POLICY NUMBER: POL-A15-001, REV. 00
DEPARTMENT: Finance CONTACT: Purchasing Manager
SUBJECT: Vendor Performance Evaluation Program Policy
APPROVAL DATE: February 19, 2020
REVISION DATE:
APPROVED BY: Senior Management Team

Purpose

The purpose of the Vendor Performance Evaluation Program (VPEP) is to provide an evaluative record, both positive and negative, of a vendor’s performance on any given service or project that has been awarded to a vendor by the City of Sarnia.

Scope/Application

The VPEP is a standardized internal tool used to encourage our vendors to improve their performance. It will be used consistently across all divisions to assess performance, and when considering a vendor’s eligibility for future awards.

The VPEP evaluations are to be conducted by the City team members who are involved in the oversight, management, or utilization of the vendor’s services.

Glossary of Terms

Term Definition
Agreement Means contract, agreement, standing order agreement, or purchase order.
Consultant For this procedure, an individual, partnership, or corporation offering professional services as identified in the Contract and where the Contract requires participation in the completion of a project.
Project Lead / Manager The City’s assigned individual who has the responsibility and authority for the planning, managing, executing, and closing of the work associated with the Contract.
Interim Evaluation Any evaluation that is completed prior to the final evaluation.
Final Evaluation The final evaluation to be completed upon the completion of any applicable project or agreement.
Suspension The removal of the vendor from ability to be involved in City projects or services for a documented range of time.
Vendor A supplier, contractor, or consultant that provides goods or services to the City.
VPEP Vendor Performance Evaluation Program

Process

Evaluations

The frequency of evaluations will be based on the type of service being provided.

Multiyear Service Agreement Evaluation

Agreement Duration Frequency of Evaluations
1 year 1st at 3 months from start of contract, and 2nd at end of agreement
Multi-year 1st at 3 months from start of contract, and annually thereafter, and final at end of agreement

Construction Contractor Evaluation

Project Duration Frequency of Evaluations
Up to 1 month Optional
1 – 6 months A final evaluation at the end of the project
6 – 12 months A final evaluation at the end of the project, and 1 at the estimated mid-point of the project
Over 12 months A final evaluation at the end of the project, and a minimum of 1 interim per year

Consultant Evaluation

Agreement Duration Frequency of Evaluations
Less than 1 year project A final evaluation at the end of the project
Multi year 1st at 3 months from start of contract, and annually thereafter, and final at end of agreement

Scoring

The scoring system shall remain consistent regardless of the form being used.

Scoring will be based on a range from 1 to 5, with 5 being the highest.

As different evaluation points may require different answer options, the awarded points for each answer will be within the 1 to 5 range.

The evaluation will be based on the average score of the entire evaluation.

Sample scoring Appendix A.

Roles and Responsibilities

The performance management system utilizes key role identifiers as part of the evaluation process. Include some reference to the workflow and what it is intended to demonstrate.

Requisitioner: is the main project lead that will be tasked with the main duties of the project, and responsible for the completion of the 1st step of the evaluation process.

Requisitioner Supervisor: is the supervisor of the Requisitioner. The responsibility of this role is to review the evaluation in the workflow as completed by Requisitioner.

Purchasing Representative: Purchasing team member that has the responsibility for setup of the evaluation schedules, and review of the evaluations.

Purchasing Manager: is the manager of purchasing. The Purchasing Manager will be required to be involved in the event an evaluation falls below a given threshold of 2.25 and to consider further action with the vendor.

Vendor: is the supplier, contractor or consultant that will be providing review of the evaluation.

Process Chart

Follow-up Meeting with Vendor

As part of the evaluation process, the Requisitioner and Requisitioner Supervisor, should meet with the vendor representative to review the evaluation.

This will permit an opportunity for the vendor to gain insight on any negative scoring related to the evaluation so corrective action can be achieved.

Objections

In the event that a vendor does not agree with the evaluation score, they must submit objections in writing, with supporting evidence, within five (5) business days following receipt of the report to the attention of the Purchasing Manager.

Based on the information provided, it shall be at the City’s sole discretion whether the score shall be amended and/or a replacement evaluation be issued.

