Low RiskDFARSEthics

252.204-7024Notice on the Use of the Supplier Performance Risk System.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.204-7024 — Notice on the Use of the Supplier Performance Risk System.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.204-7024 Notice on the Use of the Supplier Performance Risk System. As prescribed in 204.7604, use the following provision: Notice on the Use of the Supplier Performance Risk System (MAR 2023) (a) Definitions. As used in this provision— Item risk means the probability that a product, based on intended use, will introduce performance risk resulting in safety issues, mission degradation, or monetary loss. Price risk means a measure of whether a proposed price for a product or service is consistent with historical prices paid for that item or service. Supplier risk means the probability that an award may subject the procurement to the risk of unsuccessful performance or to supply chain risk (see Defense Federal Acquisition Regulation Supplement 239.7301). (b) The Supplier Performance Risk System (SPRS), available at https://piee.eb.mil/, will be used in the evaluation of the Quoter or Offeror's performance. SPRS retrieves item, price, quality, delivery, and contractor information on contracts from Government reporting systems in order to develop risk assessments. (c) The Contracting Officer will consider SPRS risk assessments during the evaluation of quotations or offers received in response to this solicitation as follows: (1) Item risk will be considered to determine whether the procurement represents a high performance risk to the Government. (2) Price risk will be considered in determining if a proposed price is consistent with historical prices paid for a product or a service or otherwise creates a risk to the Government. (3) Supplier risk, including but not limited to quality and delivery, will be considered to assess the risk of unsuccessful performance and supply chain risk. (d) SPRS risk assessments are generated daily. Quoters or Offerors are able to access their risk assessments by following the access instructions in the SPRS user's guide available at https://www.sprs.csd.disa.mil/reference.htm. Quoters and Offerors are granted access to SPRS for their

Source: eCFR, 48 CFR 252.204-7024 (https://www.ecfr.gov/current/title-48/section-252.204-7024)

Compliance Checklist

    Flow-Down to Subcontractors

    No flow-down required

    This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

    Frequently Asked Questions

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    This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.