THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON ISSUED DATE: 09/17/00

LOGISTICS/ACQUISITION OPERATING PROCEDURES REVISED DATE: 04/22/08

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SECTION 4 SUPPLIER MANAGEMENT
SUBJECT 4.50 VENDOR PERFORMANCE

GENERAL INFORMATION

This procedure is issued to establish effective guidelines administered by the Supplier Management Section of
Logistics/Acquisitions for the management of Vendor Performance in accordance applicable state and federal laws and
regulations.

AUDIENCE

Applicable to all Procurement Staff and designated Satellite Buyers.

GUIDELINES

1. Vendor Performance

Any employee of UTMB may report to Supplier Management any problems with a Vendor’s performance or other
concerns, as well as, any accolades. Supplier Management will review the compliant or accolade, file a copy in
the “Vendor Information File”, and determine whether to notify the TPASS’s Vendor Performance Program.

2. Suspension, Debarment and Exclusion of Vendors

A. Supplier Management shall follow the guidelines and procedures of TPASS’s Vendor Performance
Program and OMB Circular A-110 for the debarment, suspension and exclusion of Vendors.

B. No Purchase Orders or Contracts can be issued to any Vendor on warrant hold by the Comptroller,
suspended or disbarred by the TPASS or other Federal Agencies, or suspended by the Compliance
Officer. This provision includes any subcontracts let by a prime contractor.

For any Purchase Order or Contract utilizing Federal Funds (e.g., Federal Grants and Contracts), any
subcontracts let by a prime contractor over $25,000, must include certification by the subcontractor that
their organization and its principles are not suspended, debarred or excluded by any State or Federal
Agency before being approved.

C. The Compliance Officer may suspend a Vendor indefinitely for material breaches under UTMB’s
Standard Terms and Conditions, non-performance, or other improper activities that have been properly
documented and substantiated.

 If the Compliance Office elects to suspend a Vendor, he/she will send a letter to the Vendor
indicating the concerns/issues UTMB has and instructing the Vendor to respond to or correct the
concerns/issues within ten (10) days from receipt of the letter. The letter shall also inform the Vendor
of the actions UTMB will take if the concerns/issues are not addressed and/or corrected.

 If after review of the Vendors response, and/or actions taken to address or correct the
concerns/issues, the Vendor has not taken appropriate measures, then the Compliance Officer may
suspend Vendor until the concerns/issues have been properly addressed. The Compliance Officer
shall issue a “Suspension Letter” informing the Vendor of the action taken and forward all relevant
documentation to TPASS’s Vendor Performance Program.

 If an assessment of damages is due to UTMB, the Compliance Officer shall process the claim in
conjunction with UTMB’s Department of Legal Affairs.

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 D. Once a quarter, Supplier Management will reconcile UTMB’s Vendor Database against listings of all
suspended, disbarred and excluded Vendors by the TPASS and appropriate Federal Agencies. If a Vendor
is found to be suspended, disbarred or excluded, their “Vendor Information File” will be properly
documented and they will be inactivated from UTMB’s Vendor Database until such time they are no
longer suspended, disbarred or excluded.

EXCEPTIONS

There will be no exceptions unless by formal addendum to this procedure or other formal written exception by the Chief
Purchasing Agent.

REFERENCES

TPASS’s Vendor Relations Program

Government Code; Section 2155.077
OMB Circular A-110

4.50 Vendor Performance

Approved: Jeffery Bonnardel, C.P.M.

Chief Purchasing Agent