Procurement Presentation - March 1 2007


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Procurement Presentation - March 1 2007

  1. 1. Province of Nova Scotia Procurement Services
  2. 2. Overview <ul><li>Procurement Policy and Guides </li></ul><ul><li>Procurement Processes </li></ul><ul><li>Solicitation of Bids </li></ul><ul><li>Communication </li></ul><ul><li>Evaluation & Selection </li></ul><ul><li>Contract </li></ul><ul><li>Vendor Debriefing </li></ul><ul><li>Trade Agreements </li></ul><ul><li>Reciprocity / Preference </li></ul><ul><li>Procurement Intranet Site </li></ul>
  3. 3. Procurement Objective <ul><li>To establish and maintain a high level of confidence in the procurement process by ensuring that all public sector procurement is carried out in an open, fair, consistent, efficient and competitive manner. </li></ul>
  4. 4. Procurement Policy <ul><li>Thresholds </li></ul><ul><ul><li>Under $1,000 (no quotes required) </li></ul></ul><ul><ul><li>$1,000 up $5,000 (attempt to obtain three quotes) </li></ul></ul><ul><ul><li>Over $5,000 for Goods and $10,000 for Services & Construction (tendered and posted to Public Tenders website) </li></ul></ul>
  5. 5. Policies & Guides <ul><li>Procurement Policy </li></ul><ul><li>Construction Contract Guidelines </li></ul><ul><li>Environmentally Responsible Government </li></ul><ul><li>Facilities Procurement Guide </li></ul><ul><li>Architects & Professional Engineering Services </li></ul><ul><li>Guide to the Submission & Evaluation of Unsolicited Proposals </li></ul><ul><li>Supplier Debriefing </li></ul><ul><li>Vendor Complaint Process </li></ul>
  6. 6. Procurement Processes <ul><li>Request for – </li></ul><ul><li>Quotations (RFQ) </li></ul><ul><li>Expression of Interest (REI) </li></ul><ul><li>Proposals (RFP) </li></ul><ul><li>Construction (RFC) </li></ul><ul><li>Standing Offers (RSO) </li></ul><ul><li>Alternative Procurement (ALTP) </li></ul><ul><li>Bidders Meeting </li></ul><ul><li>Informal process used to determine what products and services are available, scope business requirements and/or estimate project costs </li></ul><ul><li>Used as a tool to obtain comments from proponents on draft RFPs and feedback on business direction </li></ul><ul><li>Notice of meeting posted to website </li></ul>
  7. 7. Templates & Assistance <ul><li>Procurement templates are provided to clients to assist them in the preparation of REI, RFP or RSO documents. The templates identify sections that will clearly inform proponents of the scope of work, timelines, experience, requirements, evaluation criteria, etc. </li></ul><ul><li>Assistance in preparation of a document can be obtained by contacting a consultant on the Professional Services Standing Offer </li></ul>
  8. 8. Request for Quotations (RFQ) <ul><li>Procurement tool used to solicit vendor price submissions usually for goods acquisitions </li></ul><ul><li>Evaluation process focuses on price for submissions that meet stated delivery requirements and quality standards </li></ul><ul><li>May sometimes include an evaluation criteria </li></ul>
  9. 9. Request for Expression of Interest (REI) <ul><li>May be first stage in the procurement process </li></ul><ul><li>May be used to identify suppliers who are capable of responding to an upcoming RFP. Evaluate capability and not solution to problem </li></ul><ul><li>Bidders responding may be short listed according to the scoring in the evaluation process </li></ul><ul><li>Must be followed by an RFP process to result in an award </li></ul>
  10. 10. Request for Proposals (RFP) <ul><li>Procurement tool used to solicit vendor proposals to: </li></ul><ul><ul><li>Supply complex products and /or services </li></ul></ul><ul><ul><li>Provide options or solutions to a problem, requirement or objective </li></ul></ul><ul><ul><li>Imperative the RFP is clear and includes all the requirements for the project to be a success. Unclear RFPs can lead to poor responses and re-tendering </li></ul></ul><ul><li>Evaluation includes consideration of the quality of the idea, concept or solution proposed along with price </li></ul><ul><li>Legal contract at time of award </li></ul>
  11. 11. Request for Construction (RFC) <ul><li>Procurement tool used to tender for construction, reconstruction, demolition, remediation, repair or renovation of a building, structure, road or bridge </li></ul><ul><li>Tender document contains a set of terms & conditions and a separate bid form that apply to that specific project </li></ul><ul><li>Evaluation based on a number of factors as described in the tender document </li></ul><ul><li>Legal contract at time of award </li></ul>
  12. 12. Request for Standing Offers (RSO) <ul><li>Procurement tool used to tender for goods or services that are usually used across government or are department specific </li></ul><ul><li>Supplier agrees to provide goods or services on an “as required” basis, during a particular period of time and at predetermined price or discount </li></ul><ul><li>Term of standing offer may very in duration, will be clearly defined in RSO along with any options for extensions </li></ul><ul><li>A purchase order is required to draw off the Standing Offer list. Each purchase order must not exceed $25,000 for goods and $50,000 for services </li></ul>
  13. 13. Request for Standing Offers (RSO) <ul><li>Clients may choose to obtain quotes from multiple vendors for a specific project </li></ul><ul><li>Standing Offers may include an evaluation criteria depending on the requirement </li></ul><ul><li>Legal contract at time of award </li></ul><ul><li>List of available standing offers available on the Procurement Intranet site </li></ul>
  14. 14. Alternative Procurement (ALTP) <ul><li>Urgent or specialized circumstances, not to avoid competition </li></ul><ul><li>Rationale documented and kept on file </li></ul><ul><li>Authorized by Senior Management or Board </li></ul><ul><li>List of circumstances provided in Procurement Policy </li></ul><ul><li>Subject to audit </li></ul><ul><li>Must be defendable </li></ul>
