Supplier Advisory Committee: October 25, 2023

Find the agenda and the record of discussion (RoD).

On this page

• Agenda
• Record of discussion
• Attendees
• Gathering and opening ceremony
• Approval: Record of discussion, June 15, 2023
• Public Services and Procurement Canada update
• Indigenous procurement
• Environmental sustainability and procurement
• Interim deputy minister visit
• Cybersecurity
• Innovation and procurement: How best to support innovative Canadian enterprises
• Committee priorities for 2024 to 2025
• Governance: Terms of reference
• Forward agenda
• Closing remarks

Agenda

Meeting location: Native Women’s Association of Canada in Gatineau QC.

Agenda (9 am to 1 pm Eastern Standard Time (EST))

Time (EST)	Subject	Speaker
8:30 to 9 am (30 minutes [min])	Networking Note: Coffee and refreshments will be provided at mid-morning health break	N/A
9 to 9:20 am (20 min)	Gathering and opening ceremony Land acknowledgement (5 min) Roundtable introductions (5 min) Opening ceremony (10 min) Opening remarks (5 min)	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 Louise Garrow, Indigenous Elder
9:20 to 9:25 am (5 min)	Approval Record of discussion of June 15, 2023	Co-chairs
9:25 to 9:50 am (25 min)	PSPC updates PSPC priorities (15 min) SAC Feedback (10 min)	Mollie Royds, AADM, PB, PSPC, supported by: Levent Ozmutlu, Director General (DG), Strategic Policy Sector (SPS), PSPC Lucie Levesque, DG, Acquisition Program Transformation Sector (APTS), PSPC Clinton Lawrence-Whyte, DG, Procurement Assistance Canada (PAC), PSPC
9:50 to 10:20 am (30 min)	Indigenous procurement Supply chain issues are persistent and difficult to resolve in the short term Future business expectations	Matthew Sreter, Executive Director, Indigenous Procurement Policy Directorate, SPS, PSPC Danielle Aubin, Senior Director, Transformative Indigenous Procurement Strategy (TIPS), Indigenous Services Canada (ISC)
10:20 to 10:40 (20 min)	Health break Coffee and refreshments will be provided	N/A
10:40 to 11:10 am (30 min)	Environmental sustainability and procurement PSPC (5 min) Treasury Board of Canada Secretariat (5 min) SAC Feedback (20 min)	Jane Keenan, Director, Centre for Greening Government, Treasury Board Secretariat (TBS) Stefanie Bowles, Manager, Green and Clean Technology Procurement Technical Team, Social and Environmental Procurement Policy Directorate, PSPC
11:10 to 11:40 am (30 min)	Cybersecurity PSPC update (10 min) SAC Feedback (20 min)	Paula Folkes-Dallaire, AADM, Defence and Marine Procurement Branch, PSPC
11:40 to 12:55 pm (75 min)	Lunch break and informal discussion Lunch provided	N/A
12:55 to 1:25 pm (30 min)	Innovation and procurement: How best to support innovative Canadian enterprises Roundtable on recent discussions and lessons learned (10 min) Areas for feedback (20 minutes): What do innovative firms need? What government programs have shown to be most helpful and why?	Andrea Andrachuk, DG, Services and Innovation Acquisitions Sector (SIAS), PSPC Patrick Comtois, DG, Enterprise IT Procurement, Shared Services Canada (SSC) Brad Goodyear, DG, Innovative Solutions Canada, Innovation, Science and Economic Development Canada (ISED)
1:25 to 2:25 pm (60 min)	Committee priorities for 2024 to 2025 Key themes and priority areas Potential SAC meeting dates in 2024	Co-chairs
2:25 to 2:40 pm (15 min)	Governance: Terms of Reference Review of changes (10 min) Approval (5 min)	SAC Secretariat
2:40 to 3 pm (20 min)	Forward agenda and closing remarks Forward agenda (10 min) Closing remarks (10 min)	Co-chairs

Record of discussion

October 25, 2023, from 9 am to 3 pm (ET)

