Introduction to Supply Chain Ontario Public Buyers Association
Introduction to Supply Chain Ontario Public Buyers Association Presentation September 21 st, 2015
Agenda 1. Supply Chain Ontario 2. Enterprise Procurement Branch 3. Vendor of Record (VOR) Arrangements 4. Volume Licensing Agreements (VLAs) 5. Sample Vendor of Record (VOR) Arrangements 6. Questions and Answers 2
Supply Chain Ontario • Develops and implements Ontario Public Service (OPS) procurement strategy • Identifies and implements procurement process improvements • Provides strategic advice to government on complex and high dollar value procurements • Supports the adoption of leading supply chain and back office practices among the province’s Broader Public Sector (BPS) or Provincially Funded Organizations (PFOs) • Supports the implementation of the BPS Procurement Directive 3
Enterprise Procurement Branch • Responsible for establishing enterprise-wide VOR arrangements on behalf of the OPS • Responsible for the effective contract and vendor management supporting the VOR program 4
Procurement Project Management • The typical procurement process includes: • • • Consultation Issue Request for Bid Question and answer period Bid submission Bid closing Bid evaluation Conditional selection Award Debriefing 5
Ontario’s Procurement Policy Framework • Procurement policies in the OPS and BPS are guided by the same principles of: – fairness – accountability – transparency – value for money • Adherence to trade agreements • Procurement processes in the OPS and BPS are guided by the principles of: – quality service delivery – the right product is acquired at the right time and received at the right place – process standardization – remove inefficiencies and create a level playing field 6
Ontario Government Expenditure $5. 99 billion Approximate F/Y 2013 -14 government procurement spend approx. 53 K vendors each year 66 enterprise VOR arrangements valued at 89% $538 of spend is with vendors located in Ontario million 96% are small and medium vendors
Vendor of Record (VOR) Arrangements • One or more qualified vendors are authorized to provide goods/services for a defined time period on defined terms and conditions, including pricing, as set out in the VOR agreement • Arrangements are established to reduce procurement costs, administrative redundancy and overhead when there is a need for the same goods/services • Arrangements may be used by the entire government, multiministries or a single ministry • Use of arrangements is mandatory for the OPS and optional for approved BPS/PFO organizations • Do not commit the government to any level of acquisition • Enterprise-wide VOR Arrangements may only be established by MGCS 8
VOR Arrangements I & IT Goods Procurement Consulting Services Procurement Business Services Procurement 9
Enterprise VOR/VLA Arrangements Information Technology: • Data Integration Solutions • Desktop Management Products & Services • Enterprise Information Management • Enterprise Project & Portfolio Management • IT Security Products & Services • Mobile / Paging Services & Devices • Managed Print Services • Toner Cartridges • Video Conferencing Products • Web Collaboration Solutions Volume Licencing Agreements (VLAs): • • IBM Microsoft Oracle Citrix Consulting Services: • Commissioned Research Services * • I&IT Solutions Consulting Services • Management Consulting Services • Research Subscription Services • Task-based I&IT Services Goods & Services: • Airline & VIA Rail MOUs • ATVs and Snowmobiles • Aviation Fuels • Bulk Propane • Cleaning Supplies • Courier Services • Employee Relocation * • Enforcement Vehicles Upfitting • Event Staging Services Goods & Services: • Fleet Cards, Maintenance Management & Selected Fleet • Food (Groceries, Dairy, Fresh Bread & Buns) • French Language Proficiency Evaluation & Training • Furniture • General Office Seating • Hazardous Waste Collection & Disposal Services • HR – Employee Assistance* • HR – General Management Consulting Services • HR – Human Rights / Employment Related Investigations * • HR – Learning, Training, Executive Coaching & Facilitation • Internal Audit Services • Laboratory Supplies Laboratory Gases www. doingbusiness. mgs. gov. on. ca Goods & Services: • Office Furniture • Office Products • Passenger, Light Commercial & Vehicle Acquisition • Photocopy Paper • Recruitment Services • Security Services • Shredding Services • Temporary Help Services • Threat Risk Assessment • Translation Services • Travel Management • Vehicle & Equipment Disposal & Remarketing Services • Woven Insignia, Embroidered & Appliqued & Speciality Hand Made Products Note: * - OPS only 10
