Doing Business with theGovernment of CanadaA 5-Step Approach: IntroductionPresented byNatacha Bustros, Chief, SME Stakeholder EngagementOffice of Small and Medium Enterprises, Quebec RegionPuvirnituq (Nunavik), QuebecOctober 12-13, 2011
2Presentation Outline• Step 1 – Understanding the Procurement Process• Step 2 – Registering Your Business• Step 3 – Promoting Yourself• Step 4 – Searching for Opportunities• Step 5 – Bidding on Opportunities (Intro)• APPENDIX: Resources for Small and Medium Enterprises
4Step 1: Understanding the Procurement Process1.1 What does the government buy?1.2 Who does the purchasing?1.3 How is purchasing done?• The Competitive Approach• Contracts• Standing Offers• Supply Arrangements• The Non-Competitive Approach
51.1 What does the government buy?• The Government of Canada buys over 70,000 differentkinds of products and services, from aircrafts to paperclips, from training services to scientific research.– Architectural and engineering consulting services– Services related to real property– Construction– Goods and services
61.2 Who does the Purchasing?• Individual departments and agenciesGenerally for goods and services valued at $25,000 or less(low-dollar value), as per their delegation of authority• PWGSC– Goods and services for a value exceeding a departmentor agency’s delegation of authority– Upon request from other federal governmentdepartments or agencies to mitigate risks associated toprocurement or to benefit from rebates on volume
71.2 Who does the Purchasing? (cont’d)– A list of commodities PWGSC purchases, as well asappropriate contact persons is available in:• the Procurement Allocation Directoryhttp://pad.contractscanada.gc.ca/• the Contract History databasehttp://csi.contratscanada-contractscanada.gc.ca/
81.3 How is purchasing done?Competitive ApproachNon-Competitive Approach
91.3 How is purchasing done?• The Competitive Approach– Purchasing is generally done through a competitive process,regardless of the dollar value of the requirement, in view of:• Obtaining best value for tax dollars• Choosing efficient suppliers• Purchasing quality goods and services• Maintaining fairness and transparency.– Purchasing methods include:• Contracts• Standing offers (SO)• Supply arrangements (SA)– Buyers must determine whether purchases may bedone through existing SO’s or SA’s
101.3 How is purchasing done?• The Competitive Approach• ContractsUnder $25,000 (goods and services)Whenever possible, buyers to obtain at least 3 quotesusing an appropriate method of solicitation (Telephonequote, Request for quotation, Invitation to tender,Request for proposal, etc.)Over $25,000 (goods) orOver $76,600 (services) orOver $100,000 (architectural and engineering services)Buyers must publish federal government requirementson MERXTM(www.merx.com).
111.3 How is purchasing done?• The Competitive Approach• Standing Offers (SO)The Standing Offer (SO) is one of the solicitationmethods PWGSC may use in purchasinggoods and services from your company.
121.3 How is purchasing done?• The Competitive Approach• Standing Offers (SO)Characteristics:• For recurring and clearly defined needs but forwhich it is difficult to evaluate the demand (quantitiesor delivery dates)• Pre-arranged prices (the supplier is generally paidbased on fixed prices or rates), under set terms andconditions• Valid for a specified period of time• Purchases on demand, once a call-up against thestanding offer is made
131.3 How is purchasing done?• The Competitive Approach• Standing Offers (SO)Characteristics (cont’d):• Not a contract: A contract is issued each time thereis a call-up to the supplier against the standing offer(the supplier is then required to provide the goods orservices, as per the terms and conditions of the SO)• There is no negociation involved when there is a callup against a SO; it rather constitutes an agreementfrom the federal government to purchase the goodsand services from the supplier, as specified in the SO• There are different types of SO
141.3 How is purchasing done?• The Competitive Approach• Standing Offers (SO)Types of Standing OffersGeographical AreaCoveredAuthorized UsersNational Master Standing Offer (NMSO) National All departmentsRegional Master Standing Offer (RMSO) Regional All departmentsNational Individual Standing Offer (NISO) National Specific DepartmentsRegional Individual Standing Offer (RISO) Regional Specific DepartmentsDepartmental Individual Standing Offer (DISO) Departmental PWGSC** Used only by PWGSC on behalf of specific departments and agencies.
151.3 How is purchasing done?• The Competitive Approach• Supply Arrangements (SA)A Request for Supply Arrangement (RFSA) is amethod of solicitation where clients may solicitbids from a pool of pre-screened vendorsthrough the resulting arrangement.
