Supplier Recognition Program

Developed By: Vendor Management

Last Reviewed: 03/28/2024

SBM Management Services, LP (SBM) is committed to fostering strong, sustainable, and ethical relationships with its suppliers, vendors, and subcontractors. This policy establishes the framework for recognizing and rewarding high-performance on a quarterly and annual basis, emphasizing the importance of safety, excellence, value-creation, sustainability, and ethical practices among our suppliers, vendors, and subcontractors.

Purpose

The purpose of this policy is to:

Promote the highest standards of safety and safe practices;
Encourage continuous improvement and excellence;
Facilitate sustainable and ethical business practices;
Strengthen relationships through recognition of outstanding performance.

Scope

This policy applies to all suppliers, vendors and subcontractors engaged with SBM across all categories of procurement products and services.

Quarterly Awards: Recognize suppliers, vendors and subcontractors who demonstrate exceptional performance in safety, delivery, quality, innovation, and environmental, social, and governance (ESG) practices over a quarter.

Annual “Partner of the Year” Awards: The highest honor, recognizing a supplier, vendor or subcontractor who consistently excels across all performance metrics, including strategic contributions and leadership in safety, delivery, quality, innovation, and ESG practices, throughout the year.

Criteria for Evaluation

Quarterly Awards Criteria

Safety: Exemplary adherence to safety protocols and proactive measures in place to prevent incidents.
Delivery Performance: Accuracy, timeliness, and condition of deliveries.
Quality Compliance: Adherence to SBM’s quality standards and specifications.
Innovation and Improvement: Efforts to improve processes, reduce costs, or enhance service delivery.
ESG Initiatives: Performance in sustainability, social responsibility, and ethical governance.

Annual Awards Criteria

Safety: Perfect Safety record with no OSHA recordable incidents for SBM awarded scope(s) of work.
Consistent Excellence: Sustained high performance in delivery, quality, and ESG.
Strategic Impact: Significant contributions to SBM’s strategic goals and objectives.
Sustainability Leadership: Exceptional initiatives in environmental sustainability and social responsibility.
Ethical Practices: Unwavering commitment to ethical business practices and governance.
Value: Significantly enhances SBM’s performance through innovative solutions, cost-saving measures, and impactful contributions.

Nomination & Selection Process

Nomination: Suppliers may be nominated by any SBM employee with direct interaction with the supplier, vendor or subcontractor supported by quantitative and qualitative performance data.

Selection: An awards committee comprising members from Procurement, EHS, Operations and ESG departments (“Awards Committee”), will review nominations against the established criteria.

Approval Authority

Quarterly Awards: Approved by the Director Vendor Management and the Awards Committee.

Annual Awards: Final approval by the Sr. Vice President of Procurement, based on recommendations from the Awards Committee.

Notification and Recognition

Notification

Winning suppliers, vendors or subcontractors will be formally notified through an official award notice, detailing the reasons for their selection.

Recognition

Quarterly Awards: Certificate of Excellence, feature in internal communications, and a token of appreciation.
Annual Award: Trophy or plaque, feature in SBM’s annual report, feature in internal and external Marketing, and expanded business opportunities.

Responsibilities

Vendor Management: Oversee the nomination and selection process, ensuring adherence to policy criteria.
Awards Committee: Evaluate nominations, select winners, and recommend approvals.
Marketing Department: Manage the announcement and publicity of award winners internally and externally, as appropriate.

Policy Review and Update

This policy shall be reviewed annually or as necessary to reflect changes in business practices or regulations. Any amendments must be approved by the Director Vendor Management.