Contract effectiveness evaluations help to ensure that all suppliers and subcontractors are performing in a satisfactory manner. Contract effectiveness information is also used by the Postal Service for follow-on purchases, to guarantee that only the top performers are considered. Additional information can be found in Section 2-33, Perform Risk Analysis on Supplier Proposals.
Postal Service Performance
It is critical for the Postal Service to evaluate its contract management. Evaluating contract management is an assessment of how the Postal Service has managed a contract, including:
It is critical for the Postal Service to evaluate its contract management. Evaluating contract management is an assessment of how the Postal Service has managed a contract, including:
The performance evaluation team evaluates both the supplier’s performance and the Postal Service’s management of the contract. Members should be from the purchase/SCM team, other Postal Service specialists (e.g., Financial or Legal Counsel), or external experts. Depending on the characteristics and complexity of the purchase, the performance evaluation team may consist of the purchase/SCM team, or may incorporate other stakeholders and individuals as appropriate. Ideally, those involved will have previous experience working with Postal Service contracts of a similar nature, scale, and complexity.
It is the responsibility of the performance evaluation team to evaluate contract effectiveness. Depending on the contract, the performance evaluation team may choose to focus on the factors that are critical to the overall success of the contract when evaluating supplier and subcontractor performance, such as:
Contract effectiveness evaluations are conducted at the discretion of the performance evaluation team, which serves as an incentive for suppliers to maximize their performance and client satisfaction. Evaluations of contract effectiveness become part of the supplier’s contract performance history, and they should be readily available on an ongoing basis. Evaluations are readily accessible on an internal basis, and this information may be leveraged for future contract award considerations.
Indicators are specified to monitor performance of the contract requirements. Target performance measures are assigned for each indicator and are the basis for determining whether the contract is providing the best value for the Postal Service. The PWS, SOW, or SOO describes the effort in terms of measurable performance standards (outputs). A QAP is used to determine whether the Postal Service is meeting the applicable contract requirements. Additional information can be found in Sections 2-2, Start Request for Proposal Development, and 5-6, Execute Quality Assurance Plan.
Performance standards establish the required performance level for Postal Service contracts. Correspondingly, the target measure establishes a maximum allowable error rate or variation from the standard. Failure to perform within this target results in an examination of whether the contract is beneficial to the goals and objectives of the Postal Service. Examples of standards include quality of work, productivity, and cost-efficiency. The purchase/SCM team should ensure that each standard is necessary and carefully chosen.