Attendees

Co-chairs: Present

• Government co-chair: Mollie Royds, AADM, PB, PSPC
• Private sector co-chair: Michele Lajeunesse, Senior Vice-President, Government Relations and Policy, TECHNATION

Member organisations: Present

• Aerospace Industries Association of Canada (AIAC): Louis-Charles Roy, Vice-President, Public Affairs and Government Relations, delegate for Dwayne Lucas
• Canadian Association of Defence and Security Industries (CADSI): Mindy Pearce, Policy Advisor, delegate for Nicolas Todd
• Canadian Association of Management Consultants (CMC-Canada): Sandy Moir, Partner at Goss Gilroy Inc. Management Consultants, delegate for Donna Ringrose
• Canadian Chamber of Commerce (CCC): Diana Palmerin-Velasco, Senior Director, Future of Work
• Canadian Federation of Independent Business (CFIB): Michelle Auger, Manager, National Business Issues and Projects, representative replacing Jasmin Guenette
• Canadian Manufacturers and Exporters (CME): Alan Arcand, Chief Economist, interim representative

Member organisations: Absent

• Black Businesses and Professional Association (BBPA): Frances Delsol, Vice-President, Partnerships, Outreach and Procurement
• Canadian Aboriginal and Minority Supplier Council (CAMSC): Cassandra Dorrington, President
• Canadian Gay and Lesbian Chamber of Commerce (CGLCC): Darrell Schuurman, Co-Founder and Chief Executive Officer (CEO)
• Council for the Advancement of Native Development Officers (Cando): Ray Wanuch, Executive Director
• Women’s Business Enterprises Canada Council (WBE Canada): Silvia Pencak, President and CEO

Special guests and presenters: Present

• Sagamok Anishnawbek First Nations, Elder Louise Garrow
• PSPC, Arianne Reza, Interim Deputy Minister (I/DM)
• PSPC, Paula Folkes-Dallaire, AADM Defence and Security, (PB)
• PSPC, Mohammed Omar, Senior Analyst, Defence & Security PB
• PSPC, Andrea Andrachuk, DG, SIAS
• PSPC, Levent Ozmutlu, DG, SPS
• PSPC, Stefanie Bowles, Manager, Green and Clean Tech Proc Technical Team, SPS, delegate for Angus O'Leary
• ISC, Danielle Aubin, Senior Director, TIPS
• ISED , Bradley Goodyear, DG Innovative Solutions Canada
• Shared Services Canada, Patrick Comtois, DG, Enterprise Information Technology Procurement and Corporate Services Branch

Supplier Advisory Committee secretariat: Present

• PSPC, Clinton Lawrence-Whyte, DG, PAC
• PSPC, Louis-Martin Parent, Senior Director
• PSPC, Richard Lincoln, Manager Inreach Division
• PSPC, Michael Semenick
• PSPC, Michel Gagne
• PSPC, Fabiola Ingabire
• PSPC, Fresnel Devalon
• PSPC, Tyler Owens

Gathering and opening ceremony

The government co-chair greeted all to this first in-person meeting since January 2020.

Land acknowledgement

The Government co-chair acknowledged that the meeting was being held on unceded territory of the Anishinaabeg people.

Roundtable introductions

The private sector co-chair noted the last-minute cancellations and will follow up.

Opening ceremony

The government co-chair invited Louise Garrow, an elder of Sagamok Anishnawbek First Nations, to open the meeting being held at the Native Women’s Association of Canada (NWAC).

Elder Garrow shared her perspectives on the steps needed to be taken for reconciliation with Indigenous communities, particularly in the areas of environmental stewardship and Indigenous women’s economic and social development.

Opening remarks

The government co-chair expressed gratitude for the time and effort that members contribute and invited open dialogue on priorities to improve the effectiveness of SAC.

The private sector co-chair expressed optimism that government and industry want to learn from one another and hopes SAC can promote exchanges and working groups.

Approval: Record of discussion, June 15, 2023

SAC unanimously approved the record of discussion for the June 15 SAC meeting.

Public Services and Procurement Canada update

The government co-chair identified priorities, then SPS and PAC provided updates.

