Questions and Answers — Office of Small and Medium Enterprise (OSME)
Q.1 Why has the government created OSME?
A.1 In the spring of 2005, PWGSC introduced steps to deliver its services smarter, faster and at a reduced cost. The department began the process of standardizing the purchase of certain items, consolidating the government’s buying power, and introducing electronic tools to streamline the government’s procurement process. Some small and medium businesses worried that these steps would shut them out of existing and future federal government bidding opportunities. OSME was created to address these concerns.
Q.2 How has PWGSC responded to smaller businesses’ concerns about procurement changes introduced as part of its Business Transformation Agenda?
A.2 In September 2005, PWGSC established the Office of Small and Medium Enterprises (OSME) in Ottawa – an official office within the department dedicated to ensuring small and medium enterprises (SMEs) have access to compete for government business. The Office also assists SMEs in navigating the government procurement system. As part of the Federal Accountability Act and Action Plan, PWGSC has announced additional cross-country support for smaller businesses through six newly created SME regional offices. (See A.9 for specific steps PWGSC has taken to help SMEs.)
Regional OSMEs
Q.3 What are Regional OSMEs and who will oversee them?
A.3 PWGSC is establishing six regional OSME offices – or satellite offices – to provide cross-country support for small and medium sized businesses. Each office will be led by a new Regional SME Director who will support all OSME functions in their region. These directors will report to their respective Regional Executive Heads and will work closely with the Director General of OSME.
Currently, four of the offices (NCA, Atlantic, Quebec and Pacific) are staffed. The remaining two are expected to be staffed (to be confirmed).
Q.4 Why did PWGSC create Regional OSMEs and what role will they play?
A.4 Small and medium businesses make an important contribution to the Canadian economy. Within their respective Regions, these offices will:
- provide information, counselling and training services to SMEs that want to do business with the government,
- help reduce competition barriers and simplify the government contracting process,
- identify and pursue opportunities that encourage the introduction of innovative new products and services,
- collaborate to improve procurement policies and best practices, and
- work closely with the SME community to ensure their concerns and views are brought forward and heard.
Q.5 Where will the Regional OSMEs be located, and how did PWGSC determine which cities would host the Offices?
A.5 Ensuring every region in Canada was supported was the main consideration. Satellite offices will be located in six cities: Halifax (Atlantic), Montreal (Quebec), Ottawa (Ontario), Toronto (Ontario), Edmonton (Western) and Vancouver (Pacific). PWGSC also maintains departmental regional offices in each of these cities. Co-locating OSME’s satellite offices within these existing PWGSC Regional offices saves money and provides better value for Canadian taxpayers.
Q.6 What specific types of support will regional OSME offices provide SMEs?
A.6 With functional direction from the OSME Director General, OSME regional offices will provide two types of support.
First, each Regional Office will assist SMEs in their region navigate the government procurement system by:
- helping SMEs comply with and understand the government's procurement processes,
- identifying ways PWGSC’s supply policies and programs can be strengthened to foster the development of innovative products and services,
- acting as an advocate for SMEs in their region,
- providing information to SMEs using the “Supplier Seminar Program”,
- attending business trade shows to provide information to SMEs,
- organizing special events in order to help SMEs, and
- scheduling more information sessions in partnership with chambers of commerce and various SME associations.
Second, each Regional Office will work within the government to ensure the procurement system treats SMEs fairly and equally by:
- analyzing SME access to and performance in government business,
- reviewing SME participation on all major crown procurements (over $10M),
- recommending new commodity management strategies to enhance SME participation while at the same time supporting overall procurement transformation objectives, and,
- proposing improvements to procurement processes.
Supplier’s Barrier and Access Concerns
Q.7 What has PWGSC/OSME done to address concerns raised by SMEs resulting from procurement changes introduced by the department’s Business Transformation Agenda?
A.7 PWGSC has taken concrete steps to promote SME involvement in a fair, open and transparent procurement process and has many targeted initiatives already completed and underway, including:
- making it easier for smaller businesses to access bidding opportunities by eliminating user fees on the government’s electronic tendering system (MERXTM) for all federal opportunities,
- developing a SME web portal which reduces the complexity of dealing with various government departments by offering a single point of contact for SMEs wishing to do business with the Government of Canada,
- informing and clarifying for SMEs the exceptions to the mandatory Standing Offer policy,
- using regional standing offers to ensure businesses across the country have access to procurement opportunities,
- enhancing the role of Business Access Canada (formerly Contracts Canada) – an inter-departmental initiative to simplify access to federal government purchasing information,
- providing information to help the private sector form new joint ventures between SMEs,
- using plain, easy to understand language in our bid solicitation and contracting documents,
- ensuring that all our procurement policies are publicly available, such as the introduction to mandatory standing offers, and
- conducting six cross-country regional workshops with SMEs to identify the key issues most affecting them. A summary report of the concerns raised by SMEs during the workshops, and their proposals for how these concerns could be addressed will be available for the public on the OSME website in April 2006.
