RESPONSE TO THE. Procurement Advisory Panel Recommendations AUGUST (also known as the Procurement Improvement Action Plan)

Transcription

1 RESPONSE TO THE Procurement Advisory Panel Recommendations AUGUST 2016 (also known as the Procurement Improvement Action Plan)

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3 Foreword I would like to thank the Procurement Advisory Panel for their dedication and commitment to this initiative. Thank you also to all those in the local vendor community who took the time to share comments and suggestions with the Advisory Panel. The findings and recommendations contained in the Yukon Procurement Advisory Panel Report provide an excellent foundation for the Yukon government s commitment to improving procurement. Within this report is an outline of how the Yukon government will move forward to address the findings and recommendations of the Panel. The plan identifies short, medium and long term actions toward achieving a procurement process that balances the interests of Yukon businesses, best value for public funds and trade agreement obligations. Yukon government s commitment to improving procurement aligns with the following principles of government procurement: Fairness Openness and transparency Fiscal responsibility Competition Value for money Accountability Support for Yukon businesses The Yukon government is committed to providing updates on the status of the action items, and ongoing communication of improvements, enhancements or changes. I am pleased to present the Yukon government s commitment to improving procurement and am excited about the future of procurement in Yukon. Regards, Introduction Yukon government appreciates the insight and advice provided by the Procurement Advisory Panel, which was formed in November 2015 to clarify and confirm concerns raised by the Yukon business community regarding government procurement practices. The panel s report was tabled in May This report forms Yukon government s response to the Procurement Advisory Panel. Yukon government is committed to working with the private sector as a partner for advancing the Yukon s economy, and recognizes procurement as a cornerstone of this important relationship. Yukon government has made strides in improving the professionalism of procurement over the last few years, and views the panel s report as an integral guide for continued efforts to increase procurement capacity within government. Yukon government is dedicated to collaborating with the local vendor community over the long-term to improve opportunities for local businesses and the Yukon s economy as a whole. The Procurement Advisory Panel Report (the report) has brought forward the recommendations below and as listed on page 6. The first is an overarching finding that there is a need to recognize the strategic role and importance of procurement and to establish resources, policies and processes that support this view (R1). The panel recommends that Yukon government develop a strategic approach to sourcing and procurement. A strategic goal of Yukon government is that opportunities for the local vendor community should be maximized, while respecting our negotiated trade agreements and the principles of procurement. Minister Scott Kent 4 5

4 The ten additional recommendations fall under three themes, as follows. Theme 1 Increase opportunities for Yukon vendors to participate. R2. Develop clear objectives and policy guidance for staff concerning the expected use of procurement to support local businesses and First Nations. Theme 2 Reduce barriers to Yukon vendors to participate. R3. Focus vendor responses on the information most relevant to the procurement. R4. Improve alignment of procurement processes with desired outcomes. R5. Develop guidelines, policy or an organizational model that ensures procurement is conducted by staff with appropriate expertise. R6. Invest in ongoing skill development and awareness of the role of procurement. R7. Establish a consistent approach for increased scrutiny of and support for complex procurements. Yukon government agrees with the recommendations and commits to specific actions under each recommendation. Government s commitment is based on the input received from vendors and staff since the report was released. Yukon government acknowledges that the recommendations and the Procurement Improvement Action Plan represent a way forward to achieve Yukon government s objectives related to procurement. The following responses represent how Yukon government will carry out the panel s recommendations. Progress on recommended actions already underway is noted below. Yukon government understands these actions are the first steps toward improving procurement. Some of these actions relate to more than one finding. The timelines associated with these actions indicate when work will begin. Future plans may show which actions are ongoing and which have planned completion dates. The plan will be shared with the vendor community as the first step to building a collaborative procurement culture. The plan will be a living document that will be updated each year and will evolve, with the help of the Continuous Improvement Procurement Group (as described on the following pages). Theme 3 Increase dialogue between buyers and sellers and build a more collaborative culture. R8. Improve relationships and the sharing of information between vendors and buyers. R9. Improve market intelligence and procurement management information. R10. Increase coordination and communication of the scheduling of procurements. R11. Revise the current Bid Challenge process 6 7

5 Priority actions The following actions are priorities for Yukon government that respond to multiple recommendations. Planning on these initiatives will begin immediately although the initiatives will be ongoing as part of broader process improvements. A. Explore options, including approval of a fall capital budget or multi-year capital plan, to improve project forecasting and scheduling for businesses and allow tenders to be issued well ahead of the short summer construction season. B. Develop policy to support local vendors in collaboration with the vendor community. C. Create a program for comprehensive project and performance evaluations to improve future procurements. D. Review the Bid Challenge process to identify opportunities for interim improvements, as well as developing policy to replace it (planning to begin immediately) (start work immediately) (start work immediately) (beginning within 1 year) with a more modern, trade compliant mechanism. 8 9