Benefits of the VOR Program • Pre-qualified list of vendors • Value for money • Save time and reduce duplication • Signed Master Agreements - Standard Terms and Conditions including Limitations of Liability (Lo. L), Intellectual Properties (IP for IT VORs), Warranties and Insurance • Management of contract and vendor performance 11
Discounts Available under the VOR Arrangement • Ceiling cost either direct from manufacturer or through a reseller channel for the term of the VOR arrangement • Volume discounts • Percentage discounts • Per diem rates for Fee-For-Services (FFS) resources Further discounts may be negotiated 12
Volume Licensing Agreement (VLA) • VLAs are software licensing agreements that may: – offer significant price discounts and common business and legal terms and conditions – provide more favourable terms and conditions than the publisher’s standard software licensing agreement reducing legal risk; saving users the time, effort and cost for negotiating their own terms and conditions separately • VLAs are not VOR Arrangements and are not established competitively: – Negotiated between the province (MGCS/SCO) and the vendor 13
Differences Between VLA and VOR Volume Licensing Agreement (VLA) May provide discounts on almost all COTS software and services (e. g. installation, configuration and training) Are not acquired competitively and are therefore not an alternative to competitive procurement processes Vendor of Record (VOR) Agreement Provide fixed prices / per diems with possible additional discounts on IT and non-it Goods and Services from one or more vendors Are established through open competitive processes 14
BPS Access to VORs and VLAs • Most OPS VOR and VLA arrangements are available to the BPS/PFOs • In some cases, BPS/PFO entities are required to use an Adoption Agreement with the vendor: – the vendor and the organization agree to adopt the terms of Ontario’s master agreement except for any amendments (as may be appropriate in their circumstances) • the Adoption Agreement template is a starting point, BPS entities are responsible for negotiating and ensuring it meets their requirements (including all of the procurement rules, regulations, obligations and processes to which they are subject) 15
E-tendering • On April 1, 2014, Bravo. Solution became Ontario’s new designated electronic tendering service provider. • Term: 3 years Optional Extensions: 2 + 2 years • Since then, all open and competitive procurement opportunities for government of Ontario ministries have been posted on Ontario Tenders Portal (OTP) • BPS entities in Ontario are eligible to use OTP once they have been set up in the system • Vendors can register and download procurement opportunities at no cost through OTP. Only vendors who submit an electronic response will be required to submit a fee. Vendor registration is still required prior to downloading or accessing procurement documents • The e. Tendering system provides the features and flexibility to enable the government of Ontario and BPS entities to continue to modernize the procurement process • The electronic tendering service is available at ontario. ca/tenders • For more information, contact: OTP. Info@Bravosolution. com 16
E-tendering Portal 17
Mobile/Paging Services and Devices Contract Description: • Wireless Cellular Services and Devices for voice, data and messaging over cellular/paging networks • Wireless Devices have the built-in or add-on capabilities to provide Voice, Data and /or Paging Services through networks including but not limited to CDPD, Mobitex, Ardis, CDMA, TDMA, Edge, UTMS, HSDPA, GSM, GPRS and i. Den • Devices include Cell Phones, Blackberries, Pagers and Aircards Term: 6 years Optional Extensions: 2 + 2 years Number of Vendors: 1 18
Office Products Contract Description: • Full catalogue of almost 6, 000 office products available at a 62% discount • Approximately 1000 items make up the Super Savings List with an average discount of 77% • Next day delivery to all areas of the province • Online programs in place to steer clients towards lower cost and environmentally friendly products (except remote areas) Note: Some equipment/supplies such as photocopy paper, MFDs, toner cartridges and furniture available through separate VOR arrangements Term: 3 years Optional Extensions: 1 + 1 year Number of Vendors: 1 19
