Supplier Advisory Committee meeting: April 19, 2023

Find the agenda and the record of discussion (RoD) on this page:

Agenda

Meeting format: MS Teams meeting

Agenda (1:00 pm to 3:00 pm Eastern Standard Time (EST))
Time (EST) Subject Speaker
1:00 to 1:05 pm
(5 minutes [min])
Welcome and opening remarks

Co-chairs,
Supplier Advisory Committee (SAC)

Mollie Royds,
Associate Assistant Deputy Minister (AADM), Procurement Branch (PB), Public Services and Procurement Canada (PSPC)

Michele Lajeunesse,
Senior Vice President, Government Relations, and Policy, TECHNATION Canada

1:05 to 1:10 pm
(5 min)

Approval of February 15, 2023, record of discussion

  • Review and comments (5 min)
Co-chairs
1:10 to 1:25 pm
(15 min)

Public Services and Procurement Canada updates

  • Budget 2023 (5 min)
  • Mandate letter commitments, including ethical procurement and green standards (5 min)
  • Procurement Assistance Canada engagements and key activities updates
(5 min)

Mollie Royds,
AADM, PB, PSPC

Levent Ozmutlu,
Director General (DG), Strategic Policy Sector (SPS), PSPC

Louis-Martin Parent,
Acting (A/) Senior Director, Procurement Assistance Canada (PAC), PSPC

1:25 to 1:50 pm
(25 min)

Supplier Diversity Program

  • Presentation of final, approved program prior to launch (10 min)
  • Discussion (15 min)
Levent Ozmutlu,
DG, SPS, PSPC
1:50 to 2:00 pm
(10 min)
Health break N/A
2:00 to 2:30 pm
(30 min)

CanadaBuys demonstration and industry feedback

  • CanadaBuys and Systems, Applications & Products (SAP) Ariba presentation and demonstration (15 min)
  • CanadaBuys update (5 min)
  • Discussion on industry feedback (10 min)

Stephane Champagne,
Supply Team Leader, PAC (National Capital Region), PSPC

Kate Svazas,
Senior Director, Procurement Business Modernization Directorate (PBMD), PSPC

2:30 to 2:50 pm
(20 min)

Priorities and governance

  • Terms of reference (10 min)
    • Discussion of principles related to confidentiality and conflict of interest and finalization of terms of reference
  • Forward agenda items (10 min)
  • Proposed agenda for June 15
Louis-Martin Parent,
A/Senior Director, PAC, PSPC
2:50 to 3:00 pm
(10 min)

Roundtable and closing remarks

  • Next meeting: June 15, 2023
Co-chairs

Record of discussion

April 19, 2023, from 1:00 pm to 3:00 pm (ET)

Attendees

Co-chairs: Present

Member organisations: Present

Member organisations: Absent

Special guests and presenters: Present

Secretariat: Present

Welcome and opening remarks

The government co-chair, Mollie Royds, welcomed SAC representatives, delegates, presenters, and guests. The co-chair acknowledged that the land on which their office is located is traditional, unceded territory of the Algonquin Anishinaabeg people. In the spirit of reconciliation, PSPC called on all of the attendees to respect the history, spirituality, and culture of Indigenous peoples and to uphold their continuing responsibility as treaty people.

Approval of the February 15, 2023 record of discussion

Having previously circulated the draft record of discussion for the February 15, 2023, SAC meeting to members for review, the government co-chair invited members to offer comments or suggestions. Since they proposed no amendments, SAC approved the record of discussion for February 15, 2023.

Public Services and Procurement Canada updates

The government co-chair welcomed Levent Ozmutlu, Lucie Levesque, and Louis-Martin Parent, and invited them each of them to provide update on behalf of their respective PSPC sectors.

Budget 2023

The government co-chair first provided an update on the importance of the federal budget 2023 to PSPC.

Update summary

PSPC started off by noting that the 2023 federal budget highlighted spending in key areas, including making life more affordable for Canadians, stronger public health care, and growing a green economy.

PSPC noted the following key items related to PSPC's role as a common service provider: reciprocal procurement; developing the “Friendshoring” strategy; supporting legislation to eradicate forced labour from Canadian supply chains; reducing spending in the public service, including consulting services; making efforts towards reconciliation through the 5% Indigenous procurement target and Crown-Indigenous Relations and Northern Affairs Canada Northern Abandoned Mine Reclamation Program; developing a cybersecurity strategy; assisting with vessel mediation; purchasing zero-emissions vehicles for federal fleets; and potentially procuring vaccines for future health emergencies. PSPC also highlighted the investment of $80 million for fiscal year 2023 to 2024 for the Government Electronic Procurement System, CanadaBuys.