6 Overarching finding Formalize senior support for raising the profile of procurement in government decision making 1. Integrate Deputy Minister level commitments with the finding that procurement has an integral role in achieving government objectives. 2. Make procurement planning an integral part of departmental planning at high levels. 3. Report annually by department on procurement to increase transparency and accountability about procurement decisions. 4. Provide clear guidance for departments on using procurement to achieve government objectives, following the strategic direction that opportunities for the local vendor community should be maximized, while respecting our negotiated trade agreements and the principles of procurement. There is a need to recognize the strategic role and importance of procurement and to establish resources, policies and processes that support this view. Develop a sustained skill building initiative for all YG 5. Improve training to increase Yukon government staff capability in order to reflect the importance of procurement decisions to vendors. 6. Focus on preparing quality tender documents and improving responsiveness. 7. Identify methods to increase knowledge of the local market and strategies to meet government procurement objectives. RECOMMENDATION R1. Develop a strategic approach to sourcing and procurement. 8. Incorporate and use procurement strategy information such as market information, procurement plans and market impacts, and integrate this data into Yukon government s procurement planning process for large projects. SUMMARY The above actions represent recognition and support from Yukon government s leadership to improve procurement across Yukon government

7 Theme 1 Increase opportunities for Yukon vendors to participate Conduct research and an inventory of current practices 9. Investigate opportunities within regional economic development exemptions under the relevant trade agreements. 10. Review the actions of other jurisdictions regarding local preference and working with First Nations governments. FINDING There is a strong desire to improve mechanisms to use procurement to support local suppliers. Complete spend analysis and share the results 11. Collect data on goods, services and construction and conduct spend analysis. 12. Use spend analysis data when making procurement decisions and inform vendors about YG s procurement needs. 13. Review purchase card (VISA) spend analysis and establish clear guidelines around such purchases. 14. Identify gaps in Yukon goods purchases to develop opportunities to build capacity within the local market. RECOMMENDATION R2. Develop clear objectives and policy guidance for staff concerning the expected use of procurement to support local businesses and First Nations. Use research and spend analysis to develop policy and guidance for staff on how to use procurement to support local businesses and First Nations B. Develop policy to support local vendors in collaboration with the vendor community. 15. Improve goods procurement processes to support local purchases. 16. Develop guidelines for YG staff so they can support local vendors within the spirit and intent of trade agreement obligations. 17. Propose updates to the Contracting and Procurement Directive including to the definition of Yukon business. (start work immediately) (start work immediately) (2-4 years) SUMMARY The above actions will provide facts and evidence about government procurement and help guide the development of policies to support local vendors and First Nations

8 Theme 2 Reduce barriers for Yukon vendors to participate Streamline procurement processes 18. Review processes related to payment methods and processing payments to improve efficiency and ensure that the 30 day timeline for payment is not exceeded. 19. Implement technology in the procurement process to improve document quality and simplify the procurement process for vendors. (2-4 years) FINDING There is a need to streamline procurement processes. RECOMMENDATION R3. Focus vendor responses on the information most relevant to the procurement. R4. Improve alignment of procurement processes with desired outcomes. Align procurement process with desired outcomes by guiding staff TO DATE Yukon government has developed guides for procurement authorities on market research and vendor debriefing. Yukon government has also created short-form templates to minimize vendor response requirements and has developed a How to Guide Doing business with Yukon government to help reduce barriers for Yukon vendors. 20. Develop an Evaluation Toolkit to assist procurement authorities in writing evaluation criteria in order to achieve desired outcomes and to improve consistency and transparency in the evaluation and debrief processes. 21. Train procurement authorities on selecting appropriate procurement tools and creating more user-friendly procurement documents, including relevant information and appropriate mandatory requirements. 22. Provide guidance for procurement authorities on matching procurement requirements to project needs, keeping in mind the burden to vendors, by following industry standards, using fewer mandatory requirements and bundling or unbundling procurements. SUMMARY The above actions will help to streamline and align procurement actions by staff to reduce barriers for vendors

