Supplier Advisory Committee: February 21, 2024
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Agenda
Meeting location: Native Women’s Association of Canada in Gatineau QC.
Time (EST) | Subject | Speaker |
---|---|---|
1:00 to 1:05 pm (5 minutes [min]) |
Welcome and opening remarks
|
Co-chairs, Joëlle Paquette, Michele Lajeunesse, |
1:05 to 2:05 pm (60 min) |
Regional Supplier Advisory Committee updates
|
Regional SAC co-chairs National SAC co-chairs |
2:05 to 2:10 pm (5 min) |
Health break |
n/a |
2:10 to 2:15 pm (5 min) |
Approval: Record of discussion
|
Co-chairs |
2:15 to 2:30 pm (15 min) |
Public Services and Procurement Canada update
|
Levent Ozmutlu, Clinton Lawrence-Whyte, |
2:30 to 2:45 pm (15 min) |
Supplier Advisory Committee work plan review
|
Co-chairs |
2:45 to 3:00 pm (15 min) |
Roundtable and closing remarks
|
Co-chairs |
Record of discussion
February 21, 2024, from 1:00 to 3:00 pm (ET)
Attendees
The following regular members and guest speakers attended or sent their regrets.
Co-chairs: Present
- Government co-chair: PSPC, Joëlle Paquette, A/AADM, Procurement
- Private sector co-chair: TECHNATION, Michele Lajeunesse, Senior Vice-President, Government Relations and Policy
National Supplier Advisory Committee members: Present
- Aerospace Industries Association of Canada (AIAC): Dwayne Lucas, Vice-President, Special Projects
- Canadian Association of Defence and Security Industries (CADSI): Mindy Pearce, Policy Advisor, delegate for Nicolas Todd
- Canadian Association of Management Consultants (CMC-Canada): Donna Ringrose, Executive Director, and Sandy Moir, Partner at Goss Gilroy Inc. Management Consultants
- Canadian Federation of Independent Business (CFIB): Michelle Auger, Manager, National Business Issues and Projects
- Canadian Manufacturers and Exporters (CME): Ryan Greer, Vice-President, Public Affairs and National Policy
- Women’s Business Enterprises Canada Council (WBE Canada): Silvia Pencak, President and CEO
- PSPC, Procurement Assistance Canada (PAC), Clinton Lawrence-Whyte, DG PAC
National Supplier Advisory Committee members: 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 Chamber of Commerce (CCC): Diana Palmerin-Velasco, Senior Director Future of Work
- Canadian Gay and Lesbian Chamber of Commerce (CGLCC): Darrell Schuurman, Co-Founder and CEO
- Council for the Advancement of Native Development Officers (Cando): Ray Wanuch, Executive Director
Regional Supplier Advisory Committee members: Present
- PSPC, PAC Pacific Region, Tara Hartley, Regional Director and Government co-chair for SAC Pacific Region
- PSPC, PAC Western Region, Dolan Bogus, Acting Regional Manager, observer and delegate for Kelsey Debets, Regional Director, PAC Western Region
- PSPC, PAC Ontario Region, Adam Yule, Regional Director and Government co-chair for the Supplier Stakeholder Network (SSN) Ontario Region
- Solutions in Context, Fred Nagy, President and private sector co-chair for SSN Ontario Region
- PSPC, PAC Atlantic Region, Patrick Loyer, Regional Director and Government co-chair for SAC Atlantic Region
- The Centre for Women in Business (CWB), Judith Richardson, Advancing Supplier Diversity in Atlantic Canada (ASDAC) at CWB and private sector co-chair for SAC Atlantic Region
- PSPC, PAC National Capital Region (NCR), Chantal Potvin, Regional Director, observer
Regional Supplier Advisory Committee members: Absent
- Société de Développement Économique de la Colombie-Britannique (SDECB), Mylène Letellier, Executive Director and private sector co-chair, SAC Pacific Region
- PSPC, PAC Quebec Region, Anne-Marie Signori, Regional Director and Government co-chair, SAC Quebec Region
- First Nations of Quebec and Labrador Economic Development Commission (FNQLEDC), Steve Laveau, Counsellor for economic development and private sector co-chair, SAC Quebec Region
Presenters
- PSPC, SPS, Levent Ozmutlu, DG
Supplier Advisory Committee secretariat
- PSPC, Louis-Martin Parent, Senior Director
- PSPC, Richard Lincoln, Manager
- PSPC, Michel Gagne
- PSPC, Fabiola Ingabire
- PSPC, Fresnel Devalon
Welcome and opening remarks
The government co-chair welcomed all to this annual joint meeting of Supplier Advisory Committees. PSPC acknowledged that the meeting was being coordinated from the unceded territory of the Anishinaabeg people. She invited all to participate in the official language of their choice and asked the private sector co-chair to conduct the roll call.
