THE COOPERATIVE BUSINESS LINK

Transcription

1 THE COOPERATIVE BUSINESS LINK GBAPPC Procurement Seminar: Presenters: Marie Kavanagh, Manager of Procurement, Bradford West Gwillimbury, GBAPPC Past Chair Dan Stey, Materials Manager, Waypoint Centre for Mental Health Care, GBAPPC Vice Chair David Allan, Manager of Purchasing, City of Barrie, GBAPPC Chair Shelene Sinclair, Biddingo.com 1

2 THE COOPERATIVE BUSINESS LINK Agenda: - Who is the GBAPPC and what we buy? - Legislation and Roles of Procurement - How The Public Sector Purchases Goods & Services - Competitive Bidding and Procurement Methods - The Procurement Process - Elements of a Procurement Document - Tips and Helpful Hints - Q and A 2

3 The Georgian Bay Area Public Purchasing Cooperative (GBAPPC) encompasses a broad spectrum of public agencies operating within Simcoe County. Our cooperative consists of municipalities, school boards, hospitals, colleges, and other public entities who through collaboration and resource sharing procure similar goods and services. 3

4 History: The Georgian Bay Area Public Purchasing Cooperative (GBAPPC) was established in June of The cooperative was formed by a group of ten agencies and has since increased membership to twenty-one participating members. There is no charge for membership. Any agency expending public funds may apply for membership. 4

5 Mission: The Georgian Bay and Area Public Purchasing Cooperative (GBAPPC) is committed to the strategic acquisition of goods and services for member agencies through the professional and ethical expenditure of public funds. The cooperative provides an opportunity to learn, lead, and network in a supportive environment. 5

6 Goals and Objectives 1. Promote Ethical, Open, Fair & Transparent procurement practices and processes. 2. Demonstrate professional conduct, ownership and unity. 3. Maximize Savings through increased purchasing volume. 4. Eliminate/reduce duplication of effort. 5. Standardization = effectiveness. 6. Education and information sharing. 6

7 Participating Members 7

8 Non-Participating Members Catulpa Community Support Services Inc. Georgian College of Applied Art & Technology Royal Victoria Hospital Stevenson Memorial Hospital The Protestant Separate School Board of the Town of Penetanguishene The Township of Essa The Township of Severn Town of Penetanguishene 8

9 SOME COMMODITIES ESTIMATED ANNUAL $ Office Supplies $1,900,000 Toner & Computer Supplies $350,000 Photocopiers $1,500,000 Power Sweeping $45,000 Waste Containers $250,000 Janitorial Supplies $450,000 Highway Salt $4,300,000 Paper Supplies $190,000 Road Patch Products $200,000 Catch Basin Cleaning $60,000 Winter Sand $50,000 9 GBAPPC is reviewing other opportunities

10 Many of the GBAPPC Agencies are members of and adhere to the Code of Ethics of the following Professional Purchasing Associations. 1. The Ontario Public Buyers Association (OPBA) 2. The National Institute of Governmental Purchasing (NIGP) 3. Purchasing Management Association of Canada (PMAC) 10

11 Professional Purchasing Certification Designations 1. Certified Public Purchasing Buyer (CPPB) 2. Certified Public Purchasing Officer (CPPO) 3. Supply Chain Management Professional (CSCMP) 4. Certified Purchasing Manager (C.P.M.) 11

12 Legislation and Trade Agreements 1. Ontario Municipal Act 2. Broader Public Sector Accountability Act (Procurement Directive) 3. Trade Agreements a) North American Free Trade Agreement (NAFTA) b) Agreement on Internal Trade (AIT) c) Quebec / Ontario Trade Agreement 4. Agency Purchasing Policies/By-Laws. 12

13 Local Preference 1. Discriminatory Business Practices Act 2. Broader Public Sector Act 3. Agreement on Internal Trade 4. Competition Act 5. Common Law Geographic Neutrality & Reciprocal Non-Discrimination 13

14 14 Procurement

15 Roles of Procurement: Compliance Role Ensure compliance with purposes, goals and objectives of the Purchasing By-Law and other legislations and regulations. Facilitate all aspects of the call for bids. Review bids for irregularities to ensure compliance with terms and conditions of the call for bid. Execute Contract, issue purchase order once all of the requirements of the bid document and agency policies have been met. 15

16 Roles of Procurement: Other Roles: Conduct market research/trend analysis Represent their agency in Cooperative Purchasing initiatives. Identification of opportunities for standardization and consolidation of goods and services. Assists with resolving vendor performance issues Manages dispute resolution process 16