Discussion summary

CADSI asked if “Friendshoring” will be a PSPC strategy and if so, who will lead it, since the topic is of high interest to CADSI. PSPC responded that “Friendshoring” is a complex and multidisciplinary issue, noting that, while PSPC will not be leading the initiative, the department will work within a multi-departmental context, including working with other government departments, such as Global Affairs Canada.

WBE Canada asked PSPC to repeat the update on Indigenous procurement. PSPC responded that it highlighted issues about Indigenous procurement and greening issues, while reinforcing that it was leveraging existing resources for the Policy on Social Procurement and the 5% target of federal procurement from Indigenous businesses and communities.

Mandate letter commitments

Levent Ozmutlu, SPS, provided an update on the mandate letter commitment made by the minister of PSPC, including ethical procurement and green standards.

Update summary

Regarding ethical procurement, SPS noted that PSPC awarded a contract in May 2022 seeking a report on the risk of forced labour on procurement. In October 2022, PSPC sought additional information and supply-chain mapping, as well as risk mitigation specifically for PSPC. Consultations took place during 2 events in winter 2023, seeking to raise awareness of the risk of abuse of human rights and forced labour within supply chains. PAC is planning to hold supplier engagement sessions in fall 2023, which will contribute to a due diligence framework for ethical procurement, aligned with other government departments.

Regarding green procurement, SPS noted that Treasury Board Secretariat (TBS) developed new standards for embodied carbon and carbon emissions. TBS introduced the Standard on Embodied Carbon in Construction on January 1, 2023, which seeks a 10% reduction of embedded carbon in steel and cements used within new federal procurements. For carbon emissions, TBS announced the Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets that came into effect on April 1, 2023. As of April 1, 2023, the standard requires suppliers of large federal government contracts to measure carbon production and provide plans on how they will reduce carbon in procurement. Modifications to standard clauses are likely to reflect these changes. SPS may be looking to reduce packaging requirements and will resume efforts in summer 2023.

Discussion summary

TECHNATION suggested that SAC needs to discuss the impact of the 2 new standards on small and medium enterprises. In the case where small and medium enterprises are part of a joint venture bidding on a federal contract, they also need to develop emissions reporting and reductions. SAC should explore this for the next meeting in the context of setting up small and medium enterprises for success with these new standards coming in place.

WBE Canada asked how companies will report for the new standards. SPS noted that bidders will need to register for specific programs and show a commitment to reducing emissions. TBS requires that PSPC include reporting standards in federal contracts.

Procurement Assistance Canada engagements and key activities updates

Louis-Martin Parent, PAC, provided an update on PAC’s Indigenous Business Information Sessions and reported on PAC outreach activities.

Update summary

PAC reported that 13 Indigenous Business Information Sessions took place across Canada between October 2022 and March 2023. These sessions provided Indigenous businesses and communities with information on Indigenous procurement opportunities and supports. PAC said that feedback from attendees and partners was positive.

PAC said that PAC is continuing to develop its reporting of outreach events for fiscal year 2022 to 23. Early indications show that PAC met their target (1900 events), but PAC is still gathering data. Those same indications highlight a strong focus on supplier diversity. PSPC would be happy to connect SAC members with the PSPC regions to help them plan events for the remainder of this fiscal year.

Supplier Diversity Program

Levent Ozmutlu, SPS, briefed SAC on the upcoming Supplier Diversity Program (SDP), as part of PSPC’s continuing consultations on the program. Representatives from the minister’s office told members that the information provided is under embargo and that they could not share it outside of SAC until PSPC makes SDP public. SAC secretariat will then update the record of discussion.

CanadaBuys demonstration and industry feedback

The government co-chair invited Stephane Champagne, PAC, to demonstrate CanadaBuys and SAP Ariba, and also asked Kate Svazas, PBMD, to provide an update on CanadaBuys afterwards, from a corporate point of view.

CanadaBuys and Systems, Applications & Products Ariba presentation and demonstration

Stephane Champagne provided a demonstration of CanadaBuys and a high-level introduction on how to register for SAP Ariba, the platform used to bid on tenders posted on CanadaBuys. PAC started the demonstration on CanadaBuys by suggesting that users focus their searches on open tenders instead of awarded items. PAC noted that keyword searches work better than search filters for narrowing down procurements related to a specific company’s capabilities. Keyword searches allow suppliers to search both English and French terms concurrently, and PAC also showed SAC how CanadaBuys can enable businesses to partner with other businesses in a procurement.

