Annex B

Supplier & Customer Performance Measurement (S&CPM) Model Text

Model Text for Requests for Expressions of Interest, Invitation to Submit Outline Proposals and Contract Condition. SUPPLIER DEVELOPMENT SCHEME - Supplier and Customer Performance Measurement (S&CPM). The Supplier Development Scheme, Supplier and Customer Performance Measurement (S&CPM) process is a tool to provide a consistent means of capturing & reporting performance achievement across MOD-wide business against predetermined and agreed activities at various times throughout the life of a contract. Its purpose is to aid the relationship between MOD and Industry at all levels of the business by a better understanding of the actual performance achieved whilst under contract. Companies should note that this process will be a feature of any contract(s) that may be awarded in respect of this possible requirement. In submitting an [expression of interest / outline proposal] interested companies are to confirm their willingness to enter into this process in the event that they are invited to submit a tender and/or offered a contract. Further information on the S&CPM can be found on the Supplier Relations team (SRT) page on the MOD Internet site or by contacting the team at DSR-SD1@mod.uk. Model text for Competitive and Single Tenders Special Notices and Instructions to Tenderers Section SUPPLIER DEVELOPMENT SCHEME Supplier and Customer Performance Measurement (S&CPM) The Supplier Development Scheme, Supplier and Customer Performance Measurement (S&CPM) process is a tool to provide a consistent means of capturing & reporting performance achievement across MOD-wide business against predetermined and agreed activities at various times throughout the life of a contract. Its purpose is to aid the relationship between MOD and Industry at all levels of the business by a better understanding of the actual performance achieved whilst under contract. It is the intention of the Authority that where Information on a Suppliers performance has been captured by this process from a number of contracts it will be shared with the Supplier as part of any on-going MOD/Supplier discussions. The Information will provide a common data set of information that can be used as part of the regular MOD/Industry engagement process. Further information on the S&CPM can be found on the Supplier Relations Team (SRT) page on the MOD Internet site or by contacting the team at DSR-SD1@mod.uk. As part of his tender response the Tenderer shall confirm that they agree to participate in Supplier Development Scheme activities in the event that the contract

was to be awarded to him. The Tenderer shall submit an outline proposal of Performance Indicators that could be included in the Performance Review Agreement, for consideration by the Customer as part of his tender response. This proposal shall be tailored to the Tenderers recommended solution or bid in response to the MOD Requirement, and shall contain Performance Indicators against which the Tenderer is prepared to be measured, and against which he would wish to measure the Customer, should he be awarded all or part of the contract. This Performance Indicator proposal shall be submitted in the format of set-out in {Annex *** to SNITs }. In support of each Performance Indicator proposed, the Tenderer shall outline the means and method of measurement, and the evidence that would be used to validate achieved performance. The Performance Review Agreement Performance Indicator Proposal will not, of itself, form part of the tender assessment criteria, but may be used by the MOD IPT/Project Team as an indicator of robustness, risk and confidence in the Tenderers proposed solution. The Performance Review Agreement Performance Indicator Proposal will form the basis of negotiation and discussion between the Authority and the Tenderer during any pre-contract activities in respect of S&CPM. The Authority is not obliged to accept any or all of the Tenderers proposed Performance Indicators. Model Text for Single source and negotiated requirements Requests For Quotations, Requests For Proposals etc SUPPLIER DEVELOPMENT SCHEME - Supplier and Customer Performance Measurement (S&CPM). The Supplier Development Scheme, Supplier and Customer Performance Measurement (S&CPM) process is a tool to provide a consistent means of capturing & reporting performance achievement across MOD-wide business against predetermined and agreed activities at various times throughout the life of a contract. Its purpose is to aid the relationship between MOD and Industry at all levels of the business by a better understanding of the actual performance achieved whilst under contract. It is the intention of the Authority that where Information on a Suppliers performance has been captured by this process from a number of contracts it will be shared with the Supplier as part of any on-going MOD/Supplier discussions. The Information will provide a common data set of information that can be used as part of the regular MOD/Industry engagement process. Further information on the S&CPM can be found on the Supplier Relations Team (SRT) page on the MOD Internet site or by contacting the team at DSR-SD1@mod.uk. As part of his response to this [RFP/RFQ], the Supplier shall confirm that he will agree to participate in Supplier Development Scheme activities in the event that the contract was to be awarded to him. The Supplier shall submit an outline proposal of Performance Indicators that could be included in the Performance Review Agreement, for consideration by the Customer as part of his response to this [RFP/RFQ]. This proposal shall be tailored to the Suppliers recommended solution or bid in response to the MOD Requirement, and shall contain Performance Indicators against which the Supplier is prepared to be measured, and against which he would wish to measure the Customer, should he be awarded all or part of the

contract. This Performance Indicator proposal shall be submitted in the format of setout in {Annex *** to the RFP/RFQ }. In support of each Performance Indicator proposed, the Supplier shall outline the means and method of measurement, and the evidence that would be used to validate achieved performance. The Performance Review Agreement (PRA) Performance Indicator Proposal will not, of itself, form part of the criteria by which the Suppliers proposal is assessed, but may be used by the MOD IPT/Project Team as an indicator of robustness, risk and confidence in the Suppliers proposed solution. The Performance Review Agreement (PRA) Performance Indicator Proposal will form the basis of negotiation and discussion between the Authority and the Supplier during any pre-contract activities in respect of S&CPM. The Authority is not obliged to accept any or all of the Suppliers proposed Performance Indicators. Model Text CONTRACT CONDITION for inclusion in all contracts. Insert at draft stage and retain in signed contract. SUPPLIER DEVELOPMENT SCHEME - SUPPLIER AND CUSTOMER PERFORMANCE MEASUREMENT The Contractor and the Authority agree to monitor performance under the Contract in accordance with the Supplier Development Scheme, Supplier and Customer Performance Measurement Process.

Appendix 1 to Annex B Proposed Performance Indicators of Supplier Performance

(To be included (with above model text) where Single source, negotiated requirements, Requests For Quotations, Requests For Proposals, Competitive or Single Tenders are proposed)
It should not be called-up in any resultant contract

Quality (Perf) Performance Indicators

Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review

X reference to relevant section in response being provided to the IPT

Cost Performance Indicators

Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review

X reference to relevant section in response being provided to the IPT

Time Performance Indicators

Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review

X reference to relevant section in response being provided to the IPT

Communication Performance Indicators

Means and method of measurement and evidence to demonstrate achievement

Date of review and/or frequency of review

X reference to relevant section in response being provided to the IPT

Management Performance Indicators

Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review

X reference to relevant section in response being provided to the IPT

Proposed Performance Indicators of Customer Performance Quality (Perf) Performance Indicators Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review X reference to relevant section in response being provided to the IPT

Communication Performance Indicators

Means and method of measurement and evidence to demonstrate achievement

Date of review and/or frequency of review

X reference to relevant section in response being provided to the IPT

Management Performance Indicators

Means and method of Date of measurement and evidence review to demonstrate achievement and/or frequency of review

X reference to relevant section in response being provided to the IPT