161.3 How is purchasing done?• The Competitive Approach• Supply Arrangements (SA)Characteristics:• For recurring needs that cannot be clearly definedand for which the government of Canada may solicitbids from a pool of pre-screened vendors• At ceiling prices (the supplier is generally paidbased on ceiling prices or rates, subject to lowerpricing),• Valid for a specified period of time• Purchases on demand
171.3 How is purchasing done?• The Competitive Approach• Supply arrangements (SA)Characteristics (cont’d):• Not a contract: A contract is issued subsequent to anorder (the supplier is then required to provide thegoods or services, as per the terms and conditions ofthe SA)• A distinct contract is issued on demand and allows thesupplier to provide goods or services, as per theterms and conditions of the SA• It is possible to establish SA for specifiedgeographical areas of users.
181.3 How is purchasing done?• The Competitive Approach• SO and SA – Rationale for the use of SOs and SAs• Direct access to a supplier• Better prices through consolidation ofrequirements and increased competitionamong suppliers• Reduction of administrative costs• Reduction in lead time• Reduction in inventory investment
191.3 How is purchasing done?• The Competitive Approach• Mandatory Standing Offers (SO) and Supply Arrangements (SA)(for the 12 commodity groups listed below) Administration and Management Support Services Clothing, Individual Equipment, Insignia, Footwear Communication, Detection, Coherent Radiation Equipment, Audio Visual, Facsimiles Fuels, Lubricants, Oils and Waxes Furniture General Purpose Computer Equipment, Computers, Printers, Toner, Software,Firmware Ground Effect Vehicles, Motor Vehicles, Trailers, Cycles, Snowmobiles, All TerrainVehicles (ATV) Information Processing and Related Telecommunication Services Office Machines, Text Processing Systems and Visible Record Equipment Office Supplies, Devices and Copy Paper Personnel Recruitment, Temporary Help Services, Executive Search Professional Services.
201.3 How is purchasing done?• The Competitive Approach• SO and SA – A Few Examples• Task and Solutions Professional Services (TSPS)– Human resources services– Business consulting– Change management and project management serviceswww.tpsgc-pwgsc.gc.ca/app-acq/spc-cps/spcts-tsps-eng.html• Task-Based Informatics Professional Services (TBIPS)– Specific information technology serviceshttp://www.tpsgc-pwgsc.gc.ca/app-acq/sptb-tbps/index-eng.html
211.3 How is purchasing done?• The Competitive Approach• SO and SA – A Few Examples (cont’d)• Cyber Protection Supply Arrangement (CPSA)–Informatics security serviceswww.tpsgc-pwgsc.gc.ca/app-acq/amac-cpsa/index-eng.html• Supply Arrangement for Technical, Engineering andMaintenance Services (TEMS SA)–Technical professional serviceswww.tpsgc-pwgsc.gc.ca/app-acq/aa-sa/index-eng.html
221.3 How is purchasing done?• The Competitive Approach• SO and SA – A Few Examples (cont’d)• Temporary Help Services (THS)– Temporary help serviceswww.tpsgc-pwgsc.gc.ca/app-acq/sat-ths/index-eng.html• Translation Bureau - Supplier Information– Translation, Interpretation, Terminology, Word processingwww.btb.gc.ca/btb.php?lang=eng&cont=164(on-line registration not available)Canadas Aboriginal Languages:http://www.btb.gc.ca/btb.php?lang=eng&cont=1448
231.3 How is purchasing done?Competitive ApproachNon-Competitive Approach
241.3 How is purchasing done?• The Non-Competitive Approach"Sole source" approach only used in special circumstances– Pressing emergency: Life-threatening situation or a disasterendangering lives or potentially resulting in loss or damage togovernment property;– Public interest: Requirements dealing with national securitysuch as some military projects;– Intellectual property (IP) ownership: Only one supplier iscapable of fulfilling the requirement or performing the work (e.g.copyright or a licence); or– Contract Value: Proposed contract within thresholds anddelegations of authority i.e. $25,000 or less (goods).or$100,000 (services)
251.3 How is purchasing done?• The Non-Competitive ApproachAdvanced Contract Award Notification (ACAN)– Public notice, posted for a pre-defined period of time on MerxTM,indicating that a department / agency intends to award acontract to a pre-identified supplier.– Provide an opportunity for other suppliers to submit astatement of capabilities explaining how they can do the workbeing requested.– A contract may be awarded to the pre-identified supplier, if nostatement of capabilities are submitted.Only 5% of ACANs are challenged.
