End the Contract Letter Template - PowerPoint by dzp14432

VIEWS: 192 PAGES: 77

More Info
									     SCG TOOLKIT TRAINING




June 2010
Agenda


 Welcome        & Introduction                                  10:00am – 10:15am
 SCG    Toolkit                                                 10:15am – noon
     Roundtable Exercise - Single/Sole Sourcing
 Lunch                                                           Noon – 12:30pm
 SCG    Toolkit                                                 12:30am – 2:45pm
     Roundtable Exercise – Evaluation: Weightings and Scoring
 Summary        & Closing Messages                               2:45pm – 3:00pm




 Please note: Ottawa session is from 9am to 2pm. All agenda times will be adjusted accordingly


                                                 2
SCG Toolkit Training

INTRODUCTION


                       3
Supply Chain Guideline

    BPS Supply Chain Secretariat introduced the Supply Chain
     Guideline (SCG) in 2009, to be uniformly adopted by broader public
     sector organizations across the healthcare and education sectors
    The SCG identifies and details foundational supply chain principles
         Code of Ethics
         Standards
         Metrics (future versions)
    Procurement Guideline and Code of Ethics effective April 1, 2010
    SCG is based on leading practices
         Drives excellence in fair, open and transparent purchasing practices
         Hospitals and CCAC‟s had established codes of ethics and purchasing
          policies and procedures, but have enhanced to align fully with the SCG




                                         4
SCG Toolkit and Training


   BPS Supply Chain Secretariat recognizes need to support Ontario
    healthcare organizations in application of policies and procedures
    aligned with the Supply Chain Guideline
       Leverage opportunities for cost savings
       Create enhanced procurement process efficiencies


   Toolkit leverages work being done in the sector to develop
       Checklists
       Templates
       Process maps


   Training focuses on key elements of the SCG and the new Toolkit




                                       5
Open and Transparent Processes

   Open and transparent processes protect hospitals
        Instill discipline and accountability
        Mitigate risk


   Meet the requirements of the applicable legislation and trade
    agreements (e.g., Agreement on Internal Trade, Ontario-Quebec)

   Eliminate biased, continuous renewals of business to suppliers
    which may be uncompetitive for the organization


   Generate competition and result in a strong value proposition




                                            6
Redefining Roles and Responsibilities

   New processes are putting pressure on everyone to manage differently

   End-users are the subject matter experts (as always)
        Industry knowledge
        Clinical (or other) expertise
        Identification of specifications or requirements

   Sourcing Department is the business facilitator (evolving role)
        Manages sourcing processes
        Acts as Bid Administrator/Team Lead
        Negotiates and develops contracts (with end user input)




                                             7
Resources


   We would like to thank:
        Plexxus
        Shared Services West (SSW)
        3SO
        Healthcare Materials Management Services (HMMS)
        Ministry of Finance (BPS Supply Chain Secretariat)
        National Health Service (UK)
        PROcure
        Capital Health (Nova Scotia)
        Provincial Government Websites (BC, NS, OMGS, PWGSC)

        Advisory Group




                                  8
Assumptions

 The   materials we are about to review are based on
    leading practice and therefore incorporate certain
    assumptions.
 Please   note any mandatory requirements as per SCG
    have been highlighted.
 All  the materials can be tailored to reflect the policies of
    your organization.
   Each template includes the following statement:
        “This template is provided as a resource tool only and may be tailored
         to reflect the policies of your own organization.”

 The   Procurement Handbook will continue to evolve over
    time so visit the online tool for updates.

                                        9
Workbook



    All participants in today‟s training will receive a Workbook.
    This is yours to keep so please feel free to make notes. The
    complete Procurement Handbook will be available online.




                                 10
Table of Contents



   Setting the Strategic Sourcing Context
   What is the SCG Toolkit?
   Procurement Processes
   Core Procurement Workflows
   Supporting Procurement Workflows
   Procurement Handbook
        Open Competitive Procurement
        Single/Sole Sourcing
        RFSQ




                                   11
SCG Toolkit Presentation

SETTING THE STRATEGIC
SOURCING CONTEXT

                           12
Strategic Sourcing Cycle




                           13
SCG Toolkit – Making the Connection



   Strategic Sourcing Cycle   Create RFX              Evaluate and Award




                              SCG Toolkit provides tools and templates to
                              support five core procurement processes, to
                              evaluate bids and to award business.


                                                                  14
SCG Toolkit Presentation

WHAT IS THE SCG TOOLKIT?


                           15
Building for Procurement Success



                             Effective and Leading
                             Practice Procurement




                        16
SCG Toolkit = Procurement Handbook



                     Effective and
                     Leading Practice
                     Procurement




   The SCG Toolkit has been packaged into a Procurement Handbook.
   This integrated approach facilitates a one-stop shopping for all tools &
   templates and can guide the user to conduct an entire procurement
   process to completion.
                                        17
SCG Toolkit will be Online



 The complete Procurement Handbook will be
 available online as of July 5
 http://hscn.org/scgtoolkit.htm

 The following two slides show screen captures of the
 structure of the online tool (please note the online
 tool is in development so the slides are for illustrative
 purposes only so read for format versus content)




                           18
19
20
SCG Toolkit Presentation

PROCUREMENT PROCESSES


                           21
Foundation for Procurement Processes




              Core                             Supporting
           Procurement                        Procurement
            Processes                          Processes

         Open Competitive
         Invitational Competitive        Document Retention
         Informal                        Request for Information (RFI)
         Single Sourcing                 Request for Supplier
         Sole Sourcing                   Qualification (RFSQ)




       Policy, Code of Ethics & Procedures



                                    22
Everything Needs to Work Together




                        23
Core Procurement Processes



                   • Informal
   Competitive     • Invitational Competitive
   Procurement     • Open Competitive
     Process



                   • Single Sourcing
 Non-Competitive   • Sole Sourcing
  Procurement
    Process


                       24
Competitive Procurement Processes


          • Informal Procurement
          • Invitational Competitive Procurement
< $25,000 • Open Competitive Procurement



             • Invitational Competitive Procurement
>= $25,000   • Open Competitive Procurement
   and
< $100,000



             • Open Competitive Procurement
   >=
$100,000

           The recommended procurement process has been bolded. For example, there are three
           procurement process options for purchase value < $25,000, but the recommended process is
           informal procurement. It is a mandatory requirement that open competitive procurement be
           conducted for purchase value >= $100,000.