Q.8 Since completing the SME consultation sessions across Canada in November 2005, what new initiatives are you implementing to address SME concerns?
A.8 We are responding to a priority issue identified by SMEs – their access to competing for government business – with the following new initiatives:
- expanding an existing mandatory supply vehicle, the Professional Services Online (formerly referred to as the Informatics Professional Services Marketplace), to include additional professional services so that firms in these areas will have direct access to government business,
- re-competing the seven Regional Standing Offers for office supplies starting at the end of January instead of in 2007 to give the government better value. This will allow additional firms to compete sooner and become qualified to provide their services to government,
- clarifying which professional consulting areas are covered by mandatory standing offers, and, for mandatory standing offer areas, the exceptions policy that specifies conditions under which departments can buy goods and services from companies not on standing offer lists, and
- reorienting procurement qualification criteria to remove possible access barriers for joint ventures.
A summary report of the concerns raised by SMEs during the workshops, and their proposals for how these concerns could be addressed will be available for the public on the OSME website in April 2006.
Q.9 How will OSME help ensure smaller companies have access to compete for larger federal contracts?
A.9 OSME and its regional offices are helping SMEs have access to compete for larger contracts by:
- providing information, counseling and training to SMEs in collaboration with SME associations to help build their capacity to bid on government work,
- proposing adjustments to policy in order to provide increased opportunities for SMEs to compete,
- developing advice for SME industry associations on how they can assist SMEs in forming joint venture (consortia) to bid on government business, and in particular, to access major contracts, and
- reorienting procurement qualification criteria to remove possible access barriers for joint ventures.
Q.10 “Commodity management” is a central focus of PWGSC’s procurement renewal. Will this approach hurt smaller businesses?
A.10 “Commodity management” means that PWGSC will be applying different procurement mechanisms and policies to better support the government’s need in question. This approach will optimize existing methods of supply and provide further opportunities for smaller businesses to compete for government contracts. Small- and medium-sized businesses stand to benefit from changes that will make it simpler and less costly to do business with the government.
Q.11 How will Regional SMEs’ views and concerns be addressed in commodity council recommendations?
A.11 OSME and its Regional Offices will play a key role in ensuring that the views and concerns of SMEs are taken into account in the work of the commodity councils. In addition, industry and association representatives from across the country will continue to be encouraged to provide their views and feedback through consultations.
Q.12 How will OSME address concerns that government paperwork may be reducing the number of small businesses willing and able to compete for government business?
A.12 The OSME was created to lead or assist various departmental initiatives to reduce contracting complexity. PWGSC is currently working to simplify the acquisition process through efforts such as a plain language initiative, standardization, and computer automation such as the Government of Canada Marketplace initiative.
Professional Services Online (PSO)
Q.13 What is the PSO?
A.13 On December 15, 2005, a new procurement tool, the Professional Services Online (PSO) database Web site was launched, replacing the former Informatics Professional Services (IPS) supply arrangement. The PSO contains a list of pre-screened and pre-qualified consultants in the areas of Human Resources Management, Organizational Management, Change Management, Organizational Development, and Information Technology which PWGSC’s clients can access.
Q.14 How does the PSO work and when would departments and agencies use it?
A.14 Each department or agency must select the right supplier, consistent with Treasury Board and other procurement guidelines. It can be used for contracts up to the NAFTA maximum (approximately $84,000) and allows for directed contracting up to $25,000. As per Treasury Board guidelines, directed competitions (minimum of three firms) are required above $25,000.
Suppliers must self-register online at http://www.pwgsc.gc.ca/acquisitions/text/ps/online-e.html.
Federal departments and agencies can register at www.pwgsc.gc.ca/acquisitions/text/ps/online-e.html.
Q.15 What are the benefits of PSO?
A.15 This new method of supply gives departments better value for small professional services contracts by reducing transaction costs and ensuring a competitive marketplace. It also more effectively matches supplier skills with departmental needs – increasing the fairness and transparency of all contracting activity.
The number of suppliers available through the site is anticipated to increase over time.
Q.16 Will the PSO be expanded to include even more categories?
A. 16 PWGSC is presently considering the expansion of the PSO to include additional categories such as communications, scientific, and technical advisory services.
Q.17 Who can use the PSO?
A.17 All suppliers from across Canada can now register on the PSO. However, only PWGSC clients in the National Capital Region can access the system at present. The PSO is expanding to include regional clients across Canada in May 2006.
Background / Contact Info
Q.18 What constitutes a small or medium sized enterprise in Canada?
A.18 SMEs are defined as enterprises with fewer than 500 employees. However, firms range from one-person consulting shops to larger, publicly traded companies. Moreover, SMEs are present in almost every industrial sector. Small firms are defined as producers of goods with fewer than 100 employees or suppliers of services with fewer than 50 employees.
Q.19 How can SMEs and client departments/agencies contact OSME?
A.19 By telephone: (819) 956-3440 or 1 800 811-1148
By e-mail: ncr.contractscanada@pwgsc.gc.ca
By website: www.pwgsc.gc.ca/sme
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