[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Rules and Regulations]
[Pages 20201-20209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10096]



[[Page 20201]]

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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Part 1509 and 1552

[FRL-631-3]


Acquisition Regulation: Contractor Performance Evaluations

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is amending the EPA 
Acquisition Regulation (48 CFR Chapter 15) to revise its policy and 
procedures regarding the evaluation of contractor performance on EPA 
contracts and to establish an EPA Acquisition Regulation clause to be 
used in solicitations and contracts with an estimated dollar value in 
excess of $100,000. This final rule applies to all large and small 
entities who perform or are interested in performing under EPA 
contracts.

DATES: This rule is effective on May 26, 1999.

FOR FURTHER INFORMATION CONTACT: Frances Smith, U.S. Environmental 
Protection Agency, Office of Acquisition Management, (3802R), 401 M 
Street, SW, Washington, D.C. 20460, Telephone: (202) 564-4368.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule implements the Office of Federal Procurement Policy 
Policy Letter 92-5, Past Performance Information. The Office of Federal 
Procurement Policy Policy Letter requires Federal agencies to evaluate 
contractor performance on contracts over $100,000, to use past 
performance information in making responsibility determinations in both 
sealed bid and competitively negotiated procurements, and to specify 
past performance as an evaluation factor in solicitations for 
competitively negotiated contracts expected to exceed $100,000.
    The comment period for the proposed rule extended from September 
16, 1998, to November 16, 1998. The Agency received a total of 33 
comments and has reviewed them all. A detailed Summary and Analysis of 
Comments document detailing the comments and the responses regarding 
the proposed rule is available in the docket for this rule by 
contacting Frances Smith at (202) 564-4368 (E-mail: 
[email protected]).
    The Agency has made minor changes to the proposed rule as a result 
of the comments received. This final rule reflects the following 
changes: (1) Deleted the word ``rare'' under each rationale for the 
numerical rating score of 5; (2) Added a statement in the Contractor 
Performance Report Instructions to include the following under number 
10.: Identify the title of the contract and the dollar amount managed 
under the period for review; (3) Revised the definition for Summary 
Ratings in the Contractor Performance Report Instructions to coincide 
with the definition in the rule at 1509.170-4(e) as follows: Summary 
ratings refer to the ratings determined by one level above the 
contracting officer regarding disagreements between the contractor and 
the contracting officer. Summary ratings reflect the Agency's ultimate 
conclusion for the performance period being evaluated; (4) Revisions 
made throughout the rule to include ``business days'' in lieu of 
``calendar days''; (5) Revisions made to 1509.170-5, Policy and 
1552.209-76, Contractor Performance Evaluations to reflect that past 
performance evaluations are to be completed after each 12 months of 
contract performance; and (6) Deleted paragraphs (c) and (d) of 
1509.170-7, Release of Ratings and replaced paragraph (c) with the 
following: Freedom of Information Act requests shall be processed by 
the EPA Freedom of Information Act office where the contract is 
located. Requests for past performance evaluations during the period 
the information may be used to provide source selection information 
shall be rejected if the requests are made by other than Government 
personnel and the contractor whose performance is being evaluated.

B. Executive Order 12866

    The final rule is not a significant regulatory action for the 
purposes of Executive Order 12866; therefore, no review was required by 
the Office of Information and Regulatory Affairs within the Office of 
Management and Budget (OMB). The word ``not'' was inadvertently omitted 
in the proposed rule to indicate that this rule is not a significant 
regulatory action. The Office of Management and Budget has exempted 
this regulatory action from E.O. 12866 review.

C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.) 
applies to this final rule, and the information collection request in 
this final rule has been evaluated by the Office of Management and 
Budget. The Office of Information and Regulatory Affairs within the 
Office of Management and Budget has issued OMB Clearance No. 9000-0142 
for the collection of contractor performance information. Comments 
regarding Paperwork Reduction Act concerns should be sent to the Office 
of Management and Budget (Attn: EPA Desk Officer). The Office of 
Management and Budget is required to make a decision concerning the 
collection of information contained in the final rule between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to the Office of Management and Budget is best 
assured of having its full effect if the Office of Management and 
Budget receives it within 30 days of publication.

