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Suggested Citation:"CONTRACTOR PERFORMANCE EVALUATION." National Research Council. 1991. Inspection and Other Strategies for Assuring Quality in Government Construction. Washington, DC: The National Academies Press. doi: 10.17226/1847.
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Page 30

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EXTENSIONS AND ALTERNATIVES TO INSPECTION 30 requirements and the latter responsible for administrative procedures. The details of staff roles should be responsive to characteristics of projects and agencies. Teamwork extends to the construction contractor as well. Current laws and regulations governing federal agency construction make it difficult to reward good contractor performance with preferential or non-competitive award of future construction contracts. The reward of future work and lasting business relationship, common in the private sector, is an incentive for excellence that reinforces a quality contractor's own pride of workmanship. However, the government contractor must compete in the same way for new federal work, regardless of past quality or level of performance, and so needs only to perform adequately to prosper. CONTRACTOR PERFORMANCE EVALUATION While preferential treatment in bidding for future work is not readily available, federal agencies can develop mechanisms to strengthen construction contractors' incentives to deliver quality. Section 36.201 of the FAR requires agencies to prepare performance evaluation reports.28 The DFARS also require that all DoD agencies forward these reports to a central data base maintained by Corps' North Pacific Division. This data base, called the Construction Contractor Appraisal Support System (CCASS), is the result of a July 1986 memorandum by the Chief of Engineers to the Under Secretary of the Army and has been on-line since July 1987. At the end of 1989, there were more than 13,000 reports on nearly 10,000 contractors in the system, with ratings assigned as outstanding, satisfactory, or unsatisfactory. (Of 13,251 final evaluations, 7.0 percent were outstanding, 84.2 percent satisfactory and 8.8 percent unsatisfactory.) 28 Using Standard Form (SF) 1420.

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This book reports on the costs, effectiveness, and risks associated with agency and private sector inspection practices. It provides advice to senior and mid-level agency managers on the relative merits of alternative strategies in the range of projects typically encountered in federal construction programs.

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