9 FINDING There is a need to increase clarity, consistency, and transparency in procurement processes. RECOMMENDATION Increase clarity, consistency and transparency in procurement processes Invest in skill development 23. Develop standardized templates for common services used by all departments (e.g. custodial, IT, photography). 24. Include relevant competencies when recruiting for positions that involve procurement. 25. Increase procurement skills by developing a training program, with a potential for procurement certification. (2-4 years) R5. Develop guidelines, policy and/or an organizational model that ensures procurement is conducted by staff with appropriate expertise. Increase scrutiny of and support for very large and/or complex procurements 26. Establish guidelines for tender reviews, evaluations, debriefs and contract management. 27. Use the risk matrix developed by PS Centre when planning procurements. R6. Invest in ongoing skill development and awareness of the role of procurement. R7. Establish a consistent approach for increased scrutiny of and support for complex procurements. TO DATE As part of improving clarity and consistency in procurement processes and skill development, Yukon government has already developed a community of practice for procurement authorities to share information with one another on best practices, which will contribute to better quality procurement processes and more highly skilled staff. SUMMARY Yukon government is committed to providing training for procurement authorities to develop their expertise, skills and competency. This will increase the quality and consistency of procurements

10 Theme 3 Increase dialogue between buyers and sellers and build a more collaborative culture FINDING Increase information and resources to support local participation Develop new and improved methods of sharing information between YG and vendors, thereby promoting continuous improvement 28. Develop new methods of sharing information with vendors and seeking their input, including establishing a Continuous Improvement Procurement Group to facilitate the ongoing involvement of the vendor community during the implementation of the Procurement Improvement Action Plan. C. Create a program for comprehensive project and performance evaluations to improve future procurements. 29. Improve and add to public website tools, including the supplier directory and tender forecast and a new way to submit procurement suggestions directly to the PS Centre. 30. Hold post-tender debriefs and share any suggestions arising across YG. (start work immediately) There is an opportunity to increase information and resources to support local participation. RECOMMENDATION R8. Improve relationships and the sharing of information between vendors and buyers. R9. Improve market intelligence and procurement management information. TO DATE As part of increasing information and resources to support local participation, Yukon government will continue to engage with local associations in organizing and delivering the annual Industry Conference in order to meet the needs of Yukon vendors. As well, Yukon government will continue to deliver the Reverse Trade Show to give vendors the opportunity to learn about Yukon government s procurement needs. 31. Continue to hold an Industry Conference and Reverse Trade Show, designed in collaboration with vendors. SUMMARY Yukon government recognizes the importance of building relationships, collaborating and sharing knowledge to improve government procurement. (ongoing) 18 19

11 FINDING There is inadequate planning and coordination of the issuing of procurement opportunities. RECOMMENDATION R10. Increase coordination and communication of the scheduling of procurements. Improve planning and coordination of the issuing of procurement opportunities A. Explore options, including approval of a fall capital budget or multi-year capital plan, to improve project forecasting and scheduling for businesses and allow tenders to be issued well ahead of the short summer construction season. 32. Improve planning to address seasonal considerations, ensure sufficient timing around tender periods and potential conflicts with similar projects. 33. Require tenders to be open for a minimum of 3 weeks, recognizing that from time to time tenders may need to be posted for less than 3 weeks. This will require formal approval. 34. Develop guidelines on issuing addenda. 35. Explore opportunities for staggering work, such as winter work and tender ready projects. SUMMARY (beginning within 1 year) Yukon government understands the time and scheduling pressures faced by contractors and will improve processes to address these concerns. FINDING The mechanism to address vendor concerns and complaints needs to be improved. RECOMMENDATION R11. Revise the current Bid Challenge process. Improve mechanisms to address vendor concerns and complaints D. Review the Bid Challenge process to identify opportunities for interim improvements, as well as developing policy to replace it with a more modern, trade compliant mechanism. 36. As part of broader training initiatives, provide training and support for procurement authorities to respond to vendor concerns with a client service approach. 37. Create an advocacy role at the Procurement Support Centre to address vendor concerns and complaints prior to formal complaint processes. SUMMARY (beginning within 1 year) Yukon government is committed to creating informal and formal dispute resolution processes that address the needs of all parties

12 Response to the Procurement Advisory Panel Recommendations August 2016 Other initiatives taking place across Yukon government Property Management Division is evaluating and improving internal procurement and financial processes to increase the quality and timeliness of tenders. Transportation Engineering Branch is piloting a project evaluation program to provide a format for open and clear communication between project managers and contractors to improve future procurements and build constructive relationships. Appendix 1: Timelines Conclusion Yukon government is grateful for the insight of the Procurement Advisory Panel and the recommendations provided in the panel s report. The responses included here confirm Yukon government s commitment to improving procurement capacity over the coming years. As work continues on this initiative, it is expected that these actions may evolve. Yukon government will continue to collaborate with the vendor community to ensure their input is considered and progress on commitments is communicated. Yukon government looks forward to engaging with the vendor community on further procurement process improvements over the short, medium and long term, to improve opportunities for the vendor community and Yukon s economy as a whole. 22

