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Presented by: Frank MacKinnon Ontario Small Vendors Association In Collaboration with York Technology Association 1.

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Presentation on theme: "Presented by: Frank MacKinnon Ontario Small Vendors Association In Collaboration with York Technology Association 1."— Presentation transcript:

1 Presented by: Frank MacKinnon Ontario Small Vendors Association In Collaboration with York Technology Association 1

2 Ontario Government In Review Expectations Current level of Government of Ontario contracting Interest in co-venturing 2

3 Ontario Government In Review Setting the stage Getting to “GO” Learn from the leaders Taking the next steps 3

4 Ontario Government In Review  Who We are: ◦ We are that part of the SME with less than 200 employees which has made the Ontario Government an important part of our business plan.  What we do: ◦ Initiate, promote, and facilitate enduring business relationships between the small business community and their customers in the public and (eventual) private sectors. 4

5 Province Queens Park 5 Ontario Provincial Government Cabinet Premier Ministers Provincial Auditors Premier’s Office Government Services Cluster / MinistriesAgenciesBoards & Commissions Municipalities Universities SchoolsHospitals BPS Central Agencies Decision Making & Implementation Accountability Purchase Decision At A Glance Central Procurement

6 Ontario Government In Review  Program / Projects – Important to understand the connection  Who makes decisions – No one person makes any contract decision  The janitor can send a project into tilt mode; if they are on the committee, which is quite possible if they are to be the implementer 6

7 Ontario Government In Review  How to Sell to Government – Procurement 101; 201 ◦ Where you can get training, why it is important, and, why it probably won’t help you sell at the Cluster/Business level  MERX – How MERX plays in the greater scheme ◦ What you will find on MERX, and ◦ Where you will find the rest (the bulk) of the unsolicited business 7

8 Ontario Government In Review  70,000 employees  28 Ministries  Eight I & IT Clusters 1.Land and Resources I & IT 2.Central Agencies 3.Community Services 4.Health Services 5.Children, Youth and Social Services 6.Economics and Transportation 7.Justice 8.Government Services Delivery 8

9 Ontario Government In Review  Extremely complex environment  Can be difficult to navigate  While lucrative to some, can be disappointing to others  Vendor Supply Chain -45,000 Vendors 9

10 Ontario Government In Review  Uses an array of technologies ◦ Could be considered leading edge  Has a common component policy ◦ To reduce redundancy in technology 10

11 Ontario Government In Review  Uses MERX for RFPs and VOR (RFS) ◦ Procurement policy for acquiring services and/or products  Uses Vendor of Record process ◦ Management of Vendor Community (Supply Chain) ◦ Pre-qualifies suppliers  Has open policy for unsolicited proposals ◦ To encourage innovation and initiative from the vendor community to meet a unique need 11 MERX VOR Unsolicited

12 Ontario Government In Review 12 CCIOCTIOCIO OtherCIO  1 CCIO – 8 CIOs  CTIO responsible for CIO needs

13 Ontario Government In Review  Serve the IT needs of like Ministries.  Have Service Level Agreements (SLA) and other penalty facing agreements in place with Ministries to ensure best service practices  Have their own IT Services organization setup to support Clusters at this level. 13

14 Ontario Government In Review  Serve the IT needs of like Ministries.  Have Service Level Agreements (SLA) and other penalty facing agreements in place with Ministries to ensure best service practices  Have their own IT Services organization setup to support Clusters at this level.  Intent on removing redundancy in services ◦ Help desk, email, Desktop, etc.  Currently reviewing ways to expand IT services internally.  Looking to private sector to assist in delivery. 14

15 Ontario Government In Review  One of the biggest challenges is the lack of knowledge at the Vendor level.  A weak economy!  They believe in what they are doing! AND, they know better than us the restraints of their procurement policies. ◦ Serve the taxpayer, consumer and business. ◦ Its all about Service!! Health, justice, Insurance… 15

16 Ontario Government In Review  Initiatives: ◦ Think tank opportunities ◦ Not just for the big guy!  Programs: ◦ Concepts become Initiatives that when funded (millions $) become Programs, out of which better service to the community is realized  Projects: ◦ Spin off program deliverables 16 ConceptsInitiativesPrograms