  15. 15. Solicitation of Bids <ul><li>Opportunities must be posted for at least 15 calendar days on Province of NS Tenders website; longer for complex proposals </li></ul><ul><li>Vendors can obtain most documents by downloading from the website or by contacting the Public Tenders Office </li></ul><ul><li>Nova Scotia vendors can receive automatic notification of tender opportunities by registering with the Tender Opportunity Notification Service (TONS) </li></ul><ul><li>Venues used to solicit bids depending on the target vendor community requiring notification: </li></ul><ul><ul><li>Advertisements in local, national or specialized newspapers </li></ul></ul><ul><ul><li>To ensure a competitive process, clients may provide a comprehensive list of vendors to be notified </li></ul></ul>
  16. 16. Communication <ul><li>Vendor consultation and Request for Expression of Interest are valuable tools in the communication process </li></ul><ul><li>Once a formal document has been issued, vendors must contact designates identified in documents for answers to questions </li></ul><ul><li>In most cases, it is recommended that communication with vendors remain confidential except in cases where it is deemed that answers be known by all. In these instances, an addendum would be issued </li></ul><ul><li>Questions and answers may be addressed at a scheduled proponent’s meeting. </li></ul>
  17. 17. Evaluation and Selection <ul><li>Pre-selected evaluation team consists of at least three members who are knowledgeable of the RFP development process, the potential project expectations and planning requirements. Evaluation process focuses on: </li></ul><ul><ul><li>Mandatory Criteria: Proposals must meet mandatory criteria to be considered for further evaluation. </li></ul></ul><ul><ul><li>Desirable Criteria: Requirements which are weighted. The assigned weights reflect the relative importance of the requirements. Pricing is included with weights. </li></ul></ul>
  18. 18. Evaluation and Selection <ul><li>Only evaluate the content of vendor submissions and requested clarifications – no assumptions made. Any additional information provided, could not be considered or evaluated. </li></ul><ul><li>Evaluators should keep substantial notes evaluating each criterion. Notes from all evaluators should be consolidated by criterion for each proponent’s response. (This information will provide necessary information should a debriefing be requested.) </li></ul>
  19. 19. Evaluation and Selection <ul><li>All information is subject to the Freedom of Information & Protection of Privacy Act </li></ul>
  20. 20. Contract <ul><li>Standard contract link Identified in RFP. Any other contract format should be noted or attached as an Appendix to the RFP </li></ul><ul><li>Contract should include reference to original RFP , the Proponent’s response, any associated negotiations and relevant privacy legislation </li></ul>
  21. 21. Vendor Debriefing <ul><li>Unsuccessful proponents may request a debriefing. This is conducted as soon as possible after the contract has been awarded. </li></ul><ul><li>Debriefing provides proponent valuable information on strengths and areas requiring improvement. </li></ul><ul><li>Debriefings do not provide an opportunity to question the award. </li></ul><ul><li>Proponents are not provided information from other proponent’s responses. </li></ul><ul><li>Win / win situation. Provides opportunity for proponent to learn how to improve the quality of their proposals and provide you with improved proposal submissions in the future. It also demonstrates your appreciation of their effort. </li></ul>
  22. 22. Trade Agreements <ul><li>Applies to public sector procurement </li></ul><ul><ul><li>Atlantic Canada Procurement Agreement </li></ul></ul><ul><ul><ul><li>Thresholds </li></ul></ul></ul><ul><ul><ul><ul><li>$25,000 for goods </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$50,000 for services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$100,000 for construction </li></ul></ul></ul></ul><ul><ul><li>Agreement on Internal Trade </li></ul></ul><ul><ul><ul><li>Thresholds </li></ul></ul></ul><ul><ul><ul><ul><li>$25,000 for goods </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$100,000 for services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$100,000 for construction </li></ul></ul></ul></ul>
  23. 23. Reciprocity / Preference <ul><li>Reciprocity </li></ul><ul><li>To ensure NS supplier community receives fair treatment elsewhere in Canada </li></ul><ul><li>Consider and evaluate bids from other jurisdictions on the same basis a similar NS bid would be treated in those jurisdictions </li></ul><ul><li>Decision lies with client on final award </li></ul><ul><li>Preference </li></ul><ul><li>Based on principle of best value for government and deemed best interest to the province, may award tenders for goods manufactured or produced in NS for under thresholds ($5,000 or less) on the following basis: </li></ul><ul><ul><li>1 st NS Manufacturer </li></ul></ul><ul><ul><li>2 nd NS Distributor </li></ul></ul><ul><ul><li>3 rd Atlantic Canada Manufacturer </li></ul></ul><ul><ul><li>4 th Atlantic Canada Distributor </li></ul></ul>
  24. 24. Procurement Intranet Site <ul><li>What’s available on the site? </li></ul><ul><li>Tender Notices </li></ul><ul><li>Results/Award Notices </li></ul><ul><li>Standing Offers </li></ul><ul><li>Policies & Guides </li></ul><ul><li>Tendering Guides </li></ul><ul><li>Terms & Conditions </li></ul><ul><li>Trade Agreements </li></ul><ul><li>Supplier Development </li></ul><ul><li>Contact Information </li></ul><ul><li>N.S. Business Registry </li></ul><ul><li>Registry of Joint Stock </li></ul>
  25. 25. Procurement Intranet Site <ul><li>How do you get access to this site? </li></ul><ul><ul><li>Contact Jim Donohue, 424-6828, to obtain user login id </li></ul></ul>