The ongoing US–Canada trade war has impacted public sector solicitations. While the basic tenets of public procurement remain, there is an increased focus on domestic supply chains and protectionist measures.
The following is a comprehensive outline for preparing public sector solicitations. Not all steps apply to all procurements but the more complex the procurement the more detailed the process.
Needs Assessment
The first planning question should be, “What is problem are we trying to solve and what does success look like?” Identify the problem, the total budget, the timeline and the outcomes to ensure that the procurement is necessary. This helps to distinguish a genuine requirement (need) from a preferred solution (want). The actual solution may be an operational / process improvement at a lower cost than issuing a procurement.
Establish Roles and Responsibility
Legal, finance, IT, risk and insurance may need to participate. A routine purchase made through a standing agreement requires less oversight than a long-term transformation, program implementation or major construction project.
Conduct Market Research
A procurement without understanding the market usually results in a sub-optimal outcome. Market research helps determine if suppliers can meet the requirements and budget and whether the proposed terms could unfairly restrict participation. Research can include reviewing previous contracts and procurements, industry reports, supplier websites, technical standards and conducting a jurisdictional scan.
A Request for Information is another market research tool. It should not a ‘fishing exercise’ and it is important to separate information needs from wants. It is a non-competitive, non contractual, voluntary vendor information gathering tool of which findings may or may not be published.
Other research methods include industry days, supplier briefings, or structured one-on-one meetings all grouped under market sounding exercises. Early engagement must be carefully managed, and all participants should receive the same information, meetings documented and confidential supplier information protected.
Trade agreements and Procurement Directives
Canadian public procurements are subject to trade agreements that include non-discrimination, tender notices, solicitation periods and contract award requirements. When multiple agreements apply, the procurement must satisfy the highest relevant standard.
Many provinces and the Federal Government have introduced Buy Canadian preferences. Rules range from outright prohibition of dealing with US suppliers to giving preferential scoring to domestic suppliers. These requirements must be applied alongside relevant trade obligations which complicates an already complicated procurement process!
Determine the Procurement Value
The estimated procurement value affects approval levels, trade-agreements requirements, posting obligations, and procurement methods. The total procurement value should include the initial contract term, all optional extensions and applicable taxes.
A requirement should not be divided into smaller contracts to avoid approval thresholds, procurement approach or trade obligations. At the same time, legitimate contract division such as separating planning and implementation phases can promote competition by allowing specialized or smaller suppliers to participate.
Translate the Need into Requirements
The statement of requirements is the procurement foundation. It must give Bidders sufficient information to submit a realistic submission.
Rated requirements specifications should avoid referencing a specific brand, design, or trademark. If a brand reference is necessary to explain the requirement, equivalent solutions should be included.
Determine the Procurement Strategy
The procurement strategy details the market approach which should align with the value, complexity, risk and maturity of the market. Approaches range from RFQ / RFT, to simple RFBs to multi-stage RFBs which may include negotiations, demonstrations and proof of concept. The least sophisticated but expedient approach is a non-competitive procurement. However a lack of planning does not qualify as an emergency to circumvent the normal process via a non-competitive procurement.
A single-supplier contract may offer consistency and accountability, while multiple awards may provide capacity, geographic coverage, competition, and continuity. Multiple awards are normal under a Vendor of Record Arrangement, but too many vendors may result in a lack of opportunities for some vendors and a reluctance to participate in future RFPs.
Bidder questions and the responses should be distributed via a posted addendum. The objective is not merely to answer the question but to determine if the procurement documents need to be amended or the posting time extended.
Build a Defensible Evaluation Criteria
Evaluation criteria must reflect the requirements and be clear enough for Bidders to understand. Typical evaluations include mandatory requirements, rated requirements,
pricing and may include reference checks or demonstrations. Mandatory requirements are pass / fail conditions essential to performance. Excessive mandatory requirements can reduce competition and unfairly disqualify suppliers. If unsure about including a mandatory requirement it should be added to the rated requirements and scored.
Rated requirements should be related to the required deliverables and scored using a clearly delineated evaluation scale.
Develop a Realistic Schedule
Public-sector procurements frequently underestimate the time required for internal approvals, responding to bidder questions, posting time, evaluations, clarifications, award and contract finalization. The required posting time should be considered the minimum A common maxim is that “One can never have too much time for a procurement.”
Evaluation and Award
Pricing should be evaluated after the rated requirements score has been finalized. A best practice is to have the pricing form password protected so that it can’t be evaluated until the rated requirements evaluation is completed. Evaluators should attest to no Conflict of Interest once all the submissions have been received. Demonstrations and proof of concepts should be reserved for the most complex procurements. Reference checks are difficult to score given their subjectivity.
Once completed the procurement is ready to be awarded. The award phase can be an exercise in itself and it does not always proceed as expected.
While the above process does not guarantee a successful solicitation it does increase the likelihood that taxpayer money will achieve the intended value for money outcome.
Public Procurement In Canada:
Procurement professionals play a pivotal role in the public procurement world. These experts are well-equipped with the knowledge and skills needed to navigate the intricacies of procurement processes. Whether you’re looking to enhance your procurement acumen through procurement management courses or seeking valuable insights through procurement webinars, the landscape for public procurement offers many opportunities to explore.
The Procurement School encompasses a wide range of activities aimed at achieving the best value for taxpayer money. Procurement service providers work closely with public sector procurement consultants to streamline processes, maintain transparency, and uphold ethical standards. This collaborative effort ensures that the procurement landscape remains fair, competitive, and cost-effective.
Obtaining a procurement certification or a purchasing certificate can be a wise decision for those aspiring to excel in public procurement. These certifications validate your expertise and demonstrate your commitment to professionalism in the procurement arena. Procurement professionals are highly regarded for their ability to make informed decisions that benefit both the public and the government agencies they serve.
Public procurement is not just about acquiring goods and services; it’s about contributing to the well-being of communities and the country. The individuals in this field understand the significance of their roles and strive to uphold the highest standards of ethics and accountability.
Whether you’re a seasoned procurement professional or just starting your journey, the public procurement landscape offers a wealth of opportunities for growth and development. From procurement management courses to ongoing procurement webinars, resources are available to help you stay informed and up-to-date with the ever-evolving world of procurement.
Written by: Graham Allen