Health Canada Procurement Plan (Assets and Acquired Services) 2019–2020

Purpose of the procurement plan

Health Canada's Procurement Plan complements the department's activities in support of proactive disclosure. The Plan is designed to provide a high level summary of the department's planned procurement activities for the fiscal year 2019-2020. The plan neither represents a solicitation or a request for proposal, nor is it a commitment by the Government to purchase any of the described property or services.

The objective of government procurement

Government contracting must be conducted in a manner that will:

  • Stand the test of public scrutiny in matters of prudence and honesty, facilitate access, encourage competition and reflect fairness in the spending of public funds
  • Ensure the pre-eminence of operational requirements
  • Support long-term industrial and regional development and other appropriate national objectives, including aboriginal economic development
  • Comply with the government's obligations under the North American Free Trade Agreement (NAFTA), the Canadian Free Trade Agreement (CFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Source: Treasury Board of Canada Contracting Policy

Key procurement drivers

Health Canada has a Departmental Results Framework with two core responsibilities:

  1. Health care systems
  2. Health Canada provides national leadership to foster sustainable health care systems that ensure access for Canadians to appropriate and effective health care.
    Under the Health Care Systems core responsibility, Health Canada provides national leadership to foster sustainable health care systems. This is mainly achieved through partnerships with provincial and territorial governments and support through targeted funding agreements to organizations and key pan-Canadian health partners that are contributing to health system improvements.

  3. Health protection and promotion
  4. Health Canada works with domestic and international partners to assess, manage and communicate the health and safety risks and benefits associated with health and consumer products, food, chemicals, pesticides, environmental factors, tobacco and controlled substances.

    Within the health protection and promotion core responsibility, Health Canada works with domestic and international partners to help protect Canadians by identifying health and safety risks. These risks are managed through rigorous regulatory frameworks and by communicating risks and benefits to Canadians so that they can make informed decisions. This work relates to the health and safety of health and consumer products, food, chemicals, pesticides, environmental factors such as air and water quality, tobacco and controlled substances, including cannabis. The distinction between the roles of Health Canada and the Public Health Agency of Canada is outlined in the descriptions of the Core Responsibilities, and expressed in unique departmental results statements and indicators.

    Health Canada will deliver on its results for Canadians, in part, through procurement activities that support the priority areas identified in the 2019-2020 Health Canada Departmental Plan.

A key consideration for the department is the need for flexibility and agility in its procurement planning and execution within the confines of Government of Canada legislation and policies related to procurement, as well as, national and international trade agreements.

Governance and procurement standards

Governance

HC has a robust governance structure in place for monitoring and controlling its procurement activities. The structure includes automatic electronic standardized business process mapping through the departmental financial system (SAP), which includes a procurement specialist review and functional oversight through a two-tier Contract Review Committee for ensuring compliance to policies and regulations.

Procurement management activities (planning, tendering, acquisition and closure) are subject to reviews and audits by various organizations including the Office of the Auditor General, Health Canada's Audit and Accountability Bureau, and the Office of the Procurement Ombudsman. Findings that strengthen the department's procurement processes are addressed through an audit Management Report Action Plan and its implementation is subject to oversight through the department's Executive Committee on Planning and Accountability and Health Canada's Departmental Audit Committee.

Procurement standards

Health Canada is committed to ensuring that competitive procurement is standard practice whenever possible. To support this, the department adheres to the following practices:

Tendering process

Buy and sell

The Buyandsell.gc.ca is an on-line system that advertises government contracting opportunities to potential bidders.

Health Canada publishes Advanced Contract Award Notices (ACAN) through the Buyandsell.gc.ca to notify suppliers of the intent to award a contract directly to a supplier and to consider statements of qualifications from any suppliers capable of fulfilling the requirement.

Planned procurement volumes

The department's procurement planning process allows the department to identify economies of scale through consolidation of acquisitions, resulting in increased flexibility and avoiding delays through greater use of Standing Offer Agreements and identifying opportunities for enhanced service delivery.