The first half of the meeting was a joint one between National and Regional SAC members.
Regional Supplier Advisory Committee updates
The regional SAC co-chairs for Pacific, Ontario and Atlantic regions made brief presentations, outlining this year’s experiences and proposing best practices for engaging new and existing businesses and stakeholders in procurement. The PAC-Quebec co-chair was absent due to a prior commitment in Quebec City.
Pacific region
The PSPC representative from PAC-Pacific started by addressing the topic of engaging new suppliers in government procurement. Their region’s engagement efforts focus on ways to attract more businesses, including working with banks and community groups, so they are aware of the economic opportunities available in government procurement.
The PAC-Pacific government co-chair also identified that it can be challenging to engage new businesses that are not members of the region’s SAC committee and others, such as banks and accountants, making it difficult to raise awareness about procurement.
The PAC-Pacific government co-chair noted that to maintain interest in procurement among engaged businesses, they tailor services to meet the needs of their SAC members and others, for example, by providing training sessions and raising awareness of government solicitations.
Ontario region
The government and private sector co-chairs for Supplier Stakeholder Network (SSN) Ontario Region first addressed how they engage new businesses. The SSN government co-chair noted that it hired employees from the communities they serve, using resources from Budget 2021 to better support outreach to new businesses.
The SSN private sector co-chair provided examples of events that have attracted new and existing businesses, such as proposal writing, sessions on defence procurement processes, drop-in Cafés, and bidding selection processes.
For engaging with existing suppliers, the SSN private sector co-chair shared that SSN Ontario meetings regularly feature opportunities for discussions about members’ engagement and their ability to bid. They also mentioned discussions taking place on the trade-off between what is required to bid and what is needed to become aware of opportunities.
Atlantic region
The government co-chair and the new private sector co-chair for SAC Atlantic first addressed the topic of engaging new members. Successful engagement in the Atlantic region includes having the right members trained to reach new and existing businesses.
The private sector co-chair noted that the Centre for Women in Business has been a key player by collaborating with PAC on several initiatives, including Small Business Information Expos and collaborative learning series. Such initiatives provide a valuable forum for women and businesses members to learn about PAC and other service providers, which can assist them in growing their businesses when the time is right.
With regards to engaging existing businesses, PAC-Atlantic government co-chair noted that they take time to update SAC members about federal opportunities and procurements, and they discuss SAC members’ experiences selling to the government.
