Supplier Performance Assessment and Contract Monitoring Guidelines
Discover the objectives of the new Procurement Act aimed at enhancing supplier performance monitoring and reducing contract risks. Learn about Key Performance Indicators (KPIs) for public contracts, assessment criteria, breach consequences, and more to ensure efficient procurement processes.
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Presentation Transcript
What is the new Procurement Act trying to achieve? Additional tools for authorities to monitor contract performance Objectives are: Earlier indication of supplier or contract risk Strengthened supplier relationships that encourage collaboration and innovation Swifter identification of suppliers who may present a risk to contract performance Increased public confidence in the capability and integrity of public sector procurement Page 2 wardhadaway.com
Key Performance Indicators/KPIs Applies to any public contract over 5m The Contracting Authority must set at least 3 KPIs against which contract performance will be assessed These are published on the central Digital Platform in the Contract Details Notice That Notice must describe how often supplier performance will be assessed against those KPIs the minimum interval is 12 months KPIs should be Specific, Measurable, Realistic, Achievable and Timebound (SMART) There are exceptions: concession contracts, utilities contracts awarded by a private utility, light touch contracts and framework agreements (although call-off contracts under frameworks are not exempt) Page 3 wardhadaway.com
How is performance assessed against the KPIs? The specified ratings are: Good means meeting or exceeding target Approaching target means close to meeting the KPI Requires Improvement means below the KPI Inadequate means significantly below the target Other The authority must publish the assessment on the Contract Performance Register via a Contract Performance Notice Page 4 wardhadaway.com
Breach of Contract A contract Performance Notice must also be published within 30 days of a breach of contract which leads to one or more of the following: Partial termination of the contract An award of damages A settlement agreement between the supplier and authority On whole contract termination due to breach, a Contract Termination Notice is published Page 5 wardhadaway.com
Poor Contract Performance Occurs when Supplier fails to meet the requirements of a contract to the authority s satisfaction Has been given an opportunity to rectify the situation And has failed to do so The Authority is required to publish a Contract Performance Notice within 30 days Page 6 wardhadaway.com
Thank you Ward Hadaway @WardHadaway wardhadaway.com
