Petrobras periodically evaluates the performance of its Suppliers.
The performance evaluations related to the service rendering analyze the behavior of the companies regarding deadline, quality, management and SMS, while the evaluations regarding the supply of goods analyze their behavior regarding deadline and quality.
In October 2016, Petrobras implemented the Supplier Performance Index (SPI) as a Supplier Performance Evaluation tool in the agreements for the supply of goods and services rendered between "Petróleo Brasileiro S.A" and its Suppliers.
For service delivery agreements in force prior to the start of the SPI, the Performance Assessment Bulletin (PAF) remains as a tool for evaluating supplier performance. In these cases the PAF notes (0 to 100) are converted into SPI notes (1 to 6), and can be viewed in the Petronect Portal.
The Supplier Performance Evaluation system based on SPI notes has made the process more objective, since the evaluation scores are calculated automatically by the system from pre-established parameters:

• SPI Service: Performance note resulting from periodic evaluations carried out over the life of the service contract where standardized questionnaires are used based on the characteristics of the services and their criticality. Occurrences related to term, quality, management and SMS impact the note.
• SPI Asset: Performance note resulting from conforming material delivery. Occurrences related to quality and timing impact the grade. Suppliers can follow their SPI notes in the Petronect Portal, after login and password, clicking on Register at Petrobras, then on Evaluation Results and finally on Monitoring Panel. The Supplier's global SPI note, SPI family notes (SPI Fam), and SPI notes for each contract can be viewed.
  
  

The performance evaluations may serve to qualify suppliers in bidding processes and, in case of low performance suppliers may be disabled in biddings of which they participate.
The performance evaluations may also serve to maintain the status of families and eventual revision of the registry, without prejudice to other purposes determined by Petrobras, respecting the Consequently System of Corporations established.

System of Consequences

The Consequences System establishes general guidelines for Petrobras in the application of measures, based on current legislation and internal standards, as follows:

• Warning: cadastral annotation that does not imply in impediment of registration or contracting.
• Suspension: systemic blocking that implies in the impediment of registration and contracting with Petrobras and can last from 1 to 24 months.
• Prohibition to participate in bidding and to contract with the Petrobras System: a systemic block that implies the registration and contracting with the Petrobras System (including subsidiaries), has a minimum duration of 24 months and lasts until the rehabilitation of the sanctioned company is promoted.
• Administrative fine: a measure of a pecuniary nature not to be confused with the penalties provided for in the contract.
• Technical Disqualification: cancellation action of suppliers' families in the registry that makes the supplier technically disqualified, due to low performance, according to internal indicators.
  The technical requalification of the supplier in the families of the register can be done after analysis and approval of the justifications and action plan that he presented through the "Contact Us" in the Register Portal (Petronect), informing the reasons of the low performance.

Notice of Occurrence of Divergence (NOD)

It consists in recording technical or commercial divergences between supplier and Petrobras, with the consequent sending of notification to the supplier of the occurrence of technical problems or low performance (delays or cancellations), based on the quality tools and the International Standard of Quality ISO 9001.

The main objectives of NOD are to eliminate such divergences and to avoid recurrence. However, if the supplier does not take the necessary actions, it may result in the application of Administrative Sanction or Technical Disqualification.

Click here for more information about the Notice of Occurrence of Divergence.