Why Past Performance Matters
In federal contracting, past performance is one of the strongest indicators of future success. Contracting officers use it to evaluate whether a business can deliver quality work, meet deadlines, and manage projects effectively. For small businesses, strong past performance can be the deciding factor that sets them apart from competitors and helps them secure new opportunities.
Defining Past Performance
Past performance refers to the documented history of how a business has delivered on previous contracts. It includes quality of work, timeliness, cost control, customer service, and compliance with requirements. Agencies often review past performance through systems like the Contractor Performance Assessment Reporting System (CPARS) and references provided in proposals.
How Past Performance Shapes Contract Awards
Building Trust and Credibility
Agencies want to minimize risk. A company with positive past performance demonstrates reliability, which builds confidence in awarding future contracts.
Strengthening Competitive Position
When proposals are evaluated, past performance often carries as much weight as pricing or technical qualifications. Businesses with proven results have a stronger chance of winning.
Creating Repeat Opportunities
Strong performance leads to repeat business and stronger relationships with contracting officers. Over time, this creates a pipeline of contracts without starting from scratch each time.
Elements That Define Strong Past Performance
- Quality of Work: Meeting or exceeding technical requirements.
- Timeliness: Delivering services or products on schedule.
- Cost Management: Staying within budget and avoiding overruns.
- Communication: Keeping open, responsive communication with contracting officers.
- Compliance: Following federal rules, reporting, and security requirements.
Ways Small Businesses Can Strengthen Past Performance
Start with Smaller Opportunities
Bidding on smaller contracts or subcontracting work helps establish a record of success.
Partner Strategically
Teaming agreements or joint ventures with experienced contractors provide credibility and exposure.
Keep Strong Documentation
Detailed records of milestones, budgets, and performance reviews are invaluable for future bids.
Collect References and Feedback
Positive references from contracting officers and partners support proposals.
Deliver Consistency
Reliable results across multiple contracts build a lasting reputation.
Avoiding Common Pitfalls
- Promising more than you can deliver.
- Missing reporting or compliance obligations.
- Allowing communication with contracting officers to lapse.
- Neglecting to document completed work and outcomes.
Moving Forward with Confidence
Past performance is more than a history of completed contracts. It is a powerful tool that shapes how agencies view your business and directly impacts your ability to secure new opportunities. Small businesses that prioritize quality, consistency, and strong relationships position themselves for long-term growth. GillmanBagley helps companies maintain financial stability through tailored funding solutions, ensuring they can meet obligations and perform with excellence on every contract.
Can it help contractors prepare for larger opportunities?
Yes. Stable working capital helps contractors pursue larger bids with confidence.
Can GovCon working capital improve predictability as contract volume increases?
Yes. It helps maintain steady operations as more projects and invoices accumulate.
Can GovCon working capital help with project mobilization?
Yes. It provides early capital for labor, materials, and project setup.