Report No to the Business Services Committee. Re: Cooperative Procurement with other Public Sector Institutions
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1 12 January 2011 Report No to the Business Services Committee Re: Cooperative Procurement with other Public Sector Institutions ORIGINATOR: Michael Clarke, Chief Financial Officer Cathy Dempsey, Assistant Treasurer Sandra Meilleur, Coordinator of Purchasing, Logistics and Central Services PURPOSE: 1. To provide information with respect to cooperative procurement initiatives that the District presently participates in as directed by trustees by Board motion of 15 December 2009: THAT The Superintendent of Facilities and the Chief Financial Officer be directed, through the Director of Education, to assess the merits and modalities of establishing relationships with other area public sector institutions for the purpose of providing or procuring common services and materials and determine what services or materials could be provided or procured as a collective. BACKGROUND: 2. The District has initiated and/or participated in cooperative purchasing initiatives dating back to preamalgamation with other local school boards, the former Regional Municipality of Ottawa-Carleton, the City of Ottawa, University of Ottawa and Carleton University, Algonquin College, local hospitals and other Ottawa area public sector institutions. 3. The evolution of joint procurement started with the purchase of natural gas 25 plus years ago and has evolved into an extensive list of cooperative commodities and services as listed in Appendix A. 4. Not only have the number and diversity of products and services increased but so also have the number of procurement partners. The partners now extend to many school districts outside of Ottawa as well. STATUS: 5. Procurement staff has been trained to research and plan each procurement opportunity by: verifying if an existing contract or procurement opportunity already exists through the Ontario Educational Collaborative Marketplace (OECM), the Ontario Ministry of Government Services and/or the City of Ottawa that the District might have an opportunity to participate in seeking other public partners to cooperate with, i.e. City of Ottawa, local school boards, local universities or colleges 1
2 offering the District s procurement services to other public partners by leading the strategic sourcing and/ or procurement process for the various products or services on behalf of the public partners. 6. Many years of participating in various collaborative initiatives have resulted in increased cooperative tendering for many products and services but have also resulted in some dissolution of cooperative arrangements that did not work well, i.e. snow clearing services. Service contracts that require a large amount of equipment and manpower at all locations at exactly the same time are not conducive to joint procurement. 7. The federal government, particularly Public Works Government Services Canada, has been approached on many occasions with respect to joining some of their existing contracts but staff has been unsuccessful to date. 8. The implementation of the new Ontario Ministry of Finance Broader Public Sector (BPS) Supply Chain Secretariat s Supply Chain Guideline encourages and requires BPS entities to collaborate when buying common goods and services. 9. The Ottawa-Carleton District School Board has participated in and continues to participate in many strategic sourcing events with OECM but has not always entered into contracts with the successful proponents because in some instances the costs were higher than those that the District had already obtained - i.e. photocopier tender. 10. All potential cooperative procurement opportunities are examined in detailed and the option that is the best fit for the District is executed. Appendix A outlines some of the cooperative tendering the OCDSB has participated in. 11. The target percentage of Group Procurement Initiatives (GPI) set by the Ontario Ministry of Finance in a study undertaken by Deloitte in 2009, involving the OCDSB, was 28% GPI. The study revealed that the District already performed above the target percent and was a best practice example public organization. Our percentage is 33%. FINANCIAL IMPLICATIONS: 12. In most instances there are significant cost savings achieved from cooperative procurement. CONSULTATION: 13. Consultation occurs with potential public sector partners with respect to collaborative procurement initiatives on an ongoing basis. 14. Ongoing dialogue occurs with OECM as to upcoming procurement and strategic sourcing opportunities that the District may participate in. SUBMITTED FOR INFORMATION. Barrie Hammond, Director of Education and Secretary of the Board (Interim) Michael E. Clarke Chief Financial Officer 2
