Managing vendor performance
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What we are doing
The Government of Canada wants to continue to do business with vendors who perform well and provide value to Canadians, building a stronger supplier community.
PSPC is testing the Vendor Performance Management Policy.
Our approach combines clear performance expectations with a fair, balanced and consistent evaluation process, supported by guidance and training.
The key objectives of the policy are to:
- optimize best value for Canadians
- hold vendors who do not perform to account while incentivizing good performance
- facilitate open and ongoing communications between government and vendors
- establish ongoing, open communications between PSPC and other client federal departments regarding vendor expectations and performance that will be leveraged to improve relationships with vendors
The performance-evaluation results will be created and monitored in the Government of Canada`s new web-based tool, the electronic procurement solution.
We are working with other departments, industry and vendors throughout this process to ensure that the approach outlined under the policy will support fair, balanced and consistent performance evaluations.
Consultations and findings
Explore what we have heard from industry as we work to develop the policy.
March 2021: Request for information
In March 2021, PSPC published a request for information on buyandsell.gc.ca to share information regarding the progress of our pilot strategy for policy implementation and to solicit input from industry on proposed pilot materials (for example, scorecards, key performance indicators and evaluation processes). In short, vendors expressed support for the steps we are taking to develop a standardized approach for assessing vendor performance and indicated that our framework aligned with similar approaches used by vendors internally as well as their clients.
March 2019: Draft policy
In 2019, PSPC invited the federal procurement community and industry to attend sessions in person and via Webex across Canada. As part of these consultations, participants completed an online survey, and a draft of the policy was posted on buyandsell.gc.ca.
We heard that we need to communicate with vendors more often about performance. We have updated the policy on what we heard from the consultations and ongoing engagement efforts.
Phased testing at Public Services and Procurement Canada
A gradual approach is key to changing how we manage vendor performance.
As of August 2021, we began piloting our evaluation methods outlined in the policy, including scorecards with key performance indicators, in procurements for several commodities.
The test results will drive improvements to the policy, shaping key performance indicators and accompanying tools. We are working with departments and industry to ensure the way we measure performance is fair and transparent. Scorecards and clauses detailing vendor performance management and a guidance document are included in solicitation documents for select pilot procurements and contracts as we move forward. The performance information we gather during the initial tests will not be used to inform the awarding of future contracts, but rather to inform the further refinement of the policy.
Throughout the testing process, we will communicate regularly with vendors about the progress and seek their perspective and feedback. This open communication will allow us to continue refining the tools and procedures.
We will gradually expand these tests to additional commodities.
The elements of the policy to be tested are in the:
Visit buyandsell.gc.ca for more information on these procurements.
Contact us to share your comments or learn more about our plans.
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