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Policies and Regulations - Information Letter 90-01-2
90-01-2 Timely Delivery and Contractor Performance
Department of Veterans Affairs
Deputy Assistant Secretary for Acquisition and Materiel Management
Washington DC 20420
IL 90-01-2
November 9, 2000
Office of Acquisition and Materiel Management Information Letter
| TO: |
Veterans Integrated Service Network Directors; Directors, VA Medical Center Activities, Domiciliary, Outpatient Clinics, Medical and Regional Office Centers, and Regional Offices; Directors, Denver Acquisition and Logistics Center, Austin Automation Center, Records Management Center, VBA Benefits Delivery Centers, and VA Health Administration Center; Director National Cemetery Administration; Chief Facilities Management Officer, Office of Facilities Management; and, the Executive Director and Chief Operating Officer for the National Acquisition Center |
| ATTN: |
Heads of Contracting Activities
All VA Contracting Officers |
| SUBJECT: |
Timely Delivery and Contractor Performance |
- This Information Letter (IL) serves as a reminder to acquisition professionals
that timely delivery of supplies and services constitutes an important element
of contractor performance.
- Numerous references throughout the Federal Acquisition Regulation (FAR) emphasize the importance of timely delivery as it relates to contractor performance. Whether you are awarding or administering a contract, here are a few FAR reference sites that all acquisition professionals should keep in mind:
- FAR 9.103(c) states that awarding a contract based on lowest price alone can be a false economy if there is a subsequent default, later deliveries, or other unsatisfactory performance resulting in additional contractual or administration costs;
- FAR 9.104-1(b) states that in order for a prospective contractor to be considered responsible, the contractor must be able to comply with the required or proposed delivery schedule or performance schedule;
- FAR 11.401(a) states that time of delivery or performance is an essential contract element and shall be clearly stated in solicitations;
- FAR 12.206 states that a contractor's past performance should be an important element of every evaluation and contract award for commercial items;
- FAR 42.1501 states that past contractor performance information should include, among other relevant information, the contractor's adherence to contract schedules.
- Based on the above, it is important that acquisition professionals consider
a contractor's past performance in meeting delivery requirements prior to awarding
new contracts to the contractor. Further, should the contractor fail to meet the delivery requirements after an award has been made, the Contracting Officer administering the contract must ensure that this information is documented in the contract administration files.
- Additional guidance on contractor performance can be found at the Acquisition
Reform Network website, http://www.ARNet.gov. On this website, the Office of Procurement Policy (OFPP) has posted a best practices guide entitled, "Best Practices for Collecting and Using Current and Past Performance Information." The guide, dated May 2000, can be down loaded and printed from the website. For those who are familiar with the guide (and may already have a copy), please note that OFPP issued a significant change to the guide on October 4, 2000. The guidance on how to treat offerors who have no past performance history was revised to delete the recommendation that these offerors be given a middle/satisfactory rating. The revised guidance leaves this matter at the discretion of the agencies. Acquisition professionals should note that FAR, Subpart 15.305(a)(2)(iv) states that the lack of a past performance history may not be evaluated favorably or unfavorably.
- Please direct any questions regarding this information letter to Teresa King,
Acquisition Program Management Team (95A), at (202) 273-7837.
/s/David S. Derr
Associate Deputy Assistant Secretary
for Acquisitions
Distribution: RPC 7029
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