Public Services and Procurement Canada priorities

The government co-chair noted that the Minister has certain priorities and is encouraging PSPC to collaborate with other departments. She then highlighted the following points:

• The concept of value for money is expanding from a focus on cost, quality, and on-time delivery to include the new elements of environmental and social governance
• Economic reconciliation is central to PSPC’s procurement activities. PSPC is exploring the concept of “Indigenous by default,” which provides economic opportunities and builds capacity for Indigenous businesses and communities to participate in the economy
• The Supplier Diversity Action Plan is intended to help Indigenous businesses and underrepresented suppliers play a greater role in the government supply chain
• PSPC seeks to address climate change through new measures, initially helping cement and steel suppliers and manufacturers report greenhouse gas emissions and reductions
• Cybersecurity is being strengthened to protect Canada against cyber threats to personal data, intellectual property, and business continuity within government, businesses, and non-profit organisations
• Investments in the Canadian Coast Guard and the Royal Canadian Navy are predicted to generate long term, sustained economic benefits
• PSPC is supporting other government departments in addressing housing challenges and improving Canadian dental care
• CanadaBuys helps vendors to access procurements with information and modern tools
• The government co-chair is seeking to identify opportunities for industry to help government leaders to learn, reflect, and change the course of procurement

Strategic Policy Sector update

PSPC-SPS provided an update on key policy files. First, work is underway so that procurements can better represent the supplier base and PSPC-SPS hopes that SAC will help underrepresented suppliers to pursue procurement opportunities. In addition, PSPC-SPS is developing a policy for ethical procurement to ensure that government procurement of goods and services does not involve the use of forced labour and human trafficking. PSPC-SPS indicated that they are continuing to develop the Vendor Performance Framework (VPF) to help assess and inform future bid evaluations. PSPC-SPS plans to tailor additional commodity score cards and securely them.

Acquisition Program Transformation Sector update

PSPC-PAC updated SAC on the CanadaBuys Electronic Procurement System (EPS) project, noting that the E-Procurement Project closed in June 2023 and EPS has entered the in-service stage. The BuyandSell platform and other legacy sites are redirecting suppliers to CanadaBuys, to which procurement data has been ported and updated.

Procurement Assistance Canada update

PSPC-PAC continues to work with small and medium enterprises (SME) to pursue economic reconciliation and supplier diversity. PAC has been organising and supporting Indigenous events to bring suppliers together. PAC has also introduced a CanadaBuys calendar to highlight upcoming events and information sessions. PAC is organising Buyers’ Expos at which businesses can meet government and private sector buyers to determine if their goods and services match what buyers need. Finally, the Canadian Collaborative Procurement Initiative has tools that allow buyers in other districts to leverage federal procurement. PSPC has leveraged $13M in procurements for office supplies and other goods and services during 2022.

SAC members provided the following feedback:

• SAC feedback emphasized the VPF, and CADSI asked when it will be operational. PSPC-SPS replied that it will not be sooner than the next fiscal year
• Canadian Association of Management Consultants (CMC) asked how the professional services pilot will work, and how low performing contractors will be treated within the VPF, compared to high performers. PSPC-SPS stated that the goal of VPF is to identify performance issues early in the contractual process and then take remedial measures as needed
• CFIB stated that a contract is a relationship and posited that the VPF might create an uneven relationship in favour of the buyer. The private sector co-chair suggested that the VPF pilot be modified such that vendors can complete a scorecard on their experiences working with government agencies on procurements

Indigenous procurement

PSPC-SPS and ISC-TIPS made a joint presentation on Indigenous procurement.

Presentation summary

PSPC, ISC, and TBS are leveraging procurement to create opportunities for Indigenous businesses, with the goal of improving the socio-economic potential of Indigenous communities and making procurement more representative of Canadian society. Federal government departments and agencies are committed to working toward the Government of Canada (GoC) commitment of achieving at least 5% of government procurement contracts being made with Indigenous businesses.

