When the Procurement Requestor or the staff conducting procurement discover significant variance between actual and expected performance, they must take corrective action (if possible). They should identify the cause of the problem and determine a solution that will not only eliminate it as a source of future difficulty, but will correct (if possible) any effects that already may have resulted. If the effects cannot be corrected, then the parties may need to negotiate a change to the contract, with compensation to the injured party (where appropriate).

Once corrective action has been taken or is under way, the staff conducting the procurement and the Procurement Requestor should determine whether action has had—or is having—the desired effect. If not, then further action may be needed.

Throughout this process of corrective action and follow-up, all the parties must keep each other informed. Effective communication between the parties is essential to avoid misunderstandings and disputes when things are not proceeding according to plan. The party taking corrective action must make every effort to let the other party know that it is aware of the problem and is addressing it seriously. Sometimes this is more important than the corrective action itself.

In case a corrective action does not have the desired effect, early termination of the contract can be negotiated. In case this option is proposed, staff conducting the procurement and the Procurement Requestor must evaluate and document the technical and financial consequences of the early termination. Such action must be noted in the file of the contractor and forwarded to the Procurement Coordinator for the record.