17 Ontario Government In Review  Design/decision by committee – a safe approach  “Who was ever fired for buying IBM?”  Consider the Influencers… ◦ Those responsible for project deliverable ◦ Are often found below line management ◦ Tend to have the ear of the CIO 17

18 Ontario Government In Review  How is this different from the rest of us? ◦ Government staff are measured by their ability to deliver on time and to follow the established procedures ◦ Failure will likely result in loss of bonus and/or promotion…  The point is… understand and respect what is behind their motivation regardless of whether you believe in it  They must deliver it 18

19 Ontario Government In Review  Lead Generation  As VOR you are already qualified for this market ◦ Don’t need brochures but have a good elevator speech 19

20 Ontario Government In Review  Lead Generation  Listen carefully and remember it’s not about you ◦ These people meet with hundreds of sales people who promise the world. How well you listen will be what you will be remembered for. 20

21 Ontario Government In Review  Lead Generation  It is like time with the CEO - most of the time you get ½ hour ◦ Understand what information you need to gather ◦ Be real clear on what you need to impart 21

22 Ontario Government In Review  Know who you are talking to. Not unlike the Private sector, the government relies heavily on its foxes. Your challenge is to determine who they are. Watch for those quite voices and 3rd party consultants. ◦ Strategic, Think Tank, Out of the Box, Keen on concepts. ◦ Reports to the Deputy and is very aware of the politics of his office.  It may be too high…if, you don’t fit the profile, there is likely a better person to talk to. 22

23 Ontario Government In Review  Reports to the CCIO and is very aware of the politics of his bosses office.  Is either dynamic, or, career (cautious) staff  Responsible for delivering on initiatives / programs.  Is always on the look for winners.  Largely responsible for developing an equal playing field for all vendors. 23

24 Ontario Government In Review  Relies heavily on his Directors and Heads of departments.  Will listen to creative ideas for improvement that will leverage his resources and improve quality of service.  If, you fit the profile, the CIO can be an excellent resource. Be aware of an extremely busy calendar. 24

25 Ontario Government In Review  Directors… ◦ Responsible for driving Program and major Project development. Most senior Managers report at this level.  Heads… ◦ Most often responsible for technology assessment and direction.  Senior Manager… ◦ Project Management and delivery 25

26 Ontario Government In Review  Broader Public Sector (BPS) ◦ Hospitals, Agencies, Roads, etc.  Ontario I&IT ◦ Ministries, Health, Justice, Education, etc.  What this means to the You! ◦ 45,000 Vendors ◦ Vendor of Record Procurement Practice ◦ Fair, Competitive & Transparent! 26

27 Ontario Government In Review  MERX- RFP routine ◦ Invitation to VOR & General Vendor Community ◦ RFP becomes the contract ◦ Contracts in general allow for 10% change, only!  VOR - RFS routine ◦ RFP solicitation – every 3 years ◦ A few refreshes at 18 month interval ◦ RFS is generally for bodies, not, project ownership ◦ Usually offered to 3 – 5 VORs (1 winner) ◦ +1,000 released per annum 27

28 Ontario Government In Review  Auditors- Internal ◦ Objective to ensure fair & transparent process ◦ Most troublesome to staff ◦ While rarely used, could be; by either party ◦ Supply Chain Secretariat leading development of standardized procurement practices 28

29 Ontario Government In Review  Legal - Theirs ◦ Theirs protect the government ◦ Minimize ambiguity ◦ Can seem very difficult, but! ◦ Must work with hundreds of private sector legal advisers 29

30 Ontario Government In Review  Legal - Ours ◦ Ours protect us, if, they understand the process! ◦ Best to use lawyers who are familiar with government ◦ Can cause serious delays, if not cancellations 30

31 Ontario Government In Review  Note: ◦ The government always has a runner-up. At their discretion they will fall back to this position. ◦ Many contracts have been lost to lack of understanding, or, the unwillingness to take risks! ◦ The more government experience your lawyer has the greater the chance for successful negotiations. 31

