Vendor Performance Management (VPM): What We Heard – a Summary of Stakeholder Engagement

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Public Services and Procurement Canada (PSPC) consulted widely across the country in March and April 2019 to gather feedback from vendors on a draft version of the Vendor Performance Management Policy. The resulting report summarizes the consultation:

In the consultations, participants were supportive of the overall approach. They recognized that a VPM initiative could motivate vendors to perform well and could be a productive management tool for government. However, stakeholders also identified a number of potential issues with VPM, such as around the treatment of new vendors that have not done business with the Government of Canada and the potential for burden and extra resource requirements on vendors and government.

The discussions focused on various aspects of the VPM Policy including minimum contract values or thresholds to be included in the policy, how often evaluations should be conducted, roles and responsibilities, an appeals mechanism, and potential key performance indicators. The consultation and report have been instrumental in refining the policy as PSPC prepares to launch pilot testing in 2020 to 2021.

Background Information

The Government of Canada is aiming to change the way it conducts business in order to reinforce good performance and position itself as a buyer of choice. To achieve this, PSPC is leading the development of a VPM Policy which will be used to evaluate the performance of vendors in federal contracting and eventually to inform future contract-award decisions.

While the VPM Policy will at first only apply to PSPC-administered contracts, the goal is to have it eventually apply across the Government of Canada.

The key objectives of the policy are to:

  • Optimize best value for Canadians;
  • Hold vendors who do not perform to account while incentivizing good performance;
  • Facilitate open and ongoing communications between government and vendors, and;
  • Establish ongoing, open communications between PSPC and other client federal departments regarding vendor expectations and performance that will be leveraged to improve relationships with vendors.

For more information on the VPM initiative, please visit

Comments and Feedback

The VPM initiative is intended to motivate vendors to perform well and be used as a productive management tool for government. PSPC welcomes your suggestions and ideas.

Comments and feedback can be provided to the PSPC team responsible, identified below.

Acquisitions Program
Public Services and Procurement Canada