Procurement modernization and improving e-procurement: Committee of the Whole—July 8, 2020
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Context
Public Services and Procurement Canada (PSPC) is delivering on government commitments to modernize and simplify procurement, and to establish an e-procurement solution (EPS).
Suggested response
- The government is committed to modernizing procurement practices so they are simpler, less administratively burdensome, and include practices that support our social and economic policy goals
- The government is simplifying and streamlining PSPC contractual documents based on findings and recommendations of a review of our practices
- We are implementing a simplified contract model to remove barriers to supplier participation in public procurement
- We are also taking action by:
- establishing a procurement policy framework to achieve positive social and environmental outcomes
- implementing an electronic platform to make procurement easier and increase opportunities for suppliers
- improving existing procurement tools
- piloting a risk-based approach for procurement decisions and developing new tools for determining contract pricing
- We will continue to support other procurement commitments including better vendor management tools, clear data metrics, and increased opportunities for Indigenous businesses
If pressed on diversifying procurement (Black-owned businesses):
- our government is committed to diversifying the base of suppliers obtaining contracts from federal organizations
- in support of this, PSPC through the Office of Small and Medium Enterprises (OSME) continues to reach out to under-represented groups across Canada, including Black-owned businesses
- We have and continue to work and collaborate with the United Nations Decade of Persons of African Decent (UNDPAD) Push Coalition and the Canadian Black Chamber of Commerce to raise awareness of the services offered by OSME, to encourage participation in federal procurement, and to identify and remove barriers
If pressed on Indigenous procurement:
- we are committed to increasing the participation of Indigenous businesses in federal procurement
- to do so, we are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to create a new target to have 5% of federal contracts awarded to businesses managed and led by Indigenous Peoples
- Indigenous business organizations are represented on both the newly established COVID-19 Supplier Council and the national Supplier Advisory Council that has been in place since 2013
- OSME works with Indigenous businesses directly, as well as through partner Indigenous organizations, to provide information, support and practical guidance on how to participate in federal procurement
Background
A substantial part of public investment is managed through public sector acquisition of goods and services, representing 13% of Canada’s gross domestic product (GDP Footnote 1 ), making it a fundamental lever to achieving social and economic objectives.
The government has committed to modernize and simplify procurement, and to establish an electronic procurement solution. A key step towards this goal was the purchase of a new electronic procurement system, as announced in budget 2018, at a cost of $196.8 million over 5 years. Procurement processes will also be easier, faster and more accessible for suppliers and buyers through:
- simpler, less administratively burdensome, user friendly procurement practices:
- improvements to the existing Buy and Sell system for all government departments
- more accessible and intuitive complement of industrial security services
- contract modernization initiatives and a simplified contract model are being implemented. This is in response to concerns from the supplier community regarding the complexity of the Government of Canada’s contracts and related processes. This complexity can represent barriers to supplier participation in public procurement, including reducing competition and supplier diversity, which impacts Canada’s ability to achieve best value for money
- as this work is ongoing, timelines for full implementation of contact simplification initiatives will determined as the project definition and scope is clarified
- deployment of modern comptrollership:
- piloting a risk-based approach for procurement decisions
- ensuring fair pricing in defence contracts (sustainment initiative, pricing guide)
- encouraging greater competition and by including practices that support our economic policy goals, including innovation, as well as green and social procurement:
- developing a framework for leveraging socio-economic outcomes, including environmental outcomes, in federal procurement
- adopting a more inclusive approach to procurement, raising awareness of how to give consideration to the needs of persons with disabilities when procuring on behalf of the federal government
- reducing our environmental footprint through strategic sourcing decisions such as measures that support the conversion of government fleets to zero-emission vehicles
The government will also support other procurement commitments including better vendor management tools, clear data metrics, and increased opportunities for Indigenous businesses.
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