PSPC said they normally ask bidders to submit an Indigenous Procurement Plan (IPP) to generate opportunities for Indigenous subcontractors, which can include job training, employment, and subcontracting. Indigenous businesses have strong capacity in certain commodities. In those cases, departments can use the Procurement Strategy for Indigenous Businesses to set aside particular procurements for those businesses, while other procurements may seek IPPs to provide more comprehensive opportunities.

Further transformation will result from developing an Indigenous procurement strategy. ISC-TIPS has been building relationships with and providing guidance to Indigenous communities such as the Ontario Federation of Economic Development Officers and Canadian Council of Aboriginal Businesses. Suppliers are interested in building relationships with national and regional Indigenous industry associations to succeed, develop, and expand, which can contribute to the Transformative Indigenous Procurement Strategy.

SAC members provided the following feedback:

• CMC has noticed an increase in set-asides in procurements and appreciates that subcontracting with Indigenous businesses counts towards federal government targets. CMC expressed concern, however, that the value of contracts for Indigenous is diminishing
• CFIB noted the progress that the government is making in working with Indigenous businesses and asked what more is being done. ISC-TIPS noted that certain departments can accumulate data, even on low-dollar value procurements (e.g., Acquisition Cards), to report on their progress to the 5% target
• TECHNATION said it is important for industry associations to obtain feedback from Indigenous businesses. Most companies winning contracts in the "Scale-Up" pilot were new to procurement and the value for Indigenous business increased from 8% to 12%
• The government co-chair expressed hope that the message is getting back to industry association members that PSPC is very committed to making this policy a reality

Environmental sustainability and procurement

The manager of the PSPC Green and Clean Technology Procurement Technical Team provided an overview of the Greening Government Strategy (GGS) for PSPC and TBS.

Presentation summary

Climate change is a particularly defining issue, shared by all governments and suppliers. The GGS aims to achieve a 40% reduction in real property and fleet emissions by 2025, and net-zero by 2050. Statistics from the Operational Greenhouse Gas Emissions Inventory show that departments have achieved a 38.6% reduction so far. Other emissions to be targeted include those to provide electricity for procurement, buildings, and air travel.
2 federal standards were recently introduced to target embodied carbon emissions:

• The Standard on Embodied Carbon in Construction came into effect in November 2022, starting with concrete and later other construction materials
• The Standard on the Disclosure of greenhouse gas (GHG) emissions came into effect in April 2023 through Policy Note - 157 (PN-157) and applies to procurements over $25M

PSPC is developing procurement policies to reduce plastic waste. PN-158 was published in September 2023 and it asks suppliers to prioritize reusable packaging.

SAC members provided the following feedback:

• AIAC asked about the implementation of GGS. PSPC-Green identified four paths:
  • mandatory or point-rated criteria
  • certificate at bid closing or prior to contract award
  • conditionally limited solicitation
  • contract clause. Suppliers will measure, disclose, and reduce GHGs using the guidelines and tools developed by Environment and Climate Change Canada (ECCC) or an equivalent
• AIAC asked if the result will be the same whichever pathway is taken. PSPC-Green said that there are choices for the supplier, including third-party certifications. AIAC also asked why it is not mandatory for suppliers to disclose emissions. The presenter said disclosure is mandatory for procurements over $25M and may become incentive-based
• CADSI asked if there are any examples of what the government expects for preliminary versus comprehensive net zero plans. PSPC-Green promised to respond later
• The private sector co-chair asked if PAC is letting micro-businesses and SME know that they can obtain certification for net zero plans through ECCC. PSPC-PAC said they have a program to work with SME. PAC is sometimes asked by vendors about green files through their networks and PAC has sent out at least two responses recently
• The private sector co-chair noted that only 8% of companies in Canada are on track to achieve the net zero target by 2050. She suggested that PAC and other groups help. She recommended that TBS provide support to ensure contracting authorities and business owners clearly understand new policy, for example, inviting suppliers to government education sessions on new policies. PSPC-Green said there is a large training component with new policies. Indeed, PSPC conducted training for over 800 procurement group (PG) staff when a recent policy came out and there is internal training materiel available. She agreed that outreach and continuous engagement are required. PSPC expects new requirements from ECCC related to packaging and will modify the Policy Note (PN) accordingly

Interim deputy minister visit

PSPC I/DM, Arianne Reza, joined the meeting for the minister, who was unavailable.

Presentation summary

The I/DM said the Minister likes to engage stakeholders and wants to meet with SAC. She said Parliament is interested in how procurement is going, and so she would like to hear any comments SAC members have on procurement. The I/DM said Indigenous procurement is key, and PSPC is working to increase SME in the Defence space.

The I/DM said that PSPC needs to focus on its relationship with supply chains and to think about the size of subcontractors’ profit margins. The I/DM also said that PSPC does an excellent job at ensuring an open process but should collaborate more closely with TBS to provide education along with any new policies.

SAC members provided the following feedback:

• The I/DM mentioned budget cuts, such as those in Defence professional services, and asked SAC to contribute to this discussion. The private sector co-chair said this topic was discussed at a recent Public Sector Procurement Committee
• CADSI is dubious about the statement that there will be no operational impacts from cuts in outsourcing of professional services. They underscored that transparency is important on this issue. CADSI suspects that policy changes may slow due to the budget, so wants to know about delays up front. CMC knows that cuts are coming to professional services and wants to play a role in advising the GoC how those will be made
• The I/DM said that budget exercises are complex, so planning and forecasting are key. There is now a 15% reduction target, so PSPC needs to gain insights on procurement and help SME to match their capabilities with government procurement plans
• The I/DM said she does not have details on cuts, but there may be a need to refine modernization plans and re-examine rates of pay. PSPC will also need to see which suppliers are using supply chain tools and what kind of screening they went through. PSPC is the procurement authority and needs to collaborate with client departments
• The I/DM wants to speed up the process of defence procurement. PSPC understands that it is a two-way street and PSPC must streamline business requirements to make the process faster, but suppliers need to contribute to this process too. AIAC expressed eagerness to work with PSPC to address the issues and delays in defence procurement
• The I/DM requested information on procurement modernization. PSPC said that before EPS , suppliers were asked for their credentials each time on paper. PSPC now has its suppliers listed in EPS and has added municipalities as buyers. A modernized platform, reduced costs, and securely stored data all contribute to the EPS success story
• CFIB agrees that procurement has been streamlined, but if there are too many new policies to meet, then the electronic process becomes a barrier in and of itself. CFIB members have identified barriers, including excessive requirements. The I/DM committed to assembling a list of the policies that can impose a burden on suppliers
• The private sector co-chair will speak with members to see what kind of burdens they have experienced. One supplier said they do not have a corporate code of ethics or environmental policy and creating them adds to the burden of just finding opportunities
• The I/DM said she would meet with industry associations. The government co-chair said she would also like to have open-mic sessions with industry

Cybersecurity

AADM Defence & Security PB, provided a presentation on cybersecurity certification.

Presentation summary

The GoC and its supplier base have experienced an increase in cybersecurity incidents, and it is therefore essential to consider cybersecurity for government procurement. PSPC has suppliers who also sell to the United States (U.S.), so PSPC must keep this market open and free from non-tariff trade barriers, especially in the defence and marine sector. The U.S. government wants suppliers holding federal contracts or unclassified information to be cybersecurity-certified within the Cybersecurity Maturity Model Certification (CMMC).

Canada seeks a cybersecurity standard against which they can certify businesses and intends to align the Canadian approach with the regime developed by the U.S. National Institutes of Science and Technology (NIST). PSPC is working to develop contract clauses for cybersecurity and will prioritize defence contracts for mandatory requirements when appropriate. PSPC’s third-party accrediting assessors will be the Standards Council of Canada, who will assess and certify up to Level 2 (moderate risk).

