Federal News
Canada Implements Vendor Performance Management
March 11, 2026
Canada's Public Services and Procurement Canada (PSPC) is piloting a Vendor Performance Management (VPM) system designed to score suppliers based on their past contract performance. This system, expected to be operational later in 2026, will enable government departments to incorporate supplier performance data into future contract award decisions, potentially influencing procurement outcomes across federal agencies.
- Why this matters: Procurement professionals should anticipate increased emphasis on supplier past performance as a factor in bid evaluations, affecting contract competitiveness.
- Vendors should prioritize maintaining strong performance records and documentation to enhance their scoring under the VPM system.
- Agencies may need to adjust procurement evaluation criteria and processes to integrate VPM data effectively.
- This initiative signals a broader trend toward data-driven supplier management and accountability within Canadian federal procurement.
The vendor performance management (VPM) system, which could be in place as early as later this year, would track how contractors perform on government projects and allow departments to use that information when evaluating future bids.
— Alexander Jeglic, Procurement Ombud
Agencies
Public Services and Procurement Canada
Locations
Sources
- Suppliers' past performance could start influencing federal contract decisions this year, ombud says · Investigative Journalism Foundation · Mar 11