D. Regulatory Flexibility Act

    The EPA certifies that this final rule does not exert a significant 
economic impact on a substantial number of small entities.
    This final rule formalizes EPA's contractor performance evaluation 
process, as an expansion of the government-wide requirements already 
established in the Federal Acquisition Regulation, 48 CFR 42.15. The 
final rule explains that EPA contracting officers will be recording the 
evaluations on simple and easy-to-understand report forms generated by 
the National Institutes of Health's Contractor Performance System. 
Likewise, the evaluation rating system that the contracting officers 
will be using is based on straightforward numerical scores with a 
narrative explanation to be provided by the contracting officers. An 
adverse economic impact upon a contractor (i.e., in the form of less 
future Federal business) as a result of a rating assessed by an EPA 
contracting officer would be attributable to the contractor's past 
performance itself, not to the rating system prescribed herein.
    Further, the final rule requires no reporting or record-keeping by 
contractors. Rather, the final rule provides contractors with a formal 
opportunity, generally one time a year per contract, to review and 
comment on their specific performance evaluations as conducted by the 
cognizant EPA contracting officers. EPA estimates that the contractor's 
review and comment process will require a minimal amount of time to 
complete; therefore, to the extent that this does result in some 
contractor-incurred costs, EPA anticipates that these will be de 
minimus. In any event, any reasonable costs incurred by the contractor 
in connection with the process will be allowable and allocable to the 
contract under evaluation and thereby borne by EPA.

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E. The National Technology Transfer and Advancement Act

    As noted in the proposed rule, section 12(d) of the National 
Technology Transfer and Advancement Act of 1995 (``NTTAA''), Public Law 
104-113, section 12(d) (15 U.S.C. 272 note) directs EPA to use 
voluntary consensus standards in its regulatory activities unless to do 
so would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, and business 
practices) that are developed or adopted by voluntary consensus 
standards bodies. The NTTAA directs EPA to provide Congress, through 
the Office of Management and Budget, explanations when the Agency 
decides not to use available and applicable voluntary consensus 
standards. This action does not involve technical standards. Therefore, 
EPA did not consider the use of any voluntary consensus standards.

F. Executive Order 12875: Enhancing the Intergovernmental 
Partnership

    Under Executive Order 12875, EPA may not issue a regulation that is 
not required by statute and that creates a mandate upon a State, local 
or tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments, or EPA consults with those governments. If EPA complies by 
consulting, Executive Order 12875 requires EPA to provide to the Office 
of Management and Budget a description of the extent of EPA's prior 
consultation with representatives of affected State, local and tribal 
governments, the nature of their concerns, copies of any written 
communications from the governments, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 12875 
requires EPA to develop an effective process permitting elected 
officials and other representatives of State, local and tribal 
governments ``to provide meaningful and timely input in the development 
of regulatory proposals containing significant unfunded mandates.''
    Today's rule does not create a mandate on State, local or tribal 
governments. The rule does not impose any enforceable duties on these 
entities because this rule pertains to contractors who have been 
awarded EPA contracts. Accordingly, the requirements of section 1(a) of 
Executive Order 12875 do not apply to this rule.

G. Executive Order 13084: Consultation and Coordination With Indian 
Tribal Governments

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statue, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the Office of Management and Budget, in a 
separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian tribal governments because this rule pertains to 
contractors who have been awarded EPA contracts. Accordingly, the 
requirements of section 3(b) of Executive Order 13084 do not apply to 
this rule.

H. Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess 
their regulatory actions on State, local, and tribal governments, and 
the private sector. This final rule does not contain a Federal mandate 
that may result in expenditures of $100 million or more for State, 
local, and tribal governments, in aggregate, or the private sector in 
one year. The rule is not subject to the requirements of sections 202 
and 205 of the UMRA.

I. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is 
determined to be ``economically significant'' as defined under 
Executive Order 12866, and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.
    This rule is not subject to E.O. 13045 because it is not an 
economically significant rule as defined by E.O. 12866, and because it 
does not involve decisions on environmental health or safety.

J. Submission to Congress and the General Accounting Office

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. This rule is not a 
``major rule'' as defined by 5 U.S.C. 804 (2).

List of Subjects in 48 CFR Parts 1509 and 1552

    Environmental protection, Government procurement.

    Therefore, 48 CFR Chapter 15 is amended as set forth below:
    1. The authority citation for Parts 1509 and 1552 continues to read 
as follows:

    Authority: The provisions of this regulation are issued under 5 
U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended.

    2. Section 1509.170-1 is amended by adding the following after the 
first sentence:


1509.170-1  Scope of subpart.

    * * * Contracting officers shall insert the contract clause at 
1552.209-76 in all solicitations and contracts with an estimated dollar 
value in excess of $100,000. For acquisitions involving options, the 
total estimated value of the acquisition shall include the estimated 
base amount plus the option(s) amount(s).
    3. Sections 1509.170-2, 1509.170-3, and 1509.170-4 are revised to 
read as follows:

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1509.170-2  Purpose.

    This subpart provides guidance to program and contracting personnel 
regarding the evaluation of contractor performance. It establishes a 
uniform method for determining and recording the effectiveness of 
contractors in meeting contractual obligations. Additionally, this 
subpart details a systematic approach for identifying and maintaining 
records of contractors' performance histories.


1509.170-3  Applicability.

    (a) This subpart applies to all EPA acquisitions in excess of 
$100,000, except for construction acquisitions, architect-engineer 
acquisitions, acquisitions awarded under the Federal Acquisition 
Regulation (FAR) Subpart 8.6, Acquisitions from Federal Prison 
Industries, Incorporated, FAR Subpart 8.7, Acquisitions from Nonprofit 
Agencies Employing People Who Are Blind or Severely Disabled, and FAR 
13.5, Test Program for Certain Commercial Items. FAR 36.201 and 36.604 
provide detailed instructions for construction and architect-engineer 
contractor performance evaluations.
    (b) The acquisition of commercial items in accordance with FAR 
13.106 is not applicable to this subpart because simplified acquisition 
procedures do not require the creation or existence of a formal 
database for past performance evaluations. In cases where simplified 
acquisition procedures are not used to acquire commercial items (see 
FAR 12.203), this subpart is applicable to acquiring commercial items 
in excess of $100,000.
    (c) EPA Form 1900-26, Contracting Officer's Evaluation of 
Contractor Performance, and EPA Form 1900-27, Project Officer's 
Evaluation of Contractor Performance, shall apply to all performance 
evaluations completed prior to the effective date of this subpart. 
However, on the effective date of this rule, EPA Forms 1900-26 and 
1900-27 are obsolete, and contracting officers shall complete all 
contractor performance evaluations by use of the National Institutes of 
Health's Contractor Performance System.


1509.170-4  Definitions.

    (a) Contractor Performance Report is an evaluation of a 
contractor's performance for a specified period of time.
    (b) Interim Report refers to a Contractor Performance Report that 
covers each 12 month period after contract award.
    (c) Final Report refers to a Contractor Performance Report that 
covers the last 12 months (or less) of contract performance.
    (d) Ratings refer to the numerical scores for each performance 
category. Ratings are defined as follows: 0 = unsatisfactory, 1 = poor, 
2 = fair, 3 = good, 4 = excellent, and 5 = outstanding.
    (e) Summary ratings refer to the ratings determined by one level 
above the contracting officer regarding disagreements between the 
contractor and the contracting officer. Summary ratings reflect the 
Agency's ultimate conclusion for the performance period being 
evaluated.
    (f) Performance Categories refer to the measures used to evaluate a 
contractor's performance. Performance categories are defined as 
quality, cost control, timeliness of performance, and business 
relations.
    4. Section 1509.170 is also amended by adding 1509.170-5, 1509.170-
6, 1509.170-7, and 1509.170-8 to read as follows:


1509.170-5  Policy.