17 How The Public Sector Purchases Goods & Services Low Cost Purchases Facilitated by user groups or Purchasing Quotations are recommended Informal Requests Generally minimum of three quotations Formal Requests 17 Formal competitive bid process based on detailed specifications or terms of reference Publically Advertised

18 Competitive Bidding What is Competitive Bidding? A process whereby a requirement is offered equally on the open market, generally using specifications or terms of reference. Commonly used methods are Quotations, Proposals and Tenders. Dependent on complexity, value and other factors. Primary tool utilized to meet objectives of policies, legislations and trade agreements. 18

19 Competitive Bidding Why use Competitive Bidding? Open, Fair, Transparent Vendor Access, Equal opportunity for all Non-discriminatory/Non-Biased Encourages competition Provides Pricing Controls Value for Money 19

20 Competitive Bidding Why use Competitive Bidding? Can lead to better solutions Curbs Monopolies, prevents Cartels, Bid-Rigging Mitigates organisations legal exposure. We have a duty to our taxpayers and to conduct an open, fair tendering process. 20

21 Procurement Methods/Documents: Request for Quotation (RFQ) Request for Tender (RFT) Request for Proposal (RFP) Request for Information (RFI) Request for Expression of Interest (RFEI) Request for Pre-Qualification (RFPQ) 21

22 Requests for Quotations (RFQ) means a procurement document used to solicit goods/services that are of low value and low complexity Request for Tenders (RFT) means a procurement document that requests a vendor response to supply goods/services based on delivery requirements, performance specifications, terms and conditions RFQs and RFTs usually focus the award criteria predominantly on price 22

23 Request for Proposals (RFP) means a procurement document that requests vendors to supply solutions for the delivery of complex products or services or to provide alternative options or solutions. RFPs use predefined evaluation criteria in which price is not the only factor. 23

24 Request for (Pre)Qualifications means a procurement document used to solicit financial stability, technical information, product or service suitability from potential vendors and measured against stated evaluation criteria. Successful vendor(s) pre-qualified or short listed to bid on specific categories of work or provide specific types of goods or services, or respond to a particular RFP or RFT 24

25 Request for Expression of Interest (RFEI) is a procurement used to determine the interest of the market place to provide goods or service(s) which the agency is contemplating purchasing. Request for Information (RFI) is a request used as a general market research tool to determine what goods and service(s) are available and that may meet business/operational requirements and acquisition strategies. 25

26 Other Procurement Methods Single and Sole source purchases: Standardisation through a competitive process Security, Police or Confidentiality Rental or lease contract extension Extraordinary Circumstance Proprietary - Unique ability or capability due to patent, or copyright. Exclusive distributorship. Service from a public utility

27 Other Procurement Methods Extraordinary Circumstances Purchases (emergency): Public Safety Maintain or to prevent the disruption of essential corporate services. Security of the agencies interests and the occurrence requires the immediate delivery of goods or services

28 Risk Management Procurement processes/requirements may require: Bid Security Contract Security Proof of Insurance Coverage (i.e. General Liability, Vehicle and/or Professional Liability. Workplace Safety and Insurance Board (WSIB) Certificate of Clearance BILL 119 Trade Licenses and Qualification Certificates. 28

29 29 THE PROCESS

30 How it Begins The procurement process begins when an agency or the GBAPPC identifies the need for a good or service that is not otherwise available. The competitive Procurement Process begins when the GBAPPC solicits interest from the vendor community to provide the goods/services. 30

31 Bid Opportunities for the GBAPPC are advertised: By the Lead Agency Project Lead Other media such as DCN, trade websites Procurement documents can be obtained from Biddingo or the Participating Agency Lead. Registration as a document taker is mandatory. All instructions are included in our procurement documents. 31

32 Lead Agency Their policies, procedures and by-laws govern the bid process. Solicits requirements from other members Issues unofficial results to all participating agencies (subject to the terms and conditions of the bid) following a bid closing Participating Agency Separate legal entity awards their contract and issues purchase order to the successful bidder/proponent

33 Questions During a Bid Process Review the procurement documents carefully. There are usually one or more opportunities to seek clarification of information presented in the procurement document There will be a designated person to whom to address questions within a period of time specified in the procurement documents (Lead Agency) 33

