Symbol of the Government of Canada

Buyandsell.gc.ca

Public Works and Government Services Canada

8.7. Annex: Principal elements of the Vendor Performance Corrective Measure Assessment

  1. Current Contract Impact Score
    This score refers to the impact of the poor performance issues over the entire period of the contract or over the entire period of the standing offer that resulted in a termination for default or conditional amendment. This score takes into account the relative importance of the requirements in the overall context. There are three categories of performance issues for consideration in the PWGSC 149-1 Assessment Form (Time of Delivery, Quality of Product, and Other), and the following grid applies:
    1. low impact = 1 to 3
    2. medium impact = 4 to 6
    3. high impact = 7 to 9
  2. Conversion Score
    Where an impact score of 9 points has been given for at least one performance issue, this will have a Conversion Score equivalent to 40 points. This falls under the category of major impact from poor performance. Otherwise, the following conversion table will be used:
    Table 1 – Conversion for the Total Current Contract Impact Score

    This table shows how to determine the converted score from the Total Current Contract Impact Score. The column headers identify the variables for determining the number of points to allocate to the vendor for the current contract: Total Current Contracts Impact Score, Category of Total Current Contract Impact Score and Conversion Score. The Total Current Contracts Impact Score is used to establish the Category of Impact and the Conversion Score. For example, if the Total Current Contract Impact Score is 17 points, the category of impact will be major and the converted score will be 40 points.
    Total Current Contract Impact Score Category of Total Current Contract Impact Score Conversion Score
    Equal to or less than 9 Minor 10 points
    Greater than 9 but less than 15 Medium 20 points
    15 or more Major 40 points
  3. History Score

    Contracts with a termination for default or a conditional amendment and VPCMs are taken into account to calculate the Total History Score, as follows:

    1. 10 points for each case of VPCM
    2. 10 points for each contract case with a minor impact of poor performance
    3. 20 points for each contract case with a medium impact of poor performance
  4. Total Impact Score and VPCM Consequences

    This score is calculated by adding the Conversion Score and the Total History Score. If the Total Impact Score is 40 or more, the consequences are as follows.

    Table 2 – VPCM consequences based on the frequency of cases

    This table shows the consequences of a Vendor Performance Corrective Measure (VPCM) based on the frequency of cases of the last six years. The column headings identify what determines the severity of a debarment: VPCM History, Consequence. The number of VPCM cases in the last six years is sufficient to determine the duration of a debarment. For example, if there is a previous VPCM case for the vendor, the consequence of a new VPCM will be an 18-month debarment or the imposition of conditions, if more appropriate.

    VPCM History Consequence
    No case within last six years Debarment of 6 months or, if more appropriate, conditions
    One case within last six years Debarment of 18 months or, if more appropriate, conditions
    Two cases within last six years Debarment of 36 months or, if more appropriate, conditions

    Note: Any excess points beyond the threshold (40 points) required for imposition of a VPCM (which are accumulated as a result of the Total Impact Score calculation) will not be carried over for purpose of future Total Impact Score calculations for future VPCMs.

  5. Consistency in Assessments

    Given that every default situation is different, it is important to allow latitude to contracting officers and client departments in the assessment of their particular cases.

    The following guidance is provided to ensure consistency across PWGSC Acquisitions Program.

    On the assessment form, the term "Impact", combined with the words "High", "Medium" or "Low", are used to characterize the severity of impact of a default situation.

  6. Guidance on Factors to Consider in Determining Impact

    In determining the severity of impact of a default situation, two factors relating to vendor performance must be considered: the consequences and the behaviour of the vendor as described below.

    • Factor 1: Consequences

      The determination of the consequences for government operations resulting from the default is the most important factor to take into consideration. In determining the consequences, Canada shall consider, but not be limited to, the following:

      1. endangerment/injury/death of human beings;
      2. diminishment in the quality and timeliness of providing services to the Canadian public;
      3. the complication of any possible success of future related government operations;
      4. wasting of public money/resources;
      5. destruction of property.
    • Factor 2: Behaviour of the Vendor

      The level of negligence of the vendor in creating the default situation and the efforts (degree of cooperativeness) demonstrated by the vendor in order to assist the government mitigate the consequences of the default.

  7. Guidance on how to determine whether the default has a High, Medium or Low Impact as it relates to each performance issue (i.e. time of delivery, quality of product or service, other)

    1. High impact

      The vendor defaulted on a requirement that was essential to an important and urgent or ongoing government operation which resulted in the success of an important operation being compromised.

      Example: A vendor failed to deliver key military equipment for an ongoing in-theatre operation overseas, resulting in a diminishment of Canada’s military capability for this important international mission. The default situation increased the danger for military personnel and international partners and compromised the success of the mission. The vendor was made aware of the fact that they were in default and was uncooperative to help mitigate the damage caused.

    2. Medium impact

      The vendor defaulted on a requirement and the government department incurred significant consequences. This resulted in complicating government operations in the short or medium term.

      Example: A vendor did not provide acceptable routine maintenance services on equipment used by a specific government department which provides important but not critical services to the Canadian public. The vendor attempted to cooperate when the problem became evident but was unable to resolve it and had been clearly delinquent in failing to recognize and indicate in their bid that their abilities were limited.

      As a result of the inadequate maintenance work performed by the vendor, regular government operations were rendered partially unreliable. The consequences of the default were decreased efficacy and efficiency of government operations, and therefore diminished service to the Canadian public. This service was hindered for a period of many weeks until a new vendor capable of correcting the problem was found.

    3. Low impact

      The vendor defaulted on a low dollar value requirement which was neither urgent nor critical to ongoing government operations. This default stemmed from factors partially out of the vendor’s control.

      Example: A vendor failed to deliver supplies because their foreign supplier has suddenly stopped making the specific product contracted for. This material was intended for the stockroom supply shelves and did not have a critical application and could be obtained from other sources. The vendor had proactively communicated their inability to provide the supplies, provided a full explanation and were amenable to helping in whatever manner they could. The consequence was that the procurement officer had to repeat the procurement and supplies in the stockroom were a bit lower than usual.

Feedback about this web site