The Corporate Procurement Policy Branch is responsible for developing and advising on the government’s procurement policy framework, including the development of related guidelines, tools and best practices, providing strategic procurement advice to ministries and the Management Board of Cabinet, and providing procurement related training to both ministries and the vendor community.
Our primary objective is to meet the government’s goal to manage public funds efficiently and effectively and to ensure value for money for the goods and services that are bought by the government.
2. TIPS ON HOW TO DO BUSINESS WITH THE GOVERNMENT OF ONTARIO
How are bids solicited?
We have a number of ways of requesting bids from vendors for goods and services. How we proceed depends on our specifications and the estimated value of the contract.
One of the following procedures must be used to solicit bids for procurement contracts valued at $25,000 or more for goods and at $100,000 or more for services and construction:
- Electronic advertising through an electronic tendering service;
- Newspaper advertising.
For more information, please refer to section titled “How to Access Bidding Information”.
To solicit bids for procurement contracts whose value is less than $25,000 for goods, and service contracts valued at less than $100,000, we use various methods, including:
- Telephone or written quotes for small value purchases;
- Written request for tender (RFT) for larger contracts;
- Invitational requests for proposals (RFP) for more complex transactions for which we may need your expertise to address and propose solutions to special situations;
- Advertising in local newspapers.
For low dollar value purchases, usually less than $5,000, the “Ontario Government Purchasing Card (Pcard)” (a credit card issued in the name of an employee) enables a designated government employee to efficiently make government related purchases of such items as: stationery, automobile parts, clothing, computer supplies, etc., excluding travel and travel-related expenses. For details refer to section on "How Am I Paid?"
How do I respond to a Request for Proposal (RFP)?
The Government of Ontario may ask for proposals when it has a situation that requires a solution to a particular business need. The government will ask that solutions be proposed and will pick the best one. The selection of a contractor, a supplier or a consultant is based on the effectiveness of the proposed solution.
The Rules
When the Government of Ontario wants to procure goods or services over a certain dollar amount it must follow procedures that ensure a fair, open and transparent competition. As for the dollar amounts that trigger the procurement rules, they vary depending on whether goods, services or construction are being procured (i.e. $25,000 or more for goods and $100,000 or more for services and construction).
There are also exceptions to the application of the procurement rules, such as in the case of urgency, or cases in which only one supplier can meet a very specialized need. There are also exemptions for certain defined goods and services, but otherwise the rules apply.
Notification of procurement
The government's intention to acquire the goods, services or construction in question must be openly advertised so that all potential bidders have notice of
how to obtain the tender documents.
What is the government buying?
The government's requirements - the scope of work, specifications for the goods, etc. - must be clearly and precisely set out in the tender documents. In other words, you must be able to determine exactly what it is you are bidding on.
How are the bids ranked?
The evaluation criteria that the government will use to choose the winner must be clearly set out. The tender documents must clearly state which requirements are mandatory and which are desirable. The weighting of the areas to be scored (such as past experience, product performance, etc.) must be set out.
Who wins the contract?
The government must clearly specify the selection factors that will determine the winner, e.g. lowest price, best value, or some other combination of measures of
ranking bids.
You must be told about all the requirements
The tender document must tell each potential bidder exactly what they must do to submit a compliant bid in order to potentially win the contract. It is up to the bidders to make sure their bid is compliant and competitive. It is important that you write a proposal that stands out.
Here are some hints on writing effective proposals:
Ask us questions
Every tender document (e.g. Request for Proposal (RFP)) is unique, so read it very carefully. Review the requirements and the evaluation criteria. If you do not understand something, contact the designated person noted in the tender document and ask for clarifications. Do not call your client department contacts as this could jeopardize the bidding process. Questions must be asked within a specified number of days before the closing date, so be sure to ask them in plenty of time.
We compile all questions and answers and make them available to each supplier that has received a copy of the tender document so that everyone has the same information.
Organizing your proposal
The tender document will tell you exactly how to lay out your proposal and how it will be evaluated. Make sure you follow the instructions. Review the general conditions and standard instructions. Make sure that you address all the
mandatory requirements. Only bids meeting the mandatory requirements will be further evaluated.