3 Cooperative Procurement Initiatives Appendix A Title Alarm System Monitoring, Maintenance, Service and Inspection - Standing Agreement Appliances Art Paper and Exercise Books Art Supplies and Classroom Supplies Audio Visual Equipment Classroom Furniture (OECM) Collection and Disposal of Non-Hazardous Waste Collection and Haulage of Recyclable Materials Scope of Work RFP as publiques de l'est de l'ontario, the Ottawa Catholic School Board and itself, for the supply of all goods and services. Board and itself, for the supply and delivery of appliances. catholiques de langue française du Centre-Est, le Conseil des écoles Board and itself, for the supply and delivery of art paper and exercise books. School Board and itself, for supply and delivery of art and classroom supplies. The Conseil des écoles catholiques de langue française du Centre-Est is coordinating this Invitation to Tender as part of a cooperative initiative between the le Conseil des écoles publiques de l Est de l Ontario, the Ottawa Catholic School Board, the Ottawa-Carleton District School Board and itself, for the supply and delivery of various audio visual equipment. The Ontario Education Collaborative Marketplace (OECM) coordinated this Invitation to Tender on behalf of educational institutions for the supply and delivery of classroom furniture. RFP as publiques de l'est de l'ontario, and itself, for the collection and disposal of non-hazardous waste material. Vendors will also be required to provide suitable disposal containers, to maintain these containers in an acceptable condition, and to provide the necessary equipment for the services. RFP as part of a cooperative initiative between le Conseil des écoles catholiques du Centre-Est, le Conseil des écoles publiques de l Est de l Ontario, Ottawa Catholic School Board and itself, for the collection and haulage of recyclable materials. 3
4 Custodial Supplies and Services Early Education Learning Materials and Teaching Resources Electrial Materials Electricity Emergency Generators Servicing Fine Copy Paper (OECM) First Aid Supplies Hardware and Power Tools RFP as publiques de l'est de l'ontario, the Ottawa Catholic School Board and itself, for supply of the custodial goods and services. Conseil des écoles publiques de l'est de l'ontario, the Ottawa-Carleton Catholic School Board and itself, for discounts off catalogue list prices for the supply and delivery of early education learning materials and teaching resources. The City of Ottawa, on behalf of Algonquin College, Ottawa Hospital, Carleton University, University of Ottawa, The Ottawa-Carleton District School Board, le Conseil des écoles catholiques de langue française du Centre-Est, le Conseil des écoles publiques de l'est de l'ontario, the Ottawa-Carleton Catholic School Board and itself, for the supply of electrial materials. The Ottawa-Carleton District School Board became a member of the Catholic School Baords Services Association in January 2008 in order to enter into the CSBSA's Electricity Purchasing Cooperative. Approximately 47 Ontario School Boards belong to this cooperative. Conseil des écoles catholiques de langue française du Centre-Est, the Ottawa-Carleton Catholic School Board and itself, for a servicing Firm for the purpose of maintaining the individual Boards' electrical generating plants in an efficient operating condition and to minimize emergency service calls. The Ontario Education Collaborative Marketplace (OECM) coordinated this Invitation to Tender on behalf of educational institutions for the supply and delivery of fine copy paper. School Board and itself, for unit cost pricing on a core list of products and a discount off catalogue list prices for the supply and delivery of first aid supplies. The City of Ottawa, on behalf of Algonquin College, Ottawa Hospital, Carleton University, University of Ottawa, The Ottawa-Carleton District School Board, le Conseil des écoles catholiques de langue française du Centre-Est, le Conseil des écoles publiques de l'est de l'ontario, the Ottawa-Carleton Catholic School Board and itself, for the supply of hardware and power tools. 4
