Overview
Vendor Performance Management (VPM) is a contract management best practice used to track, analyze, and manage the performance of a vendor. This helps to control costs, mitigate risks, and drive continuous improvement throughout the contract life cycle.
The objective of the VPM Program is to support good performance by vendors on Infrastructure contracts, while using vendor past performance information to:
- acquire new goods, services, or construction
- improve transparency
- promote innovation, and
- ensure best value
The VPM Program supports the delivery of quality infrastructure projects on time, on budget, within scope and utilizing resources more efficiently.
Outcomes
Expected outcomes of the VPM Program include:
- facilitating ongoing, regular communication with Vendors, ensuring clarity of expectations and quality performance
- providing incentives to Vendors to recognize good performance
- minimizing the need for corrective measures due to poor performance
- enabling better decision making on bidder selection through a centralized repository containing Vendor past performance information
- holding Vendors accountable for poor performance, and
- enabling Alberta Infrastructure to provide objective Vendor references
Evaluation criteria
Vendors (consultants and contractors) will be assessed on 5 criteria:
- quality
- management
- schedule
- cost
- safety
Key Performance Indicators (KPIs) in each criterion are rated using a 5-point performance evaluation schedule, where a score of 3 equates to satisfactory achievement of the KPI, having delivered the service or product according to the contract requirements.
Background
Several factors led to, and supported the need for, a VPM Program:
- importance of following best practices in contract management
- desire to enhance the way performance of vendors is managed; and
- discussions with industry stakeholders
As of January 6, 2020, Infrastructure’s Vendor Performance Management Program was implemented, in consultation with an industry sub-committee. Vendors who apply on Alberta Infrastructure consulting and construction opportunities, valued at $100,000 or more, are required to participate in the VPM Program.
Resources
- Industry Information Session on the Vendor Performance Management Program - Video
- VPM Program Document
- VPM Review Request Form for Vendors
- VPM Program Fact Sheet
- Consultant Performance Evaluation
- Contractor Performance Evaluation
- Non-Prime Consultant Performance Evaluation
- Design-Build Performance Evaluation
- Consultant Scoring Clarity and Guidance
- Contractor Scoring Clarity and Guidance
Continuous improvement
Alberta Infrastructure is committed to evaluating and continuously improving the Vendor Performance Management Program. This will continue to be done through stakeholder feedback and surveys, as well as industry outreach.
Contact
Connect with the Vendor Performance Management Program:
Email: [email protected]
Address:
Vendor Performance Management Program
Alberta Infrastructure Building
6950 113 Street
Edmonton, Alberta T6H 5V7