Questions and Answers
Consultation Sessions on Procurement Transformation
December 8, 2006
Q1. What was the purpose of these consultations?
A1. PWGSC understands that the modernization of federal procurement practices is a significant change and requires extensive consultation with the industries and suppliers that may be impacted. We wanted to work with the industry to hear their concerns and get their constructive input into procurement transformation.
Q2. What was the scope of these consultations?
A2. A broad range of procurement issues was discussed, including the structure of the proposed procurement instruments (Requests for Standing Offers, Requests for Supply Arrangements), the evaluation criteria for each category, the standardization of the proposed categories, and other recommendations on how to make it easier and less burdensome to do business with the government. The only issue not on the table was the government’s commitment to the savings we have promised to Canadian taxpayers.
Q3 .Who did you consult with?
A3. PWGSC consulted with specific industry sectors impacted by the reform namely temporary help services, informatics professional services and furniture. All suppliers were able to participate in the consultations on-line or in person at one of the 10 events organized by The Conference Board. Consultation documents were published on The Conference Board’s web site.
Approximately 300 suppliers attended the consultations sessions and over 50 written submissions were received.
Q4. Why did you consult only with three supply categories (temporary help services, office furniture, and informatics professional services)?
A4. PWGSC uses a variety of consultation channels with its suppliers in all categories. In the case of these three specific and very complex categories, the department asked a third-party to conduct a new consultation process. We wanted to make sure that suppliers had a full hearing on their concerns around procurement changes. The government considers these fully and is providing a rationale for the decisions it is taking.
PWGSC continues to issue new Requests for Standing Offers (RFSO) on MERX, the government’s electronic tendering service. They can be consulted free of charge at www.merx.com.
The department also issues fact sheets on each RFSO, which may be consulted at the following Web address.
Q5. How will you consult with suppliers in other categories?
A5. PWGSC will take steps to ensure the other Requests for Standing Offers (RFSOs) are implemented effectively by continuing to consult with the industry sectors affected prior to issuing each RFSO. This ranges from issuing Requests for Information (RFIs), meeting with industry associations, and holding bidders’ conferences to seek industry input and feedback.
Q6. How did you decide whom to invite to these consultations?
A6. The Conference Board of Canada managed these consultations on behalf of PWGSC. The government asked the Board to ensure that a broad range of suppliers in all regions were invited to participate. The Board sent letters to hundreds of suppliers of temporary help, furniture and informatics professionals across Canada. In addition, the Board contacted key associations of suppliers, small and medium enterprises and Aboriginal businesses to identify interested participants.
All suppliers, both existing and potential, were invited to submit their input on-line, using the consultation documents prepared by The Conference Board of Canada. For more information visit their Web site.
Q7. How many suppliers participated in the consultations sessions?
A7. Approximately 300 suppliers attended the consultations sessions, and over 50 written submissions were received.
Q8. Was this contract with The Conference Board awarded as a result of a competitive process (i.e. a tender call)? If not, why?
A8. There is a National Master Standing Offer (NMSO) available. This NMSO was awarded following the posting of an unchallenged ACAN for unique services offered by The Conference Board of Canada. A call-up was issued against the NMSO for the required services.
Q9. What were the terms of reference for the contract between PWGSC and The Conference Board for these consultations?
A9. The Conference Board was engaged to provide research services and industry consultation services for the three categories / commodity areas, namely:
- Informatics Professional Services;
- Temporary Help Services; and
- Office Furniture.
The Conference Board engaged suppliers in a dialogue about issues and concerns in order to increase their understanding and buy-in. Within this context, the Conference Board performed the following activities:
- Conducted research and report findings on market share and market power of government procurement by commodity type (see commodity descriptions above), and aspects of the economic impact of the new procurement system on businesses, by sector, and on the country.
- Designed, developed and delivered three sets of facilitated industry consultations covering three commodity types, for a total of 10 consultations, in locations across Canada. (Additional consultations, if required, will entail additions to budget).
- Prepared three reports for PWGSC, summarizing dialogue from the three sets of industry consultations.
It should be noted that this is only a summary of the activities. A full description of the work is available upon request.
Q10. How are you going to ensure consultation with these three industries in the future?
A10. PWGSC was pleased to follow up on the request made by both the Temporary Help Services and the Office Furniture industries and is introducing ongoing consultation mechanisms to discuss issues of mutual concern.
The permanent government-industry committee on Temporary Help Services is formed of representatives of the industry and PWGSC. It has already met on three occasions and plans to meet every week.
The permanent government-industry committee for Office Furniture will start to meet in the new year.
The already established Commodity Council will continue to provide a platform for consultation with the Informatics Professional Services industry.
Q11. What are you doing to ensure that the comments and feedback you’ve received are incorporated into your procurement transformation strategy?
A11. PWGSC has responded to the points raised by suppliers during the consultations that relate to each industry’s specific procurement instruments and PWGSC’s mandate.
However, many valid points that were raised by suppliers are a result of broader Government of Canada policy. PWGSC will be forwarding copies of the final consultation reports to the relevant departments – such as Industry Canada and Indian and Northern Affairs Canada.
The final consultation reports and PWGSC’s response are now accessible.
Q12. Suppliers have said that it is difficult to compete for government procurement opportunities. How do you intend to address this?
A12. Ensuring fair access to government business for suppliers is one of the driving principles behind improving how we buy goods and services.
PWGSC has taken significant action to make it easier for suppliers to do business with government. The department has opened up six new regional branches of the Office of Small and Medium Enterprises, eliminated fees and simplified the bidding process for government contracts, and now treats equally joint bids from consortia of small firms with those from larger enterprises, just to name a few improvements.
Q13. Suppliers were very critical of the way government conducts procurement. What are you doing to address this?
A13. We agree that procurement is quite complex and that it is often burdensome for suppliers to do business with the Government of Canada. The focus of procurement transformation is getting better value for Canadian taxpayers while ensuring fair, simple and open access for suppliers – both large and small – across Canada.
