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SBA Issues Final Rule on Past Performance Ratings for Small Business Contractors

1 min read

The Small Business Administration has released a final rule that provides small business contractors with two methods for obtaining past performance ratings in compliance with section 868 of the fiscal year 2021 National Defense Authorization Act.

The rule is set to take effect on Aug. 22, according to a Federal Register notice published Friday. For the first method, a small business contractor may use past performance for contract work carried out as a member of a joint venture.

Under the second method, the business may also utilize the past performance rating for work conducted as a first-tier subcontractor on a prime contract containing a subcontracting plan. 

For this second procedure, section 868 of FY 2021 NDAA “authorizes the small business to seek a past performance rating from the prime contractor and submit the rating with the small business’ offer on a new prime contract.”

According to the final rule, prime contractors must include in the requested rating several evaluation factors such as technical, cost control, schedule or timeliness and management or business relations.