Public Procurement: Information Session for Suppliers

Transcription

1 Public Procurement: Information Session for Suppliers Strategic Procurement, Service New Brunswick May / June 2018

2 Today s Objectives To assist you in developing a better understanding of: Who is responsible for government procurement? What does GNB purchase? The legal environment and procurement rules NBON Procurement thresholds and methods How to respond to an RFP

3 Public Procurement INTRODUCTION

4 What is Public Procurement? Purchasing, renting, leasing or otherwise acquiring any goods, services or construction on behalf of a public entity: Requisition Tender Award Contract

5 Who is Responsible? SNB, Strategic Procurement Division Goods and Services for: o GNB Departments/Agencies and School Districts o Regional Health Authorities and hospitals Department of Transportation and Infrastructure Building Construction and Highway Construction for: o GNB owned or operated infrastructure Other Public Sector Entities (e.g. municipalities, Crown Corporations, universities and community colleges): Procure on their own

6 The Legal Environment Most Authority Canadian Statutes/Case Law Provincial Legislation Trade Agreements Least Authority Internal Policies / Standard Terms and Conditions

7 Provincial Legislation Two acts govern public procurement in New Brunswick: Procurement Act and Regulation Goods - Services Crown Construction Contracts Act - Construction and building repairs - Highways and road repairs

8 Trade Agreements New Brunswick is party to 5 agreements that further define the conduct of public procurement: Atlantic Procurement Agreement (APA) Quebec-NB Procurement Agreement Canadian Free Trade Agreement (CFTA) July 2017 Canada-European Union: Comprehensive Economic and Trade Agreement (CETA) September 2017 World Trade Organization Agreement on Government Procurement (GPA) Requirements of these agreements are reflected in the Procurement Act and Regulations (2014).

9 Procurement of Goods and Services for GNB DEPARTMENTS, AGENCIES AND SCHOOLS DISTRICTS

10 What do we buy? Goods Office Supplies and Furniture Cleaning Supplies IT Goods Vehicles, Vehicle Parts, Tires Uniforms School Equipment Lumber Immunization Pipe Road Salt Etc. Services IT Services Printing Consulting Training Professional services Security Solid waste disposal Snow removal Courier Cleaning Etc.

11 When do we buy? Summer Lawn services, professional services (architectural services, environmental impact assessment work); services and goods preceding the school year. Fall Snow removal and heavy equipment rentals for winter requirements. Winter General and IT goods and services peak in Jan-Feb. All Year Facilities services (janitorial, waste removal) and general goods such as supplies for schools, vehicles. Professional services (financial services, consulting services). IT goods and services.

12 Type of Contracts One time purchase (on an as needed basis, is a one time event) Government Wide Contracts (Used for frequently purchased goods or services) - Contracts of Supply - Standing Offer Contracts - Eligibility or Pre-Qualified Lists

13 Procurement Methods GNB departments, agencies and school districts purchase on their own for: Goods under $1,500 (purchase card) Services under $10,000 (invoiced directly) Below these thresholds, departments are not required to procure through Strategic Procurement and are not required to procure using a competitive bidding process, unless: Goods/services are available on contract (e.g. office supplies, office furniture, computers, chairs) Procurement is for printing, translation/interpretation or IT services

14 Procurement Methods (continued) Strategic Procurement (SNB) procures goods and services for departments, agencies and schools districts for goods > $1,500 and services >$10,000. When Goods are between $1,500 and $9,999 (up to $25,000 for school districts) Services are between $10,000 and $49,999 then Strategic Procurement will procure by: 1. Inviting all NB suppliers (registered in NBON), or 2. Issuing a public tender (NB preference can be applied, shorter tendering times), or 3. Direct Award

15 Procurement Methods (continued) When: Goods are between $10,000 and $24,999 Services are between $50,000 and $99,999 When: Goods >$25,000 Services >$100,000 Strategic Procurement will procure by: Issuing a public tender (Atlantic provinces preference can be applied) Strategic Procurement will procure by: Issuing a public tender (No NB or Atlantic preferences can be applied)

16 The Numbers In , Strategic Procurement procured over $1.2 billion in goods and services on behalf of GNB departments, agencies and school districts. 83% of goods and services were purchased from NB suppliers in

17 EXEMPTIONS

18 Exemptions An Exemption is a provision in Regulation under the Procurement Act whereby all or some of the competitive bidding process does not need to be followed for the procurement of: Certain goods or services Goods and services in certain circumstances

19 Preferential treatment Preferential treatment can be applied: Below thresholds For goods and services in certain circumstances For goods and services not covered by trade agreements Treated unfairly by another Province? Please contact us at

20 NEW BRUNSWICK OPPORTUNITIES NETWORK

21 NBON Tender Notices for: - SNB, Strategic Procurement (on behalf of GNB departments and agencies, school districts and regional health authorities) - Department of Transportation and Infrastructure (construction) - Other New Brunswick public sector bodies (municipalities, publicly funded universities and community colleges, Crown Corporations and commissions, etc.) Tender Documents (bid package) Tender Results

22 NBON - How To Register Register online free of charge at

23 NBON - Training Videos Topics covered: How to register Browsing NBON How to bid How to ebid View tender results Update your company profile

24 NBON - Benefits of Registering Invited to bid on lower dollar value opportunities that are not publicly advertised. View and print official tender documents needed to submit a bid. Receive with bidding opportunities matching company profile. Search and view tender notices. Automatically receive notification of tender amendments by e- mail. See other suppliers who have expressed interest in a tender, which may allow you to partner on larger projects.

25 Bidding Tips 1. Must have an official bid document. 2. Read all terms and conditions carefully. 3. Any questions or clarifications should be directed to the contact identified on the tender document prior to closing. 4. Meet all mandatory requirements. 5. Follow the instructions completely. 6. Ensure your bid is signed. 7. Get your bid in on time.

