At a time when the performance expected of public procurement goes beyond mere contractual compliance, monitoring performance is becoming a strategic issue. Effective supplier management, based on performance indicators (KPIs), enables contracting authorities to transform their contracts into real levers for creating value.

Contractual performance: a growing challenge for public purchasers

The performance of a public procurement contract can be subject to a number of hazards: delays, non-conformities, under-performance, disputes, user dissatisfaction, etc. Structured performance monitoring aims to limit such deviations while establishing a constructive dialogue with suppliers. It also enables assessments to be made objectively, contract renewals to be secured, purchasing strategies to be informed and feedback to be provided for future contracts.

In addition to control, performance management helps to strengthen the accountability, efficiency and professionalism of public procurement.

Putting in place effective KPIs: an approach to be initiated as soon as the contract is drawn up

Effective monitoring is based on indicators designed upstream, integrated as soon as the need is defined and clearly translated into the special specifications. These KPIs may relate to delivery times, the quality of services, the satisfaction rate of beneficiaries, adherence to the budget, or the stability of the teams involved.

These indicators must be objective, measurable and adapted to the market context. They should be monitored using a dynamic dashboard, shared with the supplier and updated at regular intervals. This monitoring can be formalised during contract reviews or steering committees, and lead to the application of corrective measures, penalties or incentives, depending on the case.

A collective drive to deliver

Effective management requires cross-functional mobilisation: user departments must be involved in evaluating services, purchasers must provide the contractual framework, and operational managers must ensure that information is passed on and that any necessary adjustments are made. This collaborative approach helps to establish a culture of performance in public procurement management.

Capitalising on data to improve public procurement

When the indicators are well constructed and systematically used, they provide a consolidated view of supplier performance across all of an organisation's markets. This analysis makes it possible to identify the most reliable partners, to better target risks by purchasing segment, and to adapt drafting and awarding practices for future procedures.

Organisations such as the Government Accountability Office (GAO) in the United States and the UK Government Commercial Function in the United Kingdom have for several years been incorporating structured approaches to supplier performance management, combining contractual tools, indicators and risk analysis.

Conclusion

Introducing performance indicators is more than just a formal exercise: it is a practical management tool that enables public purchasers to monitor, adjust and secure the performance of their contracts. By adopting a structured approach that is shared with internal stakeholders and suppliers, public-sector organisations gain real leverage in terms of control, dialogue and continuous progress. KPI-based management is not an additional constraint, but a guarantee of rigour, anticipation and impact.

Sources

• U.S. Government Accountability Office (GAO) - Best Practices for Supplier Performance Management
• UK Government Commercial Function - Contract Management Professional Standards
• OECD - Contract Management and Performance in Public Procurement
• World Bank - Strategic Contract Management Toolkit