                                                 25
Core Procurement Processes


                        Invitational           Open                        Single               Sole
    Informal            Competitive          Competitive                  Sourcing            Sourcing
 • Applies to          • Applies to         • Applies to              • >= $25,000         • >= $25,000
   Goods,                Goods,               Goods,                  • Applies to         • Applies to
   Services or           Services or          Services or               Goods,               Goods,
   Construction          Construction         Construction              Services or          Services or
 • Document            • At least 3         • Open public               Construction         Construction
   price at time of      written quotes       bidding                 • For example,       • For example,
   purchase            • Used in            • A competitive             Emergency            One supplier
 • Agreement             second stage         document is               need                 able to meet
   can be a PO,          RFSQ, i.e.,          posted                  • Exception            the needs
   contract, SA,         after VOR list     • Used in RFSQ              needs to be          under specific
   LOI or SOW            established          to establish              documented &         circumstances
 • Usually             • Agreement            VOR list                  authorized         • Instance
   Purchase              can be a PO,       • Agreement               • Agreement            needs to be
   Orders and P-         contract, SA,        can be a                  can be a PO,         documented &
   card                  LOI or SOW           contract or SA            contract, SA,        authorized
   transactions                                                         LOI or SOW         • Agreement
 • At dollar                                                                                 can be a PO,
   values below                                                                              contract, SA,
   invitational                                                                              LOI, or SOW
   competitive




       PO = Purchase Order    SA = Service Agreement    LOI = Letter of Intent   SOW = Statement of Work

                                                       26
SCG Toolkit Presentation

CORE PROCUREMENT
WORKFLOWS

                           27
Procurement Processes vs Workflows



  Five core procurement processes simplify to 3 workflows


                      Invitational     Open          Single      Sole
          Informal
                      Competitive    Competitive    Sourcing   Sourcing




  Informal Workflow           Competitive              Single/Sole Sourcing
                               Workflow                      Workflow


                                               28
Core Procurement Workflows




 Purchase                                  Competitive    Blackout
                                            Document                                                 Award         Vendor           Document
   Need        Planning    Requirements                   Period &     Evaluation     Agreement
                                                                                                   Notification   Debriefing        Retention
 Identified                                (RFP/RFQ)     Bid Receipt




 Competitive Workflow (Open Competitive and Invitational Competitive)



 Purchase
                                                                                                     Award                          Document
   Need        Planning    Requirements      Quote                     Evaluation     Agreement
                                                                                                   Notification                     Retention
 Identified




 Single/Sole Sourcing Workflow



  Purchase
                                                                                                                                     Document
    Need        Planning    Requirements       Quote                     Evaluation    Agreement
                                                                                                                                     Retention
  Identified




 Informal Workflow

                                                                                                                               29
 Competitive Workflow

                                                                                                                                       Contract
                                                                                                                                       Service Agreement
                                                                                                                                       Letter of Intent
Signing Authority                                                                                                                      Statement of Work
                                  Procurement   Specifications                                                                         Purchase Order
                                  Business Case




                                                                                          Blackout Period & Bid Receipt




                                                                                                                                                                                                   Documentation Retention
       Purchase Need Identified




                                                                   Competitive Document




                                                                                                                                                     Award Notification




                                                                                                                                                                          Vendor Debriefing
                                                    Requirements




                                                                       (RFP/RFQ)




                                                                                                                                        Agreement
                                                                                                                          Evaluation
                                      Planning




      6                               5            3                        8             2                               3              4                3                         1                        0




                                  Number of tools in the toolkit for the
                                  specific workflow step                                                                                                                                      30
Open Competitive Procurement Toolkit


 Purchase Need Identified Toolkit                          Blackout Period & Bid Receipt Toolkit
 Approval Authority Schedule Template                     Addendum and Q&A Guideline
 Purchase Approval Sign-Off Template                      Bid Receipt Log Template
 Competitive Procurement Options
 Core Procurement Workflows                               Evaluation Toolkit
 Open Competitive Procurement Process Map                 Evaluation Scoring Template
 Single/Sole Sourcing Approval Form Template              Evaluation Handbook
                                                           Contract Award Letter Template
 Planning Toolkit
 Non-Disclosure Agreement Template                        Agreement Toolkit
 Conflict of Interest Disclosure Template                 Contract Template
 Procurement Business Case Template                       Contract Review Checklist
 Evaluation Team List and Contact Information Template    Service Agreement Template
 Evaluation Team Composition Options                      Product Agreement Template

 Requirements Toolkit                                      Award Notification Toolkit
 Stakeholder Consultation Template                        Award Notification Letter Template
 Procurement Specifications Template (Business and        Executive Summary Template
 Clinical/Technical)                                       Lessons Learned Template
 Procurement Specifications Approval Sign-Off Template    Vendor Debriefing Toolkit
 Competitive Document Toolkit                              Vendor Debriefing Template
 RFP Template                                             Document Retention Toolkit
 RFQ Template                                             N/A
 Glossary of Terms
 List of Acronyms
 Evaluation Scoring Template
 Evaluation Handbook
 Contract Template
 Contract Review Checklist
                                                          31
SCG Toolkit Presentation