26 NBON - Benefits of e-bidding Automatic calculations Copy and paste feature Attachments Signature added when bid is submitted Ensures your bid is in before the tender deadline Evaluations are completed quicker

27 HOW TO RESPOND TO REQUEST FOR PROPOSALS?

28 What is an RFP? Request for Proposal (RFP) is a document that: Solicits proposals through a competitive bidding process by an entity (e.g.: Government) when they are interested in procuring goods and/or services in accordance with applicable legislation and trade agreements. Is more commonly used for goods or services where the evaluation is based on more factors than price alone. Allows for the evaluation of qualitative criteria which align with the complexity of goods or services being procured.

29 RFP Scoring Criteria In addition to price, RFP s allow for the scoring and evaluation of multiple qualitative criteria, such as, but not limited to: Proposed service delivery and methodology Company background and experience Project resources (Project Team) Project Team references Company references Demonstrations/Presentations Technical requirements

30 RFP Structure RFP s follow the same general layout, with some variation: Title page (Includes RFP number, title, closing date) General Terms and Conditions of the procurement process Instructions for responding to RFP Instructions for submitting questions Information on the procuring entity Scope and deliverables of the procurement Technical and submission requirements and deliverables Evaluation criteria and associated weightings

31 Responding to an RFP Read the RFP carefully in its entirety including any applicable attachments. Adhere to all proposal submission requirements. Failure to meet a mandatory requirement (will, must, or shall) will result in the disqualification of the proposal. Make note of any preference statements within requirements to obtain best possible results. Put enough details into your answers as though you are explaining your response to someone who is not familiar with the procurement or with your business.

32 Responding to an RFP (continued) Ensure receipt of bid submission prior to closing at the location indicated Monitor and NBON for any amendment notifications Don t assume, ask questions (prior to question period deadline) Follow formatting instructions and proofread submissions Proposal will be evaluated exclusively on its content Sign the submission! No Lobbying

33 RFP Evaluation Methods There are 2 main evaluation methods which are utilized by Strategic Procurement: Single- Stage Multi-Stage The standard method utilized by Strategic Procurement is the Multi-Stage RFP.

34 RFX Evaluation Methods (continued) Single-Stage RFP In this format, price is included in the weighted/scored criteria. The suppliers proposed price is converted into a score based on a formula. The supplier with the lowest proposed price gets the maximum amount of available points, as identified in the evaluation criteria of the RFP, for the pricing section. The supplier with the highest total cumulative points is considered to be the recommended proponent for award. Multi-Stage RFP This method can be made up of any variation of the following, whereby each category represents its own distinct stage that often has a minimum required score in order to move to the next stage: Technical Demonstration/presentation Price

35 Evaluation of Proposals Sample Technical Evaluation Grid The higher the weighting, the more points the section is worth There may be category minimums If a proposal does not meet the category min, they are disqualified Criteria is taken directly from what was presented in the RFP Each supplier is scored against the same criteria Overall total score required to move onto Stage 2 (pricing)

36 Evaluation Committee Who evaluates the bids? Evaluation Committees are made up of Departmental Representatives, subject matter experts, and stakeholders. RFP evaluations are moderated by a Strategic Procurement Representative (Strategic Procurement Division). The representative ensures adherence to the Act, provides policy guidance, and may lead the evaluation.

37 Post Evaluation and Contract Award Following the completion of the evaluation process and internal approvals, the service agreement is negotiated, and signed, and the contract is awarded. Once a Purchase Order has been issued, it can be viewed in NBON. The time between RFP closure and contract award varies due to many factors, including but not limited to: Approval timeframes Resource availability Contract negotiations

38 Debriefings Once a Purchase Order has been issued, suppliers may request a debrief. This process is intended to provide constructive feedback on their bid submission in order to learn for possible future procurement submissions. Many find the debrief process helpful in preparing future bid submissions and often increase their score as a result.

39 Points to Remember Are there opportunities? Yes! You must register your company on NBON and search for opportunities. When bidding, pay attention to details! Check out opportunities from other Atlantic Provinces:

40 Procurement of Goods and Services for REGIONAL HEALTH AUTHORITIES

41 Introduction SNB Strategic Procurement, Health Services provides support to both Regional Health Authorities (RHAs) and internal client groups (Logistics, Laundry, CE, IT, etc) Vitalité Health Network (RHA A) Beauséjour Northwest Restigouche Acadie-Bathurst

42 Introduction Horizon Health Network (RHA B) Saint John Area Fredericton and Upper River Valley Moncton Area Miramichi Area and to SNB Health Services Division. Clinical Engineering Laundry & Linen IT (Health specific)

43 What do we buy? SNB Strategic Procurement, Health procures a wide range of Goods and Services on behalf of the RHAs such as: - Clinical Supplies - Dressings - MRI - Ultrasound - Pacemakers - hips and knees - Non Clinical equipment, supplies and services - Snow removal - Landscaping - Paint - Hardware - Electrical and plumbing supplies

44 Procurement Thresholds All procurement on the RHA s behalf is completed in accordance with the Act and Regulations Goods over $25,000 open competitive Services over $50,000 open competitive All SNB opportunities above the noted thresholds are posted to the New Brunswick Opportunities Network (NBON)

45 Facts and Figures In the 2017/2018 fiscal year, SNB Strategic Procurement created approximately 1555 Purchase Orders. SNB Strategic Procurement Health issued 247 RFx projects last fiscal year and is Member of a National Group Purchasing Organization (GPO) Statistics at a glance Purchase orders 1555 Dollar value of purchase orders $116M ($325M Total Health) Over Threshold RFx (>25k) 247