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Chapter 21 - Performance-Based Contracting and Service Level Agreements

21.9 Selecting the PBC incentive strategy

21.9.7 Past performance evaluation and recognition

Past performance fact-gathering should reflect adherence to performance requirements and provides better data for evaluation of past performance under other contracts. A powerful incentive of excellence and customer satisfaction is created when suppliers know their performance will also influence future award decisions.

Due to the increased importance agencies now place on past performance in selecting suppliers for award, contract performance evaluation has become a powerful incentive. If possible, agencies should determine supplier’s history of reasonable and cooperative behavior and commitment to customer satisfaction, and business-like concern for the interest of the agency. To the extent possible, the agency’s approach to evaluating these measures of conformance and quality, timeliness, cost control, responsiveness and customer satisfaction should be described in the solicitation and contract.