Canada's cybersecurity action plan has 5 objectives:

• Protect GoC data, especially that held on industry networks and systems
• Maintain Canadian industry access to U.S. Department of Defense opportunities
• Increase the cyber resilience of Canadian industry, including protecting Canadian information and intellectual property (IP), and securing the supply chain
• Maintain supply system integrity for essential Canadian defence capabilities
• Grow the Canadian cybersecurity industry and tailored domestic certification

The GoC has programs and tools to help SME adopt cybersecurity protocols and become assessors, including the ISED Canadian Digital Adoption Program, National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP)’s In-Sec-M Cybersecurity Support Program, and the Business Development Bank of Canada (BDC) Certification Advisory Services. CADSI, Atlantic Canada Aerospace and Defence Association (ACADA), and Aéro Montréal are also piloting cybersecurity supports for SME.

SAC members provided the following feedback:

• The private sector co-chair mentioned ISED’s cybersecurity program takes SME up to 24 months to complete and they need to recertify often. She is glad certification will be reciprocal with the U.S. PSPC Defence & Marine PB clarified that the Canadian system will support suppliers achieve CMMC, but the 2 certifications will not be the same
• The private sector co-chair asked how easy it is for a SME to certify. The speaker said It depends on the level of security sought and the amount of data that must be held to fulfill the contract, but once cyber-certified, SME will be difficult for cyber criminals to target
• AIAC asked if U.S. certification could be aligned with Canada’s for reciprocity. The presenter explained that U.S. certification would be recognised in Canada. Canada will base its certification on NIST standards and amend the Canada standard, as needed
• CADSI asked about reciprocity with other countries. Canada could align with the U.S. The United Kingdom is in talks with the U.S. to harmonize the Cyber Essentials program standard
• CADSI asked if companies from other countries would be able to seek the Canadian certification. The presenter said it was possible, but assessors would likely be American

Innovation and procurement: How best to support innovative Canadian enterprises

DG PAC led a discussion on innovation with a panel from PSPC, SSC, and ISED.

Presentation summary

ISED stated that the GoC can use procurement to drive innovation, grow the economy, and indirectly help companies to win their first big contract. ISED has an innovation stream, and in a recent call to Canadian firms they received 500 submissions, 441 of which met the mandatory criteria. NRC will evaluate these more deeply and for those that are successful, the companies will win a contract and their products will be promoted to other government departments (OGD). Under Innovative Solutions Canada, ISED also has a challenge stream to encourage innovative firms to address longer range Canadian problems, for example, studying how to reduce reliance on single-use plastic films.

The executive from PSPC named 3 ways in which to encourage innovation:

• Software-as-a-Service procurements made under Department of National Defence (DND)’s Innovation for Defence Excellence and Security (IDEaS) provide a path to commercialization
• Shared Services Canada (SSC)’s Agile Procurement Guide helps procurement officers to ask the right questions of suppliers, develop flexible procurement strategies, and create adaptable contracts
• PSPC’s recent Request for Information (RFI) seeks innovative ways to deliver language services in remote areas

The executive from SSC said they manage data centres, cybersecurity, and cloud services. SSC is working with OGDs to favour an outcomes/challenge-based direction. Prescriptive requirements inhibit innovation, which is a risk when technology is evolving so quickly. An example of agile procurement is to work with industry in a way that creates space within which to innovate, to define requirements and new methods. Another is to award small contracts to the highest-performing vendors for a proof of concept, then select the best one. Such contracts can then evolve into a full solution, if needed. The Scale-Up Initiative, run by SSC, uses the agile approach, currently with contracts below $238K. Such contracts can also be directed to Indigenous and underrepresented businesses.

Roundtable on recent discussions and lessons learned

DG PAC asked the panel if they had anything to be passed on to industry.

SAC members provided the following feedback:

