For immediate release
OTTAWA, September 19, 2005 -- The Government of Canada today announced the opening of a new office to help smaller firms do business with the federal government.
"I have heard the concerns of small and medium sized businesses and will work with them to ensure they will continue to have access to government business," said the Honourable Scott Brison, Minister of Public Works and Government Services Canada. "Now, through the Office of Small and Medium Enterprises our department will work to reduce barriers and simplify requirements for small and medium sized enterprises that want to do business with the Government of Canada."
The Minister also announced a series of cross-country workshops to consult with representatives of small and medium sized enterprises (SMEs) on the changes being made to the way the government buys goods and services. Minister Brison will chair the first workshop in Halifax on September 23rd. Further workshops will be held in Montreal, Toronto, the Ottawa area, Edmonton and Vancouver.
The departmental strategy, as introduced in Budget 2005, is to buy products and services smarter and faster and in doing so save $2.5 billion over the next five years.
The new Office of Small and Medium Enterprises will strengthen access to government business for SMEs through collaboration with industry associations and individual companies on training, information, development of support tools, and through participation in procurement policy changes. The Office will also work with industry associations to share information on forming joint venture consortia to access major government contracts.
"We recognize that small and medium-sized companies are vitally important to federal government procurement as well as to the Canadian economy as a whole," said Minister Brison.
SMEs are defined as any for-profit enterprises with fewer than 500 employees. They now account for approximately 47% of the value of government purchases and 75% of government contracts. Public Works and Government Services Canada (PWGSC) continues to take concrete steps to promote their involvement in a fair, open and transparent procurement system. For example, the department recently eliminated fees to use the government's electronic tendering system (MERXTM), continues to use regional standing offers to give businesses across the country access to procurement opportunities, and has adopted a plain language initiative to ensure contracts use easy to understand language.
The Office of Small and Medium Enterprises has launched a web site (www.pwgsc.gc.ca/sme) providing information and resources for SMEs as well as a toll-free information line (1 800 811-1148).
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For further information, please contact:
Renée David
Press Secretary
Office of Minister Brison
(819) 997-5421
Media Relations
Public Works and Government Services Canada
(819) 956-2315
BACKGROUNDER
PWGSC Establishes the New Office of Small and Medium Enterprises
Budget 2005 introduced fundamental changes to the way the Government of Canada purchases goods and services. Public Works and Government Services Canada (PWGSC) is working with departments and agencies to implement these changes as part of its major transformation agenda to deliver services smarter, faster and at a reduced cost.
Small and medium enterprises (SMEs) are vitally important to federal government procurement as well as to the Canadian economy as a whole. SMEs are significant contributors to the economic performance of Canada, accounting for 45% of Canadian GDP, much of Canada's economic growth, 60% of all jobs in the economy, and 75% of net employment growth. SMEs are defined as for-profit enterprises with fewer than 500 employees.
As the new procurement changes are implemented, PWGSC wants to ensure SMEs continue to have access to government procurement opportunities. That is why it has established the new Office of Small and Medium Enterprises (OSME) to support SMEs in accessing opportunities to compete for government business.
The Office of Small and Medium Enterprises will strengthen access to government business for SMEs through collaboration with industry associations and individual businesses on training, information, development of support tools, and through participation in procurement policy changes. The Office will also work with SME organisations to share information on forming joint venture consortia to access major government contracts.
The mandate of the Office of Small and Medium Enterprises includes providing two types of support for those SMEs wishing to do business with the government. The Office will help SMEs as they navigate the government procurement system by:
helping SMEs comply with and understand the government's procurement processes;
acting as an ombudsman for SMEs;
providing information to SMEs, using the "Supplier Seminar Program";
attending business trade shows to provide information to SMEs;
organizing special events in order to help SMEs; and,
scheduling more information sessions in partnership with chambers of commerce and various SME associations.
The Office will also work within the government to ensure the procurement system treats SMEs fairly by:
analyzing SME access to and performance in government business;
reviewing SME participation on all major crown procurements (over $10M);
participating on the new government commodity councils to develop more effective procurement strategies; and,
proposing improvements to procurement processes.
PWGSC has taken additional steps to promote SME involvement in a fair, open and transparent procurement process. Several additional targeted initiatives underway include:
informing (and clarifying for) SMEs of exceptions to the mandatory Standing Offer policy;
enhancing the role of Business Access Canada (formerly Contracts Canada), an inter-departmental initiative to simplify access to federal government purchasing information (contractscanada.gc.ca);
using plain, easy to understand language in our contracting documents.
ensuring that all our procurement policies are publicly available, such as the introduction of mandatory standing offers (www.pwgsc.gc.ca/acquisitions/text/index-e.html);
making it easier for smaller businesses to access contracts by eliminating user fees on MERXTM for all federal opportunities;
developing a SME web portal with information to reduce the complexity of dealing with various government departments through a single point of contact for SMEs wishing to do business with the Government of Canada (www.pwgsc.gc.ca/sme).
To help understand the issues facing SMEs, the Office of Small and Medium Enterprises will be holding a series of workshops across Canada, beginning on September 23rd. The workshops will provide a forum to identify and discuss ways to address SME issues related to changes the government introduced in Budget 2005 on how it purchases goods and services.
More information can also be obtained by calling the Office of Small and Medium Enterprises and Business Access Canada help line at 1 800 811-1148.
