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Title: Contractor Past Performance Information (PPI) in Source Selection: A Comparative Study of Public and Private Sector
Authors: Roger D. Lord
Keywords: Past Performance
Best Value Source Selection
Issue Date: 1-Dec-2004
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Past Performance
Abstract: 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 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 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. Government (the DoD in particular) has recently become more curious in regards to industry best practices and how those practices can be implemented in the government, in particular, in the possibility of diminishing the Government Contracting Officer's and the Source Selection team's added burden. This paper will explore through field research the current PPI collection and evaluation process used by the DoD and by those employed in industry. The goal behind such research is, again, industry best practices and improving the DoD's use of PPI as a tool in the acquisition processes.
Description: Contract Management / Graduate Student Research
Appears in Collections:NPS Graduate Student Theses & Reports

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