5 Heating Fuel Oil and Diesel Fuel Insurance (OSBIE) - General Liability and Property Laminating Film Lamp and Ballast Products Laser Toner, Fax and Inkjet Cartridges Library Supplies Milk Products Invitation to Tender as part of a cooperative initiative on behalf of Algonquin College, Children's Hospital of Eastern Ontario, City of Ottawa, Conseil des écoles catholiques de langue française du Centre- Est, Mississippi Valley Conservation Authority, Ottawa-Carleton Catholic School Board, Ottawa Hospital, Queensway Carleton Hospital, Univeristy of Ottawa, and itself for the supply and delivery #2 heating fuel oil and diesel fuel. The Ontario School Boards' Insurance Exchange (OSBIE) is a school board owned, non-profit insurance program with 106 members, representing 78 school boards and 28 Joint Ventures in Ontario. The primary goals of the Exchange are to insure member school boards against losses, and to promote safe school practices. Board and itself, for the supply and delivery of laminating film. The City of Ottawa is coordinating this Invitation to Tender as part of a cooperative initiative on behalf of Carleton University, University of Ottawa, the Ottawa-Carleton District School Board, le Conseil des écoles catholiques de langue française du Centre-Est, le Conseil des écoles publiques de l'est de l'ontario, the Ottawa-Carleton Catholic School Board and itself, for the supply of lamp and ballast products. catholiques de langue française du Centre-Est, le Conseil des écoles Board and itself, for the supply and delivery of laser toner, fax and inkjet cartridges. School Board and itself, for unit cost pricing on a core list of products and a discount off catalogue list prices for the supply and delivery of library supplies. Invitation to Tender as part of a cooperative initiative between le Conseil des écoles catholiques du Centre-Est, le Conseil des écoles publiques de l Est de l Ontario, Ottawa Catholic School Board and itself, for unit cost pricing for the supply and delivery of milk products. 5
6 Natural Gas The Ottawa Carleton Energy Purchasing Group contracts for natural gas in future periods as a hedging strategy on behalf of the following participants: Algonquin College, Canadian Blood Services, Cité Collégiale, Conseil des Écoles Catholiques de Langue Française du Centre-Est, Conseil des Écoles Publiques de l'est de l'ontario, Conseil scolaire de district catholique de l'est ontarien, City of Ottawa, Elisabeth Bruyère Health Centre, The Good Companions Seniors' Centre, Les Missionaires Oblats de Marie Immaculée, Ottawa-Carleton District School Board, Ottawa Catholic School Board, Ottawa Housing Corporation, Ottawa Regional Hospital Linen Services Inc, Saint Paul University, University of Ottawa, Upper Canada District School Board. Office Furniture Office Supplies (OECM) Physical Education Supplies and Equipment Preventative Maintenance for Elevating Devices Processing and Marketing of Recyclable Materials Recycle Bins catholiques de langue française du Centre-Est, le Conseil des écoles Board and itself, for the supply, delivery and installation of office furniture. The Ontario Education Collaborative Marketplace (OECM) coordinated this Invitation to Tender on behalf of educational institutions for the supply and delivery of office supplies. School Board and itself, for the supply and delivery of physical education supplies and equipment. RFP as catholiques de langue française du Centre-Est, the Ottawa Catholic School Board, for the provision of preventative maintenance for the School Boards' elevating devices to ensure efficient operation and to minimize emergency service calls. RFP as part of a cooperative initiative between le Conseil des écoles catholiques du Centre-Est, le Conseil des écoles publiques de l Est de l Ontario, Ottawa Catholic School Board and itself, for the processing and marketing of recyclable materials. Invitation to Quote as part of a cooperative initiative between le Conseil des écoles catholiques du Centre-Est, le Conseil des écoles publiques de l Est de l Ontario, Ottawa Catholic School Board and itself, for the supply and delivery of recycle bins. 6
7 Science Supplies and Equipment Software (ECNO) Solar Panel Installations Tranportation (OSTA) Conseil des écoles publiques de l'est de l'ontario, the Ottawa-Carleton Catholic School Board and itself, for discounts off catalogue list prices for the supply and delivery of science supplies and equipment. The Educational Computing Network of Ontario (ECNO) is a non-profit information technology cooperative incorporated to promote best practices and provide cost-effective IT solutions to its members. Request for Supplier Qualification as part of a cooperative initiative on behalf of Avon Maitland District School Board, Greater Essex County District School Board and itself, for the anticipation that companies specializing in solar panel technology will request utilization of school roof space and open area to invest in a potential financial opportunity proposed by the Ontario Power Authority (OPA) Feed-in Tariff (FIT) program. In an effort to meet the Ministry of Education's requirements, the Ottawa-Carleton District School Board and Ottawa Catholic School Board established a joint steering committee for the purpose of creating a Transportation Consortium in January Rev. 8-Dec-2010/cb 7
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