Non-compliant bids are typically the result of failure to read the tender document carefully enough. The other leading reasons are failure to understand how to write a compliant bid and failure to utilize the question and answer process.
Mandatory requirements
Before you start writing, note which requirements are mandatory - the "must haves". Mandatory requirements are evaluated objectively on a simple pass/fail basis. You have to meet all mandatory requirements for your proposal to be responsive, and only responsive proposals get further evaluation. Address every mandatory requirement directly. Give us enough information to work with.
Technical section
This is where you usually provide the most detail in response to the specific requirements that your bid document evaluation will be based on. It is your chance to show us that you understand the requirements. This is the point where you would describe what and how you would do the work if you were awarded the contract.
You would typically start with a short introduction that includes an overview of the current state and the need for the project, the objectives of the proposed work, the reasons for carrying it out as proposed and the benefits that will be derived. Usually you would then describe and substantiate the work plan, methodology and techniques that you are proposing and identify any problems anticipated and contingency plans in the event that problems arise.
You would also typically identify specific tasks and deliverables and the schedule for completion or delivery, as well as, provide information about how many people you will assign to the various tasks, their levels (explained by title, not salary) and how many hours or days they will be assigned. Do not include any pricing information in this section.
Management section
You usually have an opportunity to introduce your team and indicate why they are the best people to do the work. Describe each team member and the part of the contract he or she will work on. Include a description of their education and experience. The same information should be provided for any subcontractor or sub-consultant involved in the process.
Financial section
In this section you would typically be asked to provide a detailed breakdown of the quoted price in terms of its cost elements. The tender document will tell you what cost items will be considered in the financial evaluation. No other costs will be considered.
Address each and every point
Read the tender document and respond in the exact terms requested. While the government can legally ask you to clarify your bid after the tender has closed, it cannot ask you to repair your bid if it is non-compliant, that is, if it states something clearly but incorrectly. The government might know what you intended to say, and may know that you have the capability in question, but it will
be forced to reject your bid if you have not used words or provided the details that were asked for in the tender document. The government cannot make assumptions about your proposal. It can only evaluate the information you provided.
As you set about preparing your proposal, keep the requirements and evaluation criteria at hand and refer to them because you are required to respond to the requirements stated in the tender document. Address each and every point directly and with a sufficient amount of technical and management information.
It is a mistake to assume that because you have dealt with the government or this particular client before that we know your organization and skills. Each proposal is evaluated solely on its content. If you develop an alternative solution to the problem described in the tender document, and would like to propose it, you should respond to the specific request made in the tender document first
but you may also offer your solution as an alternative. Do not offer it as a substitute for what we are asking or your proposal might be deemed non-responsive. Accepting major differences to what is asked for would jeopardize the fairness of the competition.
Key points to remember
- Organize your proposal so that it matches the sequence of the tender document. Make your offer complete, concise and precise.
- Once you have drafted the project goals and objectives, check them against the priorities and requirements spelled out in the tender document. No matter how good the proposal, or how creative the project; if it does not address the specified priorities it will not be selected as the successful bid.
- If the proposal is long, write an executive summary and include a table of contents with page numbers.
- If your company has a track record of successful projects, or if you have won awards, mention them.
- Note the sections that carry the most evaluation points and provide responses accordingly.
- Put your logo or company name on each page so we can identify them if we take the proposals apart to compare similar sections.
- Provide the number of copies we ask for in the tender document.
- Sign the bid document and attach it to make your proposal a legally binding offer.
- Follow all directions! If there is a page limit, adhere to it. If certain information is requested, provide it. When in doubt or not clear on anything, contact the designated contact within the allowable period for questions and answers.
Who evaluates my bid?
Bids are usually evaluated by our procurement officers and the potential users of the goods and services required. In cases where bids are received for larger and more complex contracts, the evaluations are reviewed and approved by one or more senior officials.
What do contracts with the Ontario government include?
