Supplier performance evaluation
We periodically evaluate our suppliers’ performance in the contracts for the supply of goods and services. We look into the Quality, Time, Management, and HSE criteria in order to measure performance in contracted item delivery.
Supplier Performance Index
We use the Supplier Performance Index (Portuguese acronym IDF) to measure the performance of companies related to the supply of goods and services in effective contracts in effect from October 24, 2016.
Each supplier is rated with a global IDF score that ranges from 1 (very bad) to 6 (excellent) and reflects the average score of each good provided or service rendered in the previous 12 months.
IDF scores are assigned by delivery, family, and based on the supplier’s global score. All of them can be checked out on the Petronect Portal.
- Service IDF: Evaluation through standardized questionnaires. We analyze the term, quality, management, and SEH.
- Goods IDF: Delivery evaluation. We analyze quality and delivery time.
In the case of service contracts signed before October 24, 2016, the Performance Evaluation Bulletin (Portuguese acronym BAD) scores on a scale of 0 to 100 are converted into IDF scores.
When we identify discrepancies in the meeting of technical and contractual specifications applied to a good or service or when the supplier behaves improperly in the bids, we initiate a discrepancy treatment process, which begins with the issuance of a notice of divergence (NOD) to the supplier.
The NOD summons the supplier to analyze, together with Petrobras, the causes of the discrepancy. After the analysis, the supplier must correct the flaws, identify the root cause of the discrepancy, eliminate it, and propose corrective action. This entire process is governed by the ISO 9001 Quality Standard.
If the discrepancy treatment and improvement actions are not implemented, Petrobras may:
- Seek financial reimbursement due to the corrections that were not made;
- Terminate existing contracts due to the poor quality of the goods supplied and services rendered;
- Notify the quality certification bodies, which may lead to the cancellation of the ISO 9001 quality certification of the manufacturing units involved;
- Prevent the suppliers’ from participating in Petrobras’ recognition and awarding processes;
- Disqualify the supplier from Petrobras’ Registry;
System of consequences
We apply the following consequence measures to suppliers as provided for in our System of Consequences, in compliance with the current legislation:
- Administrative Sanctions: Warning, suspension, administrative fine, and prohibition from participating in bidding and contracting with the Petrobras System.
- Impediment from participating in hiring and signing of contracts: This may occur due to sanctions applied by Petrobras; Transparency Portal sanctions applicable to Petrobras; High Degree of Integrity Risk (GRI); termination from the National Registry of Legal Entities (CNPJ - Brazilian Companies) at the Brazilian Internal Revenue Service, and precautionary blocks.
- Non-qualification in Bidding: Performance evaluations can be used as a requirement to qualify suppliers in hiring processes. Suppliers with Low IDFs may be disqualified from public bidding under the argument of unsatisfactory technical quality.
- Disqualification in the Registry: The supplier’s registration and the status of its families of goods and services may be subject to revision due to Low Performance, resulting in technical disqualification (cancellation) from families; this may eventually be reversed. For this, the supplier must submit justification and an action plan to the Petronect Portal’s Contact Us section, which will be subject to analysis.
Acknowledgment of suppliers
Each year, we acknowledge suppliers who stand out for their relevant participation in the delivery of goods and services with value generation, making the difference in terms of performance in term, quality, management, SEH, compliance, and integrity.
Outstanding suppliers are awarded the Petrobras Best Suppliers award. They may also be acknowledged for their specific performance in the Featured SMS and Equity Special categories.
Our objective is to encourage commitment to excellence and to strengthen the spirit of collaboration and partnership, in line with the norms and company expectations.