    (a) Contracting officers are responsible for the timely completion 
of contractors' performance evaluations. The National Institutes of 
Health Contractor Performance System shall be used to record individual 
contractor performance histories on EPA contracts and to obtain 
contractor past performance information for use in EPA's source 
selection process.
    (b) Contracting officers are required to use the National 
Institutes of Health Contractor Performance System to record 
evaluations for all contract performance periods expiring after the 
effective date of this subpart.
    (c) Contractor evaluation information shall be recorded in 
Contractor Performance Reports (Report) which are generated by the 
National Institutes of Health system. Reports shall cover individual 
contractor evaluations at the contract level, which includes all work 
assignments, task orders, or delivery orders associated with the 12 
month period being evaluated (interim Report) or the last 12 months (or 
less) of contract performance (final Report).
    (d) The contracting officer must complete interim Reports covering 
each 12 month period after contract award for all contracts in excess 
of $100,000, except those acquisitions identified in 1509.170-3, 
Applicability. In addition to interim Reports, the contracting officer 
must complete a final Report which covers the last 12 months (or less) 
of contract performance.
    (e) The contracting officer shall initiate the process for 
completing interim Reports within five (5) business days after the end 
of each 12 months of contract performance. The contracting officer 
shall initiate the process for completing a final Report within five 
(5) business days after the end of the last 12 months (or less) of 
contract performance. Final Reports must be completed prior to contract 
closeout.
    (f) The contracting officer must complete interim and final 
Reports, including the project officer's evaluation of contractor 
performance, receipt of any contractor input, and resolution of summary 
ratings (if any) within 90 business days from the date the contracting 
officer initiates the evaluation.
    (g) Reports shall be used to inform other agencies and departments 
(upon request) about a contractor's performance on an EPA contract, and 
to assist the contracting officer and the Technical Evaluation Panel 
with evaluating past performance for future EPA acquisitions.
    (h) When evaluating proposals, contracting officers shall use the 
National Institutes of Health system to access Reports from other 
agencies or departments that are available in the National Institutes 
of Health database. Contracting Officers may need to access past 
performance information from other than the National Institutes of 
Health system if the National Institutes of Health system does not 
include applicable information.
    (i) In accordance with FAR 42.1503(b), the ultimate conclusion on 
the performance evaluation is the decision of the Agency. The 
contracting officer must ensure the accuracy of ratings for each 
performance category by verifying that information in the contract file 
corresponds with the project officer's designated ratings. A 
contractor's performance evaluation should closely parallel award fee 
determinations made under the contract.
    (j) In cases of novations involving successors-in-interest, a final 
evaluation of the predecessor contractor must be completed within five 
(5) business days after the end of the predecessor contractor's 
performance, and an interim evaluation of the successor contractor must 
be completed within five (5) business days after the end of each 12 
months of contract performance after the successor began performing. In 
cases of change-of-name agreements, the system shall be changed to 
reflect the new contractor's name.
    (k) Contracting officers must inform the Office of Debarment and 
Suspension of any repetitive unsatisfactory or poor (a score of 0 or 1) 
ratings encountered by the contractor.

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1509.170-6  Filing of forms.

    The original copy of completed Contractor Performance Reports 
(interim and final) shall be filed in each individual contractor's 
official contract file. The National Institutes of Health Contractor 
Performance System will retain all reports for three (3) years after 
contract completion.


1509.170-7  Release of ratings.

    (a) Agencies and departments who subscribe to the National 
Institutes of Health's Contractor Performance System will have direct 
access to all Reports, including those of EPA, in the National 
Institutes of Health's database. Information on EPA contractors' 
performance ratings may also be obtained by contacting the EPA 
contracting officer responsible for the evaluation.
    (b) Contractors' performance ratings may be released to other 
Federal, State, and local Governments upon written request. The release 
to other Federal, State, and local Governments must stipulate that the 
information provided shall not be released outside of the requesting 
Government agency. In cases where the Federal agency is part of the 
National Institutes of Health Contract Performance System, a written 
request is not applicable.
    (c) Freedom of Information Act requests shall be processed by the 
EPA Freedom of Information Act office where the contract is located. 
Requests for past performance evaluations during the period the 
information may be used to provide source selection information shall 
be rejected if the requests are made by other than the Government 
personnel and the contractor whose performance is being evaluated.


