When bidding on federal contracts, one of the key factors agencies often evaluate is an offeror's past performance. But what happens if your business is new or lacks a performance history? Can you rely on the experience of predecessor companies, key personnel, or subcontractors? Here's a breakdown of how these evaluations typically work and what the rules say.

The Role of Past Performance in Contract Awards

Federal Acquisition Regulation (FAR) 15.305(a)(2)(iii) provides guidance on evaluating past performance. It allows agencies to consider the experience of predecessor companies, key personnel, or subcontractors if that experience is relevant to the work being solicited. However, this language is essentially a recommendation—meaning agencies should consider such information but aren't required to. Ultimately, the decision rests on what the solicitation specifies and the agency's discretion.

Practical Strategies for Contractors

The Government Accountability Office (GAO) has consistently emphasized that agencies have significant leeway in how they evaluate past performance, provided their methods align with the solicitation and applicable laws. For companies seeking government contracts, these cases highlight several key points:

1. Leverage Predecessor Experience: Agencies may credit an offeror for a predecessor company's experience if it reasonably predicts the offeror's ability to perform the contract. If your company has limited past performance, consider highlighting relevant experience from predecessor companies, provided there is clear continuity in resources and operations.
2. Continuity Matters: Demonstrate that the resources and expertise that supported prior successful performance will be available for the new contract.
3. Key Personnel: In some cases, agencies choose to focus solely on the corporate entity's past performance rather than considering the experience of key personnel, reasoning that employees may not remain with the company for the duration of the contract.
4. Subcontractors: Evaluating subcontractors' past performance is permissible, depending on the part of the work the subcontractor would perform. However, the agency has discretion to determine whether such experience is relevant.
5. Focus on Relevance: Ensure the experience presented aligns closely with the contract's requirements. Agencies are more likely to value experience that directly relates to the tasks outlined in the solicitation.
6. Understand Solicitation Requirements: The solicitation dictates how past performance will be evaluated. Review it carefully to identify opportunities to present experience from various sources, such as key personnel or subcontractors.

GAO decisions underscore the flexibility agencies have in evaluating past performance, but they also provide a roadmap for contractors to present their qualifications effectively. By emphasizing continuity, relevance, and compliance with solicitation requirements, contractors can position themselves as strong contenders, even when their direct performance history is limited.

What Does This Mean for Offerors?

Understanding how past performance is evaluated can make or break your proposal. Here are some key takeaways:

• Pay Attention to the Solicitation: The specific language in the solicitation dictates how past performance will be assessed. Offerors should tailor their submissions accordingly.
• Leverage Relevant Experience: If you're a new business, highlight the experience of predecessor companies, subcontractors, or key personnel where allowed. Provide clear evidence that these resources will contribute to contract performance.
• Know What to Expect: Agencies aren't obligated to consider certain types of past performance if they deem it irrelevant. For instance, even if your key personnel have extensive experience, it may not be factored into the evaluation if the solicitation focuses solely on corporate history.
• Prepare for Neutral Ratings: If you lack relevant past performance, agencies may assign a neutral past performance rating, meaning it won't count against you.

Final Thoughts

In federal contracting, past performance evaluations are nuanced and heavily dependent on the solicitation's terms. Offerors should carefully review these requirements and be strategic in presenting their experience. If you're unsure how to navigate these rules, consulting with an experienced government contracts attorney can provide valuable guidance and increase your chances of success.

* 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. *