The document summarizes a presentation about leveraging government procurement of information and communications technology (ICT) to achieve socio-economic benefits. It discusses how Shared Services Canada (SSC) considers policies around supporting small businesses, indigenous groups, innovation, and the environment in its $1.2 billion annual ICT procurement. The presentation outlines SSC's plan to establish tools and engagement strategies to better select socio-economic objectives and stakeholders for each large procurement. It poses questions about balancing direct and indirect benefits, prioritizing objectives, industry needs, and tracking progress toward objectives.

1. Leveraging Information and Communications
Technology Procurement for Socio-economic
Benefits
Presentation to the Information Technology Infrastructure
Roundtable
December 8, 2014
Elizabeth Tromp, Acting Senior Assistant Deputy Minister,
Corporate Services and Chief Financial Officer, and Chair of the
Procurement Benchmarks Advisory Committee

2. Policy and Program Drivers
As a department, SSC respects a range of mandatory and
voluntary programs, policies and initiatives that seek to leverage
government procurement in order to further certain identified
socio-economic and national objectives, including:
 Aboriginal economic development;
 support for small- and medium-sized enterprises;
 industrial and regional development opportunities;
 environmental and sustainable development objectives; and
 programs supporting Canadian innovation in specific market sectors.
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3. Where the Opportunities May Lie
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In 2013–14, SSC procured $1.2B in goods and services
for Government of Canada partners and clients.
Shared Services Canada 2014–15 Departmental Procurement Plan
SSC 2013–14 Procurement by Business Line

4. The Way Forward
In order to ensure that SSC continues to consider the potential
for leveraging large-scale procurements to attain the full range
of identified socio-economic benefits and national objectives,
the Department is developing an approach that will include:
 establishing socio-economic benefits tools and processes to help select
and prioritize the most appropriate socio-economic levers to consider in a
given procurement; and
 establishing an engagement strategy for planning large-scale
procurements that would include the appropriate internal and external
stakeholders.
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5. What does success look like?
1. Given that the goods that SSC buys are largely sourced from
outside of Canada, what should the balance be between
direct and indirect benefits?
2. Given the range of socio-economic objectives at SSC, what
are some practical ways for them to be prioritized from an
ICT-sector perspective?
3. What does SSC need to know from industry in order to be
successful? What’s important for industry?
4. How can industry show value to Canadians and track
progress toward these objectives?
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6. Appendix A: Value Proposition and
Defence Procurement Strategy
The Government of Canada has committed to ensuring that purchases of military equipment create greater
economic opportunities by promoting a sustainable, innovative and globally competitive Canadian defence
industry. The Government has developed the Defence Procurement Strategy to meet this objective.
Under the Defence Procurement Strategy, Industrial and Regional Benefits (IRBs) will be transformed into
Industrial and Technological Benefits (ITBs). This is a significant change which will give the Government more
flexibility to improve economic outcomes from defence procurement projects.
A core element of the new approach is rated and weighted Value Propositions (VP) for defence and major
Canadian Coast Guard procurement projects. Bidders will be motivated to put forward their best industrial plan
for Canada, as these plans will be scored on the quality of their Value Propositions. In other words, industrial
considerations will factor into determining which bidding firm wins the contract. When applied, the default
weighting of the Value Propositions in the overall evaluation will be 10%. The actual percentage will be
determined on a procurement-by-procurement basis. In addition, where the Government chooses to specify a
targeted, desired industrial outcome, Mandatory Requirements will be used, as appropriate.
Key Industrial Capabilities, or KICs, as originally identified by Tom Jenkins in his report Canada First:
Leveraging Defence Procurement Through Key Industrial Capabilities, will be a significant factor in the rating
and weighting of Value Propositions. The KIC criteria proposed in this report (Canadian Armed Forces' need,
innovation and export potential) will serve as a framework for analyzing Canadian defence industrial
capabilities and their potential for growth. This analysis will continue to be refined and be informed by
consultation with stakeholders. The Government will continue to engage with defence experts and
stakeholders to identify how best to apply KICs and improve economic outcomes from defence procurement.
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7. Appendix A: Value Proposition and Defence
Procurement Strategy (Continued)
• Value Proposition ratings will favour actions that lead to improved economic outcomes through:
 investments that strengthen Canadian KICs;
 investments that support enhanced productivity in Canadian firms; and
 broader industrial and technological high-value activities, such as a "technology transfer."
• The timing of fulfilling Value Proposition commitments will also be a consideration in the evaluation.
• The use and composition of Value Propositions will be identified on a procurement-by-procurement basis:
 procurements valued between $25,000 and $20 million will be assessed for their economic potential, and the revised
Canadian Content Policy will be applied to realize this potential;
 procurements valued at $20 million and above will be reviewed for the application of a Value Proposition; and
 procurements valued at $100 million or more will require a Value Proposition as part of a comprehensive ITB plan.
Bidders will still be required to submit regional plans to ensure efforts are made to balance benefits across all
regions of Canada. As well, the requirement remains to reinvest work into Canada equivalent to 100% of the
contract value. Given that a company's ITB plan could contribute to the success of its overall bid, enhanced
reporting requirements will be included in contracts to ensure that the Government can monitor the delivery of
benefits to Canada.
Source: PWGSC News Release and Backgrounder, February 5, 2014
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