SUPPORTING PROCUREMENT
WORKFLOWS

                           32
Summary of Supporting Procurement
Workflows

 Purchase                                                         Blackout
                                                                                                  VOR List         Vendor              Document
   Need          Planning       Requirements    RFSQ             Period & Bid    Evaluation
                                                                                                 Notification     Debriefing           Retention
 Identified                                                        Receipt




 RFSQ (Request for Supplier Qualification)



  Purchase                                                         Blackout
                                                                                                    Refine                             Document
    Need         Planning       Requirements      RFI             Period & Bid     Analysis
                                                                                                 Requirements                          Retention
  Identified                                                        Receipt




 RFI (Request for Information)


                  Evidence of
                  approvals &        Quotes                                                                                                Supplier
  Procurement                                                      Addenda and                     Award Notice      Vendor
                    Signed          RFI/RFSQ   All Submissions                     Evaluations                                          Performance
 Business Case                                                        Q&A                          & Agreement      Debriefings
                   Exception         RFP/Q                                                                                               Information
                    Forms




  Document Retention
  (maintained in recoverable form for minimum of 7 years, including but not limited to the documents
  above)

                                                                                                                                  33
Request for Supplier Qualification



 RFSQ   is conducted in two stages
    first stage establishes the vendor of record
 The
 (VOR) list. This is done by conducting an open
 competitive procurement.
 The second stage awards the procurement to a
 supplier on the VOR list. This stage is conducted as
 an invitational competitive procurement, where a
 number of suppliers on the VOR list are invited to
 participate. The first stage must be completed
 before pursuing the second stage.

                          34
SCG Toolkit Presentation

PROCUREMENT HANDBOOK


                           35
Procurement Handbook

OPEN COMPETITIVE
PROCUREMENT PROCESS

                       36
Open Competitive Procurement
Purchase Need Identified

 Objective
 To determine core procurement process to initiate

 Process Checklist
 Determine:
       appropriate signing authority level
       type of purchase or whether evaluation or demonstration
       funding source (public, research, foundation, etc.)
       procurement process based on purchase value:
             <$25,000 is an informal procurement process
             >= $25,000 and < $100,000 is an invitational competitive procurement process
             >= $100,000 is an open competitive procurement process
 Can you confirm if this is a single or sole sourcing (purchase value >= $25,000)?
       Verify single or sole sourcing situation (perform necessary due diligence)
       Complete single or sole sourcing approval form if bypassing competitive procurement process
       Approve single or sole sourcing

 Toolkit
 Approval Authority Schedule Template
 Purchase Approval Sign-Off Template
 Competitive Procurement Options
 Core Procurement Workflows
 Open Competitive Procurement Process Map
 Single/Sole Sourcing Approval Form Template

 Outcome
 Appropriate core procurement process determined




                                                         37
Core Procurement Workflows




 Purchase                               Competitive    Blackout
                                         Document                                              Award         Vendor           Document
   Need       Planning   Requirements                  Period &     Evaluation   Agreement
                                                                                             Notification   Debriefing        Retention
 Identified                             (RFP/RFQ)     Bid Receipt




 Competitive Workflow (Open Competitive and Invitational Competitive)



 Purchase
                                                                                               Award                          Document
   Need       Planning   Requirements     Quote                     Evaluation   Agreement
                                                                                             Notification                     Retention
 Identified




 Single/Sole Sourcing Workflow



 Purchase
                                                                                                                              Document
   Need       Planning   Requirements     Quote                     Evaluation   Agreement
                                                                                                                              Retention
 Identified




 Informal Workflow

                                                                                                                         38
Open Competitive Procurement
Planning

 Objective
 To define procurement scope and assemble an evaluation team
 Process Checklist
 Identify Bid Administrator (ideally from Procurement)
 Define resource requirements (financial, human, subject matter experts, external people)
 Complete procurement business case
 Communicate with budget owner
 Receive sign-off on business case
 Select Evaluation Team by ensuring:
      Procurement representation
      Appropriate stakeholder representation
 Select Evaluation Team Lead (ideally Bid Administrator)
 Select participants to attend all vendor debriefings (include Bid Administrator; at least two participants)
 Evaluation Team non-disclosure agreement sign-off
 Evaluation Team conflict of interest disclosure sign-off
 Develop procurement project plan
 Can you confirm this is a single or sole sourcing? (purchase value >= $25,000)
      Verify single or sole sourcing situation (perform necessary due diligence)
      Complete single or sole sourcing approval form if bypassing competitive procurement process
      Approve single or sole sourcing

 Toolkit
 Non-Disclosure Agreement Template
 Conflict of Interest Disclosure Template
 Procurement Business Case Template
 Evaluation Team List and Contact Information Template
 Evaluation Team Composition Options

 Outcome
 Dedicated evaluation team to deliver approved procurement in required timeframe
                                                                                                                42
Open Competitive Procurement
Requirements

 Objective
 To define procurement specifications
 Process Checklist
 Conduct key stakeholder consultations (including all relevant departments, organizations, clinicians, sector
 and system partners, community members)
 Summarize key stakeholder consultations
 Develop business specifications
 Develop clinical/technical specifications using subject matter experts
 Create final procurement specifications
 Evaluation team sign-off on procurement specifications
 Can you confirm this is a single or sole sourcing? (purchase value >= $25,000)
       Verify single or sole sourcing situation (perform necessary due diligence)
       Complete single or sole sourcing approval form if bypassing competitive procurement process
       Approve single or sole sourcing
       Disband evaluation team (may still require team members to perform supplementary evaluation)