13 Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) A. Explore options, including approval of a fall capital budget or multi-year capital plan, to improve project forecasting and scheduling for businesses and allow tenders to be issued well ahead of the short summer construction season. B. Develop policy to support local vendors in collaboration with the vendor community. C. Create a program for comprehensive project and performance evaluations to improve future procurements. D. Review the Bid Challenge process to identify opportunities for interim improvements, as well as developing policy to replace it with a more modern, trade compliant mechanism. 1. Integrate Deputy Minister level commitments with the finding that procurement has an integral role in achieving government objectives. 2. Make procurement planning an integral part of departmental planning at high levels. 4. Provide clear guidance for departments on using procurement to achieve government objectives, following the strategic direction that opportunities for the local vendor community should be maximized, while respecting our negotiated trade agreements and the principles of procurement. 5. Improve training to increase Yukon government staff capability in order to reflect the importance of procurement decisions to vendors. Overarching finding 3. Report annually by department on procurement to increase transparency and accountability about procurement decisions. 6. Focus on preparing quality tender documents and improving responsiveness. 8. Incorporate and use procurement strategy information such as market information, procurement plans and market impacts, and integrate this data into Yukon government s procurement planning process for large projects. 7. Identify methods to increase knowledge of the local market and strategies to meet government procurement objectives

14 Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) Theme 1 Theme 2 9. Investigate opportunities within regional economic development exemptions under the relevant trade agreements. 10. Review the actions of other jurisdictions regarding local preference and working with First Nations governments. 11. Collect data on goods, services and construction and conduct spend analysis. 13. Review purchase card (VISA) spend analysis and establish clear guidelines around such purchases. 12. Use spend analysis data when making procurement decisions and inform vendors about YG s procurement needs. 17. Propose updates to the Contracting and Procurement Directive including to the definition of Yukon business. 20. Develop an Evaluation Toolkit to assist procurement authorities in writing evaluation criteria in order to achieve desired outcomes and to improve consistency and transparency in the evaluation and debrief processes. 21. Train procurement authorities on selecting appropriate procurement tools and creating more user-friendly procurement documents, including relevant information and appropriate mandatory requirements. 18. Review processes related to payment methods and processing payments to improve efficiency and ensure that the 30 day timeline for payment is not exceeded. 22. Provide guidance for procurement authorities on matching procurement requirements to project needs, keeping in mind the burden to vendors, by following industry standards, using fewer mandatory requirements and bundling or unbundling procurements. 19. Implement technology in the procurement process to improve document quality and simplify the procurement process for vendors. 24. Include relevant competencies when recruiting for positions that involve procurement. 14. Identify gaps in Yukon goods purchases to develop opportunities to build capacity within the local market. 25. Increase procurement skills by developing a training program, with a potential for procurement certification. 23. Develop standardized templates for common services used by all departments (e.g. custodial, IT, photography). 15. Improve goods procurement processes to support local purchases. 16. Develop guidelines for YG staff so they can support local vendors within the spirit and intent of trade agreement obligations. 26. Establish guidelines for tender reviews, evaluations, debriefs and contract management. 27. Use the risk matrix developed by PS Centre when planning procurements

15 Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) Begin within 1 year (short term) Begin within 1-2 years (medium term) Begin within 2-4 years (long term) 30. Hold post-tender debriefs and share any suggestions arising across YG. 31. Continue to hold an Industry Conference and Reverse Trade Show, designed in collaboration with vendors. Theme Develop new methods of sharing information with vendors and seeking their input, including establishing a Continuous Improvement Procurement Group to facilitate the ongoing involvement of the vendor community during the implementation of the Procurement Improvement Action Plan. 29. Improve and add to public website tools, including the supplier directory and tender forecast and a new way to submit procurement suggestions directly to the PS Centre. 33. Require tenders to be open for a minimum of 3 weeks, recognizing that from time to time tenders may need to be posted for less than 3 weeks. This will require formal approval. 34. Develop guidelines on issuing addenda. 35. Explore opportunities for staggering work, such as winter work and tender ready projects. 37. Create an advocacy role at the Procurement Support Centre to address vendor concerns and complaints prior to formal complaint processes. 32. Improve planning to address seasonal considerations, ensure sufficient timing around tender periods and potential conflicts with similar projects. 36. As part of broader training initiatives, provide training and support for procurement authorities to respond to vendor concerns with a client service approach. Procurement Support Centre Office hours: Monday to Friday from 8:00 a.m. until 4:30 p.m. Physical and mailing address: Suite Elliott Street (W-3C) Whitehorse, Yukon Y1A 0M2 Phone: (867) contracts@gov.yk.ca Toll free (In Yukon): ext Website:

16 Response to the Procurement Advisory Panel Recommendations August 2016 NOTES 30

17 Find us at: Elliott Street, Whitehorse T: (867) F: (867) Our Vision Leaders Building Foundations Inspiring Innovation Exceeding Expectations