A contract is required for all procurements. Typically the contract sets out responsibilities of the vendor and the purchaser. Prices may decrease under the terms of the contract, and may increase but only under special circumstances (such as a sales tax increase). Contracts include cancellation clauses, and describe how the vendor’s performance may be evaluated by us.
How do I find out if my proposal was successful?
All successful bidders are notified when we award contracts. Unsuccessful bidders are entitled to know why their bid was not selected. The name of the successful bidder and the accepted bid price can be provided upon request, in accordance with the Freedom of Information and Protection of Privacy Act.
How am I paid?
Vendors to the Ontario government are typically paid within 30 days after the receipt of goods or services, or after the invoice is received, whichever is later.
Vendors accepting the “Ontario Government Purchasing Card” for purchases of goods and services from authorized government employees, either in person or over the phone, can expect to receive prompt payment from BMO - MasterCard.
Vendors please note:
- Cards are embossed with the employee name, ministry name, GST exemption statement and expiry date
- Cards have restrictions as to merchant category codes, as well as dollar limits per transaction and monthly credit/transaction limits.
For more information on the “Ontario Government Purchasing Card”, contact:
Ontario Shared Services
Contact Centre
Tel.: (416) 326-9300 (local)
1-866-979-9300 (toll-free, from outside of Toronto)
TTY: (416) 327-3851
Fax: (416) 314-8910
E-mail: AskOSS@mgs.gov.on.ca
or the Ontario Shared Services Contact Centre supplier line:
(416) 212-2345 (local)
1-866-320-1756 (toll-free, from outside of Toronto)
4. SELLING INFORMATION TECHNOLOGY TO THE GOVERNMENT OF ONTARIO
Information technology vendors who want to sell to the Ontario government may improve their chances of success if they know how we buy. The following outlines our competitive process for buying information technology.
How is the technology used?
We are committed to using information technology throughout the province for efficient service delivery to the public.
What kinds of information technology do we buy?
We buy equipment, software and services for creating, storing, processing and communicating information. There are several ways we use this technology - as numeric and textual data, images, graphics, on video and through telecommunications.
What is the procurement process for information technology?
When we buy goods valued at $25,000 or more, and services at $100,000 or more, we use an open competitive process.
First, a bidding document is prepared. It explains the technology to be acquired and sets out required functions, processes and activities. Sometimes we set standards or require technical features that match our existing technology.
Next, we follow these seven steps:
1. Advertise the call for bids using the national electronic tendering service and/or newspaper advertisements. On occasion we may use these venues to provide notice to the vendor community of an upcoming business opportunity;
2. Provide bid documents to interested vendors;
3. If needed, organize briefing sessions to provide answers to vendors’ questions;
4. Receive and evaluate written vendor bids;
5. Select the highest ranked proposal that meets all the mandatory
requirements;
6. Award the contract to the successful vendor;
7. Inform unsuccessful bidders of the results of our selection, upon request.
Is all technology bought by tender?
No. Sometimes software is evaluated using a different process. In this situation we prepare a list of all the functions the software must perform as well as other criteria. Available software packages are then compared. The software which meets these requirements and has the lowest evaluated cost, is purchased.
What about confidential data?
Program data that is confidential or essential to the operation of ministry programs must be stored and processed in Canada.
5. SELLING CONSULTING SERVICES TO THE GOVERNMENT OF ONTARIO
Consultants wishing to work with the Ontario government should know the following about the kinds of services we buy, and how we do our buying.
We buy a variety of services:
- Information technology consulting services (specific to electronic data processing, telecommunications and office automation);
- Technical consulting services (such as accounting, actuarial science, architecture, appraisals, health sciences, interior design, social sciences, etc.);
- Management consulting services (to help managers analyse business problems, and find solutions to those problems);
- Research and development services (including investigative studies to increase knowledge and/or available information about a particular subject).
When are these services used?
We use external consultants only when it is not possible to use our own ministry staff.
What is the buying process?
When the value of the contract is $100,000 or more, we use the following competitive process: request, receive and evaluate proposals, select the qualified bid which provides the best value for the funds to be expended, award the contract and notify unsuccessful bidders.
Do you ever hire more than one consultant for any given project?
Yes, if a project is complex or large, it may be divided into several smaller parts. When this happens, specifications for each part are provided in the individual tendering documents.
A ministry or agency may also decide to hold a competition for part of a larger project. If certain conditions are met, the successful vendor may be awarded more parts of the same project without further competition.
Are agreements always in writing?
Agreements with vendors must be in writing.
How will I be paid, and can the price change after the agreement is signed?
Fees are established in advance and are based on terms and conditions which have been written into the contract. We do not calculate fees based on the results of a consultant's work (for example, a percentage of savings achieved through the introduction of a system recommended by the consultant).
Fees must be written into the agreement. Generally, a ceiling price is stated in the agreement. This cannot be exceeded if the terms and conditions of the agreement remain unchanged.
Sometimes the terms and conditions affecting the price of a contract must change after the consultant's work has started. This is allowed, as long as the procedures for changing the terms and conditions are followed.
6. VENDOR OF RECORD (VOR) ARRANGEMENT
What is it?
A vendor of record (VOR) arrangement is a procurement arrangement resulting from a fair, open, transparent and competitive procurement process that
authorizes one or more vendors to offer specific goods or services to ministries for a defined time period, with terms and conditions and pricing as set out in the particular VOR agreement.
What are the types of VOR arrangements?
There are ministry and corporate VOR arrangements. A ministry VOR is a local arrangement established by a ministry for its own use. A corporate VOR arrangement is open to all ministries. The Management Board Secretariat may designate certain VOR arrangements to be mandatory for use by all ministries.
Who establishes them?
- the Information & Information Technology Branch, for IT hardware, software and services (corporate use);
- the Goods & Serrvices Procurement Branch, for non-IT related goods and services (corporate use);
- individual ministries (own use).
How does my company become a VOR?
Like any other major procurement opportunity, VOR arrangements are established through a Request For Proposal (RFP) distributed through MERX (see p. 13). Bidders who successfully meet all the requirements of the RFP are awarded VOR status and enter into a contractual arrangement with the ministry which issued the RFP.
What is the maximum value of each procurement under a VOR contract?
$750,000. For procurements above this limit, a separate open and competitive process must be used instead of a VOR arrangement, unless another limit has been approved by the government in connection with a particular VOR arrangement.
Once I become a VOR, do I have to compete again for contract work?
Depending on the estimated cost of the good or service to be acquired under the VOR arrangement, there may be a requirement for a second stage selection process.
If the estimated procurement value is below $25,000 the ministry may use the VOR arrangement to select any one VOR vendor or, where applicable based on the good or service to be acquired, ask more than one vendor to bid on the specific project/assignment, in accordance with the terms and conditions of the VOR arrangement.
For contracts between $25,000 and $249,999, where applicable, at least three vendors would be asked to bid. For contracts between $250,000 and $749,999, where applicable, at least five vendors would be asked to bid.
On January 27, 2005, the Honourable Gerry Phillips, Minister of Government Services (then Chair of the Management Board of Cabinet), announced the creation of the Doing Business with the Ontario Government Task Force to consult with small and medium-sized businesses to help find ways to enhance access to government procurement opportunities.
The task force had a mandate to study Ontario government procurement policies and processes, to help identify barriers for small and medium-sized businesses and make practical recommendations to address these barriers.
Wayne Arthurs, MPP for Pickering-Ajax-Uxbridge, chaired the task force. The task force members were Judy Marsales, MPP for Hamilton West; Phil McNeely, MPP for Ottawa-Orléans; and Tony Wong, MPP for Markham.
The task force wanted to consult with, and listen to, small and medium-sized businesses to find practical ways for the government to be more responsive and to improve how it does business with them. For the purposes of its work, it defined “small and medium-sized businesses” as small and medium-sized enterprises that employ 500 people or fewer.
The work of the task force included consultations in five Ontario communities: Ajax (covering the Greater Toronto Area), Thunder Bay, Ottawa, London and Toronto. The task force i nvited local MPPs for these communities to attend the consultation sessions. It also invited small and medium-sized businesses and the associations that represent them to send submissions. This report sets out what the task force heard during the course of its consultations and its recommendations to the Minister.
On June 29, 2005, the Honourable Dalton McGuinty, Premier of Ontario, restructured his Cabinet, combining the former Management Board Secretariat and the former Ministry of Consumer and Business Services into the Ministry of Government Services, with Minister Phillips as the Minister. The Ministry of Government Services has retained responsibility for establishing government procurement policies and procedures.
The task force would like to express its appreciation to all of the individuals and associations that took the time to share their experiences and ideas during the consultation process. The feedback has been valuable in gaining an in-depth understanding of the issues that small and medium-sized businesses face when doing business with the Ontario government and in developing recommendations to improve the way the Ontario government does business with small and medium-sized businesses.
Consultation Findings
The consultation process was well received.
Consultation participants said that they appreciated the opportunity to play a part in identifying the issues that small and medium-sized businesses face in doing business with the Ontario government and to contribute to developing ways to find solutions.
Throughout the task force's discussions with small and medium-sized businesses around the province, it heard some common themes about what gets in the way of small and medium-sized businesses selling to the government. In particular, consultation participants identified several issues that they said present significant barriers for them in selling to the government. The issues are: the Ontario government procurement process is too complicated and it favours large companies over small and medium-sized businesses; it is difficult to get information about low-value procurements; it is difficult to find out who buys what they sell; for low-value procurements, government buyers choose vendors they already know and feel comfortable with; government buyers see it as “risky” to buy from small and medium-sized businesses; and responding to government procurement requests is costly and time-consuming for small and medium-sized businesses.
As well, throughout the consultations, participants provided suggestions on how to enhance the Ontario government's current policies and processes for small and medium-sized businesses that want to sell to the government. Some of the suggestions included: providing education packages or programs, in partnership with business associations where possible, to small and medium-sized businesses on how to do business with the government; setting aside certain procurement opportunities for only small and medium-sized businesses to bid on; providing opportunities that may only be bid on by small and medium-sized businesses located in certain parts of the province; increasing the ease and frequency upon which vendors may be added to vendor of record (VOR) arrangements; making better use of technology to simplify and standardize the procurement process, contract documentation and payments; requiring vendor debrief meetings to be offered to unsuccessful bidders; focusing vendor selection more on the quality of services to be provided than on price; and providing relief from the bank merchant rate for vendors accepting the government's purchasing credit card.
Addressing these issues and concerns will require practical action steps that include improving communications and information exchange with small and medium-sized businesses and developing simpler procurement processes.
Practical Action Steps: Task Force Recommendations
Based on its consultations with small and medium-sized businesses, the task force has developed 11 recommendations to address, in a practical way, the concerns expressed.
A more prosperous small and medium-sized business sector is good for Ontario's economy. The task force believes that its recommendations will benefit small and medium-sized businesses by helping them be more competitive and prosperous. The recommendations will also help support the government, as a buyer, by supporting the expansion of the pool of qualified bidders that can offer competitively priced goods, services and innovative business solutions to the government. More competitive bidding on government procurement supports efficient, effective government operations.
Recommendations for Immediate, Short-term Implementation
The Doing Business with the Ontario Government Task Force has presented its recommendations to Minister Phillips. The Minister has accepted the task force's recommendations in principle. He requested the Ministry of Government Services' staff take the lead role in looking into how and where recommendations can be implemented and reporting regularly to him on progress. This work is under way, with a plan to implement several of the recommendations over the next few months. Other recommendations, due to their nature and complexity, will need further internal analysis and consultations with key Ontario Public Service (OPS) stakeholders, including input from the Small Business Agency of Ontario, in order to explore potential implementation options.
The task force believes that implementing its recommendations will give Ontario's small and medium-sized businesses the tools they need to become more competitive and prosperous and to continue to contribute significantly to Ontario's economy.
A copy of this executive summary will be sent to all the consultation session participants and to all those who made submissions.