 Toolkit
 Stakeholder Consultation Template
 Procurement Specifications Template (Business and Clinical/Technical)
 Procurement Specifications Approval Sign-Off Template

 Outcome
 Procurement specifications determined and signed-off
 By-passing competitive process approved (single or sole sourcing)




                                                            43
Open Competitive Procurement
Competitive Document


 Objective
 To create a competitive document (RFP/RFQ)
 Process Checklist
 See next slide


 Toolkit
 RFP Template
 RFQ Template
 Glossary of Terms
 List of Acronyms
 Evaluation Scoring Template
 Evaluation Handbook
 Contract Template
 Contract Review Checklist

 Outcome
 Completed and approved competitive document (RFP/RFQ) is posted




                                                       44
Open Competitive Procurement
Competitive Document - continued

 Process Checklist
 Determine and Specify:
 Conditions that must be met before obtaining procurement documents (conflict-of-interest declaration, non-disclosure agreement)
  Bid response time; minimum is 15 calendar days
  Date responses need to be received (must be a normal working day, so Monday to Friday, excluding holidays)
  Name, contact information and location of contact person, i.e., Bid Administrator (add a statement that suppliers who bypass this
 contact person may be disqualified)
  Submission rules and bid receipt information
  Contract term and extensions
  Conditions that must be met, that is, all mandatory requirements and technical standards
  Clinical and/or technical requirements
  Evaluation criteria and process
  Evaluation methodology: mandatory and technical standards                price/cost
                                 resolving a tie score                      shortlist process
                                 rated requirements (includes: weights & sub-weights              minimum required rating)
                                 rated requirements that will be scored by a sub-team
                                 role, scope and rating of Supplementary Evaluation (i.e., technical or clinical product
                                evaluation, site visit, supplier presentation, reference checks)
  Bidders‟ conference (if necessary)
  Process, date & time limit for submitting questions and roles & responsibilities during blackout period
  Process for opening up bids (including time and place of opening the bids in the event of a public opening)
  Process for vendor debriefings (notify of entitlement to a vendor debriefing once competitive process completed)
  Process for bid dispute
 Also:
  Include a draft copy of the Form of Agreement (e.g., contract) to be signed in the event of an award of the procurement
  Add statement that the procurement is subject to Ontario's trade agreements (goods, services & construction >=$100,000)
 Request for a list of any subcontractors to be used to complete the procurement
 State the period of irrevocability of bids where bids cannot be withdrawn (up to 120 days from bid closure date)
  Add notice that any confidential information supplied to the organization may be disclosed by the organization where it is obliged
 to do so under FIPPA, by an order of a court or tribunal or otherwise required at law
  Receive approval for competitive document
  Post competitive document on public electronic tendering system

                                                                  45
Open Competitive Procurement
Blackout Period & Bid Receipt

 Objective
 To conduct fair blackout period and bid opening process
 Process Checklist
 Managing communication and information during Blackout Period
 Follow the process outlined in the competitive document
 All communication is through contact identified in the competitive document (i.e., Bid Administrator)
        Ensure Evaluation Team members do not communicate or provide information to bidders during bid
        Ensure employees or other members or the organization do not communicate or provide information to bidders
        during bid
  Manage changes to competitive documents via:
         Modifications through addendum response posted in the same manner as the competitive document
         Clarifications through Question-and-answer (Q&A) response posted in the same manner as the competitive
        document
  All addenda must be issued at least 7 days prior to closing date
 Bid Receipt (performed by Bid Administrator)
 Follow the process outlined in the competitive document
 Open bids after competitive process is closed
 Stamp each bid as it arrives (date, time, location, company name, contact information)
 Do not open bids received after submission deadline (return un-opened)
 Ensure there is at least one witness

 Toolkit
 Addendum and Q&A Guideline
 Bid Receipt Log Template
 Outcome
 Fair and transparent access to modifications and clarifications to competitive document
 Ensure every bidder has access to the same information
 Eligible submissions opened and logged

                                                            46
Open Competitive Procurement
Evaluation

 Objective
 To determine the highest ranking submission

 Process Checklist
  Follow the evaluation process outlined in the competitive document
  Determine in-house process for managing changes to individual evaluation scores (where individual misunderstood or misinterpreted)
  Evaluation Team Lead performs mandatory compliance review (pass/fail)
  Each Evaluation Team Member scores rated requirements using evaluation scoring (could have a minimum required rating)
  Reject submissions failing mandatory compliance review or not meeting minimum required rating
  Verify license(s) (if applicable; for example Medical Device License (MDL))
  Evaluation Team Lead scores price/cost (do not share with Evaluation Team so further evaluation not biased)
  Consolidate all evaluation scores to determine the overall ranking score
  Is a Supplementary Evaluation required? (i.e., technical or clinical product evaluation, site visit , supplier presentation, reference checks)
          No Invoke method identified in competitive document in the event of a tie
                 Choose the highest ranking submission meeting all mandatory requirements
                 Issue contract award letter to highest ranking submission
          Yes Create shortlist using process outlined in the competitive document
                 Select additional evaluation team members to conduct technical or clinical product evaluation (as necessary)
                 Finalize criteria for Supplementary Evaluation
                 Complete Supplementary Evaluation
                 Re-finalize overall ranking score for shortlist incorporating Supplementary Evaluation score
                Invoke method identified in competitive document in the event of a tie
                 Choose the highest ranking submission meeting all mandatory requirements
                 Issue contract award letter to highest ranking submission
  Records of evaluation scores must be auditable
  Everything said or documented must be fair, factual, fully defensible, and may be subject to public scrutiny
  Evaluations must not discriminate or exercise preferential treatment

