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Shared Services Canada Governance and Policy Frameworks at SSC January 25 th, 2013 ITIR – Procurement Benchmarks Advisory Committee.

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Presentation on theme: "Shared Services Canada Governance and Policy Frameworks at SSC January 25 th, 2013 ITIR – Procurement Benchmarks Advisory Committee."— Presentation transcript:

1 Shared Services Canada Governance and Policy Frameworks at SSC January 25 th, 2013 ITIR – Procurement Benchmarks Advisory Committee

2 Objective and Context 2 Objective To provide an overview of the development of an SSC procurement policy framework and governance model. Context Procurement is a highly rules-based segment of government support services with many complex pieces of legislation, regulation and policy. SSC is unlike other procuring organizations due to the singular nature of our business and powers obtained through legislation and policy amendments over SSC is leveraging best practices in the management of procurement from private and public sectors to establish a lean, risk-tolerant and agile procurement environment for vendors, internal business lines and procurement professionals.

3 The SSC Act Versus the PWGSC Act Shared Services Canada Act 7. The Minister may, for the purpose of providing services under this Act, exercise any of the powers, duties or functions that are set out in paragraph 6(a), (b), (c) or (g) of the Department of Public Works and Government Services Act in respect of departments and Crown corporations to which those services are provided.Department of Public Works and Government Services Act Public Works and Government Services Act 6. (a) the acquisition and provision of articles, supplies, machinery, equipment and other materiel for departments; (b) the acquisition and provision of services for departments; (c) the planning and organizing of the provision of materiel and services required by departments; (g) the planning and coordination of telecommunications services for departments, boards and agencies of the Government of Canada; 3

4 Procurement Governance and Decision Making at SSC Procurement and Vendor Relations  Procurement operations (buying) is centralized in PVR at SSC through a critical mass of procurement professionals – OiC and aligned to a delegation framework Procurement Review Board  Provides oversight to medium risk transactions (former public servants, high-dollar value and planned transactions) Senior Project and Procurement Oversight Committee  Provides oversight to high-risk transactions where business decisions are required and acts as a resolution mechanism. Senior Management Board  Strategic direction for planned procurements and last line of sight to transactions requiring consideration of the Treasury Board. Treasury Board  The management board of the government of Canada. Approval of contract entry required above certain contract entry limits. 4

5 Contract Entry Limits and procurement capacity 5 Contracting Policy, Appendix C Competitive (MERX) Competitive (Traditional) Non-Competitive EntryAmendEntryAmendEntryAmend Goods$40M$20M$10M$5M$2M$1M Services$20M$10M $5M$3M$1.5M Unregulated Telecom$200M$100M$20M$10M$3M$1.5M

6 Policy Framework 6 SSC has equivalent contract entry limits to PWGSC but only procures for itself. SSC requires a robust policy and procurement planning framework to support procurement transformation efforts to support business needs and engage the vendor community Intention to mimic the policy renewal framework of the Treasury Board and focus on tiers of policy, directives and guidance for procurement professionals and SSC business owners.

7 Policy Framework - Draft 7 “SSC Policy on Managing Procurement” (Principles, Values, Planning and Scope of SSC Procurement) Former Public Servants Policy Socio Economic Consideration s (SME/PSAB) Contract Entry Limits and Approvals Planning and Reporting Integrity Governance and Delegations Operational Guidelines (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

8 Critical Path for the next 18 months Policy framework development and approval – Spring 2013 Planning process and consolidated procurement plan – Spring 2013 Design and development of a category management strategy (starting with Networks) – Summer/Fall 2013 Seek approvals and establish governance to support the enablement of procurement through an e- procurement/procure-to-pay solution - Summer/Fall 2013 Deployment of category management streams and alignment of authorities - Winter 2013/14 Stabilize and maintain procurement operations – through winter

9 Timeline 9 Ongoing revision and update of Policy Framework as required

10 Next Steps 10 Draft first of several directives aimed at embedding procurement considerations in business decisions Plan, draft and finalize a procurement plan for SSC and integrate requirements into an investment plan Undertake category management planning and deploy category management strategy supported by a procure-to-pay/e-procurement system Develop a risk-based model for procurement that allows SSC to tailor oversight to high-risk and high- complexity transactions Stabilize governance and oversight cycles for risky and complex transactions

11 Discussion 1.Based on your experience, are there procurement approaches that can increase efficiency in terms of time to procure? 2.Are there organizations that you are aware of that do procurement exceptionally well? 3.What advice would you give to SSC as we develop our Policy Framework? 11


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