Contractor Past Performance Information (PPI) in Source Selection: A Comparison Study of Public and Private Sector

摘要

The Federal Acquisition Regulation (FAR) mandates the use of contractor past performance information (PPI) as an evaluation factor in all source selections involving negotiated procurements above $1,000,000. Different agencies within the Federal Government have lowered the dollar threshold to as little as $100,000, depending on the type of contract action. Using PPI as a factor in all source selections was a tactic modeled after industry best practices. The Office of Federal Procurement Policy (OFPP) envisioned that industry PPI collected by Federal agencies would eventually be automated, maintained on secure databases, and available to all Government agencies for source-selection purposes. This practice would eventually lead to efficiencies similar to those in the private sector. However, along the way, Government and private sector industry have begun to disagree about how PPI is collected and how PPI is used. Industry prefers a passive system of collecting delivery and quality data during contract performance, while the Federal Government uses both a passive system (similar to industry) as well as an active system of pulling PPI during contract performance. Industry uses PPI to establish and maintain a preferred vendor list from which to solicit bids, quotes, or proposals, while government uses PPI to assess risk and establish vendor responsibility in a full and open competition environment. Contract award cycle-time within the Federal Acquisition process is more than double that of the private sector due to an evaluation process that is cumbersome, time-consuming, and lacking the efficiencies enjoyed by private industry. This paper will explore through field research the current PPI collection and evaluation processes used by the DoD and those used by industry. The goal behind such research is learning from industry best practices and improving the DoD's use of PPI as a tool in the acquisition process.