 Toolkit
 Evaluation Scoring Template
 Evaluation Handbook
 Contract Award Letter Template

 Outcome
 Contract award letter is issued to the highest ranking submission meeting all mandatory requirements
                                                                                                                                                    47
Open Competitive Procurement
Agreement

 Objective
 To offer contract to the highest ranking bidder and to obtain contract signature.
 Process Checklist
 Contract must be finalized using the contract/agreement released with the competitive document
 Contract must include appropriate cancellation and/or termination clauses
 Contract must specify term of agreement (start and end date) and any options for extensions
 Obtain supplier’s signature(s) first
 Signed written contract must be in place before the provision of the goods, services or
 construction commences
       In situations where an immediate need exists and a contract signed by both parties is not
       available yet, a letter of intent, memorandum of understanding (MOU) or interim purchase
       order may be used
 Verify appropriate individual signed the contract (dollar value and contract signing authority)

 Toolkit
 Contract Template
 Contract Review Checklist
 Service Agreement Template
 Product Agreement Template

 Outcome
 Signed contract




                                                              48
Open Competitive Procurement
Award Notification


 Objective
 To notify all participants a successful supplier was selected
 Process Checklist
 Confirm contract agreement signed by both parties
 Include the following in the award notification letter:
       Name of supplier(s) awarded the contract
       Start and end dates and options for extension
 Post award notification letter (using the same system that was used to post the competitive document)
 Notify in writing if any submissions were rejected during evaluation process
 Complete executive summary
 Capture „Lessons Learned‟ summary

 Toolkit
 Award Notification Letter Template
 Executive Summary Template
 Lessons Learned Template

 Outcome
 Public posting of award
 Summary documents completed




                                                                 49
Open Competitive Procurement
Vendor Debriefing

 Objective
 To ensure all suppliers requesting a debriefing session are accommodated
 Process Checklist
 Must:
         Allow up to 60 calendar days following the date of contract award notification for supplier to request debriefing
         Conduct separate debriefings with each supplier
         Confirm date and timing of debriefing session in writing
         Ensure the same participants attend every debriefing session (include Bid Administrator; at least two
         participants)
         Retain all debriefing documentation

 When conducting the debriefing:
 Provide general overview of evaluation process set out in the competitive document
 Discuss strengths and weakness of the supplier in relation to the evaluation criteria (do not provide any details of any
 other bidders)
 Provide suggestions on how the supplier could improve on future submissions
 Be open to feedback from the supplier on current procurement processes and practices
 Address specific issues and questions raised by the supplier regarding their submission
 Once debriefing session completed, escalate any issues or risks to senior management or legal as necessary

 Toolkit
 Vendor Debriefing Template
 Outcome
 Successful and fair debriefing with suppliers who requested a vendor debriefing session




                                                              50
Open Competitive Procurement
Document Retention


 Objective
 To retain all procurement documentation
 Process Checklist
 All documents, information and communication related to all procurement processes need to be maintained in
 recoverable form for minimum of seven years (including but not limited to):
 Procurement business case
 Evidence of approvals
 Competitive document (RFP/RFQ)
 All RFP/Q submissions
 Addenda and Q&As
 Evaluation records (includes individual evaluation scoring & notes AND summary scoring & notes)
 Award notice
 Agreement (agreement originally signed and any changes)
 All vendor debriefing documents
 Supplier performance information

 Toolkit
 N/A
 Outcome
 All procurement documentation, information and communication is maintained in recoverable form for a minimum of
 seven years.




                                                          51
Procurement Handbook

SINGLE/SOLE SOURCING
PROCUREMENT PROCESSES
(PLEASE NOTE: COMBINED FOR WORKBOOK BUT APPEAR AS SEPARATE PROCESSES IN THE
ONLINE PROCUREMENT HANDBOOK)




                                       52
Single/Sole Sourcing Procurement
Purchase Need Identified

 Objective
 To determine core procurement process to initiate
 Process Checklist
 Determine:
       appropriate signing authority level
       type of purchase or whether evaluation or demonstration
       funding source (public, research, foundation, etc.)
       procurement process based on purchase value:
              >= $25,000 and < $100,000 is an invitational competitive procurement process
              >= $100,000 is an open competitive procurement process
 Post a notice (for example, notice of intent) to the supplier community (in certain circumstances, for
 example, sole sourcing)
 Confirm this is a single or sole sourcing (purchase value >= $25,000)
       Verify single or sole sourcing situation (perform necessary due diligence)
       Complete single or sole sourcing approval form if bypassing competitive procurement process
       Approve single or sole sourcing

 Toolkit
 Approval Authority Schedule Template
 Purchase Approval Sign-Off Template
 Core Procurement Workflows
 Single/Sole Sourcing Procurement Process Map
 Single/Sole Sourcing Approval Form Template

 Outcome
 By-passing competitive process approved (single or sole sourcing)




                                                            53
Core Procurement Workflows




 Purchase                               Competitive    Blackout
                                         Document                                              Award         Vendor           Document
   Need       Planning   Requirements                  Period &     Evaluation   Agreement
                                                                                             Notification   Debriefing        Retention
 Identified                             (RFP/RFQ)     Bid Receipt




 Competitive Workflow (Open Competitive and Invitational Competitive)



 Purchase
                                                                                               Award                          Document
   Need       Planning   Requirements     Quote                     Evaluation   Agreement
                                                                                             Notification                     Retention
 Identified




