past Performance Information Retrieval System , or PPIRS, is the Government-wide repository for past performance information. It ties together a number of data bases formerly independent of one another.

There are other means of obtaining past performance information for evaluation. One very important means is through market research. Call counterparts in other agencies with similar work and ask them for the names of the best contractors they've worked with. Are there industry awards in the field of work? Who has won them? In fact, ask offerors to identify their awards and events of special recognition. Look for industry quality standards and certifications, such as ISO 9001:200 and SEI CMMI® (discussed in Step Five). Ask offerors what they do to track customer satisfaction and to resolve performance issues. Is there an established and institutionalized approach? In short, the integrated project team must take past performance more seriously than just calling a few references. Make the answers to these questions part of the request for proposals. Rather than have a separate past performance team, integrate this evaluation into the technical and management proposal evaluation effort.

When used in the source selection evaluation process, past performance evaluation criteria must provide information that allows the source selection official to compare the "quality" of offerors against the agency requirement and assess the risk and likelihood of success of the proposed solution and success of contractor performance. This requires the information to be relevant, current and accurate. For example, the information requested of the contractor and evaluated by the integrated project team should be designed to determine how well, in contracts of similar size, scope and complexity, the contractor--

• Conformed to the contract requirements and standards of good workmanship.
• Adhered to contract schedules.
• Forecasted and controlled costs.
• Managed risk.
• Provided reasonable and cooperative behavior and commitment to customer satisfaction.
• Demonstrated business-like concern for the interest of the customer.