1. Procurement Review Recommendations Status and Projects Procurement Benchmarks Advisory Committee July 4, 2013 Randall Meades, Director General Procurement and Vendor Relations 1

2. Purpose To provide an overview of Procurement and Vendor Relations (PVR) commitments as approved by Senior Management Board (SMB) in November stemming from the procurement review undertaken by PricewaterhouseCoopers (PwC) for PVR. To update the Committee on the progress on Electronic Procure-to-Pay and linkages to category management. 2

3. SMB Approved Recommendations from PwC Report in November 2012 Status Report

4. Overview of PwC Recommendations and Status 4 RecommendationCurrent State Deploy governance and reporting processes. Complete − Procurement Review Board and Senior Project and Procurement Oversight Committee established. Draft policy framework.Policy Framework approved with incremental approach to policy initiatives. Establish a category management strategy. Approval to launch a request for proposal (RFP) for professional services support. Acquire enabling technology.Electronic Procurement Project. Establish procurement planning.Draft departmental procurement plan. Shift PVR culture and develop capacity in resources. Aligning mandate with PVR capacity.

5. Electronic Procure-to-Pay Initiative and Linkages to Category Management

6. How do Electronic Procure-to-Pay and Category Management work together? Identification of categories of goods and services and procurement strategies to manage their acquisition so that value for money is maximized. To identify optimal categorization:  Conduct spend analysis on the current and past procurement activities, their value, the vendors, etc.  Undertake portfolio analysis mapping procurements against a cost/risk matrix and identify categories where a more hands-on style of management may be appropriate and/or where the organization should build strategic relationships with vendors. ♦ This highlights categories that are suitable for automated, streamlined management through the use of frameworks or e-catalogues, for example. 6

7. Electronic Procure to Pay – Objective To acquire and implement a commercial procurement system in order to enable Shared Services Canada’s (SSC) integrated procurement and payment operations in the areas of: ♦ planning; ♦ approval; ♦ procurement; ♦ management; ♦ payment; and ♦ reporting. The project will enable procurement transformation initiatives (category management) by providing a flexible system to deliver and support their delivery. 7

8. Background and Context  There is no Government of Canada-enterprise solution that enables electronic planning, procurement, reporting and payment.  Individual Procure-to-Pay initiatives deployed in departments focus largely on the financial elements.  Current processes within SSC are entirely manual and represent the variety of business practices that SSC inherited from partner organizations.  Fragmentation of planning, management, payment and reporting  A variety of ad-hoc, niche solutions in place across government including: Public Works and Government Services Canada, Health Canada and National Research Council of Canada—there may be others…  Some movement towards common business practices and/or common solution being led out of the Treasury Board Secretariat. 8

9. Project Scope  The complete automation and enablement of the Department’s procurement and payment operations in order to enhance management practices and increase visibility throughout the business processes.  Two conceptual procurement streams: ♦ One-off buying; and ♦ Ordering off catalogues.  Payment processing: ♦ Invoices against contracts; and ♦ Other invoices. 9

10. Departmental Benefits  Increased end-to-end planning, procurement and payment operations;  Reduced administrative effort across the organization and for partner departments and vendors;  Enhanced reporting capability;  Clear, repeatable business processes;  Improved planning and alignment to departmental business lines;  E-enabled approvals tied to SSC governance model;  Improved contract management;  Self-service for business lines to order off procurement instruments;  Increased transparency; and  Improved resource allocation and responsiveness. 10

11. Industry Benefits  Registration/vendor creation;  Bid submission;  Contract award;  Order receipt;  Shipping notices;  Invoice submission;  Increased visibility and transparency;  Enhanced contract/order management; and  Online collaboration/self-serve. 11

12. Actions Taken to Date  Project foundation established: ♦ Literature review conducted; ♦ Environmental scan undertaken; and ♦ Other government departments surveyed.  Business and technical requirements identified.  Industry consultation completed through a request for information.  RFP package prepared.  Project documentation prepared.  Preparation for governance approvals within SSC. 12

13. Next Steps  Project approval at the Senior Project and Procurement Oversight Committee – July 2013.  RFP release – August 2013.  Contract award – October 2013.  Implementation – October 2013 – July 2014.  Category management deployment – September to December 2013.  Industry engagement and consultation through the transition – September 2013 to June 2014. 13

14. Questions and Answers How does this committee want to be informed of:  progress;  implementation opportunities/challenges; and  industry consultation opportunities? 14