 Single/Sole Sourcing Workflow



 Purchase
                                                                                                                              Document
   Need       Planning   Requirements     Quote                     Evaluation   Agreement
                                                                                                                              Retention
 Identified




 Informal Workflow

                                                                                                                         54
Single/Sole Sourcing Procurement
Planning

 Objective
 To define procurement scope
 Process Checklist
 Identify individual conducting the procurement (could be end user or from Procurement dept)
 Define resource requirements (financial, human, subject matter experts, external people)
 Complete procurement business case (as required)
 Communicate with budget owner
 Receive sign-off on business case
 Select individual(s) for supplementary evaluation (as required)
 Individual(s) conducting procurement and performing evaluation non-disclosure agreement sign-off
 Individual(s) conducting procurement and performing evaluation conflict of interest disclosure sign-off
 Develop procurement project plan

 Toolkit
 Non-Disclosure Agreement Template
 Conflict of Interest Disclosure Template
 Procurement Business Case Template

 Outcome
 Approved procurement delivered in required timeframe




                                                                                                            56
Single/Sole Sourcing Procurement
Requirements


 Objective
 To define procurement specifications
 Process Checklist
 Conduct key stakeholder consultations (including all relevant departments, organizations, clinicians, sector
 and system partners, community members)
 Summarize key stakeholder consultations
 Develop business specifications
 Develop clinical/technical specifications using subject matter experts
 Create final procurement specifications
 Sign-off on procurement specifications

 Toolkit
 Stakeholder Consultation Template
 Procurement Specifications Template (Business and Clinical/Technical)
 Procurement Specifications Approval Sign-Off Template

 Outcome
 Procurement specifications determined and signed-off




                                                            57
Single/Sole Sourcing Procurement
Quote


 Objective
 To obtain a quote
 Process Checklist

 Obtain quote and other required details
 At or before time of purchase, quote needs to be documented


 Toolkit
 N/A
 Outcome
 Quote obtained and documented




                                                         58
Single/Sole Sourcing Procurement
Evaluation


 Objective
 To perform necessary evaluation
 Process Checklist
 Evaluate price/cost
 Evaluate other details as applicable (for example, service, delivery, etc.)
 Verify license(s) (if applicable; for example Medical Device License (MDL))
 Is a Supplementary Evaluation required? (i.e., technical or clinical product evaluation, site visit , supplier presentation,
 reference checks)
              Select evaluation team members to conduct technical or clinical product evaluation (as necessary)
              Determine criteria for Supplementary Evaluation
              Complete Supplementary Evaluation
 Accept goods, services or construction

 Toolkit
 N/A

 Outcome
 Goods, service or construction accepted




                                                                                                                                 59
Single/Sole Sourcing Procurement
Agreement

 Objective
 To offer an agreement to the supplier
 Process Checklist
 Issue PO, service agreement, letter of intent, or statement of work
 If utilizing a contract:
         Contract must be finalized using the contract/agreement released with the competitive document
         Contract must include appropriate cancellation and/or termination clauses
         Contract must specify term of agreement (start and end date) and any options for extensions
 Obtain supplier‟s signature(s) first
 Signed written contract must be in place before the provision of the goods, services or construction
 commences
         In situations where an immediate need exists and a contract signed by both parties is not available
         yet, a letter of intent, memorandum of understanding (MOU) or interim purchase order may be used
 Verify appropriate BPS individual signed the contract (dollar value and contract signing authority)

 Toolkit
 Contract Template
 Contract Review Checklist
 Service Agreement Template
 Product Agreement Template

 Outcome
 Agreement accepted




                                                            60
Single/Sole Sourcing Procurement
Award Notification


 Objective
 To notify suppliers of single/sole sourcing award
 Process Checklist
 Confirm contract agreement signed by both parties
 Include the following in the award notification letter:
       Name of supplier(s) awarded the contract
       Start and end dates and options for extension
 Post award notification letter (so other suppliers are aware of single/sole sourcing award, as applicable)
 Complete executive summary
 Complete „Lessons Learned‟

 Toolkit
 Award Notification Letter Template
 Executive Summary Template
 Lessons Learned Template

 Outcome
 Public posting of single/sole sourcing award
 Summary documents completed




                                                             61
Single/Sole Sourcing Procurement
Document Retention


 Objective
 To retain all procurement documentation
 Process Checklist
 All documents, information and communication related to all procurement processes need to be maintained in
 recoverable form for seven years:
 Procurement business case
 Evidence of approvals
 Signed exception forms (i.e., non-competitive procurement justification, so single/sole sourcing approval form)
 PO
 Quote
 Evaluation records
 Agreement (agreement originally signed and any changes)
 Supplier performance information

 Toolkit
 N/A
 Outcome
 All procurement documentation, information and communication is maintained in recoverable form for a minimum of
 seven years




                                                            62
Procurement Handbook

RFSQ


                       63
RFSQ
Purchase Need Identified

 Objective
 To approve issuing RFSQ
 Process Checklist
 Determine appropriate signing authority level
  Confirm expectation of conducting RFSQ
 Plan to conduct open competitive procurement process to establish VOR list

 Toolkit
 Approval Authority Schedule Template
 Purchase Approval Sign-Off Template
 Supporting Procurement Workflows
 RFSQ Process Map

 Outcome
 Issuing RFSQ approved via open competitive procurement process




                                                         64
Summary of Supporting Procurement
Workflows

Purchase Need                                                      Blackout Period                     VOR List        Vendor         Documentation
                  Planning       Requirements     RFSQ                                Evaluation
   Identified                                                       & Bid Receipt                     Notification    Debriefing        Retention




