New Vendor Performance Management policy to hold vendors accountable

News Releases

Yellowknife — October 13, 2023

The Government of the Northwest Territories (GNWT) has introduced a new Vendor Performance Management Policy to help monitor performance and ensure that vendors fulfill their commitments to use NWT and local goods, services and labor when they are awarded government contracts.


The policy allows the GNWT to assess and monitor vendor performance. This will lead to several benefits, including:


  • more transparent and accountable procurement processes;
  • motivating vendors to improve performance while also acknowledging good performance;
  • improved ability to select vendors based on their past performance;
  • improved contract management efficiency; and
  • higher quality goods and services provided to the government and residents of the NWT.


While there have been provisions in contracts to deal with contractors that do not meet Business Incentive Policy (BIP) obligations,  the Vendor Performance Management Policy introduces formal procedures and processes to hold suppliers accountable, ensure they meet contract obligations, and prescribed ways to deal with non-compliance and to ensure that they fulfill their contractual obligations



“Government procurement and contracting serves as a great source of economic activity throughout the territory, and it is important to have a policy in place that promotes transparency and ensures vendors are fulfilling the commitments they make to use, buy and hire local.”

- Caroline Wawzonek, Minister of Finance


Quick facts

  • The department of Finance added the Vendor Performance Management (VPM) Program to its four-year business plan in 2020.
  • The first phase of the project was implemented in June 2021. It focused on the implementation of Business Incentive Policy (BIP) compliance monitoring for construction projects valued over $250k for GNWT departments and Housing Northwest Territories.
  • The policy provides the formal framework to facilitate consistent tracking and enforcement of BIP obligations.
  • The policy includes measures to consistently address failures to comply with BIP obligations.
  • Vendor performance management programs are not only intended to improve accountability, but also motivate vendors to improve performance. 

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For media requests, please contact:

Todd Sasaki

Manager, Public Affairs and Communications

Department of Finance

Government of the Northwest Territories