Office of the Procurement Ombudsman

Presentation to the Institute for Competition and Procurement Studies

Bangor University

Frank BrunettaProcurement Ombudsman of Canada

Bangor, UK, March 21, 2013Promoting Fairness, Openness and Transparency in Federal Procurement

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Westminster parliamentary system House of Commons, the elected lower half of Canada's federal

bicameral legislative body, the Parliament of Canada. The political party with largest number of elected members of

Parliament forms the government – party leader becomes Prime Minister.

Prime Minister selects Cabinet Ministers from the Party’s elected Members of Parliament.

Public Service is professional and non-partisan Career bureaucrats provide advice and services with the

highest standards of accountability, transparency and efficiency

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Canadian Context

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Procurement ~ fourth largest Canadian federal expenditure

1. C$157.9B - Transfer Payments

2. C$42.3B - Personnel

3. C$ 30.8B - Debt Payments

C$15B - Procurement

1% of GDPSource: 2010-2011 Main Estimates

C$15-C$20Bannually

92%+ LDV

(355,000)

~385,000 contracts

~C$1.5B(~8% of annual expenditure)

Source: Treasury Board Secretariat 2008-2009-2010 3 year averages

LDV-Low Dollar Value < C$25K – Goods & Services

Canadian Federal Procurement

Canadian Federal Procurement~ Roles and Responsibilities...

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Treasury Board of Canada Secretariat (TBS) Develops government-wide procurement policies Establishes limits on the project and contract approval authorities of

ministers and approves projects contracts above established limits Department of Public Works and Government Services

Canada (PWGSC)• Services to other departments and agencies :

• procurement• real property management

100+ Departments and Agencies Develop operational requirements for goods & services Contract for goods (when delegated) and for services within

ministerial limits

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Roles and Responsibilities (cont’d)

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Justice CanadaProvides legal advice on procurement transactions and

issues

Canadian International Trade Tribunal – quasi-judicial institution

Examines supplier complaints concerning federal government procurement covered by NAFTA, WTO and other trade agreements

Auditor General of CanadaAudits government operations to ensure compliance with

policy and value for money

Procurement in Canada… can be complex…

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Legislated, Regulatory and Policy framework: More than 15 Actso Federal Accountability Act – fairness, openness and

transparency o Criminal Code – prohibits bribery and fraud against

government o Public Disclosure – all contracts more than $10K made publico Financial Administration Act – Government Contracting

Regulation

More than 35 policies to be considered/respected

Contracting founded on the concept of competition; a cornerstone of Government Contracting Regulation

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Bids must be solicited, except: Pressing emergency

Valued under C$25,000

Not in the public interest

Only one vendor capable of performing contract

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Government Contract Regulations~ Concept of Competition

Office of the Procurement Ombudsman

FederalAccountability Act- strengthen ethics- truth in budgeting- qualified appointments- access to information- whistleblower protection- strengthen auditing- clean up procurement- Procurement Ombudsman

2008 – Office of the Procurement Ombudsman2006 –

Conservatives elected

Main feature of Federal Accountability Act

Prior to 2008:

suppliers had limited recourse mechanisms on low dollar value contract disputes

no third party dispute resolution mechanism

No dedicated body for oversight of federal procurement activities

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Procurement Ombudsman

Office of the Procurement Ombudsman~ An Independent Organization

Government-wide mandate operating at arm’s length from departments

Reports to the Minister of Public Works and Government Services

Regulatory requirement to produce Annual Report Minister required to table report in Parliament

Neither a lobbyist for suppliers nor an apologist for federal departments

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Mission Promote fairness, openness and transparency in

federal procurement

Mandate Review complaints respecting the 1) award and 2) administration of contracts Review procurement practices of departments for

acquiring goods and services Provide Alternative Dispute Resolution (ADR)

services

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Office of the Procurement Ombudsman

Suppliers often: concerned or frustrated Do not fully understand the procurement

process want answers!

Our role is to: first and foremost Listen be helpful point callers in the right direction facilitate whenever possible

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When Suppliers Call Us...

Office of the Procurement Ombudsman

Our goal: Informal Resolution Shuttle Diplomacy Dialogue De-escalate

If all else fails...

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Office of the Procurement Ombudsman- ADR Service

Terms and conditions of contract at issue

Voluntary Requested by one party/

agreed by both Quick and no fee

for service Discussion without

prejudice Results are confidential & Legally

Binding

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Our experience to date...

Avoids lengthy and costly litigation: Less time consuming No fee service appealing to SME’s Minimal risk to both parties Possibility of reaching legally-

binding settlement

Confidentiality is key Preserves business relationship

Questions?

www.OPO-BOA.gc.ca

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Office of the Procurement Ombudsman

Streamlined procurement policies and replaced transaction-level requirements and rules with basic principles of management accountability and transparency:

• Moved from rules based Contracting Policy to principles based policy on Managing Procurement;

• Ensure value for money and manage procurement in a way that supports program delivery and operations;

• Link investment decisions to procurement strategy.

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Federal Accountability Act

Procurement to be conducted in an accountable, ethical and transparent manner;

Consolidation of measures on conflict of interest and anti-corruption, as well as other legislative and policy requirements;

Ensured that both public servants and vendors were working from the same statement of expectations and commitments;

Clearly outlined what is acceptable conduct when contracting with the federal government.

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Federal Accountability Act (Cont’d)

Public servants must:Adhere to laws, regulations, and policies;Commit to uphold the democratic, professional, ethical

and people values of the Values and Ethics Code; and,Arrange private affairs in a manner preventing conflicts of

interest (real or perceived).

Vendors must:Respond to requirements in an honest, fair and

comprehensive manner;Accurately reflect their capacity to satisfy requirements;

and,Submit bids and enter into contracts only if they can fulfill

all contractual obligations.20

Federal Accountability Act (Cont’d)

Inclusion of integrity provisions in all government contracts;

Reduce the opportunity to exert political influence through large donations to political parties and candidates;

Strengthen the role of the Ethics Commissioner by introducing a new Conflict of Interest Act and granting powers to the new Conflict of Interest and Ethics Commissioner to enforce it;

Toughen the Lobbying Act by introducing stricter rules for lobbyist activity and giving a new Commissioner of Lobbying enhanced powers to investigate and enforce them; and,

Appointment of a Procurement Ombudsman.21

Federal Accountability Act (Cont’d)

Uphold the public trust Act and negotiate in good faith Work within the law Speak honestly Use processes that are transparent to all Act in fair and considerate manner Deal with people equitably and with civility Seek, consider and value input Accept the consequences of their actions

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Federal public servants committed to: