When the federal government buys goods and services, the Federal Acquisition Regulation requires that past performance “shall be evaluated in all source selections” for negotiated competitive acquisitions above a set threshold, unless the contracting officer documents why it is not appropriate. A contractor’s record on earlier contracts becomes part of the score.
A newcomer is treated neutrally. In the case of an offeror without a record of relevant past performance, the offeror “may not be evaluated favorably or unfavorably on past performance.”