CABINET Procurement Initiatives (Sept. 2008)


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CABiNET 2008 Procurement Initives in the Public Sector

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CABINET Procurement Initiatives (Sept. 2008)

  1. 1. CAnadian Business i nformation technology NETwork Over 25 IT consulting companies primarily based in the National Capital Region (Ottawa-Gatineau) Represent over 1,500 IT professionals currently working on federal government initiatives
  2. 2. Overview <ul><li>CABiNET formed in 1993 to address procurement concerns and business requirements of its membership </li></ul><ul><li>Membership consists of small and medium-sized IT consulting companies (SMEs). </li></ul><ul><li>Incorporated as non-profit association for business opportunities requiring partnerships. </li></ul><ul><li>Participated in Benefits Driven Procurement and TBIPS / SBIPS consultations as SME representative. </li></ul><ul><li>Currently acting as sole SME stakeholder addressing proposed contract bundling of GoC Shared Services </li></ul><ul><li>Provide ongoing feedback to PWGSC regarding procurement initiatives and issues / concerns from SME perspective </li></ul>
  3. 3. Federal Government Experience: <ul><li>Member companies have over 1,500 resources already working in the Canadian federal government. </li></ul><ul><li>Mission-critical departments including CIC, CRA, DND, HRSDC, PWGSC, & RCMP </li></ul><ul><li>Significant knowledge of government business applications. </li></ul><ul><li>Extensive experience with government procurement practices. </li></ul><ul><li>Understanding of what works and what doesn’t for GoC procurement. </li></ul>
  4. 4. CABiNET Involvement in GoC Procurement Review Initiatives <ul><li>CABINET resources worked with PWGSC and other industry associations for almost two years to convey our knowledge of GoC procurement, its current problems and what potential changes were required to facilitate and / or impact the GoC 10-10-50 mandate presented in 2005. </li></ul><ul><li>CABiNET resources met with the Lastewka Task Force, participated in TBIPS / SBIPS consultations along with PPF consultations on Shared Services. </li></ul><ul><li>CABiNET resources were consulted regarding the impact of increased requirements for Errors & Omissions insurance in GoC contracts. </li></ul><ul><li>GoC is very interested in addressing small business concerns and CABiNET currently provides that voice. </li></ul>
  5. 5. Assessment of SME Concerns <ul><li>PWGSC addressed CABiNET / SME concerns about requirement for direct access to GoC business throughout consultations on their Task-Based (TBIPS) and Solutions-Based IPS (SBIPS) initiatives. </li></ul><ul><li>CABiNET TBIPS criteria concerns for SMEs included: </li></ul><ul><ul><li>Need for Level Playing Field (E&O, Facility Clearance, Financial Viability criteria) </li></ul></ul><ul><ul><li>Need for rate competition at all stages </li></ul></ul><ul><ul><li>Significant Deterrents for Contract Splitting </li></ul></ul><ul><ul><li>Employer / Employee relationships with incorporated individuals versus incorporated companies with Administration, HR Planning, Training, Infrastructure and Sales/ Marketing staff </li></ul></ul><ul><ul><li>Accountability (only 1 year of corporate experience) & Growth Potential (replacement personnel, recruiting) concerns with incorporated individuals who should be using PS Online </li></ul></ul>
  6. 6. CABiNET Proposed Solutions to Resolve SME Issues with TBIPS <ul><li>CABiNET proposed following recommendations: </li></ul><ul><ul><li>CABiNET recommended that PWGSC reinstate former RMSO entry level requirements (i.e 10 consulting resources, corporate office with CIISD facility clearance, Minimum 1+ years in business (CABiNET prefers 2), Quality Management Plan for Administration, HR and Consultant resources) to support PWGSC reduction of suppliers objective. </li></ul></ul><ul><ul><ul><li>Reduces number of suppliers dealing directly with GoC through establishment of consortiums / contractual joint ventures (CABiNET has been doing this for years now with minimal overheads to win contracts that we could not win individually). </li></ul></ul></ul><ul><ul><ul><li>Forces price competition at Step 2 and ensures GoC is dealing with IT companies and not incorporated individuals. </li></ul></ul></ul><ul><ul><ul><li>Create ‘Innovations & Open Source’ commodity group </li></ul></ul></ul>
  7. 7. CABiNET Proposed Solutions to Resolve SME Issues with TBIPS <ul><li>Proposed Solutions (continued) </li></ul><ul><ul><li>2) CABiNET optionally recommended the following eligibility and procurement requirements for TBIPS suppliers: </li></ul></ul><ul><ul><ul><li>Reduce Sole Source Task Authorization limit to $60,000 with NO contract splitting allowed (GoC needs to audit contracts). </li></ul></ul></ul><ul><ul><ul><li>Insist on mandatory requirements of 1+ Years in Business (again CABiNET prefers 2), CIISD Facility Clearance and CGL / E&O Insurance to ensure level playing field for all vendors. </li></ul></ul></ul><ul><ul><ul><li>Insist on 3 IT projects in last 3 years each with a duration of > 60 days and total contracts value > $300K. </li></ul></ul></ul><ul><ul><ul><li>Insist on resource category minimums to validate replacement personnel capability and eliminate employer / employee relationship concerns with incorporated individuals. </li></ul></ul></ul><ul><ul><ul><li>Vendor commitment that their rates are competitive in the market. </li></ul></ul></ul><ul><ul><ul><li>Create ‘Innovations & Open Source’ Commodity Group </li></ul></ul></ul>
  8. 8. PWGSC Results <ul><li>TBIPS / SBIPS Supply Arrangements (SA’s) were awarded with SMEs able to bid directly either as incorporated companies or through joint ventures </li></ul><ul><li>Many departmental SA’s have been replaced by TBIPS / SBIPS in 2008 with more to occur. </li></ul><ul><li>CABiNET is currently lobbying GoC to alter its Shared Services procurement model to remove contract bundling of products and professional services that will preclude most SMEs from bidding. </li></ul><ul><li>CABiNET now consulting with PWGSC on better RFP price evaluation criteria and contractual procurement models (I.e. one winner, Cascading, Round-Robin, multiple winners, etc.) . </li></ul>
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