Next Day or Best Available Courier Services Contract Description: • Courier Services provided for Next Day or Best Available delivery including: – – – – – delivery to residential addresses delivery of bundled skids delivery and tracking of Controlled Substances and Dangerous Goods pickup and delivery to rural route addresses customized scheduled pickup and delivery fragile and/or special handling services Saturday delivery; morning delivery integrated Canada Customs brokerage and clearance services uses a logical “point-to-point” rate structure with no additional fuel surcharges Term: 3 Years Optional Extensions: 2 + 2 years Number of Vendors: 1 20
Desktop Mgmt. Services and Products (DMSP) Contract Description: • Desktop Products (Desktops, Laptops, Monitors, Mobiles and Tablets) • Services (Configuration and Installation Services, and Hardware Removal) Note: Some equipment/supplies such as MFDs are available through separate VOR arrangements Term: 3 years Optional Extensions: 1 + 1 year Number of Vendors: 1 21
Task-based I&IT Consulting Services Contract Description: • Immediate access to vendors for the provision of Task-based I&IT consulting services (project managers, programmers, architects, security and web specialists, etc. ) • Services can be acquired for twenty-nine roles across nine Service Categories • Three possible experience levels for each role: – Level 1 - consultant with 2 – 4 years of experience – Level 2 - consultant with 5 – 9 years of experience – Level 3 - consultant with 10+ years of experience • Pricing model: Per diem rates for all roles/experience levels included in this VOR arrangement (based on 7. 25 hour work day). Term: 3 years Optional Extensions: n/a Number of Vendors: 225+ 22
Temporary Help Services Contract Description: • Immediate access to vendors for the provision of Temporary Help Services for temporary backfill or to help deal with a temporary increase in workload when usual HR practices cannot fill the work need (administrative assistants, customer service, financial service, legal support service, etc. ) • Services can be acquired for seven service categories, with each category containing defined and undefined roles • Vendors have been selected based on the geographic regions they can serve (total of 26 regions) • Pricing model: Per hour rates for all roles/experience levels included in this VOR arrangement. Term: 3 years Optional Extensions: 1 + 1 years Number of Vendors: 19 23
Recruitment Services Contract Description: • Immediate access to vendors for the provision of Recruitment services to fill permanent positions (all levels of staff, including front line, administrative, management, executive, etc. ) • Services can be acquired across seven Service Categories: – – – – Recruitment Planning Services Job Analysis and Preparation of Position/Recruitment Documentation Candidate Screening Services Assessing and Selecting Candidates Entry/Stay/Exit Interviewing Services Managing Large Scale Recruitment Projects Executive/Talent Search Services • Three possible roles for each service category • Pricing model: Per diem, per resume, hourly and flat fee rates for the various roles included in this VOR arrangement. Term: 2 years Optional Extensions: 2 + 2 years Number of Vendors: 23 24
Management Consulting Services Contract Description: • Immediate access to vendors for the provision of management consulting services (project mgmt. , business improvement, financial, procurement, etc. ) • Services can be acquired in sixteen roles across seven Service Categories • Two possible experience levels for each role: – Level 1 - consultant with basic experience in successfully performing the role – Level 2 - consultant with advanced experience in successfully performing the role • No per diem rates included in this VOR arrangement. All projects conducted under the VOR arrangement are to adhere to a fixed-price deliverables-based pricing model Term: 3 years Optional Extensions: 1 year Number of Vendors: 200+ 25
Searching for existing VOR arrangements 27
Three Year Outlook 28
Q&As Eric Smith Manager, Services Procurement eric. t. smith@ontario. ca 416 -327 -3374 Steve Gilbey Manager, Business Services Procurement steve. gilbey@ontario. ca 416 -212 -5172 www. doingbusiness. mgs. gov. on. ca 29
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