Suspension

In the event performance ratings warrants the suspension of a vendor, a notice must be submitted to the vendor by the affected Department outlining the:

  • Evaluation score
  • Background information supporting suspension

Suspension can also be warranted outside of the performance rating if they neglect to comply with, for example:

  • Health and Safety provisions of the Occupational Health and Safety Act
  • Failure to pay sub-contractors resulting in liens being filed against a project

Other than contracts / sub contracts under which the vendor is already performing work at the time of suspension, the vendor is not eligible to bid on City contracts, and may not perform work as a subcontractor for the duration of the suspension.  The suspension of the vendor also applies to:

  1. Any legal entity that is affiliated with the vendor within the meaning of the Business Corporations Act;
  2. Any related person of the vendor ownership within the meaning of the Business Corporations Act;
  3. Other legal entities having the same operating mind as the vendor, as determined in the consultation with Legal Services.

After the suspension period, the vendor may bid on City projects and / or work as a sub-contractor.

The term of suspensions will be variable based on the term of service, and scope of the projects.



Appendix A – Sample Assessment Scoring

The following are some samples of assessments and scoring:

General

NameScore
Exceptional 5
Good 4
Satisfactory 3
Cautionary 2
Not Satisfactory 1

Design Review

NameScore
Superior 5
Good 4
Required additional updates 2
Lacking Detail 1

Yes / No

NameScore
Yes 5
No 1

Additional assessments can be utilized but must be within the scoring of 1 to 5 to stay consistent.



Appendix B – Evaluation Question Lists

Construction Contractor Evaluation Sample Questions

  1. Did the contractor submit all of the documentation required prior to commencing within the contractual timelines?
  2. Did the contractor coordinate project activities well with all project stakeholders (i.e. Utilities, water inspector, railroad, etc.)?
  3. Did the contractor provide adequate staff and resources for the project?
  4. Did the contractor effectively coordinate the work of subcontractors?
  5. Did the contractor work cooperatively with the contract administrator?
  6. Did the contractor safely protect existing infrastructure, utilities, etc.?
  7. Did the contractor meet the project milestones, intent of phasing and overall schedule?
  8. Did the contractor submit all documentation for payment certificates in a timely manner?
  9. Did the contractor submit reasonable and accurate change orders / claims?
  10. Did the contractor compensate all subcontractors and trades within the timelines required (i.e. no liens on the contract)?
  11. Did the contractor meet the quality requirements of the work?
  12. Did the contractor comply with the Occupational Health and Safety Act throughout the project?
  13. Did the contractor safely manage pedestrian and vehicular traffic?
  14. Did the contractor maintain a clean and organized site?

Service Contractor Evaluation Sample Questions

  1. Did the contractor comply with the Occupational Health and Safety Act throughout the projects?
  2. Did the contractor provide sufficient project / site supervision?
  3. Did the service contractor provide effective trained team members to perform the services required?
  4. Did the service contractor respond routinely in the required timelines?
  5. Did the contractor maintain a clean and organized work space / site?
  6. Did the contractor work cooperatively with the owner (City)?
  7. Did the contractor minimize the impact of the construction on the public and maintain access to the extent possible?
  8. Did the contractor safely manage pedestrian and vehicle traffic?

Consultant Evaluation Sample Questions

  1. Did the project commence on contract or agreed start date?
  2. Did the consultant provide the resources and personnel proposed in the submission and were available or were replaced with a suitable alternative? An effort was made to minimize resource replacement.
  3. Did the consultant provide the final documents that address and meeting the needs of the contract?
  4. Did the consultant ensure all safety requirements were met on site and in any developed documents?
  5. Did the consultant develop support drawings, specifications that meet the needs of the project and minimize change orders?
  6. Did the consultant conduct effective meetings and document meeting minutes as per requirements and scheduled times?
  7. Did the consultant maintain professional and cooperative relationships with all stakeholders and was accessible and responsive to questions and requests for information?
  8. Did the consultant provide effective quality assurance and quality control to avoid excess use of the City resources?
  9. Did the consultant demonstrate understanding of the legislated compliance requirements throughout the project?
  10. Did the consultant manage successfully their overall budget and costs related to this project?
  11. Did the consultant provide all documents meeting the Accessibility for Ontarians with Disabilities Act (AODA) standards?

Delivery Contractor Evaluation Sample Questions

  1. Did the delivery team member behave in a courteous and pleasant manner?
  2. Did the supplier delivery team always arrive with the proper personal protective equipment related to the work site they are delivering to?
  3. The goods arrived clean, without extra waste material?
  4. Did the supplier deliver materials in good overall condition?
  5. Did the supplier provide materials meeting the quality requirements?
  6. With the supplier is there ordering process easy and responsive?
  7. Did the supplier provide deliveries completed and in a timely manner?
  8. The supplier support team were able to identify and assist in the supply of required goods outside of the core contracted items?