PAC then demonstrated the registration process for SAP Ariba. To access documentation regarding a contract or procurement, suppliers must first register with SAP Ariba or log into an existing account of SAP Ariba that can be linked to the Government of Canada. PSPC recommends that suppliers use their work email address as a username for SAP Ariba. PAC noted that, to bid on Government of Canada contracts, suppliers need to complete their SAP Ariba profile, in particular responding to questions regarding socio-economic categories. Suppliers must complete section 6 for Indigenous businesses and communities, section 7 for supplier certifications, and section 9 to qualify for a contract. PAC also mentioned that suppliers must add at least one commodity and at least 1 “ship-to-address” to sell to the Government of Canada. Suppliers must also upload mandatory documents, such as certifications, to the system. In conclusion, PAC noted that suppliers need to complete a minimum of 40% of the SAP Ariba profile before they can sell to the Government of Canada.

CanadaBuys update

Kate Svazas, PBMD, provided an update on CanadaBuys, noting that it has been operating as the single point of access for federal procurement since September 19, 2022, and that the platform is stable and operating as expected. The Acquisitions Program Transformation Sector (APTS) indicated that PSPC’s adoption of SAP Ariba continues, and it is the primary system used by procurement teams within the PSPC’s Acquisition Program, with minor exceptions.

PSPC is using a phased approach to decommission the BuyandSell platform. APTS will first migrate data from BuyandSell to CanadaBuys so that users can access contract history on CanadaBuys. PSPC will update both websites to redirect suppliers appropriately, so that they find the information they need.

Discussion on industry feedback

WBE Canada asked if there is a place to import third-party certification in CanadaBuys. PSPC confirmed that the bidders would be able to submit certification at the time of bid submission and that the system would support this functionality.

The private sector co-chair committed to soliciting SAC member feedback on CanadaBuys by the end of week and to seek feedback by the end of the May 2023. The SAC Industry co-chair noted that various members identified issues with the Really Simple Syndication (RSS) feed and SAP Ariba. The private sector co-chair also noted that CanadaBuys is supporting business-to-business relationships between small and medium enterprises and contractors to develop business relationships and joint ventures.

CADSI suggested that if suppliers can search and filter other firms’ CanadaBuys' profile, that could be a useful initial research tool to help match supply and demand. CADSI expressed interest in arranging a demonstration for their members as well. APTS agreed that having a common platform is a key advantage for CanadaBuys, and shared "Find Suppliers on Ariba Discovery" and demonstrated it to show which suppliers are using the platform.

PAC invited SAC members to get in contact for a demonstration for their industry association’s members, if desired.

Priorities and governance

The government co-chair invited Louis-Martin Parent, PAC, to provide the update and lead the discussion on SAC priorities and governance, including SAC’s terms of reference, forward agenda, and plans for the June 15, 2023, meeting.

Terms of reference

PAC indicated that, due to time constraints, SAC secretariat will send out the draft terms of reference for secretarial approval.

Forward agenda

Michele Lajeunesse, the TECHNATION representative, asked SAC to consider adding a presentation and discussion on cybersecurity to the forward agenda, identifying PSPC’s efforts and how SAC members might support its implementation. PAC observed that this topic is already on the forward agenda.

CMC-Canada noted the significant impact on its members of the federal government’s aim to reduce the budget by cutting consulting contracts. CMC-Canada asked that this issue be set as a topic for discussion at a future meeting so that SAC members can learn how the federal government will implement those cuts and to discuss how SAC members might support affected suppliers working in the consulting sector.

Plans for the June 15, 2023 meeting

PAC said that planning had begun for the June 15, 2023 meeting, which would be the first in-person meeting since January 2020. PAC indicated that a good way to engage everyone in-person would be to set a theme around the concept of socio-economic outcomes from procurement and mechanisms to achieve them. PAC said that SAC should also discuss its priorities of work for the next 12 to 18 months. In terms of next steps, the secretariat will send out various documents for consideration by members, including a proposed agenda and questions to solicit member feedback.

Roundtable and closing remarks

PSPC thanked everyone for their participation in the meeting and said that they are looking forward to the next SAC meeting to take place in-person on June 15, 2023.

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2024-10-10