27Step 2: Registering your Business2.1 Supplier Registration information – SRI2.2 Professional Services Online – PS Online2.3 SELECT Database2.4 Translation Bureau – Linguistic Services Supplier2.5 SNC-Lavalin O&M (as a subcontractor)
282.1 Supplier Registration Information – SRI• Databank of suppliers seeking to do business with thegovernment of Canada• Free self-registration online and information maintained bythe supplier• Business Number (BN) from the Canada Revenue Agency(9-digit business identification number) mandatory forregistration in SRIBN:http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/rgstr/menu-eng.htmlSRI:https://buyandsell.gc.ca/for-businesses/register-as-a-supplier
292.2 Professional Services Online – PS Online• For professional services contracts up to $76,600 (below theNAFTA threshold)• Professional services categories:IT: http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/categories-category-eng.html(Information technologies)Non-IT: http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/non/index-eng.html(Human Resources Management and Organizational Development)• Registration in SRI is a prerequisite (to obtain a ProcurementBusiness Number (PBN))• Registration in PS Online:http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/index-eng.htmlContact Person :Sharon Dent, at firstname.lastname@example.org
302.3 SELECT Database• Registration in SRI is a prerequisite (to obtain a PBN orProcurement Business Number)• For suppliers within the following fields of activity:– Construction, and Architecture and EngineeringServices: below the NAFTA threshold of $76,000– Related maintenance and consulting services: belowtheh NAFTA threshold of $100,000• Registration in SELECT: https://select.pwgsc.gc.caPersonnes-ressources :Solange Labrie au 418-649-2872 ou email@example.comAnne Stinziani au 514-496-3390 ou firstname.lastname@example.org
312.4 Translation Services• Suppliers wanting to offer translation services to theTranslation Bureau – a special operating agency underPWGSC – must:- Register in the Supplier Registration Information (SRI)database- Submit a request to the Translation Bureau to become asupplier in the Directory of Linguistic Suppliers Services• Registration:http://www.btb.gc.ca/btb.php?lang=eng&cont=1445Contact Person:Translation Bureau at 819-953-2588BTRepertoire.TBDirectory@tpsgc-pwgsc.gc.ca
32• Assigned a mandate by the government to operate andmaintain federal buildings– Subcontractor registration procedure:• Internet Supplier Registration from the following website :www.snclavalinom.com/en/Home/SupplierRegistration.aspx2.5
34Step 3: Promoting Yourself3.1 How do I find customers?3.2 Government Contacts3.3 Previous Contract Award Notices
353.1 How do I find customers?• PWGSC is the Government of Canada’s main buyer (centralbuyer) but, other departments also do some purchasing.• To narrow your focus to a manageable number of potentialcustomers, you may target specific commodities, using these tools:– Departmental Material Managers Directoryhttps://buyandsell.gc.ca/for-businesses/contacts/departmental-materiel– Government Electronic Directory Services (GEDS)http://sage-geds.tpsgc-pwgsc.gc.ca/cgi-bin/direct500/eng/TE?FN=index– Procurement Allocation Directory (PAD)http://pad.contractscanada.gc.ca/index-fra.cfm?af=ZnVzZWFjdGlvbj1pb• Contacts: https://buyandsell.gc.ca/for-businesses/contacts
363.1 How do I find customers?• To promote your goods or services, contact the appropriate resources• Build your network using various tools: phone calls, e-mails,meetings, brochures, business cards, word-of-mouth• Questions to keep in mind when contacting buyers:– What is the government purchasing cycle for your goodor service?– How does the department buy your good or service (through PWGSC ornot)?– What method or tool is used for purchasing your goodor service (e.g.: Standing Offer (SO), Supply Arrangement (SA))? Are theymandatory? When do they expire?– Does PWGSCs purchasing group buy on behalf of other departments? Ifso,which ones?
41• 325 names (maximum limit) generatedfrom all departments in Canada withkeyword ‘procurement’ contained in title• 288 entries with keyword ‘material’contained in titlehttp://sage-geds.tpsgc-pwgsc.gc.ca/
423.3 Previous Contract Award Notices• Contract History database: contracts awarded by PWGSC over the last 3years (http://csi.contractscanada.gc.ca/)– Search by commodity, customer, vendor or contract number– Find out which departments and agencies use PWGSC to buy your goods orservices, total contract value and name of successful bidder.• Awards Database in MERXTM: database of previously publishedopportunities, over the last 9 years (http://www.merx.com/English/SUPPLIER_Menu.asp?WCE=Show&TAB=1&PORTA)– Find out contract value and name of successful bidder, and what to expect, basedon previous requirements• Proactive Disclosure, Treasury Board of Canada Secretariat (TBS)– All contracts over $10,000 issued by federal government departments(http://www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp)
44Step 4: Searching for Opportunities4.1 Government Electronic Tendering Service (GETS)4.2 Dollar Thresholds for Posting Bid Opportunities on MerxTM4.3 Free Registration Using PBN4.4 Searching for Opportunities on MERXTM4.5 Security Requirements4.6 Canadian Innovation Commercialization Program (CICP)
454.1 Government Electronic Tendering Service• GETS is the Government of Canada’s electronic tendering systemhosted by MERX™; its allows suppliers to view bid opportunities (http://www.merx.com/French/SUPPLIER_Menu.asp?WCE=Show&TAB=)• Federal government opportunities identified with the Canadian flag( )• Procurements that fall above trade agreement thresholds arepublished on MERX™ when one or a combination of these tradeagreements apply (Agreement on Internal Trade (AIT), NorthAmerican Free Trade Agreement (NAFTA), World TradeOrganization Agreement on Government Procurement (WTO-AGP)).