34 Questions During a Bid Process There may be a vendor meeting where a presentation and question and answer period will also occur. For some procurements, there may be a site tour. All questions and answers are issued as an addendum to the procurement documents and are available to all vendors who accessed the original documents. 34

35 Tip: Do not contact anyone other than the designated procurement contact as this could jeopardize the bidding process. Tip: Attendance at a vendor meeting or site tour may be mandatory. Carefully review the procurement documents to determine this. 35

36 Submission Entering the procurement process can be a binding situation. For many procurements, you are agreeing with the terms and conditions, including the Agreement, at the time you submit your response. In procurement law this is called Contract A. 36

37 Submission Typically, for these procurements there will be a period of irrevocability. For complex procurements this can be 6 months or more. During this period of irrevocability, you may not change any elements of your response regardless of market changes that may occur over the timeframe (e.g. gas prices) 37

38 Tip: Bidders must not alter the Procurement Documents, except as instructed. Tip: For complex procurements, ensure your response can withstand anticipated market changes over the period of irrevocability. 38

39 Closing All submissions must be sealed and delivered on time to the designated location. Late submissions cannot be considered and will be returned unopened. Tip: Don t wait until the last day to submit! If the courier is late or you get stuck in traffic, you run the risk of missing the deadline. 39

40 Evaluation The procurement documents will disclose what and how your response will be evaluated. Evaluation can include mandatory requirements, rated requirements and pricing requirements. The vendor with the highest ranked response considering all the evaluation requirements will be successful. 40

41 Tip: Be clear in your responses. We cannot evaluate what is not submitted in your responses even if you have done business with the GBAPPC in the past. 41

42 Award All awards are subject to budget adequacy. Some awards may require Council / Board approval. The successful vendor will be notified following the evaluation period and will be asked to satisfy any outstanding requirements of the procurement (e.g. proof of insurance). 42

43 Award The successful vendor will be required to enter into an agreement with the GBAPPC and /or participating agencies. Once an agreement is signed, all vendors who submitted are notified of the contract award and will be offered a debriefing. Typically Contract award notifications are also published in the same manner in which they were advertised. 43

44 Debriefing Vendors may wish to know why their submission was not successful. Vendors who participate in procurements may request the opportunity for a debriefing. Debriefings are valuable to vendors as they offer the opportunity to learn about the strengths and weaknesses of their proposal. The objective of a debriefing is to help vendors learn how to submit more competitive bids in the future. 44

45 Procurement Conclusion The procurement process concludes when a signed agreement is in place and any vendor debriefings are complete. Contract management follows the procurement process. Successful vendors work directly with each agency procuring goods/services. 45

46 Importance of Compliance Responsive Bidder or Proponent Submitted a responsive bid / proposal that fully conforms in all material respects to the Invitation and all of its requirements, including all forms and substance. 46

47 Importance of Compliance Responsible Bidder or Proponent Fully capable to meet all the requirements identified in the Invitation and subsequent contract. Bidder/proponent shall possess the full capability, capacity, including financial, technical, possibly others. 47

48 Elements of a Procurement Document Instructions to Bidders Mandatory and Rated requirements. Bid Deposits and Certificates of Insurance Standard Conditions Specific or Special Conditions Specifications or Terms of Reference 48

49 Elements of a Bid Document Mandatory Requirements Pass/Fail no ifs, ands, or buts Rated Criteria Proposers must provide a response Criteria is defined Desirables (Added Value) Defined point value 49

50 Elements of a Procurement Document Forms Form of Tender/Quotation/Proposal Certificate of Independent Bid Determination Bidder Information Ability and Experience References Specifications Compliance

51 Addenda Purpose Clarification, Answer questions Amend Specifications or Terms of Reference Provide additional information Electronically issued Biddingo Form part of bid document. Note: It is the Bidder s responsibility to ensure they receive and acknowledge all Addenda

52 Tips for Completing a Submission 52

53 Timetable Carefully review the procurement document and take note of all important dates including: Vendor Meetings or Site Tours Deadline for Questions Deadline for Addenda Closing Date, Time and Location 53

54 Presentation Review the procurement documents for instructions on: Number of Copies Requested Page Limit (if applicable) Minimum Font Size 54 These are important instructions and assist the evaluation process. Make sure you follow any instructions on how to present your response.