1509.170-8  Contractor Performance Report.

    (a) Contractor Performance Reports (interim and final) must be 
prepared electronically by use of the National Institutes of Health's 
Contractor Performance System. Hard copy preparation of Reports shall 
not be used unless specifically instructed by the National Institutes 
of Health. The National Institutes of Health will provide EPA's Office 
of Acquisition Management Internal Oversight Service Center with 
specific instructions if hard copy use becomes necessary.
    (b) A copy of the National Institutes of Health Contractor 
Performance Report (including instructions) shall be included in each 
solicitation and contract with an estimated value in excess of 
$100,000.
    5. Section 1552.2 is amended by adding 1552.209-76 as follows:


1552.209-76  Contractor performance evaluations.

    As prescribed in section 1509.170-1, insert the following clause in 
all applicable solicitations and contracts.

Contractor Performance Evaluations

(MAY 1999)
    The contracting officer shall complete a Contractor Performance 
Report (Report) within ninety (90) business days after the end of 
each 12 months of contract performance (interim Report) or after the 
last 12 months (or less) of contract performance (final Report) in 
accordance with EPAAR 1509.170-5. The contractor shall be evaluated 
based on the following ratings and performance categories:
    Ratings: 0 = unsatisfactory, 1 = poor, 2 = fair, 3 = good, 4 = 
excellent, 5 = outstanding.
    Performance Categories:
    Quality: Compliance with contract requirements; accuracy of 
reports; effectiveness of personnel; and technical excellence.

Rating

0--Contractor is not in compliance and is jeopardizing achievement 
of contract objectives
1--Major problems have been encountered
2--Some problems have been encountered
3--Minor inefficiencies/errors have been identified
4--Contractor is in compliance with contract requirements and/or 
delivers quality products/services
5--The contractor has demonstrated an outstanding performance level 
that justifies adding a point to the score. It is expected that this 
rating will be used in those circumstances when contractor 
performance clearly exceeds the performance level described as 
``Excellent.''

    Cost Control: Record of forecasting and controlling target 
costs; current, accurate and complete billings; relationship of 
negotiated costs to actuals; cost efficiencies.

Rating

0--Contractor is unable to manage costs effectively
1--Contractor is having major difficulty managing costs effectively
2--Contractor is having some problems managing costs effectively
3--Contractor is usually effective in managing costs
4--Contractor is effective in managing costs and submits current, 
accurate, and complete billings
5--The contractor has demonstrated an outstanding performance level 
that justifies adding a point to the score. It is expected that this 
rating will be used in those circumstances when contractor 
performance clearly exceeds the performance level described as 
``Excellent.''

    Timeliness of Performance: Met interim milestones; reliability; 
responsive to technical direction; completed on time, including 
wrap-up and contract administration; met delivery schedules; no 
liquidated damages assessed.

Rating

0--Contractor delays are jeopardizing performance of contract 
objectives
1--Contractor is having major difficulty meeting milestones and 
delivery schedule
2--Contractor is having some problems meeting milestones and 
delivery schedule
3--Contractor is usually effective in meeting milestones and 
delivery schedule
4--Contractor is effective in meeting milestones and delivery 
schedule
5--The contractor has demonstrated an outstanding performance level 
that justifies adding a point to the score. It is expected that this 
rating will be used in those circumstances when contractor 
performance clearly exceeds the performance level described as 
``Excellent.''

    Business Relations: Effective management, including 
subcontracts; reasonable/cooperative behavior; responsive to 
contract requirements; notification of problems; flexibility; pro-
active versus reactive; effective small/small disadvantage business 
subcontracting program.

