1. BCTS Contracting Practices Summary of Audit Findings April 2007

2. BCTS Contracting Practices  7 Business Areas audited to date: 1. Seaward tlasta 2. Babine 3. Cariboo Chilcotin 4. Stuart Nechako 5. Prince George 6. Okanagan Columbia 7. Skeena 8. 4 more planned for 07/08

3. BCTS Contracting Practices  Numerous examples of fine contract management have been observed.  Significant improvement in many of the contracting practices identified as deficient in previous audits and reviews

4. Good Practices  Overall contract documentation  Advertising and award practices  Number of direct awards.  Invoice payment processes  Use of check lists and data sheets  Use of equipment hire  Management oversight of planning

5. Areas for Improvement  Co-ordination of planning and activities  Management Oversight / Risk Management  Training  DAs & Equipment Hire  RFPs – OTR & Multiyear contracts

6. Co-ordination of planning and activities  A lack of co-ordination of contracting activities within Business Area between field-teams is creating inefficient and less than effective contracting practices.

7. Co-ordination of planning and activities  Increased risk of unfair, or perceived unfair, contracting practices  Not consistent with the BCTS business model  Not client service focused  Has resulted in contractor complaints

8. Co-ordination of planning and activities  Contracting risks will be reduced and the effectiveness of contracting practices increased by ensuring that Business Areas function as a single business unit

9. Management Oversight / Risk Management  Increased involvement and oversight by the TSM and BALT is required  Mgmt oversight in planning and monitoring to ensure appropriate accountability and level of risk.  Introduction of regular periodic management reporting

10. Management Oversight / Risk Management  Ensure sound principles of risk management underscore contract decisions.  Too frequently high-risk contracting decisions are being made by Contract Coordinators.

11. Management Oversight / Risk Management  The number, type, award method and value of contracts by contractor should be reviewed.  To ensure the achievement of the fundamental contracting objective for fair access to government business.  More holistic long-term planning within Business Areas to help ensure both contract and business risks are adequately addressed

12. Management Oversight / Risk Management  The Business Officers not used effectively or as is intended.  Should assume a greater leadership role.  Ensure that effective contracting accountability and performance management frameworks are in place.  Provide assurance that contracting practices are effective and in compliance with ministry contracting policies.

13. Training More training is required.  A lack of understanding of risk, contracting principles, law, and policies has led to inappropriate policy interpretation or avoidance resulting in: –Inappropriate practices and award decisions. –Lack of fair access to work. –The acceptance of individual and Business Area risks well above reasonable levels.

14. DAs & Equipment Hire  Number of direct awards and use of equipment hire still an issue in some locations.  Other locations have significantly reduced the number of directly awarded contracts and equipment hire agreements.

15. RFPs – OTR & MY Contracts  Inappropriate use of RFPs and OTR & MYC increase risk of not providing fair access to work.  RFPs for silviculture contracts not consistent with policy.  OTR & MYC changes to tender and contract terms not always consistent with policy.

16. RFPs – OTR & MY Contracts  Fail to achieve objective for defensible and justifiable contract awards.  Have resulted in several complaints of unfair award practices.  Significant legal exposure.

17. RFPs – OTR & MY Contracts  Contracting risks will be reduced by ceasing to use Requests for Proposals and increasing the use of Invitations to Tender to procure silviculture services.

18. Sharing Lessons & Best Practices  Final Reports and Action Plans all on BCTS HQ Corporate Operations web site.

19. BCTS Contracting Practices  Questions?  Comments?