Procurement Policy Approved Initiatives Procurement Benchmarks Advisory Committee July 4, 2013 Randall Meades, Director General Procurement and Vendor Relations Shared Services Canada 1

Purpose To inform members of recent policy initiatives that received the approval of SSC senior officials : 1. Procurement Strategy for Aboriginal Business 2. Integrity Framework 3. Contracting with Former Public Servants A proposed approach to developing other guidance to support SSC procurement objectives – SMEs 2

Procurement Policy Framework

Draft Procurement Policy Framework 4 “SSC Policy on Managing Procurement” (Principles, Values, Planning and Scope of SSC Procurement) “SSC Policy on Managing Procurement” (Principles, Values, Planning and Scope of SSC Procurement) Former Public Servants Socio Economic Considerations (SME/PSAB) Contract Entry Limits and Approvals Planning and Reporting Integrity Governance and Delegations Operational Guidelines for Procurement (Based on PWGSC Supply Manual, Treasury Board Contracting Policy and Government Contracts Regulations) Operational Guidelines for Procurement (Based on PWGSC Supply Manual, Treasury Board Contracting Policy and Government Contracts Regulations) Intake Process (RAS) Procurement Strategy Solicitation Process Evaluation Contract Award Contract Management Special Procurements Policy Information Notices (PINS)

Procurement Strategy for Aboriginal Business (PSAB) The PSAB is a Treasury Board policy instrument administered by Aboriginal Affairs and Northern Development Canada (AANDC)  Departments with procurement budgets over $1M must develop multiyear performance objectives (targets) for contracting with Aboriginal businesses. PVR proposes a target of $24.7M for 2013/14 (non-telecom) approx 3.8% of SSC spend  Target is based on the percentage of aboriginal population in Canada  Approach was validated with AANDC and other government organizations How does the PSAB work in SSC  SSC Business Lines identify potential procurements with PVR where capacity in the aboriginal vendor community exists  PVR reports contracts with aboriginal suppliers to AANDC annually and via MAF exercise 5

Integrity Framework The Government Contracts Regulations Section 18. (1) (c) requires that all potential suppliers declare that they have not been convicted of an offence, other than an offence for which a pardon has been granted, under section 121, 124 or 418 of the Criminal Code Integrity Framework was established by PWGSC to conduct criminal background checks on potential suppliers and incorporate Code of Conduct provisions in all procurement solicitation documents Before contract award, procurement officers obtain a written confirmation from the Special Investigations Directorate/PWGSC that the proposed contractor or individuals who are on the Board of Directors are not subject to relevant criminal convictions or acts Memorandum of Understanding between SSC and PWGSC Departmental Oversight Branch for integrity verification services Subject to all procurements over $25K 6

Former Public Servants TB Contracting Policy Notice : Departments are to identify, in their financial management systems, all service contracts issued to former public servants in receipt of a PSSA pension Procurement officers will incorporate a standard clause requiring bidders to provide information on whether the bidder is a former public servant in receipt of a pension or a lump sum payment Procurement operations will identify and report on contracts in SSC financial system Quarterly reports are required to MINO on all contracts with former public servants All contracts with former public servants must be proactively disclosed 7

Governance and Procurement Planning Formalization of the Procurement Review Board and the processes, membership and evaluation framework it uses Mandatory procurement planning in SSC on an annual basis that is aligned to:  Investment Plan  Departmental Report on Plans and Priorities  Integrated Business Plan  Transformation initiatives  Outreach to vendor and OGD community 8

Guidance on Contracting with Small and Medium-Sized Enterprises Key issues to address are:  Overview of the role of SMEs in the provision of goods and services related to IT  Flexibility of the national security invocation and SMEs  The process by which procurements may be planned/administered to include special provisions for the inclusion of SMEs  Terms and conditions in contracts related to SMEs  Guidance on company capability requirements and the impact on SMEs 9

Engagement with Vendor Community – Key Questions What are the principles that SSC should include in a SME guidance? What is the appropriate definition of an SME? How do you want to be engaged in the development of guidance? What is the appropriate reporting framework? Would you be willing to self-identify (on a mandatory basis) your “SME Status”?  Would this include an SME certification? What is an appropriate timeframe for development, release and application of a strategy? 10