Human resources and pay next generation: Task authorization 01—Request for proposal

1. Introduction

Samson & Associates was engaged by Public Services and Procurement Canada (PSPC) as a Fairness Monitor (FM) on September 8, 2018 to observe the competitive selection process for the Human resources (HR) and Pay Next Generation initiative undertaken by the Treasury Board of Canada Secretariat (TBS) as solicitation number 24062-190560. Samson & Associates is an independent third party with respect to this activity.

The current phase subject of this report is the first task authorization—TA 01 of the procurement for a next generation HR and pay system. At the end of Gate 3 Request for proposal (RFP), the procurement process qualified three suppliers. The first Task Authorization is a competition between these three qualified bidders. The first phase of the project is the discovery phase, which will be followed if successful by Design and Experimentation. The second phase will include pilots. This procurement process is a separate and distinct procurement from the Phoenix Pay Stabilization project challenge.

We reviewed all of the information provided, observed all relevant activities and had full access to all aspects of the procurement process and co-operation from all stakeholders.

We hereby submit the TA 01: Task Authorization Report, covering the activities of the FM commencing with the issuance of the Letter of Interest (LOI) and continuing through to the Request for proposal (RFP) evaluation process for the TA 01.

This report includes our attestation of assurance, a summary of the scope and objectives of our assignment, the methodologies applied and relevant observations from the activities undertaken.

2. Attestation of assurance

The Fairness Monitor hereby provides the following unqualified assurance statement concerning the procurement process for the Next Generation HR and Pay initiative, commencing with the Letter of Interest and continuing through to the Request for Proposal evaluation process for the Task Authorization 01.

It is our professional opinion that the procurement process we observed for the above activities, was carried out in a fair, open, and transparent manner.

3. Requirement

As outlined in Budget 2018, the Government of Canada (GC) is committing to the next steps in addressing the ongoing challenges of the Phoenix pay system, including its intention to possibly move to a next generation solution; one that will be better aligned with the complexity of the federal government’s HR and pay structure. The Phoenix issues have shown that HR and pay are mutually dependent and don't exist in isolation. The next generation solution may therefore also support the full hire-to-retire employee lifecycle, enabling the GC to better attract, pay, retain and nurture its employees. This solution may cover aspects such as: recruitment, training, performance management and other HR processes and systems, and interdependencies with pay, and any other downstream systems like pension and receiver general.

The GC is committed to exploring all options, and will be working with experts, unions, public servants, and technology providers to define the way forward. In particular, it is committed to working in partnership with bargaining agents and system users at the center of this process. The GC will also consider the lessons learned and best practices from the implementation of large-scale initiatives from other jurisdictions.

4. Methodology

Samson & Associates was engaged as an FM to observe the competitive selection process for the Next Generation HR and Pay, and to attest to the fairness, openness and transparency of this monitored activity.

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents and observed procurement activities (for example, LOI publication, questions and answers, one-on-one sessions, invitation to qualify (ITQ) and RFP), identifying fairness-related matters to the contracting and technical authorities and ensuring that responses and actions were reasonable and appropriate.

4.1 Activities and observations: request for information phase

The Industry Engagement Phase was initiated through the issuance the Notice of Proposed Procurement (NPP) on August 24, 2018 as solicitation No. EN920-190988/A. The purpose of the NPP was to inform industry of both the Phoenix Stabilization initiative and the HR and Pay Next Generation solution, as well as to invite industry to participate in subsequent engagement activities.

An initial industry day was held on September 19, 2018 regarding the HR and Pay Next Generation solution. The Contracting Authority (CA) and the FM were present during the Industry Day.

The industry engagement process is ongoing, with a closing date of August 24, 2020.

4.2 Activities and observations: gate 1—invitation to qualify phase

The ITQ was published on buyandsell.gc.ca on October 1, 2018 as solicitation No. 24062-190560/B. Proponents were invited to pre-qualify in accordance with the terms and conditions of this ITQ in order to become “Qualified Respondents” for any later phases of the procurement process. The ITQ closed on November 13, 2018.

Proponents were requested to submit questions up to ten working days before bid closing. There was a total of 61 questions submitted. Six amendments were issued with the last one being published on November 13, 2018.

The FM observed the activities connected with the procurement process until the close of the ITQ. The FM reviewed the ITQ as well as the communications related to the questions received and the answers provided by the CA. The FM reviewed all amendments to the ITQ.