• ISED said that public servants want to be helpful, and they use the tools at their disposal to create a better environment for businesses. ISED encourages industry not to give up if a project is taking too long and encouraged industry to continue to communicate what works and what does not work. CMC-Canada said most firms are aware of innovation programs since the GoC invests in the innovation ecosystem, for example, NRC IRAP. Firms may not realise they are innovative, so more communications could help them respond to innovation challenges
• PSPC said that it is valuable for government to engage with industry. The GoC does not know everything that firms are doing, so she encouraged industry to reach out. SSC encouraged industry not to give in to frustration. The GoC is aware they are not perfect. The more they know, the more feedback they get, the more they can improve
• The private sector co-chair observed that the GoC does well in evaluating innovative products, but OGDs do not manage to spend what they should. ISED responded that the testing stream of ISC is fully expended most years, but OGDs often decline participation in the challenge stream due to lean budgets or a lack of ideas. DND has the biggest portion of the challenge stream, but their IDEaS program is a competitive process, and it takes time to engage
• The private sector co-chair said that when businesses expend resources to prepare for these streams and subsequently fail to make any sales, it can discourage them from participating in the future. AIAC has heard the same thing. ISED responded that innovators must thoroughly qualify in GoC opportunities
• AIAC said that it is difficult for industry to keep up with changes to government, priorities, programs, and contracting thresholds, and noted the need for predictability. Once GoC programs are established, it is almost impossible to change or improve the terms and conditions. AIAC warned that this forces innovative companies to seek customers elsewhere, where they may perceive more predictability and flexibility
• CADSI said their members do not expect a guarantee of contract award, but when they are awarded a contract, they expect the process to proceed predictably and efficiently. Recently two firms won competitions, but it took 8 months to award contracts, leaving them only 4 months to deliver. Another firm won an ISC challenge which, by definition, is pre-commercial, and were then challenged to justify 10 years of development. ISED said that it is important for departments to create correct expectations: do not say "a department will buy your product,", say "a department could buy your product"
• SSC said that regular briefings could improve pre-award predictability. 2 difficulties can arise in outcomes-based procurements when SME push ready-made solutions: prescriptive requirements or a combination of attributes that do not exist on any platform

Committee priorities for 2024 to 2025

The private sector co-chair reaffirmed the importance of SAC in providing a trusted and informed venue in which to discuss procurement issues.

Presentation summary

The private sector co-chair presented a list of former and current SAC priorities:

• Simple and accessible procurement for more businesses to participate
• Increasing participation of smaller and diverse businesses
• Supporting economic recovery by increasing procurement opportunities for Indigenous peoples and underrepresented communities
• Continued support for key policy initiatives including frameworks for vendor performance framework and ethical procurement

The private sector co-chair displayed a list of potential new areas:

• Greater emphasis on environmental and social governance
• Better alignment with innovative and high-tech firms
• Resiliency in supply chains

SAC members provided the following feedback:

• The government co-chair discussed the relative benefits of physical vs. virtual meetings, proposing that the next in-person meeting provide fewer topics and more discussion
• The private sector co-chair mentioned a recent Auditor General reports on Old Age Security (OAS) and the risks associated with its antiquated supporting technology
• The private sector co-chair noted the success of the TECHNATION 2023 Industry Day with 75 industry members and 75 public servants, including contracting authorities. She said that AADM PB led a panel for industry questions and answers and plans to do more in the future
• The private sector co-chair asked SAC Members for their top priorities:
  • CME highlighted the engagement of SME who are unaware of programs
  • AIAC highlighted predictability, transparency, and reasonable program timelines
  • CADSI highlighted 6 areas of interest:
    • SAC should be future-oriented, not briefing what GoC has done to date
    • The GoC should trust professional services to support cybersecurity
    • The GoC needs to find ways to solicit innovative ideas from industry that do not preclude them from bidding on procurements related to those innovations
    • The GoC needs to speed up procurement and communicate delays
    • It is essential that regulators understand the technology they regulate
    • SAC should seek feedback from industry associations rather than PSPC reaching out to individual businesses that are too busy doing business
• CCC singled out the need to communicate to the associations on what programs and supports are available, so their SME can become eligible. CCC added that it is important to think about the economy and the procurement of tomorrow. CCC also identified a new Competition Bureau tool, called Competition Lens
• The private sector co-chair said there should be more communication and help for SME, suggesting templates be made available for mandatory documents. The GoC should also advise businesses of any tax measures they might use
• CMC-Canada said SAC does an excellent job at meetings but must remember that its role is to advise senior PSPC leadership, not report on PSPC or OGD achievements. SAC Members are also there to advocate on behalf of their members. CMC-Canada members are mostly SME or individual consultants who want access, simpler contracting, and supplier diversity. The private sector co-chair responded that SAC Members must hold their association members accountable, for example on VPM
• The government co-chair said that PAC uses its networks to communicate policies and procurement opportunities businesses. The government co-chair provided context for SAC’s challenges:
  • It would be helpful to have less information delivery and more discussion
  • SAC needs to have a conversation on value, to better communicate the economic, social and environmental value of procurements over time
  • PSPC facilitates $24B of procurement annually. SAC needs to let its members know of the opportunities, what is coming, and any culture changes that are coming, e.g., the Buyers' Expos, where buyers can speak with PGs outside of live procurements
• CADSI provided a lesson in which the city of Ottawa decided to emphasize the reduction in commuting time rather than the project cost. If the value of a project is higher than one's mortgage, they may not understand its value or benefits
• The government co-chair said that SAC had moved to a model with more sessions of shorter duration, but presentations take time to coordinate, prepare, and present. SAC needs more cycles to advance ideas and collect feedback. Perhaps returning to fewer meetings with less emphasis on updates would result in more discussion and feedback:
  • AIAC prefers quarterly, half-day meetings, but did not comment on the venue
  • CMC-Canada countered that SAC could accomplish little in half-day, in-person meetings, considering travel time. They proposed one annual, full-day, in-person meeting and four quarterly, half-day, virtual sessions as needed
  • The private sector co-chair suggested replacing long presentations with an information sheet to save time. She also suggested that SAC schedule in-person meetings in the morning, with a gathering for dinner the evening prior