Rating

0--Response to inquiries, technical/service/administrative issues is 
not effective
1--Response to inquiries, technical/service/administrative issues is 
marginally effective
2--Response to inquiries, technical/service/administrative issues is 
somewhat effective
3--Response to inquiries, technical/service/administrative issues is 
usually effective
4--Response to inquiries, technical/service/administrative issues is 
effective
5--The contractor has demonstrated an outstanding performance level 
that justifies adding a point to the score. It is expected that this 
rating will be used in those circumstances when contractor 
performance clearly exceeds the performance level described as 
``Excellent.''

    (a) The contracting officer shall initiate the process for 
completing interim Reports within five (5) business days after the 
end of each 12 months of contract performance by requesting the 
project officer to evaluate contractor performance for the interim 
Report. In addition, the contracting officer shall initiate the 
process for completing final Reports within five (5) business days 
after the last 12 months (or less) of contract performance by 
requesting the project officer to evaluate contractor performance 
for the final Report. The final Report shall cover the last 12 
months (or less) of contract performance. Within thirty (30) 
business days after the project officer receives a request from the 
contracting officer to complete an evaluation, the project officer 
shall:
    (1) Complete a description of the contract requirements;
    (2) Evaluate contractor performance and assign a rating for 
quality, cost control, and timeliness of performance categories 
(including a narrative for each rating);
    (3) Provide any information regarding subcontracts, key 
personnel, and customer satisfaction;

[[Page 20205]]

    (4) Assign a recommended rating for the business relations 
performance category (including a narrative for the rating); and
    (5) Provide additional information appropriate for the 
evaluation or future evaluations.
    (b) The contracting officer shall:
    (1) Ensure the accuracy of the project officer's evaluation by 
verifying that the information in the contract file corresponds with 
the designated project officer's ratings;
    (2) Assign a rating for the business relations performance 
category (including a narrative for the rating);
    (3) Concur with or revise the project officer's ratings after 
consultation with the project officer;
    (4) Provide any additional information concerning the quality, 
cost control, and timeliness of performance categories if deemed 
appropriate for the evaluation or future evaluations (if any), and 
provide any information regarding subcontracts, key personnel, and 
customer satisfaction; and
    (5) Forward the Report to the contractor within ten (10) 
business days after the contracting officer receives the project 
officer's evaluation.
    (c) The contractor shall be granted thirty (30) business days 
from the date of the contractor's receipt of the Report to review 
and provide a response to the contracting officer regarding the 
contents of the Report. The contractor shall:
    (1) Review the Report;
    (2) Provide a response (if any) to the contracting officer on 
company letter head or electronically;
    (3) Complete contractor representation information; and
    (4) Forward the Report to the contracting officer within the 
designated thirty (30) business days.
    (d) The contractor's response to the Report may include written 
comments, rebuttals (disagreements), or additional information. If 
the contractor does not respond to the Report within the designated 
thirty (30) business days, the specified ratings in the Report are 
deemed appropriate for the evaluation period. In this instance, the 
contracting officer shall complete the Agency review and sign the 
Report within three (3) business days after expiration of the 
specified 30 business days.
    (e) If the contractor submits comments, rebuttals 
(disagreements), or additional information to the contracting 
officer which contests the ratings, the contracting officer, in 
consultation with the project officer, shall initially try to 
resolve the disagreement(s) with the contractor.
    (f) If the disagreement(s) is (are) not resolved between the 
contractor and the contracting officer, the contracting officer 
shall provide a written recommendation to one level above the 
contracting officer for resolution as promptly as possible, but no 
later than five (5) business days after the contracting officer is 
made aware that the disagreement(s) has (have) not been resolved 
with the contractor. The individual who is one level above the 
contracting officer shall:
    (1) Review the contracting officer's written recommendation; and
    (2) Provide a written determination to the contracting officer 
for summary ratings (ultimate conclusion for ratings pertaining to 
the performance period being evaluated) within five (5) business 
days after the individual one level above the contracting officer 
receives the contracting officer's written recommendation.
    (g) If the disagreement is resolved, the contracting officer 
shall complete the Agency review and sign the Report within three 
(3) business days after consultation.
    (h) The contracting officer shall complete the Agency review and 
sign the Report within three (3) business days after the contracting 
officer receives a written determination for summary ratings from 
one level above the contracting officer.
    (i) An interim or final Report is considered completed after the 
contracting officer signs the Report. The contracting officer must 
provide a copy of completed Reports (interim and final) to the 
contractor within two (2) business days after completion.

