CPARS in Government Contracting: What It Is, Why It Matters, and When It’s Required

If you’ve been in government contracting for any length of time, you’ve likely heard of CPARS—and if you haven’t, it’s time to take notice.

The Contractor Performance Assessment Reporting System (CPARS) isn’t just another acronym buried in procurement paperwork. It’s a living, breathing record of your company’s performance, professionalism, and reliability. And it plays a major role in whether you’re trusted with future government work.

At Phoenix General Contractors, we know that what you deliver matters. But in the world of federal procurement, how you deliver it—and how it's documented—can make or break your next opportunity.

What Is CPARS in Government Contracting?

CPARS stands for Contractor Performance Assessment Reporting System, a formal government-wide system used to evaluate and document contractor performance on federal contracts.

This isn’t a one-time checklist or a casual “job well done.” It’s a detailed performance evaluation prepared by the Contracting Officer (CO) or Contracting Officer Representative (COR), covering several specific categories, including:

• Quality of product or service

• Timeliness of performance

• Cost control

• Business relations

• Management of key personnel

• Compliance with contract terms

• Adherence to safety and labor standards

Each area is rated using a scale: Exceptional, Very Good, Satisfactory, Marginal, or Unsatisfactory, with narrative justification required. These evaluations are uploaded into a government-wide database that agencies use when assessing future bids.

In short? CPARS becomes your reputation in the federal space—whether you’re aware of it or not.

Why CPARS Is So Important

In federal contracting, past performance is often the tie-breaker. When two technically acceptable bidders are being compared, the decision may come down to who has stronger CPARS history.

That’s because CPARS isn’t just a report—it’s evidence. It tells procurement officers:

• Can this contractor deliver on time?

• Do they stay on budget?

• Are they responsive and easy to work with?

• Do they comply with safety, labor, and environmental requirements?

• Do they communicate issues before they become problems?

It’s also not limited to one agency. If you perform poorly on a Department of Homeland Security project, that evaluation is visible to contracting officers at the Army Corps of Engineers, the VA, or GSA.

• Good CPARS = credibility and trust

• Poor CPARS = red flags and added risk

Contracting officers are risk averse by nature. A contractor with spotty performance, even on a small project, may struggle to win competitive bids—especially when best value trade-off methods are used instead of low-bid selections.

When Is CPARS Required?

Not every government contract warrants a CPARS evaluation. But under FAR 42.1502, it is required under certain conditions:

Contract Type	CPARS Required When…
Construction	Total value is over $750,000
Architect-Engineer (A/E)	Total value is over $35,000
Services or IT	Total value is over $250,000
Supplies/R&D	Generally over $250,000

These thresholds apply to:

• Standalone contracts

• Task orders under IDIQ contracts

• Purchase orders that meet or exceed limits

In addition to meeting the value thresholds, CPARS is generally only required when the contract duration is greater than 180 days. This allows enough performance history to justify a formal review.

When CPARS Is Optional—But Still Possible

Even if your contract falls below the CPARS threshold, the Contracting Officer still has discretion to file a report if:

• Performance was notable (good or bad)

• The project had public sensitivity, urgency, or political importance

• The agency has internal policy to evaluate smaller projects

• You’re a first-time vendor and they want to track performance

If your team delivered ahead of schedule, resolved change orders efficiently, or overcame unforeseen challenges—those achievements can still be recognized, even if CPARS wasn’t originally required.

This is also why it’s important to always ask whether a CPARS will be submitted and to track the window of evaluation following project closeout.

The CPARS Process: What to Expect

Once the performance period ends, the government initiates the CPARS process:

1. Draft Evaluation

The CO or COR completes a draft of your performance evaluation. This must be done within 120 days of contract completion.

2. Contractor Review Window

You are notified through the CPARS system and given 14 calendar days to review and respond. This is your opportunity to:

• Add comments or context

• Dispute any factual errors

• Explain challenges encountered

3. Finalization

Once you’ve responded (or the 14 days pass), the CO finalizes the report. It’s then posted in the PPIRS (Past Performance Information Retrieval System) for access by other agencies.

How to Use CPARS as a Competitive Advantage

For small businesses in federal contracting—especially 8(a), HUBZone, or WOSB firms—your CPARS history is one of the few tools that levels the playing field against larger incumbents.

Here’s how to actively leverage it:

• Track your evaluations—Don’t let them sit incomplete. A CPARS that isn’t closed out can delay or weaken your past performance record.

• Follow up with agencies—Ask your COR or CO if a CPARS is being prepared and when you can expect to review it.

• Respond professionally—Even if you disagree with a rating, remain factual and respectful in your comments. Emotional or defensive responses can backfire.

• Use positive CPARS quotes in your future proposals, capability statements, and Sources Sought responses.

• Request interim CPARS on long-term contracts to show progress.

You can also use CPARS data in oral presentations, best value narratives, or past performance matrices. When the government sees “Exceptional” ratings in key categories like schedule or quality, they take notice.

Final Thoughts

CPARS isn’t just paperwork—it’s performance validation. And in government contracting, it’s often the difference between being seen as a risk or a reliable partner.

At Phoenix General Contractors, we approach every federal project with CPARS in mind—from the first site walk to the final punch list. Whether we’re replacing flooring for DHS or rehabilitating a clearwell for El Paso Water, our team focuses on communication, schedule management, safety, and quality. Not because it’s required, but because that’s what earns repeat business—and strong CPARS.

If you’re serious about federal work, don’t wait until a proposal is due to care about past performance. Start now. Track your evaluations, build your record, and use CPARS as a tool to grow with confidence in the government market.