464.1 Government Electronic Tendering Service• Procurements that fall below trade agreement thresholds, do nothave to be posted on MERX™.• Government of Canada buyers can use the following electronicdatabases to invite suppliers to bid on such opportunities:– Supplier Registration Information (SRI)– Professional Services (PS) Online– SELECT
474.2 Dollar Thresholds for Posting on MERXTM• The Government of Canada is a signatory to various tradeagreements, and these have an impact on procurement activities.• Procurements that fall above the AIT, NAFTA or WTO-AGP dollarthresholds are published on MERX™ when one or a combinationof these trade agreements apply.Trade Agreement Dollar Threshold SummaryAgreement Goods Services ConstructionNorth American Free Trade Agreement (NAFTA)$27,300 $76,600 $9,900,000Agreement on Internal Trade (AIT) $25,000 $100,000 $100,000World Trade Organization Agreement on Government Procurement (WTO-AGP)$221,300 $221,300 $8,500,000Dollar thresholds are periodically revised and are subject to change.
484.3 Free Registration Using PBN• Registration on MERX™ may be done using a PBN instead of acredit card number• Access to tender opportunities for the Government of Canada isfree (downloads)
49On MERX™ you can:Action Registration? Cost?Search - view bidding opportunities Not required freeDownload – tender documents yes freeReceive updates – on downloadeddocumentsyes freeView – previous awards yes freeAutomatic bid matching – to yoursubmitted profile(s)yes free / cost4.4 Searching for opportunities on MERXTM
504.4 Searching for opportunities on MERXTMMERX™ demonstration available(Online demonstration)
514.4 Searching for opportunities on MERXTM• Closing / Deadline date and time• Region of delivery• Preview / Order the solicitation documentCanadian Flagindicates a federalgovernmentopportunityCheck the region ofdeliveryCheck the closing dateto ensure you haveenough time toprepare your proposal
524.5 Security Requirements• Some solicitation and contract documents may require thebidder/supplier’s facility and its employees to have a security clearance.• Inquiries on security related issues may be addresses to:Canadian Industrial Security Directorate (CISD)Industrial Security ProgramPublic Works and Government Services Canadac/o Central Mail RoomPlace du Portage, Phase III, 0B311 Laurier Street, Gatineau, Quebec K1A 0S52745 Iris Street, 2nd FloorOttawa ON, K1A 0S5Toll free: 1-866-368-4646National Capital Region: 613-948-4176Email: email@example.com
534.6 Canadian Innovation Commercialization Program• The Canadian Innovation Commercialization Program (CICP) is anew initiative, launched as part of the Government of Canada’scommitment to promote Canada’s economic growth as announcedin Budget 2010 ;• CICP targets four priority areas: Environment, Safety and Security,Health, and Enabling technologies ;• Innovators may have an opportunity to introduce their pre-commercialized products or services to the Government of Canada ;• Calls for Proposals posted on MERX™: fall 2010 (closed), summer2011 (closed), 2012 (planned)• Funding limit will of $500,000 per bid• Additional information and reference material:www.buyandsell.gc.ca/innovation
55Step 5: Bidding on Opportunities (Intro)5.1 Structure of a Request for Proposal (RFP)5.2 Decision to Bid5.3 Preparing a Proposal5.4 Information on the Bidding Opportunity5.5 Best Practices for Bidding and Tips
565.1 Structure of a Request for Proposal (RFP)• PART 1 – General Information• PART 2 – Bidder Instructions• PART 3 – Bid Preparation Instructions• PART 4 – Evaluation Procedures and Basis of Selection• PART 5 - Certifications• PART 6 – Security, Financial and Other Requirements• PART 7 – Resulting Contract ClausesList of Annexes:• Annex “A" Statement of Work OR Requirement (as applicable)• Annex “B" Basis of Payment (if applicable)• Annex “C" Security Requirements Check List (if applicable)• Annex “D" Insurance Requirements (if applicable)
575.2 Decision to BidIn making the decision to bid, you must ask yourself:• Am I able to prepare my bid proposal before the closing date?• Am I capable of offering the service(s) or product(s)?• Do I meet evaluation criteria?• Do I accept the terms and conditions?• Am I ok with the pricing method ?• What are my distinctive advantages over competition?
