1.  Contracting by Negotiation.  After January 1, 1999 all acquisitions expected to exceed $100,000 must evaluate past performance unless the CO documents the reason it is not an appropriate evaluation factor (e.g. lowest price-technically acceptable procurement).  Solicitations are supposed to (a) describe the approach for evaluating past performance (including offerors with no relevant past performance) (b) provide offerors the opportunity to identify past or current contracts (public or private) and (c) authorize offerors to provide information on problems encountered and corrective action taken.  The evaluation should also take into account predecessor companies, key personnel and subcontractors having a major role.

2.  Sealed Bidding.  There are no special requirements for using PPI in sealed bidding where OFPP guidelines encourages agencies to use PPI on all but sealed bids.  However, FAR requires a satisfactory performance on all contracts.

3.  Simplified Acquisition Procedures.  Evaluations under these procurements need not be as formal and can be based on a CO’s knowledge and personal experience with the offeror or “any other reasonable basis” (a term likely to be litigated in the future).

4.  Commercial Items.  Like most other government requirements covering commercial items, PPI use is more relaxed.  Still, the FAR provides that past performance should be “an important element of every evaluation and contract award for commercial items”. 

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