Contract procurement performance review

A procurement performance review is a structured review of the seller's progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. It is a tool and technique of Control Procurements. It includes a review of seller-prepared documentation, buyer inspections, and quality audits conducted during seller's execution of the work.

Objectives

• Identify performance successes or failures and progress relative to the SOW.
• Detect contract non-compliance early and take action.
• Decide on payments, corrective action or termination.
• Provide information for future source selection and lessons learned.

What is reviewed

Process

Collect seller reports + inspections
   -> Compare with contract requirements
   -> Identify variances -> Discuss with seller
   -> Corrective action / change request
   -> Record in performance file

1. Schedule reviews (monthly or at milestones).
2. Gather seller documents and verify through inspection.
3. Compare actual performance with contract (use earned value where possible).
4. Hold a review meeting; agree actions and deadlines.
5. Document results; request changes or issue notice of default if necessary.
6. Use results for payment decisions and seller evaluation.

Outputs

Work performance information, procurement change requests, corrective actions, updates to OPA (seller performance records).

Benefits

Better control of contract, reduces risk of delay or poor quality, and helps in building a supplier history.

Example: At the end of month 3, the buyer reviews a vendor's progress on a hospital software contract, finds the testing module two weeks late, and requires a recovery plan before the next payment.