MUNICIPAL PROCUREMENT:
ISSUES AND CHALLENGES
Bart Menage
Heather Salter
Marlene Knight
June 10, 2014
Overview:
•
•
•
•
•
•
Introduction ‐ Heather Framework ‐ Heather
Small municipalities ‐ Bart
Big municipalities ‐ Marlene
Trends & What should we do ‐ Marlene
Questions ‐ all
2
Legal
Financial
IT
Operational
Economic
Environmental
Social
Framework
3
LEGAL:
Municipal Act, 2001 – mandatory policies, s. 270.
Municipal Freedom of Information and Protection of Privacy Act
Municipal Conflict of Interest Act Discriminatory Business Practices Act Trade Agreements
Evolving case law / Contract A‐B
Other……
4
FINANCIAL:
annual budget process
long range financial plan, asset management
accounting systems
TECHNOLOGICAL:
electronic advertising (web, Biddingo, Merx)
electronic bidding (?)
confidentiality/security
OPERATIONAL:
project/contract management
Council procedure/schedule
accounts payable/collections
5
ECONOMIC:
community prosperity
“value for money” audits
ENVIRONMENTAL:
“green” purchasing policies
extreme weather and other emergencies
SOCIAL:
Accessibility for Ontarians with Disabilities Act
compliance
fair wage policies fairness monitors
6
Small Municipalities:
CHALLENGES
•
Increased demands
•
De‐Centralized Procurement model
•
Limited System Integration
•
Procurement Project complexities •
Compliance to Procurement Policy
•
Adherence to Corporate Contracts 7
Small Municipalities:
INTERDEPENDENT SOLUTIONS
•
Staffing and Training
•
Centralized/Decentralized Model
•
Software Options •
Tiered implementation approach
•
Update policies, procedures, controls
•
Data Collection/ Co‐Op / Audit 8
Big Municipalities:
What we are facing, stories to tell.
What we are doing to meet the challenges.
•
Focusing on 5 R’s
price, quality, vendor, time, place (‘Value for Money’)
•
Encouraging ‘Best Practices’
documents, IT development, processes, rules
•
Harvesting and sharing information
education, face‐time, linking, research, purchasing as ‘HUB’
•
Pursuing help
staffing, re‐organizing, strategizing from corporate level
•
Being open and accessible
bidder noticing, fairness monitoring, resolving disputes
•
Pushing/Pulling for creative thinking
brainstorming, debriefing
9
Trends:
1
• Complexity
2
• Public awareness
3
• Market volatility
10
Where we go from here...
11
1. Senior staff needs to be involved.
2. Discuss procurement options at budget time.
3. Think “life‐cycle” and follow‐the‐market.
4. Make Finance, IT, Legal and Risk part of the working groups along with operations and purchasing staff.
5. Incorporate savings into staff performance agreements.
6. Build a Best Practices knowledge‐base. 7. Encourage Professional Development.
12
Resources
• https://www.opba.ca/
– Ontario Public Buyers Association
• http://www.cppc‐ccmp.ca/
– Canadian Public Procurement Council • http://globalpublicprocurement.org/
– The Chartered Institute of Purchasing & Supply & The National Inst. of Governmental Purchasers
13
RECAP:
•
•
•
•
•
•
Introduction (Heather )
Framework (Heather?)
Small municipalities (Bart)
Big municipalities (Marlene)
Where We Go From Here (Bart & Marlene)
Questions (all)
14