The ITQ document was written in a clear and understandable manner. All questions submitted were responded to in an understandable fashion.

4.3 Activities and observations: gate 1—invitation to qualify evaluation

The FM reviewed the ITQ evaluation plan and framework. An information session for the evaluation team attended by the CA and the FM was held on November 8, 2018.

Seven bids were received and evaluated, of which five were qualified. Consensus discussions were open, and a consensus was reached for all the criteria according to the terms of the ITQ. The Gate 1 – ITQ evaluation was completed on November 23, 2018.

Summary of findings

It is the opinion of the FM that the Gate 1: ITQ activities for the HR and Pay Next Generation procurement process were conducted in a fair, open and transparent manner. In this context, fairness refers to decisions being made objectively, free from bias, favouritism or influence and conform to established rules.

4.4 Activities and observations: gate 2—invitation to qualify phase

The ITQ was published on buyandsell.gc.ca on December 10, 2018, as solicitation No. 24062-190560/C. The bidders identified as “Qualified Respondents” resulting from the Gate 1 ITQ, were invited to qualify, in accordance with the terms and conditions of this ITQ. This Gate 2 ITQ will be used to qualify respondents to participate in the subsequent RFP phase of the procurement process. The Gate 2 ITQ closed on January 18, 2019.

Proponents were requested to submit questions up to ten working days before bid closing. There was a total of 29 questions submitted. Six amendments were issued with the last one being published on January 17, 2019.

The FM observed the activities connected with the procurement process until the close of the ITQ. The FM reviewed the ITQ as well as the communications related to the questions received and the answers provided by the CA. The FM reviewed all amendments to the ITQ.

The ITQ document was written in a clear and understandable manner. All questions submitted were responded to in an understandable fashion.

4.5 Activities and observations: gate 2—invitation to qualify evaluation

The FM reviewed the ITQ evaluation plan and framework. The three-part evaluation process was executed as described in the ITQ document including: 1) a user experience; 2) a Subject Matter Expert (SME) Challenge; and, 3) the technical bid evaluation. Information sessions for the evaluation were held on January 16, 2019. The CA and the FM were present at all sessions.

The five bidders that were found qualified at the end of the Gate 1 ITQ submitted proposals and participated in the three parts of the Gate 2 evaluation.

Part 1 User Experience: 87 employees and 86 managers were selected across the Government of Canada’s public service to test and assess various self-service functions. This part of the evaluation represented 5% of the overall score. The FM reviewed the evaluation process as well as the results and scoring.

Part 2 SME Challenge: Bidders presented pre-selected subjects to Government SMEs. The SMEs then engaged presenters on the subjects presented and provided an assessment. This part of the evaluation represented 35% of the overall score. The FM and CA were present at all sessions.

Part 3 Bid Evaluation: The technical evaluation team conducted the formal bid evaluation. This part of the evaluation represented 60% of the overall score. The FM and CA were present at all consensus meetings.

Consensus discussions were open, and a consensus was reached for all the criteria according to the terms of the ITQ. The Gate 2 – ITQ evaluation was completed on February 15, 2019.

Summary of findings

It is the opinion of the FM that the Gate 2: ITQ activities for the HR and Pay Next Generation procurement process were conducted in a fair, open and transparent manner. In this context, fairness refers to decisions being made objectively, free from bias, favouritism or influence and conform to established rules.

4.6 Activities and observations: gate 3—request for proposal phase

An RFP was issued on May 10, 2019, to the three bidders qualified from the Gate 2 ITQ process. The RFP was not posted on buyandsell.gc.ca. Rather, as per the procurement process, the Gate 2 ITQ qualified three of the five bidders who competed in Gate 2. Therefore, the RFP was issued to those three qualified bidders with a closing date of May 28, 2019, to solicit proposals for this project.

There were three amendments to the RFP, and, five additional documents addressing questions and answers the last of which was sent to the three qualified bidders on May 31, 2019. The RFP closing date was extended through the amendment process and the last amendment extended the closing date until June 3, 2019. There were 105 questions responded to in the five documents for this purpose. The FM reviewed the RFP documents, the amendments and related questions and answers.

The RFP document was written in a clear and understandable manner. All questions submitted were responded to in an understandable fashion. No fairness issues were noted.

4.7 Activities and observations: gate 3—request for proposal evaluation phase

The FM reviewed the RFP evaluation plan and framework. The evaluation process was executed as described in the RFP document. The evaluation consisted of a review of written proposals submitted by the three bidders qualified in the Gate 2 ITQ process.

