Updates to IO’s Vendor Performance Program

The Vendor Performance Program (“Program”), found here, has recently been updated. Vendors will note the following changes.

Performance Reporting – Monthly Reports

As of April 1, 2020, vendors will no longer receive Vendor Performance Scorecards (“Scorecards”). These Scorecards will be replaced by Monthly Reports.

Monthly Reports outline vendors’ total number of Unexpired Infractions, the details of those Infractions, as well as their impact on future procurement success. Monthly Reports will be issued to vendors by Infrastructure Ontario directly. Monthly Reports will be issued mid-month.

Vendors will only receive a Monthly Report if their performance record contains at least one (1) unexpired Infraction. Vendors will cease receiving Monthly Reports once all their Infractions have expired.

Any and all Infractions issued to vendors within the twelve (12) months preceding the effective date will be first reported to vendors in March 2020’s Monthly Reports.

Performance Assessments – Infractions

Per the above, Scorecards will no longer be used. Infractions will now be the sole method of performance assessment and, as such, are Infrastructure Ontario’s primary means indicating whether vendors have room for improvement.

Infractions are assessed against contract-driven Infraction Criteria and represent core delivery values. Infractions will have an expiry date of twelve (12) months from the date of the underlying poor performance event, as defined by the Program’s Infraction Criteria.

Details on Infractions can be found within the Appendices of the Program.

Effect of Poor Performance on Future Procurement Success – VPP Scores

Vendor Performance Ratings (“Ratings”) will no longer be used as evaluated criteria in IO procurements or those procurements conducted by its PMSPs on its behalf. Ratings, as the Program’s method of incorporating past performance assessments into procurements, have been replaced by VPP Scores. VPP Scores will consist of deductions to technical scores and will be based on a vendor’s net number of Unexpired Infractions as outlined within their Monthly Report.

A vendor’s VPP Score will be applied to all submissions received during the month immediately following the date of the Monthly Report containing it. For example, Monthly Reports sent to Vendors on August 15, 2020 will contain their VPP Score as it will be applied to any of their submissions for procurements closing within the entirety of September 2020. VPP Scores will be communicated to vendors by way of their Monthly Reports.

Any questions can be directed to vpp@infrastructureontario.ca.

Suspension of the Vendor Performance Program

IO acknowledges that the COVID-19 pandemic has had significant impacts on the operations of IO’s contractors and service providers on our projects and that our vendors are making best efforts to proceed with work in view of the Province’s declaration of emergency and mandated health and safety and associated social distancing protocols.

In an effort to further assist contractors during this time, IO has determined that the Vendor Performance Program will be partially suspended retroactive to March 15, 2020 and continuing to July 1, 2020 or such later date as subsequently determined by IO in its sole discretion (the “Suspension Period”).

We believe that the ongoing administration of the Vendor Performance Program, and in particular the collection and recording of performance infractions during this time would be contrary to broader efforts to assist contractors in mitigating the impacts of COVID-19 on construction progress. However, we note that during this time of the pandemic crisis, construction contracts shall continue to be administered to reserve and enforce rights of the Contracting Authority, as applicable – and that matters pertaining to health and safety should be of even greater importance and attention.

The partial suspension of the Vendor Performance Program shall result in the following (capitalized terms used herein are defined in the Vendor Performance Program, available here):

The suspension consists of the following:

1. Any Vendor who otherwise triggers a VPP Infractions during the Suspension Period shall not have such VPP Infraction recorded in its VPP Score, with the exception of VPP Infractions associated with health and safety, specifically Infraction Criteria #7 and #16 per Appendix B of the Program.

2. The time that elapses during the Suspension Period shall not be applied in any calculation associated with VPP Infractions that relates to time-dependant assessments of poor performance such as lateness and the maintenance of schedule.
For example, if the Suspension Period ends on July 1, and a project which was scheduled to achieve substantial performance on March 1, but is not complete until July 5, for the purposes of the calculation of VPP Infractions only, the project will be deemed to have been 18 days late (the 14 days from March 1 to March 15 plus the 4 days from July 1 to July 5). While the Suspension Period for the Vendor Performance Program may apply to certain VPP Infractions, such application does NOT constitute a waiver of any of IO’s, or its PMSPs’, rights under the relevant contract.

3. Deductions shall not be applied to any Prequalification Submission or Proposal Submission, as applicable, during the Suspension Period. However, if a Prequalification Submission or a Proposal Submission Deadline for any procurement falls outside of the Suspension Period, then Deductions shall apply

4. IO will not issue Monthly Reports during the Suspension Period, with the exception of the Monthly Reports that precede the date immediately after the Suspension Period. For example, if IO determines that the end of the Suspension Period remains July 1, then IO shall issue Monthly Reports in May to ensure that all participating Vendors are notified of the Deductions that shall apply to them for procurement submissions commencing July 1.