Past Performance in Government Contracting: How to Build It When You Have None

Past performance is the catch-22 of government contracting. You need it to win contracts, but you need contracts to get it. If you are a new or early-stage contractor, this is probably the single biggest wall standing between you and your first federal award.

The good news: there are proven ways through it. Every large government contractor started with zero past performance. Here is how to build yours deliberately.

Why Past Performance Matters So Much

On most federal solicitations, past performance is a rated evaluation factor — sometimes worth as much as 30 to 40 percent of your total score. Contracting officers are accountable for the contracts they award. They choose businesses they believe will deliver, and past performance is the clearest signal they have.

A company with no federal past performance is not automatically disqualified, but they are at a significant disadvantage against companies that have it. The earlier you start building it, the better positioned you will be for larger opportunities.

Strategy 1: Start as a Subcontractor

The fastest path to federal past performance is subcontracting under a prime contractor. You do real government work, the prime takes on the contracting risk, and you build a reference you can cite in future bids.

How to find subcontracting opportunities:

• Search USASpending.gov for prime contractors who regularly win in your NAICS codes
• Attend agency industry days and introduce yourself to primes, not just contracting officers
• Check large prime contractor websites — most have a subcontracting or small business portal
• Connect with your local PTAC (Procurement Technical Assistance Center) — they often have leads

When you subcontract, document everything. Get a letter from the prime confirming your scope, dollar value, and performance. That becomes your past performance reference.

Strategy 2: Pursue Small and Micro Purchases

The federal government makes a massive number of small purchases that fly under the radar of most contractors. Purchases under $10,000 are micro-purchases and can be made without competition. Purchases between $10,000 and $250,000 are simplified acquisitions with lighter competition requirements.

These small awards are easier to win because:

• There are fewer formal evaluation criteria
• Past performance requirements are less strict
• Contracting officers have more discretion
• Set-aside rules still apply, giving certified small businesses an edge

Win a few of these and you have real federal past performance to reference on larger bids.

Strategy 3: Respond to Every Sources Sought Notice in Your Space

Sources Sought notices are not solicitations — no contract is awarded. But they are market research, and responding to them gets your name in front of contracting officers before a requirement becomes competitive.

A strong Sources Sought response:

• Confirms your business can perform the requirement
• Lists relevant past work (commercial counts here)
• Includes your capability statement
• Asks a smart question that demonstrates your expertise

Contracting officers remember businesses that engage early. That relationship can matter when they are drafting the Statement of Work or deciding whether to set aside a requirement.

Strategy 4: Use Commercial Past Performance

On most solicitations, past performance from commercial clients is acceptable, especially for companies new to federal work. The key is presenting it in government-contract terms: scope of work, dollar value, period of performance, and a point of contact who will respond positively.

A large commercial project — a corporate IT rollout, a facilities management contract, a construction project — can be compelling past performance if it demonstrates scale, complexity, and reliability.

Strategy 5: Pursue GSA Schedule or GWAC Vehicles

Getting on a GSA Schedule (now called MAS — Multiple Award Schedule) or a Governmentwide Acquisition Contract gives you access to a stream of task order opportunities. Individual task orders on these vehicles are easier to win than open-market competitions, and each one builds your past performance record.

The GSA Schedule application process takes time, but once you are on it, you are in a much stronger competitive position. Your PTAC can help you prepare the application.

How to Reference Past Performance in a Proposal

When you do have past performance to cite, present it clearly:

• Contract name and number (or client name for commercial work)
• Dollar value of your portion of the work
• Period of performance
• Brief description of what you did and the outcome
• Point of contact with name, title, phone, and email — and confirm they will give a positive reference

Never list a reference without confirming they will respond and what they will say. A lukewarm or unreachable reference can hurt more than no reference at all.

The Long Game

Building past performance takes 12 to 24 months of focused effort for most small businesses. The contractors who succeed start pursuing subcontracts and small purchases before they are ready for prime opportunities — not after. Start now, document everything, and be deliberate about which agencies and contract types you build experience in.