Download Presentation to Shared Services Canada (SSC)

Presentation to Shared Services Canada (SSC)
IT Information Round-table(ITIR) Procurement
Benchmarks Advisory Committee
By
CABiNET
19 April 2013
Please note, the following information was provided and presented by CABiNET.
Introduction
• CABiNET represents Small and Medium sized Enterprises
(SMEs) in the IT professional services sector.
• Membership is primarily government professional services
suppliers.
• Historically over 70% of GOC NCR IT Professional Services
have been met by SME’s in a fully transparent and
competitive manner.
• Members have a significant involvement and knowledge of
Federal government IT operations.
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Introduction continued
• The E-mail consolidation procurement model
raises concerns as it would prevent SME’s from
participating.
• That procurement model would only be open to
large multi-national companies, even though
SME’s have a demonstrated ability to provide
equivalent services.
• The approach should change if you want to meet
the stated Shared Services objective which is to
be inclusive.
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Importance of SME’s
The importance of SME’s has been acknowledged by Parliament and all political
parties.
•
•
•
The success of SME’s affects the well-being of the Canadian economy
and society as engines of job creation, economic growth and
innovation.
SME’s account for 45% of the GDP, much of the economy’s growth,
60% of all jobs in the economy, and 75% of net employment growth.
SME’s are an integral part of our country’s economic fabric and are
important to Federal Government procurement – from stationery
stores in every Canadian town, to the high technology companies
centered in many Canadian cities.
http://www.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/importance-eng.html
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SME Value Proposition
• Many years of experience in federal government
procurement
• SME’s have more experience in both the departments
being supported and Shared Services Canada (SSC)
• Most of the IT professional services contract work
currently being done is by SME’s
• Cost effectiveness of services provided as demonstrated
by the percentage of competitive procurements won
• Ours is a proven collaborative model of working with
Government employees, resulting in the Government
maintaining service delivery control versus a vendor
focus on maintaining profit margins.
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How Things Actually Work
Issues must be addressed within the RFP documents and
process because:
• Once awarded, vehicles are never cancelled
• “Off ramps” are not meaningful – They are never
taken
• Once in place, all funds in a contract will be
spent, EVEN if not for the original purpose
• Rate structures are frequently not enforced with
services migrating to “rate that fits” rather than
proper categories.
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Use Proven Best Practices
• Plan projects as chewable chunks
• Don’t bundle hardware, software, telecom
services with professional services
• Clustering approach similar to that used in SBIPS
‘domains of expertise’, fosters ‘best in breed’
across the various areas
• Award to multiple suppliers per domain provides
for more ongoing competitive pricing
• Government maintains control of spending
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Concerns with Outcome-based Procurement
“One throat to choke” is not meaningful – because
vendors know contract will never be cancelled
• Impossible to write all requirements up front. Gives
control to the vendors making cost effective change
management difficult
• Secure Channel is a perfect example, $100M / year
for 25M transactions / year
• The Auditor General has pointed out that most
outcome based procurements have experienced
significant cost overruns and failed to meet
expectations
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Fair and Open Procurement Examples
• It’s essential to do upfront planning for your procurement
approach
• Use TBIPS to put in place long-term supply arrangements (3-5
years) which allow fast turn-around on specific requirements,
which would eliminate recurring procurement overhead,
while ensuring ongoing competition
• Could incorporate function-based contracting similar to
proposed approach to telecom services (Option 4)
• Successful examples include:
– Canada Revenue Agency (CRA)
– Agriculture & Agri-Food Canada (AAFC)
– Citizenship & Immigration Canada (CIC)
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What CABiNET Wants
• Allow Supply Arrangement holders to use subcontractor references to meet corporate
requirements
• Enforce reasonable rate structures within proposals
(eg: CCRA 2003 versus CRA 2010)
• Type and size of project references should be
relevant and related to the lines of business and skills
being procured
• Discourage ‘off-shoring’ of Canadian jobs
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Next Steps