32 Ontario Government In Review  The government likes to deal with large companies or groups that have clearly defined leadership  Tend to be specific in focus  Have the attention of the government  Minimizes the effort to inform & education 32

33 Ontario Government In Review  2007/2008 Vendor Expenditures  Who is getting the business and how much of it  Where to focus your valuable resources  Identify companies already well positioned  Identify partnership arrangements  Be aware of the time and tenacity it takes 33

34 Ontario Government In Review  2007/2008 Vendor Expenditures ◦ Greater than $50,000,000 ◦ Greater than $20,000,000 ◦ Greater than $10,000,000 ◦ Greater than $5,000,000 ◦ Greater than $1,000,000 ◦ Greater than $100,000 ◦ Less than $100,000 34

35 Ontario Government In Review 35

36 Ontario Government In Review  The real players invest in the future  They focus and they are reliable and dependable  They appear to be favored over the rest  They appear to be large companies 36

37 Ontario Government In Review  What they are is committed… ◦ They’re in for the long haul ◦ They build those important relationships ◦ They take a chance on risk ◦ They support their sales team ◦ They meet their objectives and experience success! 37

38 Ontario Government In Review  eHealth – Agency (quasi Public operation) ◦ 1.15 billion $ ◦ Revamping the entire Health system for Ontario ◦ Only 10 years behind schedule ◦ They are in a mess! 38

39 Ontario Government In Review  Clusters – Justice, Community, Health… ◦ All have major objectives / initiatives ◦ Be aware and try to separate from the crowd ◦ Learn the business of the Cluster ◦ Become strategically important to their needs!  Note: A single Cluster could meet your business objective for the year! 39

40 Ontario Government In Review  The WSIB is a separate business unit and therefore is responsible for their own welfare.  That being said they are driven to protect the best interest of the Government, business, and the general public.  Insurance is not a bad thing, in fact it protects us all. So, what’s the problem?  The Government is trying to figure that out, as we speak! There are many inside government who agree that the demand for insurance, especially from small companies/projects can oversize the actual value of the work to be performed.  Watch for changes to the procurement process. 40

41 Ontario Government In Review  The government needs companies of all sizes. That is it needs to be able to leverage the Billions $ large multi-nationals invest in their products and services.  The government also knows that large companies often means large dollars for adjunct products & services that are available through the SME. 41

42 Ontario Government In Review  Dilemma! Large companies also means financial stability, extensibility, project management, accountability, knowledge and knowledge transfer.  The Government would like to direct more work to the SME, the question is how to do this and protect the interest of the government / taxpayer.  Using eHealth as the example, the government must appear to always be fair and transparent. 42

43 Ontario Government In Review  SME - Is a dilemma! ◦ While small business has large business aspirations, it isn’t always in the position to wait, support, and/or demand it’s rights ◦ Small Vendors tend to think they must do more, give up more, and perhaps suck it up more! 43

44 Ontario Government In Review  SME - Is a dilemma! ◦ Perhaps on their own, they very well have to! ◦ The government needs the SME, the question is how to use it and safe guard the project/$$. ◦ Recent economical crisis has had a greater than major impact on the industry overall. ◦ The SME needs to protect itself from this sort of thing in the future.  So, what’s the answer! 44

45 Ontario Government In Review  SME - Has to appear to be larger than life ◦ It represents +90% of Canadian business. This is amazing, but, it is true.  Here’s a fact…I think! ◦ The government has stated that it wants to do more with the SME, the question is how! 45

46 Ontario Government In Review  Here’s How… Invest, Organize, Educate, Position! ◦ You can do all of this by working together, as a community with autonomy! ◦ The YTA, and the OSVA are excellent examples of unobtrusive communities. 46

47 Ontario Government In Review  Invest in the relationships and manage your expectations  Watch MERX ◦ Refresh VOR list in September  Collaborate and present a unified face  As much as possible use government experienced lawyers  Get a debrief 47

48 Ontario Government In Review Thank you and have a great day! Frank MacKinnon OSVA 48


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