    Note: Appendix to Preamble will not appear in the Code of 
Federal Regulations:

BILLING CODE 6560-50-P

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BILLING CODE 6560-50-C

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Contractor Performance Report Instructions

Top Section

    1. Check the appropriate block to indicate the type of report 
(Interim, Final).
    2. Indicate the period covered by the report.
    3. List the name of the contracting officer and the location of the 
contracting office.
    4. Identify the contract number of the contract being evaluated. 
Enter Task No. if applicable.
    5. List the name and address of the contractor.
    6. Enter TIN and SIC.
    7. Enter Type of Contract (A--Fixed price re-determination; J--Firm 
fixed price; K--Fixed price with economic price adjustment; L--Fixed 
price incentive; R--Cost plus award fee; S--Cost no fee; T--Cost 
sharing; U--Cost plus fixed fee; V--Cost plus incentive fee; Y--Time 
and materials; Z--Labor hours).
    8. Indicate the contract award date and contract expiration date.
    9. State the contract value, including any option amounts.
    10. Provide a brief description of the work being performed under 
the contract (the title of the contract and the dollar amount managed 
under the period for review).

Ratings

    Using the rating guideline, assign each area a rating of 0 
(unsatisfactory), 1 (poor), 2 (fair), 3 (good), 4 (excellent), or 5 
(outstanding). Provide a brief narrative (2000 characters or less) for 
each of the categories to support the rating assigned. The categories 
are: quality of product or service, cost control, timeliness of 
performance, and business relations.

Subcontractors

    Indicate whether subcontracts are/were involved. Briefly summarize 
(2000 characters or less) the performance of any subcontractors that 
have major responsibilities under the contract or are required to 
perform a significant part of the contract requirement. This space may 
also be used to evaluate a prime contractor's management of a 
subcontractor.

Key Personnel

    List the name of the project manager/principal investigator 
(required) and the names of two other key personnel (optional). Briefly 
describe the performance of the key personnel listed. (2000 characters 
or less)

Customer Satisfaction

    Circle the appropriate answer to indicate whether the contractor 
was committed to customer satisfaction. For the final report, indicate 
whether you would recommend selection of the firm again.

Project Officer Signature

    The project officer signs this block.

Contracting Officer Concurrence

    The contracting officer initials this block, indicating concurrence 
with the initial rating.

Contractor's Representative

    The contractor signs this next block, indicating review of the 
rating.

Summary Ratings

    Summary ratings refer to the ratings determined by one level above 
the contracting officer regarding disagreements between the contractor 
and the contracting officer. Summary ratings reflect the Agency's 
ultimate conclusion for the performance period being evaluated.

Contracting Officer Signature

    The contracting officer signs the report when all actions are 
completed. If changes were made to the ratings or the narrative during 
the rebuttal process, a copy of the report, as revised, shall be 
promptly furnished to the contractor.

Contractor's Review

    Indicate whether the contractor submitted a rebuttal or comments. 
Attach a copy of the contractor's rebuttal to this report, or indicate 
its location, if filed separately.

Agency Review

    If the contracting officer and the contractor are unable to agree 
on a final rating, the matter is to be referred to an individual one 
level above the contracting officer. Attach a copy of the agency's 
decision to this report, or indicate its location, if filed separately.

    Dated: March 19, 1999.
Betty L. Bailey,
Director, Office of Acquisition Management.
[FR Doc. 99-10096 Filed 4-23-99; 8:45 am]
BILLING CODE 6560-50-P