 RFSQ (Request for Supplier Qualification)




 Purchase Need                                                      Blackout Period                      Refine                        Documentation
                   Planning       Requirements       RFI                                Analysis
    Identified                                                       & Bid Receipt                    Requirements                       Retention




 RFI (Request for Information)



                   Evidence of
                   approvals &       Quotes                                                                                                   Supplier
   Procurement                                                         Addendums                       Award Notice      Vendor
                     Signed         RFI/RFSQ     All Submissions                        Evaluations                                        Performance
  business case                                                         and Q&A                        & Agreement      Debriefings
                    Exception        RFP/Q                                                                                                  Information
                     Forms




   Document Retention (maintained in recoverable form for minimum of 7 years)



                                                                                                                                      65
RFSQ
Planning

 Objective
 To define procurement scope and assemble an evaluation team
 Process Checklist
 Identify Bid Administrator (ideally from Procurement)
 Define resource requirements (financial, human, subject matter experts, external people)
 Complete procurement business case
 Communicate with budget owner
 Receive sign-off on business case
 Select Evaluation Team by ensuring:
      Procurement representation
      Appropriate stakeholder representation
 Select Evaluation Team Lead (ideally Bid Administrator)
 Select participants to attend all vendor debriefings (include Bid Administrator; at least two participants)
 Evaluation Team non-disclosure agreement sign-off
 Evaluation Team conflict of interest disclosure sign-off
 Develop procurement project plan

 Toolkit
 Non-Disclosure Agreement Template
 Conflict of Interest Disclosure Template
 Procurement Business Case Template
 Evaluation Team List and Contact Information Template
 Evaluation Team Composition Options

 Outcome
 Dedicated evaluation team to deliver approved procurement in required timeframe




                                                                                                                67
RFSQ
Requirements

 Objective
 To define procurement specifications
 Process Checklist
 Conduct key stakeholder consultations (including all relevant departments, organizations, clinicians, sector
 and system partners, community members)
 Summarize key stakeholder consultations
 Develop business specifications
 Develop clinical/technical specifications using subject matter experts
 Create final procurement specifications
 Sign-off on procurement specifications

 Toolkit
 Stakeholder Consultation Template
 Procurement Specifications Template (Business and Clinical/Technical)
 Procurement Specifications Approval Sign-Off Template

 Outcome
 Procurement specifications determined and signed-off




                                                            68
RFSQ
Request for Supplier Qualification

 Objective
 To create RFSQ document
 Process Checklist
 RFSQ document should specify:
 Type and specifications of materials or services to be provided by a potential supplier with a necessary level of detail
 VOR ceiling price
 Term and possible extensions of the VOR arrangement
 The method(s) and time intervals by which suppliers can be placed on the list
 Minimum number of suppliers required for the VOR list
 Once VOR list established, minimum number of suppliers included in any future invitational competitive bid
 That any supplier who does not participate in the pre-qualification or does not appear on the list may be excluded from
 opportunities
 Terms and conditions of the RFSQ document must contain specific language that disclaims any obligation on
 the part of the organization to call on any supplier to provide goods, services, or construction as a result of the
 pre-qualification
 PLUS open competitive procurement process requirements (see next slide)

 Toolkit
 RFSQ Template
 Glossary of Terms
 List of Acronyms
 Evaluation Scoring Template
 Evaluation Handbook

 Outcome
 Completed and approved RFSQ is posted




                                                             69
VOR List – Example Framework



    Sample schedule of VOR arrangement 2nd stage selection
                        (from SCG 1.1)

  Procurement Value           Minimum # of Suppliers on the VOR
                              to be Invited to the 2nd Stage
                              Selection
  < $25,000                                      1
  >= $25,000 and < $100,00                       3
  >= $100,00 and < $250,000                      5
  >= $250,000 and upto VOR                       7
  Ceiling
  > VOR Ceiling price                 Conduct open competitive
                                           procurement




                                 70
RFSQ
Request for Supplier Qualification - continued

 Process Checklist
 Determine and Specify:
 Conditions that must be met before obtaining procurement documents (conflict-of-interest declaration, non-disclosure agreement)
  Bid response time (minimum is 15 calendar days)
  Date responses need to be received (must be a normal working day, so Monday to Friday, excluding holidays)
  Name, contact information and location of contact person, i.e., Bid Administrator (add a statement that suppliers who bypass this
 contact person may be disqualified)
  Submission rules and bid receipt information
  Contract term and extensions
  Conditions that must be met, that is, all mandatory requirements and technical standards
  Clinical and/or technical requirements
  Evaluation criteria and process
  Evaluation methodology: mandatory and technical standards                price/cost
                                 resolving a tie score                      shortlist process
                                 rated requirements (includes: weights & sub-weights                     minimum required
                                rating)
                                 rated requirements that will be scored by a sub-team
                                 role, scope and rating of Supplementary Evaluation (i.e., technical or clinical product
                                evaluation, site visit, supplier presentation, reference checks)
  Bidders‟ conference (if necessary)
  Process, date & time limit for submitting questions and roles & responsibilities during blackout period
  Process for opening up bids (including time and place of opening the bids in the event of a public opening)
  Process for vendor debriefings (notify of entitlement to a vendor debriefing once competitive procurement process completed)
  Process for bid dispute
 Also:
  Include a draft copy of the Form of Agreement (e.g., contract) to be signed in the event of an award of the procurement
  Add statement that the procurement is subject to Ontario's trade agreements (goods, services & construction >=$100,000)
 Request for a list of any subcontractors to be used to complete the procurement
 State the period of irrevocability of bids where bids cannot be withdrawn (up to 120 days from bid closure date)
  Add notice that any confidential information supplied to the organization may be disclosed by the organization where it is obliged
 to do so under FIPPA, by an order of a court or tribunal or otherwise required at law
  Receive approval for RFSQ
  Post RFSQ on electronic tendering system

