The federal government is resetting how it judges contractors: the CPARS overhaul, driven by the pending FY 2026 NDAA and the Revolutionary FAR Overhaul, is eliminating subjective ratings and narratives like “Exceptional”. Instead, the new system, effective around 2026, will focus exclusively on recording verifiable negative performance events—such as late deliveries or cybersecurity breaches—within 30 days of occurrence, creating a standardized composite performance score for contractors, often likened to a "credit score". We explore why this higher-stakes, data-centric environment demands immediate changes in how your company tracks performance and manages risk, especially since a single negative event can have a disproportionate impact, particularly on small businesses.

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