As part of this process, all branches within the department are requested to identify their planned expenditure activity for assets and acquired services. For the 2019-20 fiscal year this exercise resulted in the identification of planned expenditures with an estimated value of $227.1 million, as follows:

Figure 1: planned procurement summary: assets and acquired services
Figure 1: planned procurement summary - assets and acquired services

Figure 1: planned procurement summary by general ledger (G/L) group 2019 to 2020

A pie chart illustrating the dollar value of the department has planned procurement of capital assets, acquired services, materials and supplies by G/L grouping

  • Professional and special services: $93,573,639
  • Capital assets: $29,921,442
  • Other services: $23,234,448
  • Acquisitions greater than $10,000 in machinery, equipment and tools: $8,053,526
  • Rentals: $16,667,132
  • Repairs and maintenance: $13,732,758
  • Transportation & telecommunications: $13,648,600
  • Materials and supplies: $10,936,002
  • Information services: $17,345,065
  • Grand total: $227,112,612

Figure 2: planned procurement summaries: capital assets
Figure 2: planned procurement summary of capital assets

Figure 2: planned capital assets by G/L group 2019 to 2020

A pie chart illustrating the dollar value of the department has planned procurement of capital assets by G/L group

  • Acquisitions greater than $10,000 of machinery, equipment and parts: $25,063,801
  • Acquisitions greater than $10,000 of engineering works: $0
  • Acquisitions greater than $10,000 of vehicles: $268,000
  • Acquisitions greater than $10,000 of buildings: $4,185,207
  • Acquisitions greater than $10,000 of computer equipment and software: $404,434
  • Grand total: $29,921,442

Professional and special services account for approximately 42% of planned procurement activities broken down as follows:

Figure 3.0 Planned Professional and Special Services by GL Group

Figure 3: planned professional services by G/L group

Figure 3: summary of planned professional and special services by G/L group 2019 to 2020

A pie chart illustrating the dollar value of the department has planned procurement of professional and special services by G/L grouping

  • Informatics services: $26,975,663
  • Other professional services: $33,932,430
  • Health and welfare services: $17,838,105
  • Engineering, architectural and scientific services: $5,626,989
  • Training and educational services: $5,810,448
  • Protection services $3,038,500
  • Accounting and legal services: $169,344
  • Internal support professional services: $182,160
  • Grand total: $93,573,639

These figures while only an indicator of planned procurement activity within the department, represent a significant portion of the volume of procurements likely to be undertaken, based on the following historical figures:

Table 1.0 - Historical volumes of contracting commitments $10,000 and up undertaken by the department (2015-2019)
  2015 - 2016 2016-2017 2017-2018 2018-2019
Number of Contracts

1,324

1,245

1,321

1,513

Total Dollar Value of Agreements

148.3 M$

126.0 M$

119.2M$

130.0M$

Procurements outside of those forecasted in this document include the following:

Items that are frequently procured for the department include:

Rationale for procurement decisions

Procurement decisions are based upon a number of factors. A main consideration is a life cycle approach to materiel management, and includes:

Procurement decisions also reflect the need for program integrity, such as:

Health Canada supports the objectives of the Policy on Green Procurement, including incorporating environmental performance considerations and value for money into the procurement decision-making process.

Cost savings, synergies and value added considerations, such as "greening," are also factored and contribute to the procurement decisions made by program managers.

Additional Information for Suppliers

For more information on becoming a supplier to the Government of Canada please refer to Public Services and Procurement Canada.

Suppliers are also encouraged to consult the Public Service and Procurement Canada Buy and Sell Website on a regular basis to seek opportunities to become Health Canada and Government of Canada suppliers.

For any additional enquiries related to Health Canada procurement, please contact:

Manager, Data Management
Materiel and Assets Management Division
Health Canada
200 Eglantine Driveway,
Ottawa, Ontario K1A 0K9
Telephone: 613-952-3691

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