55 Requirements Rated Criteria: Ensure you provide responses for all rated criteria Carefully review the procurement deliverables to ensure you understand what the GBAPPC wants. Use the Q&A process or vendor meeting (if applicable) to seek clarification if needed Carefully review the evaluation criteria for how the rated criteria will be evaluated. 55

56 Requirements Rated Criteria: Address all rated criteria and provide sufficient detail for your submission to be evaluated Unless requested in the procurement document, do not propose an alternative solution to what is requested. This may be considered nonresponsive. 56

57 Requirements Pricing: The procurement document will tell you: what costs should be included in your response (e.g. delivery, travel, maintenance) how to present these costs (e.g. per unit, total cost) in your response Some procurements may provide a form for submitting pricing. 57

58 Tips Addenda can include important information. Be sure you review all addenda issued with the procurement documents Be accurate in providing your information. Once submitted, you will not have an opportunity to change your response Use any forms provided in the procurement documents to submit your response. Sign and date all forms included in the procurement documents. 58

59 Form of Agreement The Procurement Document will usually include a Form of Agreement (or Contract) that you will be required to sign. The Form of Agreement is a legal agreement that is signed only if you are successful. Unless indicated in the procurement document, the Form of Agreement cannot be amended. 59

60 Top 8 Reasons that may disqualify a submission 60

61 Top 8 Reasons that may disqualify a submission 1. Irregularities relating to Bid Deposits: Failure to submit Not on the specified form Not executed Amount incorrect References to the wrong project 61

62 Top 8 Reasons that may disqualify a submission 2. Irregularities relating to Undertaking to Bond Failure to submit Not executed Not on the specified form 3. Failure to Provide Other Mandatory Submittals Statement of Insurability (Not executed by insurance company/broker) 62

63 Top 8 Reasons that may disqualify a submission 4. Acknowledgment of Addenda Failure to acknowledge receipt of all addenda Failure to incorporate changes from addenda into submission Revised form(s) Revised forms of bonds 63

64 Top 8 Reasons that may disqualify a submission 5. Failure to respond to all Items when requested to do so Items not filled in Notations included such as N/A, Not Included, /, TBD, and To Follow 6. Failure to Execute Submission Form (s) Must provide original signature 64

65 Top 8 Reasons that may disqualify a submission 7. Qualified Submissions Inclusion of additional terms and conditions Inclusion of exceptions/exclusions Modifications to Procurement documents 8. Failure to Comply with Specification Requirements Specifications are generally mandatory. 65

66 THE COOPERATIVE BUSINESS LINK Helpful Hints 66

67 Helpful Hints Know the rules. Who is issuing the call for bids. What kind of request is it. Tender, Quotation, Proposal. Read the Procurement document carefully and thoroughly. Allow enough time to prepare your submission. Prepare in advance as much as possible. 67

68 Helpful Hints Do not assume that the evaluators know who you are. Don t assume requirements are the same as last time. Comply with all instructions and conditions. Check that all forms are completed, and if required, signed. Ensure you include all documentation, securities, and requested information. 68

69 Helpful Hints Leave plenty of time to deliver submission. Ensure your submission is submitted before the closing date and time. Check and double check Second set of eyes review Attendance at a vendor meeting or site tour may be mandatory. Carefully review the procurement documents to determine this. 69

70 Helpful Hints Bidders responsibility to ensure they have read all of the requirements, have received all relevant information and to satisfy all submission requirements. We cannot agree to things that increase Risk to the Participating Agencies of the GBAPPC Do not contact anyone other than the designated procurement contact as this could jeopardize the bidding process

71 THE COOPERATIVE BUSINESS LINK Do s and Don'ts Checklist 71

72 Checklist when bidding the Do s Obtain the bid documents as soon as they are available Carefully read the Procurement Document Follow instructions Forward questions to the appropriate contact person as identified in the Procurement document within the specified timeframe 72

73 Checklist when bidding the Do s Be sure to bring your submission to the address noted in the Procurement document Submit all information requested. Submit Bid Security and Contract Security (when applicable). Sign and seal your submission 73

74 Checklist when bidding the Don ts Wait to read the Procurement document until the last minute Be afraid to ask questions Forget to sign your submission Forget to seal the envelope containing your submission 74

75 Checklist when bidding the Don ts Wait until the last minute to submit your submission Be late in submitting your submission Assume you will be awarded the contract when your firm was the low bid until notified 75

76 Some Benefits of doing business with GBAPPC Increase your revenue by supplying public agencies Exposure to GBAPPC agencies through our web site Working with accountable organizations ensuring funding stability Requirements combined multiple agencies, single point of contact Consistent processes 76

77 THE COOPERATIVE BUSINESS LINK THANK YOU! 77