                                                                  71
RFSQ
Blackout Period & Bid Receipt

 Objective
 To conduct fair blackout period and bid opening process
 Process Checklist
 Managing communication and information during Blackout Period
 Follow the process outlined in the competitive document
 All communication is through contact identified in the competitive document (i.e., Bid Administrator)
        Ensure Evaluation Team members do not communicate or provide information to bidders during bid
        Ensure employees or other members or the organization do not communicate or provide information to bidders
        during bid
  Manage changes to competitive documents via:
         Modifications through addendum response posted in the same manner as the RFSQ
         Clarifications through Question-and-answer (Q&A) response posted in the same manner as the RFSQ
  All addenda must be issued at least 7 days prior to closing date
 Bid Receipt (performed by Bid Administrator)
 Follow the process outlined in the competitive document
 Open bids after competitive process is closed
 Stamp each bid as it arrives (date, time, location, company name, contact information)
 Do not open bids received after submission deadline (return un-opened)
 Ensure there is at least one witness

 Toolkit
 Addendum and Q&A Guideline
 Bid Receipt Template
 Outcome
 Fair and transparent access to modifications and clarifications to competitive document
 Ensure every bidder has access to the same information
 Eligible submissions opened and logged


                                                            72
RFSQ
Evaluation

 Objective
 To determine VOR list

 Process Checklist
  Follow the evaluation process outlined in the competitive document
  Determine in-house process for managing changes to individual evaluation scores (where individual misunderstood or misinterpreted)
  Evaluation Team Lead performs mandatory compliance review (pass/fail)
  Each Evaluation Team Member scores rated requirements using evaluation scoring (could have a minimum required rating)
  Reject submissions failing mandatory compliance review or not meeting minimum required rating
  Verify license(s) (if applicable; for example Medical Device License (MDL))
  Evaluation Team Lead scores price/cost (do not share with Evaluation Team so further evaluation not biased)
  Consolidate all evaluation scores to determine the overall ranking score
  Is a Supplementary Evaluation required? (i.e., technical or clinical product evaluation, site visit , supplier presentation, reference checks)
          No Invoke method identified in competitive document in the event of a tie
                 Create VOR list
          Yes Create shortlist using process outlined in RFSQ
                 Select additional evaluation team members to conduct technical or clinical product evaluation (as necessary)
                 Re-finalize criteria for Supplementary Evaluation
                 Complete Supplementary Evaluation
                 Re-finalize overall ranking score for shortlist incorporating Supplementary Evaluation score
                Invoke method identified in competitive document in the event of a tie
                 Create VOR list
  Records of evaluation scores must be auditable
  Everything said or documented must be fair, factual, fully defensible, and may be subject to public scrutiny
  Evaluations must not discriminate or exercise preferential treatment

 Toolkit
 Evaluation Scoring Template
 Evaluation Handbook
 VOR List Award Letter Template

 Outcome
 VOR list established


                                                                                                                                                    73
RFSQ
Award Notification


 Objective
 To notify all participants a VOR list was selected

 Process Checklist
 Include the following in the VOR list award notification letter:
       Name of suppliers awarded to be on the VOR list
       Start and end dates and options for extension of the VOR list
 Post VOR list award notification letter (using the same process that was used to post the RFSQ)
 Complete executive summary
 Complete „Lessons Learned‟ summary

 Toolkit
 VOR List Award Notification Letter Template
 Executive Summary Template
 Lessons Learned Template

 Outcome
 Public posting of the VOR list
 Summary documents completed




                                                          74
RFSQ
Vendor Debriefing

 Objective
 To ensure all suppliers requesting a debriefing session are accommodated
 Process Checklist
 Must:
         Allow up to 60 calendar days following the date of contract award notification for supplier to request debriefing
         Conduct separate debriefings with each supplier
         Confirm date and timing of debriefing session in writing
         Ensure the same participants attend every debriefing session (include Bid Administrator; at least two
         participants)
         Retain all debriefing documentation

 When conducting the debriefing:
 Provide general overview of evaluation process set out in the competitive document
 Discuss strengths and weakness of the supplier in relation to the evaluation criteria (do not provide any details of any
 other bidders)
 Provide suggestions on how the supplier could improve on future submissions
 Be open to feedback from the supplier on current procurement processes and practices
 Address specific issues and questions raised by the supplier regarding their submission
 Once debriefing session completed, escalate any issues or risks to senior management or legal as necessary

 Toolkit
 Vendor Debriefing Template
 Outcome
 Successful and fair debriefing with suppliers who requested a vendor debriefing session




                                                              75
RFSQ
Document Retention


 Objective
 To retain all procurement documentation
 Process Checklist
 All documents, information and communication related to all procurement processes need to be maintained in
 recoverable form for a minimum of seven years (including but not limited to):
 Procurement business case
 Evidence of approvals
 RFSQ
 All RFSQ submissions
 Addenda and Q&As
 Evaluation records (includes individual evaluation matrix, scoring & notes AND summary matrix, scoring & notes)
 VOR list Award notice
 All vendor debriefing documents

 Toolkit
 N/A
 Outcome
 All procurement documentation, information and communication is maintained in recoverable form for a minimum of
 seven years.




                                                          76
Thank  you for attending and participating in
 today‟s session.


Any   questions or comments?


Please   feel free to contact:
           Sarah Friesen (sarah@hscn.org)



                         77

								
To top