585.3 Preparing a Proposal• Financial Section• Technical Section• Management Section• Certifications• Other documents
595.4 Information on the Bidding Opportunity• Do not make assumptions; obtain clarification by directing yourquestions directly to the Contracting Authority• Ensure you have all relevant documents and amendments inpreparing your proposal• Are there Security requirements?• Is a Site Visit planned? Is it mandatory?• Will there be a Bidder’s Conference?• What are the Evaluation Criteria?• Are there any additional amendments to the initial Request forProposal? (Verify MerxTMfor possible amendments or changes,and answers to questions submitted by potential bidders)
605.5 Best Practices for Bidding and Tips• Ensure you meet all the mandatory requirements• Minimum required points in a specific section must beachieved• Proposal must not exceed level of funding stated for project• Verify your bid documents: You cannot add missinginformation to your bid, after the closing date• Have fresh eyes (a colleague) review your document• Check that there is no missing Information on your proposalsuch as signatures, pricing, resumes, certifications• Ensure you meet the closing date and time of the RFP.
62Resources for SMEs• Buy and Sellwww.buyandsell.gc.ca• Office of Small and Medium Enterprises – Quebec Regionwww.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/index-eng.html• Public Works and Government Services Canadawww.pwgsc.gc.ca• Supplier Registration Informationhttps://srisupplier.contractscanada.gc.ca/• Professional Services Online (PS Online)www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/index-eng.html• Other professional serviceswww.tpsgc-pwgsc.gc.ca/app-acq/sp-ps-eng.html• Communication and Printing serviceswww.tpsgc-pwgsc.gc.ca/app-acq/communications-eng.html
63Resources for SMEs (contd)• SELECThttps://select.pwgsc-tpsgc.gc.ca• MERX™www.merx.com• Procurement Allocation Directory (PAD)http://pad.contractscanada.gc.ca/• Departmental Materiel Managers Directory (DMMD)http://contratscanada-contractscanada.gc.ca/gmm-dmm-eng.html• Government Electronic Directory Services (GEDS)http://sage-geds.tpsgc-pwgsc.gc.ca/• Contract History (PWGSC) – Contracts Canadahttp://csi.contractscanada.gc.ca/• Commodities Listed in Supplier Registration Information (SRI)http://contractscanada.gc.ca/nibs-gsin-eng.html
64Resources for SMEs (contd)• Procurement Strategy for Aboriginal Businesses (PSAB)www.ainc-inac.gc.ca/ecd/ab/psa/index-eng.asp• PSAB Aboriginal Business Directory (ABD)http://www.ic.gc.ca/app/ccc/sld/cmpny.do?tag=248&profileId=381&lang=eng• Canadian Company Capabilities Directoratehttp://www.ic.gc.ca/eic/site/ccc-rec.nsf/eng/home• Treasury Board of Canada Secretariat (TBS) Proactive Disclosurehttp://www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp• Industrial Security Program- PWGSChttp://ssi-iss.tpsgc-pwgsc.gc.ca/• Standard Acquisitions Clauses and Conditions Manual (SACC)http://sacc.pwgsc.gc.ca/sacc/index-e.jsp• PWGSC Supply Manualhttp://www.tpsgc-pwgsc.gc.ca/app-acq/ga-sm/index-eng.html
65Resources for SMEs (contd)• Office of Procurement Ombudsman (OPO)http://opo-boa.gc.ca/• Canadian International Trade Tribunal (CITT)www.citt-tcce.gc.ca• Access to Information and Privacy (ATIP)http://privcom.gc.caOther sites:• Canada Businesshttp://canadabusiness.ca• Service Canada – For Employerswww.servicecanada.gc.ca/employers• Canada Revenue Agency – Topics for Businesseswww.cra-arc.gc.ca/tx/bsnss/• MARCANwww.marcan.net• Government Services Administration (USA)www.gsa.gov
66ContactNatacha BustrosChIef, SME Stakeholder EngagementSmall and Medium Size Enterprises, Quebec RégionPublic Works and Government Services CanadaPlace Bonaventure, South-East Portal800 De la Gauchetière Street West, Suite 7300Montréal , Quebec H5A 1L6Tel. : 514-496-3665Fax: 514-496-5891E-Mail: firstname.lastname@example.org