CanadaBusiness with Government

A Working Session with

government-mailing-lists.com

Doing Business with Government

The Structure of Government• Parliament

• Treasury Board

• Privy Council Office

• Deputy Ministers

• Departments, Agencies, Crown Corporations, Special Operating Agencies

• Regional Operations

• Local Offices

• FedNor

Doing Business with Government

Procurement Overview

• rules set by the Treasury Board

• there is a central procurement operation which has own procurement guidelines

• guiding principle is fairness - therefore competition, OBS, GBO

• departments abide by Treasury Board but set own procedures

Doing Business with Government

Procurement Overview

• total expenditure $8 billion annually

• Public Works and Government Services Canada (PWGSC) spends $4 billion

of total

• generally, all requirements are open to tender

• sole source is possible but strictly controlled

• goods and services contracts are treated differently

Doing Business with Government

Procurement Overview (cont’d)Goods

• departments - up to $5k directly

• source lists between 5k and 25k - departments can influence lists

• greater than 25k use Open Bidding System and Government Business Opportunities

Services

• 18% through PWGSC

• departments up to $100k non-competitive,$400k competitive

• Crown Corporations and Agencies more flexible

Doing Business with Government

Procurement Overview (cont’d)

• PWGSC uses procurement manual

• other departments may or may not follow same procedures

• procurement runs on fiscal year of April 1 to March 31

• Contract Claims Resolution Board

Doing Business with Government

PWGS Procurement ActivitiesGolden Rule - Competitive Procurement

• Treasury Board Guidelines on Procurement

• PWGSC Procurement Manual

• Procurement structured by Directorates

Armament, Marine and Electronics Systems

Science, Informatics, and Professional Services

Industrial and Commercial Products and Standardization

Real Property Contracting Directorate

Construction and Maintenance Services

• Contracts Canada

Doing Business with Government

PWGS Procurement Activities

How PWGSC Buys

telephone buy under 5k, 3 companies over telephone

request for quotation (RFQ) under 25k, selected suppliers

invitation to tender more than 25k, price only

request for proposal (RFP) more than 25k, not only price

request for standing offer extended time period, no commitment

sole source special circumstances

Doing Business with Government

Structure of Departmental Procurement Activities

Departmental/PWGSC organization structure the same:

Deputy Minister

Assistant Deputy Minister

Director General

Director

Manager/Chief

Section Head

Procurement Officer

Procurement Clerk

Doing Business with Government

Structure of Departmental Procurement Activities

Departmental procurement structure is different:

Deputy Minister of department

Assistant Deputy Minister - Corporate Services

Director General - Finance and Administration

Director - Administration

Manager/Chief - Material Management

Section Head - Procurement

Doing Business with Government

Procurement MechanismsOpen Bidding System

Government Business Opportunities

PWGSC and departmental source lists using telephone/trade directories etc.

Results are:

individual contracts

standing Offers - National Master, Regional Master, National Individual, Regional Individual, Departmental Individual

supply arrangement

Doing Business with Government

Procurement Mechanisms

Sole source contracting

• only under special circumstances

• Advanced Contract Award Notice posted on OBS for 15 calendar days

• any supplier can file Statement of Capabilities

Doing Business with Government

Accessing Procurement Opportunities

• register as a supplier in the Supplier Registration Information System (SRI) through Contracts Canada

• obtain OBS account through MERX

• contact procurement officers in all departments and agencies

SRI links to (mostly Regional):

Vendor Management Information System - identifies sources of supply, low dollar value

Administration and Control of Contracts and Regional Data System - low dollar value construction and maintenance

Doing Business with Government

The Open Bidding System

• created approximately 9 years ago

• response to perceived lack of fairness in supplier opportunity

• run by a private contractor under the name MERX

• linked to the bulletin of Government Business Opportunities published every Tuesday and Friday

• NOT ALL PROPOSED PROCUREMENT ACTIVITY IS ON THE SYSTEM

• information retrievable by searchable category, by GSIN, or by creating a profile

Doing Business with Government

The Open Bidding System

• new contract history site available to see who has purchased what

• the OBS should not be taken as the sole approach to obtaining government work

• the system may no be entirely free of bias

Doing Business with Government

The Request for Proposal (RFP)

• used where the contracting decision is based on more than simply price

• statement of requirements which must be met by bidder

• requirements include:

• mandatory requirements - pass or fail

• point rated criteria - scope for creativity

• technical - how the bidder will do the work

• management - staff, approach to project, understanding of requirement, quality control (the non-cost items)

• financial section - costs and relationship to deliverables

Doing Business with Government

The Request for Proposal (RFP)

Preparation:

• FIRST IMPRESSION COUNTS

• each point must be addressed in order

• include chart relating proposal content to RFP requirements

• include covering letter

• reference Standard Acquisition Clauses and Conditions Manual if necessary

• obtain Industrial Security clearance in advance

Doing Business with Government

The Request for Proposal (RFP)

What procurement officers are looking for:

• neat, well organized proposal

• all points must be addressed in order

• clarity and conciseness of presentation

• demonstration that supplier understands the request, and proposal speaks directly to it

• each point in mandatory requirements covered

Doing Business with Government

The Request for Proposal (RFP)

How to improve proposals:

• contact procurement officer when unsuccessful

• obtain debriefing

• meet with potential clients and determine their specific needs

Doing Business with Government

Action Items

1. ensure company is on list of government green service providers2. access the OBS twice a week

2. arrange for industrial security clearance for the company/staff

3. register on the Supplier Registration Information System

4. make company known to appropriate procurement officers in PWGSC

• AMES

• ICPSS

• regional offices

5. make company known to procurement officers in potential client departments, HQ and regions

Doing Business with Government

Action Items

6. set up OBS bid-matching

7. subscribe to the GBO bulletin

8. see about partnerships with clients and with PWGS

9. obtain Canadian General Standards Board (CGSB) standards for your services

10. access contract history site to analyse contracts relating to your services

11. develop lists of key contacts

12. duplicate above list for provincial departments

Doing Business with Government

Major contractors and Contracts through PWGSC 2000 – 2001 (billions)

National Defence 4.8 PWGSC 2.5 Treasury Board .8Canadian Commercial Corp .5Canadian Space Agency .19CCRA .13Fisheries and Oceans .12Health Canada .12

Major Commodities

Transport services 1.02Telecommunications services .86EDP equipment .8Communications equipment .6Fuels, lubes etc. .55Facilities operations .45Motor vehicles .4Architect and Engineering Services .4

Doing Business with Government

Government of Ontario

• structure of government and procurement similar to federal government

• procurement limits also similar to federal government - goods over 25k and services over 100k are tendered electronically (MERX) or through the

newspaper

• less than these limits - RFT, RFP, telephone or written quote

• environmental concerns in contracts over 10k

• Thank You• consulting@government-mailing-lists.com