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Government Contracting — Past Performance Ratings

The Contractor Performance Assessment Reporting System (CPARS) is the government-wide system for recording contractor performance evaluations. Past performance ratings range from Exceptional to Unsatisfactory and directly influence future contract awards through source selection evaluations.

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E

Exceptional

5/5

Performance that significantly exceeded most contract requirements and the contractor demonstrated exceptional initiative, efficiency, or technical capability. An Exceptional rating indicates the contractor accomplished results far above what was required, with very few (if any) minor problems and no corrective action required. This is the highest rating in the CPARS system.

VG

Very Good

4/5

Performance that exceeded some contract requirements, and no significant problems were identified. A Very Good rating indicates the contractor met all contractual obligations and went beyond requirements in certain areas. Any problems that occurred were minor and were resolved through routine contractor effort without government intervention.

S

Satisfactory

3/5

Performance that met the basic contract requirements. A Satisfactory rating indicates the contractor fulfilled all obligations as specified in the contract terms, but did not demonstrate performance above and beyond the minimum requirements. Some minor problems may have occurred, but corrective actions taken by the contractor were satisfactory.

M

Marginal

2/5

Performance that did not meet some contract requirements, and the problems were of a significant nature. A Marginal rating indicates the contractor had difficulty fulfilling contract obligations, with identifiable instances of substandard performance that required government intervention or corrective action. Performance was below expectations in one or more areas.

U

Unsatisfactory

1/5

Performance that failed to meet most contract requirements, and the deficiencies were serious and pervasive. An Unsatisfactory rating indicates the contractor was unable or unwilling to perform the contract as required, with problems that were not corrected despite government intervention. This rating may be associated with termination for default or other serious contract performance failures.

About CPARS Past Performance Ratings

The Contractor Performance Assessment Reporting System (CPARS) is the government-wide evaluation tool used by federal agencies to assess contractor performance on active contracts. Evaluations are completed annually during the period of performance and upon contract completion, creating a permanent record that future source selection boards review when evaluating proposals.

Past performance is one of the most important evaluation factors in federal source selections. Under FAR 15.305(a)(2), agencies must evaluate past performance as a predictor of future results. A strong past performance record — particularly Exceptional and Very Good ratings — provides a significant competitive advantage, while Marginal or Unsatisfactory ratings can effectively disqualify a contractor from future awards.