Procurement Review Recommendations Status and Projects

1. Procurement Review Recommendations Status and Projects Procurement Benchmarks Advisory Committee July 4, 2013 Randall Meades, Director General Procurement and Vendor Relations

2. Purpose • To provide an overview of Procurement and Vendor Relations (PVR) commitments as approved by Senior Management Board (SMB) in November stemming from the procurement review undertaken by PricewaterhouseCoopers (PwC) for PVR. • To update the Committee on the progress on Electronic Procure-to-Pay and linkages to category management.

3. SMB Approved Recommendations from PwC Report in November 2012Status Report

4. Overview of PwC Recommendations and Status

5. Electronic Procure-to-Pay Initiative and Linkages to Category Management

6. How do Electronic Procure-to-Pay and Category Management work together? • Identification of categories of goods and services and procurement strategies to manage their acquisition so that value for money is maximized. • To identify optimal categorization: • Conduct spend analysis on the current and past procurement activities, their value, the vendors, etc. • Undertake portfolio analysis mapping procurements against a cost/risk matrix and identify categories where a more hands-on style of management may be appropriate and/or where the organization should build strategic relationships with vendors. • This highlights categories that are suitable for automated, streamlined management through the use of frameworks or e-catalogues, for example.

7. Electronic Procure to Pay – Objective To acquire and implement a commercial procurement system in order to enable Shared Services Canada’s (SSC) integrated procurement and payment operations in the areas of: • planning; • approval; • procurement; • management; • payment; and • reporting. The project will enable procurement transformation initiatives (category management) by providing a flexible system to deliver and support their delivery.

8. Background and Context • There is no Government of Canada-enterprise solution that enables electronic planning, procurement, reporting and payment. • Individual Procure-to-Pay initiatives deployed in departments focus largely on the financial elements. • Current processes within SSC are entirely manual and represent the variety of business practices that SSC inherited from partner organizations. • Fragmentation of planning, management, payment and reporting • A variety of ad-hoc, niche solutions in place across government including: Public Works and Government Services Canada, Health Canada and National Research Council of Canada—there may be others… • Some movement towards common business practices and/or common solution being led out of the Treasury Board Secretariat.

9. Project Scope • The complete automation and enablement of the Department’s procurement and payment operations in order to enhance management practices and increase visibility throughout the business processes. • Two conceptual procurement streams: • One-off buying; and • Ordering off catalogues. • Payment processing: • Invoices against contracts; and • Other invoices.

10. Departmental Benefits • Increased end-to-end planning, procurement and payment operations; • Reduced administrative effort across the organization and for partner departments and vendors; • Enhanced reporting capability; • Clear, repeatable business processes; • Improved planning and alignment to departmental business lines; • E-enabled approvals tied to SSC governance model; • Improved contract management; • Self-service for business lines to order off procurement instruments; • Increased transparency; and • Improved resource allocation and responsiveness.

11. Industry Benefits • Registration/vendor creation; • Bid submission; • Contract award; • Order receipt; • Shipping notices; • Invoice submission; • Increased visibility and transparency; • Enhanced contract/order management; and • Online collaboration/self-serve.

12. Actions Taken to Date • Project foundation established: • Literature review conducted; • Environmental scan undertaken; and • Other government departments surveyed. • Business and technical requirements identified. • Industry consultation completed through a request for information. • RFP package prepared. • Project documentation prepared. • Preparation for governance approvals within SSC.

13. Next Steps • Project approval at the Senior Project and Procurement Oversight Committee – July 2013. • RFP release – August 2013. • Contract award – October 2013. • Implementation – October 2013 – July 2014. • Category management deployment – September to December 2013. • Industry engagement and consultation through the transition – September 2013 to June 2014.

14. Questions and Answers How does this committee want to be informed of: • progress; • implementation opportunities/challenges; and • industry consultation opportunities?