Vendor Performance & Risk Scoring Framework

High-stakes procurement demands more than one-time vendor screening. It needs continuous, data-driven evaluation that rewards reliable suppliers, flags risk early and makes re-competition fair and defensible. nGAP Inc.’s Open Acquisition System (OAS) is built for exactly that: real-time vendor scoring, automated risk signals, and streamlined re-competition—tied together with audit-ready governance.

Why Vendor Evaluation Needs an Upgrade

Traditional scorecards are often static, spreadsheet-based, and disconnected from delivery reality. The result: latent issues (e.g., late shipments, change orders, quality defects) surface only after they’ve become costly. OAS closes that gap by connecting performance data across contracts and periods, turning it into clear scores, automated flags, and actionable workflows.

How OAS Scores Vendor Performance

OAS converts operational data into a weighted performance score you can trust across projects and time.

Core inputs (configurable):

• On-time delivery rate and schedule variance

• Cost variance (planned vs. actual; change-order volume)

• Quality and acceptance metrics (defect rates, rework)

• Compliance and documentation timeliness

• Customer satisfaction/CPAR-style ratings

• Past performance across similar commodities/NAICS

• Small business or socio-economic goal contributions (if applicable)

  
  

Example weighted model (customizable per portfolio):

• Schedule (30%) — e.g., on-time delivery %, average days late

• Cost (25%) — e.g., CPI, % cost overruns, change-order frequency

• Quality (25%) — e.g., acceptance first-pass yield, defect counts

• Compliance (10%) — e.g., reporting timeliness, cybersecurity artifacts

• Stakeholder Feedback (10%) — structured surveys, CPARS-like inputs

  
  

OAS computes a normalized 0–100 score with trend lines, confidence bands (based on data volume), and peer benchmarks by commodity/category. Scores update automatically as new receipts, invoices, mods, or inspection results land.

Automated Risk Flags (Before Problems Escalate)

OAS continuously watches live signals and raises configurable alerts—no spreadsheet spelunking.

Out-of-the-box flags (examples):

• Delivery delays: PO lines projected late based on lead-time drift or milestone slippage

• Cost overruns: Actuals > plan by threshold; surge in change orders or time-and-materials burn rates

• Quality issues: Consecutive rejections, warranty claims, or rework requests in a rolling window

• Supply risk: Sole-source exposure, supplier financial distress indicators, dependency concentration

• Compliance gaps: Missing artifacts (e.g., insurance, cybersecurity attestations), expired certs

• Fraud/waste anomalies: Unusual unit pricing, duplicate invoicing patterns, split buys across thresholds

  
  

Each flag includes root-cause context (affected POs/lines, dates, documents) and recommended actions (e.g., issue cure notice, hold partial payment, trigger supplier corrective action plan). Flag thresholds can be tuned per commodity or mission urgency.

Supporting Vendor Re-Competition—Fairly and Fast

When it’s time to re-compete, OAS turns performance history into defendable selection support:

• Performance-informed evaluation factors: Pull prior scores and KPI histories directly into the solicitation’s evaluation plan.

• Side-by-side vendor comparisons: Compare incumbents vs. challengers across schedule, cost, quality, and risk profiles.

• Category management insights: Identify resilient suppliers by geography, capacity, and on-time track record for similar lots.

• Audit-ready traceability: Every factor, weight, and data points are versioned with a clear rationale, enabling clean debriefs and protests defense.

  
  

Embedded Workflows and Controls

• Dashboards: Portfolio heatmaps, vendor score trends, late-delivery trackers, change-order monitors.

• Notifications: Role-based alerts to COs, PMs, QA, finance.

• Corrective Action Plans (CAPs): Create, assign, and track CAP tasks with due dates and evidence attachments.

• Governance: Configurable approval chains; immutable audit logs; time-stamped changes to scoring models.

• Integration: Connects to ERPs, e-invoicing, warehouse/receipt systems, and quality/inspection tools via APIs.

  
  

Quick Scenario

A supplier’s on-time rate dips from 96% to 86% over two months. OAS flags “Schedule Variance Rising,” cites three late PO lines, and shows lead-time drift. In parallel, cost variance crosses a 5% threshold with two rapid change orders. OAS escalates a composite “Performance Deterioration” alert, launches a CAP workflow, and—if re-competition is upcoming—prepares a comparative candidate view weighting recent performance more heavily. Result: earlier intervention today, stronger source selection tomorrow.

Implementation Playbook (Typical 4–8 Weeks)

1. Define KPIs & weights: Align with mission priorities and category risk.

2. Connect data: Purchase orders, receipts, invoices, quality records, past performance, compliance artifacts.

3. Set thresholds: Establish flag logic and escalation paths by commodity.

4. Pilot & calibrate: Run parallel scoring, validate against known issues, adjust weights.

5. Roll out: Train COs/PMs; enable dashboards, alerts, and CAP workflows.

6. Continuously improve: Quarterly model reviews; add signals as data quality matures.

   
   

The Payoff

• Fewer surprises: Early warning on delivery and cost risk.

• Better outcomes: Performance-informed awards and re-competitions.

• Defensible decisions: Transparent scoring and complete audit trails.

• Efficiency: Automated monitoring replaces manual spreadsheet checks.

  
  

OAS turns vendor evaluation from a backward-looking checklist into a living, automated performance engine. If you’re ready to score suppliers objectively, surface risk early, and make re-competitions faster and more defensible, OAS provides the infrastructure—data, models, and workflows—to get you there.