| # | Audit report | Observation # and name | Retargets | Executive approval from | Rationale | |
|---|---|---|---|---|---|---|
| 3 | Service Provider and Outsourced Services Governance and Management | 159-Monitoring of Supplier Issues and Risks | Original Due Date | June 30,2018 | Purchasing Department | The action item required is a comprehensive policy which shall; make it mandatory for all City departments to utilize the VMS and participate in the Vendor Relationship Management (VRM) program; and, outline the business practices which would be utilized in the policy, including: vendor segmentation, vendor governance, vendor performance management, and continuous improvements. |
| Retarget Date | June 30,2020 | |||||
| # of Retargets | 1 | |||||
| Days since Identification | 2 years 5 months | |||||
| Days past Original Due Date | 1 year 5 months | The policy assigns important responsibilities to key employees in the Corporation and would integrate and affect the use of the Vendor Management System (VMS), which is formally developed to document and assess vendor performance at project completion. Currently the City can accurately evaluate vendors across the City, permit comparisons, identify City wide performance concerns, communicate them to contractors, and foster improved service. In addition, the Purchasing Bylaw allows the City to levy sanctions against vendors for various issues, including performance. | ||||
| The short term risk of not being able to take action is that administration would not be able to utilize the VMS in assessing past performance in subsequent RFx bid submissions and will not be able to improve the effectiveness of performance appraisals and aggregation of vendor performance evaluations through the VMS program. Since this action item will affect all vendors drastically, the City needs to ensure that the policy does not inherently prejudice certain vendors more than others. Maintaining a fair and equitable program is paramount to the success of the objectives of this action item and VMS. The City must ensure that the vendor’s performance ratings accurately reflect each vendor’s performance and that the policy and procedure implemented are comprehensive, user-friendly documents that encompass best practices while maximizing compliance, efficiency and effectiveness in purchasing processes. | ||||||
| Due to the far-reaching effects of the policy, the City required that internal and external stakeholders be consulted prior to council approval. The short-term risk is low for not implementing it on the original due date as there are mechanisms in place currently which govern vendor performance pursuant to the Purchasing Bylaw compared to implementing the action item without proper evaluation, implementation and feedback from stakeholders. |