Normand Masse
Director General
Services and Technology Acquisition Management Sector
Acquisitions Branch
Public Works and Government Services Canada
September 14-16, 2011
Santiago, Chile
Multilateral Meeting on Government Procurement III

• Describe how the Government of Canada improves its position as an intelligent procurer of goods and services.
• Development of National Procurement Strategies
• The Engagement and Consultation Process
• Opportunities to enhance buying power and improve outcomes
2

•The Government of Canada’s has a common procurement service provider - PWGSC
•In this role – PWGSC Develops, Delivers and Maintains:
– Master procurement tools from which clients perform purchasing action
– Complete Contract Services
– Delegation of Goods Authority from Minister of PWGSC
•Departments manage demand and requirements identification
3

• Commodity Management has changed over time
– Done locally – informally and through local procurement instruments
– Became Centralized – focused on procurement instruments – notably standing offers
– cost reduction
– Now focusing on wider Procurement Strategies for Goods and Services
– for each category seeking better opportunities
– Alignment with Industry; Communications; Better Information and Data from Departments
– Annual Plan with Senior Level engagement and Strategy Development
4

$35B
$30B
$25B
$20B
$15B
$10B
$5B
$0B
$29.60B
$7.13B
$3.94B
$5.26B
$13.27B
GC Spend
2009/2010
Non-Sourceable Military Construction &
Property
Management
(RP)
Core Goods &
Services
Source: August 2011 – The above data is generated from the Spend Cube, which represents normalized financial data collected from client departments. Note, the totals above have been extrapolated to reflect any client not loaded within the Spend Cube.
Non-Sourceable: Any commodity not sold to the market. Includes transfers between departments and agencies, taxes, depreciation, medical provider payments and etc.

• Procurement Strategies set out how we will manage a category of goods and services going forward.
– Clear steps towards future target state – Public Document
• Objective is to use procurement to help improve clients overall operational efficiency and effectiveness
– While maintaining focus on purchasing efficiency, give increased emphasis to providing clients with procurement tools and processes to better manage the overall goods and services category
• Balanced Outcomes – price, cost, environmental
• Cyclical Review process for continual improvement
• Simultaneous Public Consultation with Departments and Industry
6

Analysis Strategy Consult and Revise Implement
Preliminary
Analysis
•Procurement
•Market
•Supply
•Demand
Detailed
Analysis
(Targeted)
•Procurement
•Market
•Supply
•Demand
Strategy
Meeting
 OPI/OSI
 CM
 Green
 OSME
Formal
Consultations
Review &
Revise
 Supply Channel
 Vetting
 Validation
 Change
 Clients
 Suppliers
 If Required
Implement
 Target
 Timeline
Alignment
Issues
Round 1
Questions
(Issues Gathering)
- Manager
- Director
- Director Generals
(Questions)
- Manager
- Director
Issues
For Meeting
- Director Generals
Records of
Decisions
1 Page
Summary
Of Meeting
Draft National
Strategy
•Options
•Impact
Final National
Strategy
7

Self-serve tools
Departments
Buying for Results
Engage
Government of Canada
Recognize Procurement as an Investment
Trusted, Effective
Procurement
PWGSC
From prescriptive transactions to innovative solutions
Improved e-access
Suppliers
From Consultation to
Engagement
Continuous improvements
8

• Identify which and what demand to shift to better generate value
• What information / data is needed to better manage government wide performance?
– Asset management, Performance Management
• Creation of more responsive and strategic tools
– Better understanding of demand drivers and cases enable more targeted and strategic procurements
• Reduction and Elimination of Web of Rules 9

• Shift from Transactional to Strategic procurement requires influencing and helping to shape demand in other government departments.
• This can be in terms of:
– What is requested
– When it is requested (purchasing cycle)
– What volumes are requested and what services are included
• E.g: from purchasing of printers to using professional managed print services requires new procurement tools, piloting processes with clients and measurement of benefits to support change.
• Objective shifts from helping clients purchase better to including helping clients better manage what they have purchased
10

• First Round of National Procurement Strategies
– Incremental Improvement from current state working with clients
– Work with Central Agencies to encourage better data for economy and efficiency
– Allow for Innovation – Cross pollinate ideas from one category to another
– Standardize and Simplify to align with real demand
– Accept challenge of strategic work with clients
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