Performance Standards

Performance standards are documented requirements that state the level of performance, output, quality or service result that a product, process or service must achieve. They describe what the buyer needs the result to be, not how the supplier must build or deliver it.

The term is not an abbreviation. In procurement, performance standards normally sit in a statement of work, a specification, a service-level requirement or a contract performance regime. They are closely related to performance specifications, output criteria, service standards, acceptance criteria, quality standards and performance measurement.

How ISO frames performance requirements

ISO defines a standard as a document approved by a recognized body that provides guidance on the design, use or performance of materials, products, processes, services, systems or persons. Performance is therefore built into the idea of a standard. See the ISO overview of standards.

ISO guidance also recommends that product requirements be written as the performance needed for fitness for purpose, rather than prescribing design, materials or construction. That approach is set out in an ISO publication on specifying requirements. ISO adds that international standards can be referenced in public procurement and can provide essential requirements for industry, as described in a second ISO publication.

Performance standards in federal procurement guidance

CanadaBuys guidance for contracting officials asks whether appropriate standards, specifications or purchase descriptions have been included. It also asks whether the goods meet the performance specifications, and it points to performance testing before purchase. This appears in the Supply Manual annexes for chapter 2.

Performance criteria also matter when a contract is not openly competed. PSPC guidance on Advance Contract Award Notices says a capability statement may need to show that a product, equipment or system meets the stated requirements. Those requirements can include performance or output criteria, with recognized Canadian or international standards referenced where applicable. The guidance is in the Supply Manual annexes for chapter 3.

Examples from CanadaBuys notices

• Correctional Service Canada: a solicitation for primary-care physician services requires the contractor to provide services consistently with the performance standards in the statement of work. That includes later approved changes to policies, guidelines and performance standards.
• Defence Construction Canada (DCC): the 22 Wing North Bay Open Construction Source List notice states that DCC contracts contain measurable performance standards and requirements under form DCL81, Performance Evaluation Guidelines.

The DCC notice also sets out a consequence. A contractor that receives an unacceptable or failing score may be removed from the source list and receive no further invitations. In this case, performance standards affect future access to work as well as the current contract.

What performance standards mean for a supplier

A supplier must be able to show that the goods or services offered meet the stated performance requirements. Depending on the solicitation, that evidence can come through the bid, the proposed solution, testing, deliverables, reporting, inspections or contract-performance evaluations.

• Read the statement of work and specifications for measurable requirements, and check any referenced policies or guidelines that can change during the contract.
• Match each requirement to specific proof in the bid, such as test results or references to recognized standards.
• Plan delivery around the reporting and evaluation steps named in the contract, since scores can affect later invitations.

The exact evidence and consequences depend on the solicitation and contract documents, so each bid team should confirm them in the notice itself.