Taking into consideration the regional insights and to expand upon the theme, the national SAC co-chairs then facilitated a roundtable discussion and SAC members provided the following feedback:
- the national SAC private sector co-chair asked whether regional events, such as “Ask the Experts” and “Drop-In Cafes” are announced publicly. The SSN Ontario region co-chairs responded that these events are shared via the PAC website and open to all
- AIAC asked how the regions work or partner with Crown Corporations, such as the Canadian Commercial Corporation (CCC), Defence Construction Canada (DCC), and Business Development Canada (BDC). PSPC-PAC-Pacific highlighted its good working relationship with BDC on supplier engagement, and similarly with Defence and Construction Canada (DCC). DG PAC said that the organisation has strong partnerships with BDC due to a similar interest in engaging Indigenous businesses and communities as well as underrepresented businesses
- the national SAC co-chairs asked about how others increase the profile of federal government procurement among new businesses that are otherwise unfamiliar with it. The SSN Ontario government co-chair noted that there has been increased interest among new businesses to spend time and resources on such activities when there are tangible procurement opportunities matching their capabilities. The SAC Pacific government co-chair shared the unfortunate assumption among some businesses that the government does not buy what they sell, highlighting a recent engagement with two companies selling, respectively, mattresses and dog-grooming. Efforts are needed to break down assumptions among businesses so they might hear about and respond to opportunities to sell to the government
- TECHNATION shared findings from the report on an industry day engagement session held with their members and those of PSPC and Shared Services Canada (SSC)
- CADSI inquired whether federal government procurement can move from a requirements-based stance to become outcome-based, noting that, through innovation and agile procurement, businesses can propose solutions to meet government needs. The SAC Atlantic government co-chair stated that Innovation Solutions Canada (ISC) has a program which works with Canadian small businesses to create innovative solutions while addressing industry challenges. TECHNATION also noted that industry should develop and market solutions to government problems rather than developing a product and waiting for the government to buy it. TECHNATION further added that the industry associations can help influence businesses and encourage them to sell to the government
- AIAC mentioned that national strategies can help shape and drive industry development and acquisitions, for example, aerospace products and services, noting the National Shipbuilding Strategy (NSS) as one example. The SAC Pacific government co-chair said that Pacific region has benefitted from the NSS and other defence and aerospace initiatives. In the Pacific region, these sectors often include Indigenous peoples and businesses, which is notable
- DG PAC noted that the Defence Industry Advisory Group (DIAG), which is an advisory committee like SAC, has the intention and ability to bring together the three large shipbuilding regions of Atlantic, Quebec and Pacific. Bringing together such groups can help guide discussions on small and medium enterprises (SMEs), labour, and Indigenous participation in procurement
The national SAC government co-chair thanked everyone for their contributions to the joint discussion and announced a short health break to allow the regional representatives to depart.
National Supplier Advisory Committee meeting
The national SAC representatives next undertook its national level SAC business.
Approval: Record of discussion
SAC secretariat had circulated the draft record of discussion (RoD) for October 25, 2023, prior to the February 21 meeting. Since most members had had little time to review it, the government co-chair invited members to share any comments with the SAC secretariat by February 25. The SAC co-chairs would consider potential amendments if any comments were received, and the RoD will be considered approved by March 15, 2024.
Public Services and Procurement Canada update
The government co-chair invited DG SPS and DG PAC to provide PSPC updates.
Supplier diversity
DG SPS thanked SAC members who provided feedback and advice during the SAC meeting on supplier diversity which took place on February 1, 2024, with the minister.
After considering industry inputs, PSPC will pursue 2 changes in the Supplier Diversity Program (SDP). First, SDP will no longer include eligibility criteria for businesses “led” by underrepresented groups. Second, a hybrid approach, allowing for third-party certification or self-certification through statutory declaration will be incorporated into the SDP, subject to verification prior to the contract award.
DG SPS expects the changes will permit better access to the SDP and ensure the integrity of the procurement process. PSPC will need time to determine what is needed to adopt to hybrid certification and get it approved by the senior leadership of PSPC.
SAC members provided the following feedback:
- CFIB asked about the timeline for the SDP rollout, mentioning that, from an SME perspective, self-certification is an effective way to the maximize opportunities for all businesses to participate in procurement. The government co-chair could not provide details on the SDP roll-out as it still requires approval by senior leadership at PSPC
- WBE said it appreciates that PSPC listened to members’ concerns in accommodating third-party certifications and is happy with that approach. WBE looks forward to the implementation of changes. WBE agreed third-party certification is a good compromise to ensure that ownership and control remains with underrepresented businesses
- AIAC signalled endorsement of the changes to SDP, and asked if veterans will be a part of the eligibility for SDP, noting they are included in a similar program in the U.S. PSPC-SPS responded that the focus right now is the program launch, and highlighted other government departments’ efforts (for example, VAC) to support veteran-owned businesses
- CFIB asked about granting exemptions for small businesses to opt out of certification given the cost and time to get either third-party certification or statutory declarations. CFIB noted that potential fees for validation (under statutory declaration) would still represent a barrier to participation in procurement. PSPC-SPS indicated that, with the introduction of the hybrid approach, the self-certification will allow SMEs to bid through the SDP while balancing procurement integrity and minimizing barriers to participation. Documentation would only be sought prior to contract award to provide businesses time. WBE Canada indicated that they provide third-party certifications which are valid in Canada and internationally. Most businesses certified with WBE Canada are small and consider the additional benefits that enable them access to procurement by the private and public sectors. WBE Canada finally noted that fees are necessary and simply a part of procurement
Procurement Assistance Canada events
DG PAC provided an overview of several types of events recently hosted and partnered by PAC across the country. Of note, the first in-person Small Business Info Expo (SBIE) was held in Gatineau, QC on February 20. SBIEs provide businesses with an opportunity to learn about support programs provided by the Government of Canada and potential partners. The February 20 event attracted 22 industry and governmental partners, including PAC, ISED and BDC. Over 100 Black suppliers participated as well.