Each of the three bidders presented their proposal to the evaluation team on June 5 and June 7, 2019. The evaluation team (eight evaluators) received a training session about the evaluation process on June 14, 2019. The consensus meeting was held on June 27th, 2019. The Contracting Authority and the Fairness Monitor were present at all meetings.

Consensus discussions were open, and a consensus was reached for all the criteria according to the terms of the RFP. The Gate 3 – RFP evaluation was completed on June 27, 2019.

Summary of findings

It is the opinion of the FM that the Gate 3: RFP activities for the HR and Pay Next Generation procurement process were conducted in a fair, open and transparent manner. In this context, fairness refers to decisions being made objectively, free from bias, favouritism or influence and conform to established rules.

4.8 Activities and observations—task authorization evaluation phase

A request for proposals was issued to the three qualified bidders from Gate 3, inviting them to submit proposals for the award of the first task authorization (TA), TA 01. The purpose of the TA is to have the successful bidder implement its HR & Pay solution in a government department as a pilot project. It was also stated that a successful pilot project would result in a contract award to implement the solution across the core Government of Canada departments.

The evaluation process for the award of the first TA was conducted in 2 parts; the first part of the evaluation process took place in June 2019, and, the second part was conducted from November 2019 to February 2020.

The procurement document, Solicitation document number 24062-190560-TA-1 Package 1, for the first part of the evaluation, was issued on June 8, 2019 and closed on June 17, 2019. During Part 1 of the procurement, 55 questions were addressed by the contracting authority and sent by email to the three qualified bidders and to the Fairness Monitor. As per the procurement document, the evaluation of some criteria was conducted during live demonstrations of bidders’ products. For the other criteria, written responses were evaluated. Training for evaluators was provided on June 10, 2019. The Fairness Monitor and contracting authority were present.

The consensus meeting was held on June 27th, 2019. The Contracting Authority and the Fairness Monitor were present at all meetings. Consensus discussions were open, and a consensus was reached for all the criteria according to the terms of the TA procurement document.

The solicitation document number 24062-190560-TA-1 Package 2 for the second part of the evaluation, was issued on November 6, 2019 and closed on January 24, 2020. During this process, the contracting authority and client department (Treasury Board Secretariat) consulted extensively with the three bidders with regard to the terms and conditions for this TA. These consultations resulted in 293 questions and answers being issued to bidders by email as well as 12 amendments to the solicitation document. The FM and the contracting authority were present at all consultation meetings with bidders. The FM also reviewed responses and amendments prior to their issuance throughout the process.

The evaluation process for Part 2 of the TA was executed as per the procurement document. The following three evaluation phases were applied:

Phase 1:

After the closing date and time of this Task Authorization Response (TAR), Canada examined the response to determine whether it included a Financial Bid and whether any Financial Bid included all information required by the solicitation. Canada’s review in Phase 1 was limited to identifying whether any information required under the TAR was missing from the Financial Bid.

Phase 2:

Canada’s review at Phase 2 was limited to identify any instances where the contractor had failed to meet any Eligible Mandatory Criterion. This review did not assess whether the Management and Technical Bids were responsive to all solicitation requirements (done in Phase 3).

Phase 3:

In Phase 3, Canada completed the evaluation of all responses found responsive to the requirements reviewed at Phase 2. Responses were assessed in accordance with the entire requirement of the TAR including the technical and financial evaluation criteria.

The technical evaluation of the three qualified bids included two presentations by each of the three bidders; presentations of the management responses, and presentations addressing data management. The information provided during presentations was included in the scoring. Presentations were made from February 3-6, 2020. Evaluation teams, the Contracting Authority and Fairness Monitor were present for all presentations.

Consensus discussions were held on February 7, 2020. Consensus discussions were open, and a consensus was reached for all the criteria according to the terms of the TA. The TA 01 evaluation was completed on February 8, 2020. The FM was present during the consensus discussions.

The FM reviewed the TA 01 Part 2 scoring for all components including Client References, Management Response, Presentations, and the Financial Response attributed to the three bidders.

Summary of findings

It is the opinion of the FM that the TA procurement activities for the HR and Pay Next Generation procurement process were conducted in a fair, open and transparent manner. In this context, fairness refers to decisions being made objectively, free from bias, favouritism or influence and conform to established rules.

5. Reference documents

The following documents are referenced by number in this report and unless otherwise indicated, are all available through PSPC.