Question Period Note: Procurement modernization

Public Services and Procurement Canada (PSPC) is delivering on Government commitments to modernize and simplify procurement.

• The government is committed to modernizing procurement practices so they are simpler, less administratively burdensome, and include practices that support our social and economic policy goals—including through better data collection and the elimination of paper-based processes
  • We are also committed to economic growth and diversity among small and medium enterprises, and under-represented groups, and we are working to remove barriers that have historically prevented them from participating in federal procurement
  • We are also taking action by:
  • implementing a simplified contract model
  • establishing a procurement policy framework to achieve positive socio-economic outcomes
  • increasing opportunities for suppliers
  • improving existing procurement tools
  • formalizing a risk-based approach for procurement decisions
  • developing new tools to determine contract pricing and support best value

If pressed on diversifying procurement (Black-owned businesses):

• Our government is committed to diversifying the base of suppliers obtaining contracts from federal organizations
• In support of this, my department, through the Office of Small and Medium Enterprises, continues to reach out to under-represented groups across Canada, including Black-owned businesses
• We continue to work and collaborate with the United Nations Decade of Persons of African Descent (UNDPAD) Push Coalition, the Black Business and Professional Association (BBPA), and the Canadian Black Chamber of Commerce to raise awareness of the services offered by the Office of Small and Medium Enterprises, to encourage participation in federal procurement, and to identify and remove barriers

If pressed on Indigenous procurement:

• We are committed to increasing the participation of Indigenous businesses in federal procurement
• To do so, we are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to establish a target of at least 5% of federal contracts awarded to businesses managed and led by Indigenous Peoples
• Indigenous business organizations are represented on both the newly established COVID-19 Supplier Council and the national Supplier Advisory Council that has been in place since 2013
• The Office of Small and Medium Enterprises works with Indigenous businesses directly, as well as through partner Indigenous organizations, to provide information, support and practical guidance on how to participate in federal procurement

If pressed on the Procurement Ombudsman’s annual report citing the “unnecessarily complex nature of the federal procurement process”:

• The Government has committed to modernize and simplify procurement
• One of our primary goals is to make buying processes less burdensome for both suppliers and government buyers. That’s why we are taking a number of steps to improve the supplier experience, including:
  • Contract modernization initiatives to simplify and streamline our contracting documents to make procurement less burdensome for suppliers
  • Improvements to the existing BuyandSell platform for suppliers, as well as for buyers
  • Efforts to encourage greater competition, as well as moving forward on initiative that support our economic policy goals, including innovation, green and social procurement, and increasing the diversity of bidders

Implementation of the Electronic Procurement Solution, which will align our processes with those of our suppliers and eliminate paper-based processes

A substantial part of public investment is managed through public sector acquisition of goods and services, representing 13% of Canada’s gross domestic product (GDP) according to OECD data from 2015. This makes it a fundamental lever to achieving social and economic objectives.

The Government has committed to modernize and simplify procurement, and to establish an electronic procurement solution. A key step towards this goal was the March 2020 soft launch of Canada Buys, our new electronic procurement system, as announced in Budget 2018, at a cost of $196.8 million over 5 years. Procurement processes will also be easier, faster and more accessible for suppliers and buyers through:

• Simpler, less administratively burdensome, user-friendly procurement practices:
  • Improvements to the existing BuyandSell system for buyers as well as for suppliers were introduced to enhance their user experience and make it easier for them to find relevant procurement information
  • More accessible and intuitive complement of industrial security services have been made available
  • Contract modernization initiatives and a modernized contract model are being piloted. This is in response to concerns from the supplier community regarding the complexity of the Government of Canada’s contracts and related processes. This complexity can represent barriers to supplier participation in public procurement, including reducing competition and supplier diversity, which impacts Canada’s ability to achieve best value for money
• Deployment of modern comptrollership:
  • formalizing a risk-based approach for procurement decisions
  • ensuring fair pricing in defence contracts (sustainment initiative, pricing guide)
• Encouraging greater competition and including practices that support our economic policy goals, including innovation, as well as green and social procurement:
  • developing a framework for leveraging socio-economic outcomes in federal procurement
  • increasing the participation of under-represented groups such as women-owned businesses, Indigenous businesses, Black businesses, and visible minority businesses
  • adopting a more inclusive approach to procurement, raising awareness of how to give consideration to the needs of persons with disabilities when procuring on behalf of the federal government

The Government will also support other procurement commitments including better vendor management tools, clear data metrics, and increased opportunities for Indigenous businesses.

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