DG PAC also highlighted that the Buyers’ Expo, specifically showcasing Indigenous businesses, would take place on February 22, 2024, in Quebec City. This event was designed to share information on federal programs to support Indigenous businesses in federal procurement, build connections between government buyers and suppliers, and provide guidance on how businesses might participate in federal procurement.
PAC is the PSPC-lead for the Global Hypergrowth Project (GHP) in support of 8 high-potential firms. GHP provides a scale-up service that will support growth in Canadian jobs, exports, research and development and new intellectual property creation.
DG PAC mentioned that over 2,000 events took place so far in FY2023-24, and that PAC surpassed its target to host events for socioeconomic groups for the fiscal year.
SAC members provided the following feedback:
- TECHNATION appealed to the Government of Canada to support building the capacity of Indigenous businesses not only to be able to supply products and services but also to build the capacity to win their own contracts
- TECHNATION further asked the federal government to improve its data capturing regarding diversity
- PSPC-PB acknowledged that data is not always easy to capture and recommended bringing this issue up at other SAC meetings, as it could be of interest to other SAC members who were absent
Supplier Advisory Committee work plan review
The private sector co-chair led a review of the priorities that SAC had developed.
Review of Supplier Advisory Committee priorities
The standing list of SAC priorities includes:
- Simple and accessible procurement so more businesses may participate in procurement
- Increasing participation by smaller and diverse businesses
- Supporting economic recovery through procurement to increase opportunities
- Support for key policy initiatives, for example, frameworks
SAC members made additional suggestions at the October SAC meeting:
- Clarifying the scope and purpose of SAC
- Approaching procurement that is outcome-based to encourage innovation
- Increasing support to SMEs
- Taking innovative measures to change the culture and connect sellers to buyers
- Improving the understanding of government programs and services for SMEs
- Creating mechanisms to help SMEs connect with prime contractors in more industries
- Supporting the needs of SMEs by providing direct, one-on-one engagements and advice, better communications, improving the predictability and transparency of government procurement plans
- Government to clearly communicate the benefits of “best value” to SMEs
SAC members provided the following feedback:
- CADSI, WBE Canada, and CME indicated that the list of priorities was a good summary but wondered how this would translate into a work plan. They further asked to clarify the role of SAC and explain how to action these ideas. CME indicated they have an interest in a presentation and discussion on issues that are adjacent to procurement, such as reciprocal procurement
- The private sector co-chair expressed a desire to circle back to members, and a desire to better balance discussions in SAC meetings by having PSPC present to members
- CMC-Canada expressed concerns about the government’s lack of consultation to SAC members, highlighting that the government’s method of communicating changes in ProServices was not a fitting example of sharing information. CMC-Canada noted the publication of the notice on CanadaBuys but said they could not clearly communicate the changes to their own members as they were not clear on how the changes would impact them. PSPC-PB noted that they are at the beginning of changes to ProServices and will provide tools to move forward
- The SAC co-chairs agreed that an ad hoc SAC meeting soon might be helpful to inform members on changes to ProServices and gather feedback prior to the next meeting
Roundtable and closing remarks
As there was no time for a full roundtable, the co-chairs asked members if they had any urgent points.
The government co-chair reminded everyone that the next scheduled SAC meeting will be conducted in-person only, without video conferencing, at a suitable venue in the National Capital Region.
PSPC-PB invited all members to propose topics that could be discussed at the next meeting, which will be held in-person from 9:00 AM to 3:00 PM, on June 5, 2024.
SAC members were also asked to identify any conflicts with the date as soon as possible.