Questions and Answers
Intra City Courier Request for Master Standing Offer RMSO)

November 16, 2006

Q1. Why is the government changing the way it procures intra city courier services?

A1. The Government of Canada (GC) is consolidating, streamlining and transforming the way it procures courier services. This will provide better value and accountability for Canadian taxpayers.

Public Works and Government Services (PWGSC) is committed to ensuring that procurement is both accountable and cost-effective, supporting the goals of the GC’s new Accountability Act and Action Plan.

The GC spends an estimated $1M in the National Capital Region (NCR) for intra city courier services every year.

The goal of the procurement transformation is to ensure better value for Canadian taxpayers while making procurement simpler, and ensuring fair, simple and open access for suppliers - both large and small courier suppliers – in the NCR.

Q2. How is the government currently procuring intra city courier services?

A2. Currently, the government has been procuring intra city courier services in the NCR by using standing offers. Most of the business (95%) is given to three suppliers.

In other major cities, 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 Request for Master Standing Offer (RMSO) will be used as a pilot project to develop a template to be applied, in time, to other major Canadian cities.

Q3. What is going to change?

A3. In order to provide best value for Canadian taxpayers, some changes were necessary to the way we used to do business. Among those changes:

• To qualify, any bidder will be asked to have a facility security clearance to the level of “confidential”.
• There will be two suppliers on the RMSOs.
• Suppliers must make their rates available on the e-Frisbee electronic shipping system (this tool gives access to suppliers’ rates and shipping detail information).

Other changes have been made on the standards of delivery weight, mailing zones and service levels, to accommodate and accelerate the shipping services such as:

• 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.
• Over 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 were different rates for a delivery by bike, car or truck).

Q4. How much is the government currently spending on intra city courier services?

A4. The total estimated cost for NCR intra city courier services is $1 M annually, which represents approximately 50% of the national expenditure of $2 M.

In time, when the template of the RMSO for NCR will be applied to other major Canadian cities, it will be easier to set goals, but we expect to make significant savings.

Q5. How will the RMSO impact small and medium sized enterprises?

A5. There will be no or minor impact on the industry. All the companies providing intra city courier services in the NCR are small and medium-sized enterprises. The process will be open, fair and transparent to all suppliers.

Q6. Has the government consulted with the suppliers before issuing the RMSO?

A6. Procurement officers were proactive when responding to courier inquiries and advised suppliers in advance about the mandatory security clearance requirement.

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. In addition, a bidders conference will take place late November.

Q7. When will the RMSO be issued?

A7. The RMSO will be published in the Government Electronic Tendering Service (MERX) the week of November 13, 2006 and will close forty days following its publication.