2-26.4 Past Performance and Supplier Capability

Past performance and supplier capability must be evaluated during the purchasing process.

2-26.4.1 Past Performance

  1. A company or individual that has performed well on previous contracts and has shown proven results in using Supply Chain Management business practices is likely to do the same on similar contracts in the future. Including past performance as an evaluation factor helps to ensure quality suppliers.
  2. In order to fully evaluate past performance, contracting officers must check GSA’s consolidated list of suppliers debarred, suspended, or declared ineligible to be sure that the Postal Service contracts with responsible suppliers. Additional instructions can be found in 39 CFR 601.113.
  3. All past performance evaluations should consider the following factors:
    1. Quality (a record of conformance to contract requirements and standards of good workmanship).
    2. Timeliness of performance (adherence to contract schedules, including the administrative aspects of performance).
    3. Business relations (a history of being reasonable and cooperative with customers; commitment to customer satisfaction; integrity and ethics).
    4. Cost control (a record of forecasting and containing costs on changes and cost- reimbursement contracts).
  4. When evaluating past performance, emphasis should be placed on similar contracts with the Postal Service. Overall performance for private and public sector customers should also be reviewed. If a newly established supplier cannot provide past performance information, the past performance of the supplier’s key personnel on similar projects may be evaluated.
  5. The review of past performance should generally be limited to contracts completed within the last three years. However, longer periods may be reviewed when the purchase/SCM team deems them appropriate.

2-26.4.2 Supplier Capability

2- General

When evaluating supplier capability, purchase/SCM teams should consider several matters; thoroughness of the consideration will depend on the nature and complexity of the purchase. Among these are:

2- Technical Capabilities

Depending on the nature and complexity of the particular purchase, technical analysis may be performed on the following relevant areas:

2- Financial Capabilities

Depending on the nature and complexity of the particular purchase, analysis may be performed on the following information and items, so that an estimate of present supplier capacity can be known:

2- Other Business Information

Certain business information may be obtained to determine that a potential supplier is capable. Sources of such information include: