Fact Sheet - Request for Master Standing Offer for Intra City Courier Services

November 16, 2006

The Government of Canada is streamlining and transforming its procurement approach to provide better value for Canadian taxpayers. The goal of procurement transformation is to improve the design, management and delivery of procurement across government so that the government becomes not only a better buyer, but also a better customer.

As part of this transformation, the government is inviting suppliers of courier services to compete for standing offers for intra city courier services for the National Capital Region (NCR). Once awarded, standing offers allow the government to call on pre-qualified suppliers if and when their services are needed, based on agreed prices.

The government will reach its goal in keeping with the following commitments:

Ensuring increased transparency and accountability in the procurement process;
Making it easier and less costly for suppliers to do business with government;
Improving access for small and medium enterprises (SMEs) to compete for procurement;
Considering economic and social impacts (Aboriginal, regional and environmental);
Consulting with affected industry sectors.

What is the current situation for intra city courier services?

Currently, the government has been procuring intra city courier services in the NCR by using standing offers. Currently there are approximately ten suppliers in this commodity and 95% of the business goes to three suppliers.

In other major cities, some individual departments’ standing offers or contracts are currently in place.

In order to provide best value for Canadian taxpayers, some changes were necessary to the way we used to do business. This RMSO will be used as a pilot project to develop a template to be applied, in time, to other major Canadian cities.

What is changing?

In following with the Government of Canada’s Procurement Transformation initiative, the intra city courier services will be solicited to select two suppliers for a Regional Master Standing Offer (RMSO) for the NCR.

In order to provide best value for Canadian taxpayers, some changes were necessary to the way we used to do business. Those changes are:

All bidders must have a facility security clearance.
Suppliers must make their rates available on the e-Frisbee electronic shipping system (this tool gives access to suppliers’ rates and shipping detailed information).
The shipping rates will be fixed by postal codes.
The cost of shipping will also be based on delivery weight between 0 to 999 lbs (where approximately 90% of the deliveries requests are for envelopes). Previously it was based on items weighing less than 200 lbs.
In addition to the three service levels, “1 hour, 2 hours and 4 hours delivery”, two more service levels have been added, “same day” and “overnight delivery”.
The rates will be given for the service level regardless of transportation mode (previously there was different rates for a delivery by bike, car or truck).

How will these changes impact the industry?

There will be minor impact on the industry. There will be two suppliers selected on the Regional Standing Offer. Process will be open, fair and transparent to all suppliers.

Supplier Consultations:

The RMSO will be posted on MERX – the Government’s electronic tendering service – during 40 days where the suppliers will be able to ask questions about the requirements and all answers will be posted. A bidders conference will take place late November.

Procurement officers were proactive when responding to courier inquiries and advised suppliers in advance about the mandatory security clearance requirement.