Supplier Performance Management Program. CEA Edmonton Buildings Committee November 13, 2012

Transcription

1 Supplier Performance Management Program CEA Edmonton Buildings Committee November 13, 2012

2 Supplier Performance Management Program - Background Consulting Services Review (Dec 14, 2009): The Office of the City Auditor recommended that the Materials Management Branch review procurement processes to ensure the City is protected against poor performance by consultants.

3 Supplier Performance Management Program Project Audit response Implement a formalized supplier performance evaluation program for contractors and consultants ( suppliers ). Include the evaluation, documentation and communication of supplier performance on City projects. Evaluation results will be used by the City when considering these suppliers for future projects through consideration of past performance as part of the tender evaluation process.

4 Supplier Performance Management Program Project - Goals Following a phased approach Contractors and Consultants for design and construction activities will be completed and implemented first Next phases : Contractors and Consultants for operations, maintenance, and IT Management Consultants Materials Suppliers

5 Supplier Performance Management Program - Working Committee Project Management and Maintenance Services Corporate Properties Drainage Services LRT Design and Construction Roads Design and Construction Waste Management Services Materials Management And, when required: Law Branch FOIP Coordinator Corporate OH&S Corporate Centre for Project Management Information Technology Branch Other design and construction staff participated in testing and feedback sessions

6 Supplier Performance Management Program what we have done Reviewed current evaluation tools used by the City design and construction branches as well as external agencies All City design and construction branches were using performance evaluation tools Used the existing Roads Design and Construction evaluation tool as a starting point to develop a corporate evaluation tool Evaluation criteria created for Contractors and Consultants for the design and construction effort

7 Supplier Performance Management Program Process Highlights Evaluations will be conducted by Project Managers based on the criteria relevant to their project (published in tender/rfp documents) There may be interim evaluations as well as final evaluations conducted Scoring guidelines developed for each criteria to support evaluation consistency Performance scores will be incorporated into prequalification, tender and request for proposals

8 Supplier Performance Management Program Process Highlights Suppliers will be provided evaluation reports and debriefed by Project Managers Materials Management Branch will be the central keeper of the performance evaluations Appeal process includes escalation to a panel consisting of the Manager of Materials Management Branch, Branch Manager of the applicable design and construction branch plus a Branch Manager from a related discipline branch.

9 Supplier Performance Management Program Evaluation Categories - Consultant Evaluation categories include: Management Schedule Design Services Cost Management Safety Environmental Management Quality Public Involvement Resident Engineering Services

10 Supplier Performance Management Program Evaluation Criteria & Scoring Guidelines Consultant (Sample: Schedule)

11 Supplier Performance Management Program Report Card - Consultant

12 Supplier Performance Management Program Evaluation Categories - Contractor Evaluation categories include: Management Quality (Branch specific criteria) Schedule Safety Environmental Management Landscape Establishment (Parks Specific)

13 Supplier Performance Management Program Evaluation Criteria & Scoring Guidelines Contractor Schedule (sample)

14 Supplier Performance Management Program Report Card - Contractor

15 Supplier Performance Management Program Poor Performance Outcomes Managing poor performers Probation: Temporary period of time to correct poor performance after repeated warnings of poor performance Removal of status after probation conditions are met. Suspension: Suspension of bidding privileges, directly or indirectly, to the City for a pre-determined period of time and until suspension conditions are met. Names of firms will be published on the external website Instruction to Bidders in tender documents will caution Bidders not to carry subcontractors that are on the City s suspension list

16 Supplier Performance Management Program - Poor Performance Outcomes Suppliers may also be suspended for unsafe, illegal, unethical and inappropriate behavior Suppliers may be suspended due to the outcome of interim evaluations during the course of existing work or as a result of a final performance evaluation. Suspension may be to particular divisions or to the company as a whole based on type or discipline or work

17 Supplier Performance Management Program next steps - timeline Industry review of criteria Aug 2012 Completion of procedures Oct 2012 Project Manager Training Nov 2012 Launch of the Program Dec 2012 Program incorporated in the tender documentation and processes in the Design and Construction Branches

18 Supplier Performance Management Program in the meantime. Design and Construction Branches will continue to document and manage performance Design and Construction Branches will continue to use existing evaluation tools

19 Supplier Performance Management Program Questions or Comments?

20 Life Cycle of a Contract Initiation The Manage the Evaluation Supplier Performance Management of Agreement Contract Completion Proposals Past Performance Data Program Project - Goals of specific Contractor or Consultant used for awarding next piece of work At Performance Evaluation Data for Contract just completed Central Repository of Supplier Performance Data Reports - Materials Management - Business Areas