The government co-chair asked if the information provided, and discussion were helpful. In response:

• CCC said the information is helpful, for example, Indigenous procurement, and while some is not part of her portfolio, she will bring the information to her members
• The private sector co-chair felt that the topics complemented each other, and she appreciated the joint presentations by PSPC and government departments

The government co-chair concluded from the discussion that having fewer meetings would help improve what is on the agenda, and the secretariat will poll SAC members

Potential Supplier Advisory Committee meeting dates in 2024

SAC secretariat presented 2 sets of potential meeting dates for 2024, based on past attendance:

• The first option reflects the revised terms of reference (TOR), with up to 6 meetings held
• The second option proposes 3 virtual meetings and 1 in-person meeting per year

SAC members provided the following feedback:

• SAC secretariat asked the members’ preferences and if they saw conflicts at this point. They noted that SAC could adjust meeting dates during the year, with sufficient notice
• SAC secretariat will send email fresh dates so members can cross check them with their work calendars as well as confirm the dates and the approach by the next SAC meeting
• SAC secretariat will integrate the members’ preferred dates into the forward agenda, aligning topics and priority areas with specific dates to plan, and will send placeholders

Governance: Terms of reference

The government co-chair said that the TOR express the scope and purpose of the committee and they were refreshed to match the current context and expectations. SAC will review them annually during its in-person gatherings.

Review of changes

The government co-chair reviewed changes made over the last year:

• the role of the private sector co-chair is now described more explicitly
• potential SAC membership has increased from 12 to 15 industry associations
• membership will be 3 years with an assessment 6 months prior to the end
• members may now propose to send a delegate if the representative is absent
• the TOR were reworded to encourage more active participation by members
• language from non-disclosure agreements was incorporated directly into the TOR
• language was added to manage the sharing of sensitive information presented
• the meeting formats, in-person, hybrid, and virtual are more clearly defined

SAC members unanimously approved the SAC TOR as presented at the meeting.

Forward agenda

SAC secretariat will poll members regarding meeting frequency, duration, and venue.

Closing remarks

The government co-chair thanked all for their ongoing commitment to represent their industry associations at SAC, reiterating the benefits of their consistent presence and active contributions. She re-iterated her willingness to meet industry associations and shared that the private sector co-chair has recently agreed to continue in her role.

The private sector co-chair encouraged all to seek industry feedback and share it with SAC to positively influence the initiatives and programs being developed and brought to fruition. She reminded members that they can raise issues and ask questions of the SAC co-chairs at any time.

The next SAC meeting is scheduled for December 13, 2023.