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(a) A Performance Assessment Report (PAR) (also knows as a Contractor Performance Assessment Report (CPAR))shall be prepared for those contracts, as well as Level 1 and 2 subcontracts where performance can be clearly measured, and is expected to exceed the following thresholds:

* The PM (Program/Project/Product Manager) is the assessing official for those service contracts providing technical or management support to the program office. [AFARS Revision #21, dated May 22, 2007]

(b) Except as provided in 5142.1502-90(i) below, performance reports may be prepared in, and shall be entered in the Contractor Performance Assessment Reporting System (CPARS) . (See 5142.1503-90). [AFARS Revision #21, dated May 22, 2007]

(c) A PAR/CPAR shall be prepared upon physical completion of the contract. When the contract period of performance will not exceed 18 months, prepare a single "final" assessment report. If the period of performance will exceed 18 months, prepare an "interim" assessment report at the completion of 12 months performance and annually thereafter until the contract is physically complete. For contracts awarded prior to the effective date of this policy, annual reports shall be prepared twelve (12) months from February 1, 1998, or such earlier date as deemed appropriate by the assessing official.

(d) An out-of-cycle or "addendum" report may be prepared if there is a need to record an extraordinary event prior to the next regularly scheduled evaluation or if it is necessary to report a meaningful occurrence during the period between physical completion of the contract and contract closeout. Additionally, addendum reports may be prepared to record contractor’s performance relative to contract close-out and other administrative requirements (e.g. final indirect cost proposals, technical data, etc.)

(e) For indefinite delivery type contracts (except Job Order Contracts (JOC), see 5117.9005(d) and (i)(2) below)), PARs/CPARs are required when the total estimated contract value exceeds the thresholds for the appropriate business sector and in accordance with the following:

(1) Where the scope of the contract is narrow or orders will be essentially similar, the contracting officer shall prepare reports in accordance with 5142.1502-90(b). If the contracting officer requires assessment input from external ordering offices, such requirement shall be clearly stated in the ordering information/procedures for the basic contract.

(2) Where the scope of the contract is broad or the nature of individual orders could be significantly different, the contracting officer may require the ordering officer to prepare a PAR/CPAR for each order exceeding $100,000 in accordance with 5142.1502-90(b). If so, the contracting officer shall clearly state this requirement in the ordering information/procedures for the basic contract.

(3) Any activity issuing an order against another activity’s contract shall either prepare the PAR/CPAR, or provide input to the PAR/CPAR, as specified in the basic contract. [AFARS Revision #21, dated May 22, 2007]

(f) PARs/CPARs are required for "joint venture" contracts. The report shall be prepared for the joint venture, not for each participating contractor. However, each contractor will be specifically identified in the performance report. Where specific responsibilities of each contractor is known (e.g., systems integration, software development, propulsion systems, etc.), also include this information.

(g) Rating System: Use the following rating system to assess contractor performance for all Past Performance Information (PPI) elements:

(1) Exceptional (Dark Blue) - Performance meets contractual requirements and exceeds many to the Government’s benefit. The contractual performance of the element or sub-element being assessed was accomplished with few minor problems for which corrective actions taken by the contractor were highly effective.

(2) Very Good (Purple) - Performance meets contractual requirements and exceeds some to the Government’s benefit. The contractual performance of the element or sub-element being assessed was accomplished with some minor problems for which corrective actions taken by the contractor were effective.

(3) Satisfactory (Green) - Performance meets contractual requirements. The contractual performance of the element or sub-element contains some minor problems for which corrective actions taken by the contractor appear or were satisfactory.

(4) Marginal (Yellow) - Performance does not meet some contractual requirements. The contractual performance of the element or sub-element being assessed reflects a serious problem for which the contractor has not yet identified corrective actions. The contractor’s proposed actions appear only marginally effective or were not fully implemented.

(5) Unsatisfactory (Red) - Performance does not meet most contractual requirements and recovery is not likely in a timely manner. The contractual performance of the element or sub-element contains serious problem(s) for which the contractor’s corrective actions appear or were ineffective.

(h) The rating assigned to an element/sub-element must be supported by narrative rationale. Narratives are required for all ratings, and must clearly convey to the contractor, as well as to a Government source selection official who is not familiar with the instant contract, why the rating was assigned. This is especially important for any rating above or below "satisfactory." Narratives should be supported by quantifiable or verifiable documentation. While larger or more complex efforts warrant greater detail, the guideline for any narrative is "clear and concise."

(i) Exceptions:

(1) A PAR/CPAR need not be prepared for: Science & Technology contracts (budget elements 6.1, 6.2 and 6.3) or Facilities/Property Management contracts (FAR 45.302-2). However, the Head of the Contracting Activity (HCA) may require that PARs/CPARs be prepared for Science & Technology contracts, where such is determined to facilitate efficient and effective acquisition. In such cases, the procedures stated herein shall apply. Additionally, the assessing official may choose the most appropriate format to record the contractors past performance information, i.e. "systems" or "non-systems."

(2) PARs for construction and architect-engineering (A-E) services shall be prepared and distributed in accordance with FAR/DFARS/AFARS Parts 36, 236, and 5136, respectively. Notwithstanding 5142.1501-90(b)(3)(iii) and (b)(5), PARs for Job Order Contracts (JOC) shall be prepared and distributed in accordance with AFARS 5117.9005(d).

(3) PARs/CPARS prepared for Special Access Required Programs shall not be input in CPARS. If the information required for input into CPARS is classified, it shall not be reported. See Army Regulation (AR) 715-30 as revised, for maintenance of past performance information that cannot be maintained in an unclassified database.

[AFARS Revision #21, dated May 22, 2007]