Government agencies use the Contractor Performance Assessment Reporting System (CPARS) to assess the performance of contractors working on government projects. These evaluations can significantly affect future contracting opportunities.

If you disagree with a CPARS evaluation, you can challenge it. Here's a breakdown of the process, including what factors are evaluated, the specific ratings, and what steps to take if you believe your evaluation is inaccurate or unfair.

Evaluation Factors and Ratings in FAR 42.1503

The Federal Acquisition Regulation (FAR) establishes how contractor performance is evaluated. Specifically, FAR 42.1503 focuses on several key factors:

1. Quality of Product or Service: This factor assesses whether the work met quality standards, including specifications for materials, workmanship, and service delivery.
2. Schedule: This evaluates whether the contractor met deadlines for key deliverables and milestones.
3. Cost Control: For cost-reimbursement contracts, this factor assesses the contractor's ability to manage costs and stay within budget.
4. Business Relations: This includes responsiveness, problem-solving, and the ability to maintain a strong working relationship with the agency.
5. Management of Key Personnel: This factor applies to contracts requiring specific personnel, evaluating the contractor's ability to provide and manage a qualified team.
6. Small Business Subcontracting: If the contract involves small business subcontracting goals, this factor evaluates whether those goals were met and how well the contractor fostered partnerships with small businesses.

Each of these factors is assigned an adjectival rating, summarized as follows:

• Exceptional: Performance meets contractual requirements and exceeds them in a way that benefits the government.
• Very Good: Performance meets requirements and exceeds some of them, with positive impacts.
• Satisfactory: Performance meets contract requirements.
• Marginal: Performance does not meet some requirements, but issues are resolvable.
• Unsatisfactory: Performance does not meet significant requirements, resulting in serious impacts.

Receiving a high rating, such as “Exceptional,” may enhance your reputation, while a “Marginal” or “Unsatisfactory” rating may hinder your chances for future contracts.

Responding to a CPARS Evaluation

If you believe your CPARS evaluation is inaccurate or unfair, you have options:

1. Submit a Written Response: FAR 42.1503 allows contractors 14 days to respond to a CPARS evaluation. In this response, a contractor may address any inaccuracies and provide evidence.
2. Request an Agency Review: If your response doesn't resolve the issue, you may request a formal review within the agency at a level above the contracting officer to consider disagreements between the contractor and the Government regarding the evaluation.

Appealing to the Boards of Contract Appeals

If internal efforts do not resolve your concerns, you may consider an appeal to the appropriate Board of Contract Appeals (Armed Services Board of Contract Appeals (ASBCA) or Civilian Board of Contract Appeals (CBCA)):

• Scope of Appeals: The Boards can review factual errors, procedural issues, or breaches affecting your record.
• Impact of a Board Decision: A favorable ruling may result in the correction of factual inaccuracies or procedural issues in your evaluation, which could improve your past performance record for future contracting opportunities.
• Legal Guidance: The appeals process can be complex. A government contracts attorney can help you decide if an appeal is worth pursuing and guide you through the process.

Final Thoughts

Performance evaluations in CPARS play a vital role in your business's reputation and future opportunities in government contracting. Understanding the evaluation factors and ratings under FAR 42.1503—and knowing your options for responding, challenging, or appealing—can help ensure your performance is accurately characterized. A knowledgeable government contracts attorney can help you prepare your response to the agency or pursue your appeal.

* This article is provided for information purposes only. It does not constitute legal advice. It is not intended to form an attorney-client relationship. Any legal advice should be sought from an attorney. *