Safety First
The enhanced Supplier Performance Management Policy (the “Policy”) will be implemented by Jan. 1, 2025.
The Policy sets out a programmatic approach to addressing supplier performance, improving transparency, promoting innovation, and ensuring best value in alignment with the Supplier Code of Conduct. The Policy sets out the consequences for both good and poor performance and provides a clear path of escalation to address inadequate supplier performance.
The Policy will leverage the best practices of INPO 14-005 Principles for Excellence in Nuclear Supplier Performance. This document defines expectations and standards for achieving excellence in nuclear supplier performance.
The fundamentals of Supplier Performance Management are:
- Suppliers shall consistently deliver high quality products and services, safely, on time, and on budget.
- Suppliers shall promote and implement industry best practices and Social Responsibilities such as increasing participation with local Indigenous communities and combating Modern Slavery/Forced Labour during the delivery of products and services.
- Bruce Power shall implement contract obligation management to ensure full accountability with respective parties.
- Bruce Power shall measure each supplier’s performance in a transparent and collaborative manner.
- Bruce Power and suppliers shall regularly review performance and take action to identify gaps and recover performance.
- Bruce Power shall provide reasonable opportunity to suppliers to recover performance.
- Past performance shall be a key consideration for the award of new business.
Implementation Plan
Effective Jan. 1, 2025, all key strategic suppliers will have their respective performance assessed against the criteria set out below. Performance will be tracked in performance scorecards, Joint Management Committee Meetings and Supplier Relationship Management Meetings.
Procurement Changes
All procurement evaluations will be based on Safety, Quality, Schedule, and Cost performance using both leading and lagging indicators. Social Responsibilities such as increasing participation with local Indigenous communities and combating Modern Slavery/Forced Labour will also be a consideration during the procurement evaluation phase. Additional scorecard focus areas will include Capacity, Diversity, Equity and Inclusion, Localization, Cyber Security, Net Zero commitment and Indigenous Relations.
Upon review and approval of the total cost of ownership (“TCO”) evaluation model, all performance, risks, COPQ, and change orders will be used to evaluate which supplier is the actual and verifiable lowest cost supplier.
Performance
Monthly scorecards will assess Safety, Quality, Cost, and Schedule. Suppliers will be provided an overall performance score based on these categories.
Supplier interventions to drive performance improvement and risk mitigation will follow the framework below:
| Level | Description of Performance Gap | BP Action Required | Supplier Restrictions |
|---|---|---|---|
| 1 | Single Discrete Issue | SCAR or recovery plan Required | Continue with current strategies |
| 2 | Programmatic Issue or Trend of Issues or significant issue | Performance Improvement Plan Prepared | Increased monitoring and procurement impact |
| 3 | Continued Non-Improvement for 6 months after PIP established | Mobilize Alternate Supplier | Restrict awards |
| 4 | Continued Non-Improvement for 12 months after PIP established | Transition Work to New Supplier | Exit Relationship |
During the procurement process, the Supplier Management Office will deliver to the evaluation team an overall performance score to be applied / considered as part of the evaluation process.
Performance Criteria for Improvement
Level 1
Single discrete issue
- Once the SCAR or recovery plan has been implemented the issue will be resolved.
Level 2
Programmatic issue or trend of issues or significant issue
- The supplier will be placed on a performance improvement plan (“PIP”).
- There will be ongoing monitoring and regular meetings to ensure all PIP actions are completed as per the identified TCDs.
- Once the PIP actions are completed, there will be ongoing effectiveness reviews to ensure that the issue or issues have been corrected and the necessary steps implemented to prevent reoccurrence.
Level 3
Continued non-improvement for 6 months after PIP execution
- The issue or trends are not recovering within a six month window after PIP implementation.
- Same themes, e.g. safety (not different individual events) or cross functional/organizational e.g. human performance. e.g. human performance.
- Bruce Power will start mobilizing a new supplier and begin restricting awards of new work.
Level 4
Continued non-improvement for 12 months after PIP execution
- The trends/issues are not improving; the corrective actions are ineffective.
- Multiple red statuses in the same area are a clear indicator that the cause is not understood by the supplier or the corrective actions that they have put in place are inadequate.
- Once a credible commercial and technical alternative is available and implemented, Supply Chain will take the necessary steps to terminate the relationship with the supplier, to the extent practicable. Consultation with key stakeholders will take place prior to a final decision being made.
Risk Monitoring & INPO 14-005 Principles for Excellence in Nuclear Supplier Performance
At the core of the risk monitoring program for key strategic suppliers is identification of areas of concern for mitigation before they result in a performance issue. Monthly, key strategic suppliers will be assessed for financial and capacity risk using industry standard methodology. Mitigating recommendations are implemented as risks change and recommendations are provided pre-award. The cost of these mitigating actions will be considered during the evaluation phase.
Furthermore, key strategic suppliers will be assessed based on INPO 14-005, Principles for Excellence in Nuclear Supplier Performance, to improve and sustain performance. These 7 key principles were selected based on a review of comparable principles INPO developed for nuclear power plant operations.
- Nuclear Safety Culture Quality
- Materials, Equipment, Configuration Control, and Quality Assurance
- Human Performance
- Training and Qualifications
- Continuous Improvement
- Operating Experience and Lessons Learned
- Procurement and Contracting of Materials and Services
Non-Key Suppliers
Performance
Assessment of performance is completed through the supplier performance evaluation criteria. It assigns a rankings in five categories: Exceeds Expectations, Meets Expectations, Monitoring Needed, Improvement Needed, and Immediate Improvement Required.
The Supplier Management Office will provide these rankings, which may be used as a reward/penalty during the procurement process. With the revision of this document and our scorecard process in 2024, non-key supplier’s scorecards will roll out in 2025 through automated data capture to provide scoring results.
Risk Monitoring
Financial and capacity assessments will also be completed to support procurement activities. The Supplier Management Office will provide these rankings and reward/penalty which may be used during the procurement process. Mitigating concerns & recommendations are provided for procurement to be implemented pre-award.
