The Office of Small and Medium Enterprises OSME

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The Office of Small and Medium Enterprises (OSME) Daniel Duguay, A/Director Strategic and Horizontal

The Office of Small and Medium Enterprises (OSME) Daniel Duguay, A/Director Strategic and Horizontal Policy Directorate Office of Small and Medium Enterprises (OSME) November 15, 2006 Seoul, Korea

The Way Forward PWGSC mission is to find innovative ways to deliver services smarter,

The Way Forward PWGSC mission is to find innovative ways to deliver services smarter, faster and at a reduced cost. The Way Forward is a procurement transformation strategy targeting three key areas: • Procurement Reform- committed to saving $2. 5 billion over five years with a new uniform approach to procurement. • Property management- cost savings of $925 million over five years in by better managing their portfolio. • Implementing Information Technology systemsfundamentally change the way the federal government provides services to Canadians. 2

Small, and Medium Enterprise(SME), Economy and Government Procurement Economy: SMEs are a significant contributor

Small, and Medium Enterprise(SME), Economy and Government Procurement Economy: SMEs are a significant contributor to the economic performance of Canada: • 45% of Canadian GDP, 23% from small business • 60% of all jobs in the economy • 75% of net employment growth Government Procurement: • SMEs have won an average of 37% of the total value and over 80% of the total number of government contracts. • SMEs concerns with “The Way Forward” and their ability to do business • PWGSC recognized SMEs concern and created the Office of Small and Medium Enterprise. • Overall, we anticipate that SMEs will continue to do business with the government as primes and subcontractors. We have taken many steps to mitigate displacement of existing suppliers 3

Issues and Challenges that SMEs Face SME suppliers have expressed five types of challenges

Issues and Challenges that SMEs Face SME suppliers have expressed five types of challenges they face in accessing government procurement opportunities. 1. Access: fair access to bid on government business. 2. Accountability: need for increased transparency, especially in the notification of contract awards. 3. Transformation: adopt different approaches for different product areas e. g. services versus goods. 4. Complexity: government procurement processes are too complex and burdensome 5. Socio-economic impact: take into account Aboriginal, regional, environmental, and innovation objectives. 4

Mandate of the Office of Small and Medium Enterprise The Office of Small and

Mandate of the Office of Small and Medium Enterprise The Office of Small and Medium Enterprises (OSME) enhances SME contributions to government supply and its transformation. Its mandate is to: 1. Engage SMEs understand their concerns. 2. Benchmark, monitor and analyse: the participation of SMEs 3. Assist and train SMEs: so they can better navigate the government supply system. 4. Remove barriers facing SMEs (e. g. simplifying procurement process); 5. Recommend how government supply strategies 6. Ensure policies recognize the interests and contributions of SMEs 5