HowtoDo Business With Ontario-Eng

7/31/2019 HowtoDo Business With Ontario-Eng

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H o w t o d o b u s i n e s s w i t H t H e

O n t a r i oG o v e r n m e n t

> Selling to the Ontario government meanssupplying a large marketplace.

> Businesses of all sizes and types can besuccessful vendors to the government.

> Our goal is to help you do business with us.

> We welcome new vendors.

M i n i s t r y o f G o v e r n M e n t s e r v i c e s


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H O W T O D O B U S I N E S S W I T H T H E O N T A R I O G O V E R N M E N T

Who we areand what we do

The Supply Chain Management (SCM) Division develops and implements an integrated corporateprocurement strategy to: leverage and optimize government procurement of goods and services;

identify and implement procurement process improvements; enhance procurement controllorship; andprovide strategic advice to Management Board of Cabinet on large scale procurements.

SCM Division is responsible for developing and advising on the governments procurement policyframework, including the development of related guidelines, tools and best practices, providingstrategic procurement advice to ministries and the Management Board of Cabinet, and providingprocurement related training to both ministries and the vendor community.

Where can you find us: Ministry of Government ServicesSupply Chain Management Division

700 University Avenue, 6th Floor

Toronto, ON M7A 2S4

Phone: 1-866-320-1756 Fax: 416-327-3573

Internet: www.doingbusiness.mgs.gov.on.ca e-mail: [email protected]

Our primary objective is to meet

the governments goal to managepublic funds efficiently and effectively

and to ensure value for money for the goods and services

that are bought by the government.

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H O W T O D O B U S I N E S S W I T H T H E O N T A R I O G O V E R N M E

Buying policies of theGovernment of Ontario

Winning a contract with the government of Ontario is easier when you know how we make our buyingdecisions. Some of our procurement principles and policies include:

Procurement PoliciesThe Ontario government has signed two interprovincial agreements covering procurement:the Ontario-Qubec Trade and Cooperation Agreement, and the Agreement on Internal

Trade. These agreements require that contracts valued at $25,000 or more for goods and at $100,000 or more for services and construction, be openly advertised.

An electronic tendering system is the preferred medium for advertising procurement ofgoods and services. See section on How to Access Bidding Information formore details.

Vendors must not have any con ict of interest that may give them an unfair advantage inbidding on government procurement opportunities.

Ontario government does not apply any preference for local vendors.

The Ontario government also supports the federal Environmental Choice Programguidelines as well as other environmental strategies for reduction, reuse and recycling.Environmental factors are given consideration in procurement decisions for all contractsvalued at more than $10,000.

Our procurement needs, alternatives, timing and policies are allcarefully considered when planning our procurements.

Planning

Buying

Access

We get the most value for money at the best cost.

Access to our business is fair and open to all vendors.


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Tips on how to do businesswith the Government of Ontario

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How are bids solicited? Ministries use electronic advertising through an electronic tendering service to solicit bids for procurement contracts valued at $25,000 or more for goods and at $100,000 or more for servicesand construction. In addition, ministries may also advertise in a national newspaper or the DailyCommercial News for construction related procurement.

For more information, please refer to section titledHow to Access Bidding Information .

To solicit bids for procurement contracts whose value is less than $25,000 for goods, andservice contracts valued at less than $100,000 , we use various methods, including:

Telephone or written quotes for small value purchases;

Written request for tender (RFT) for larger contracts;

Invitational requests for proposals (RFP) for more complex transactions for which we mayneed your expertise to address and propose solutions to special situations, and

Advertising in local newspapers.

For low dollar value purchases, usually less than $5,000, theOntario Government PurchasingCard (Pcard) (a credit card issued in the name of an employee) enables a designated governmentemployee to ef ciently make government related purchases of such items as: stationery, automobile parts, clothing, computer supplies, etc., excluding travel and travel-related expenses.For details refer to section onHow Am I Paid?.

How do I respond to a Request for Proposal (RFP)?The Government of Ontario may ask for proposals when it has a situation that requires a solutionto a particular business need. The government will ask that solutions be proposed and will pick thebest one. The selection of a contractor, a supplier or a consultant is based on the effectiveness of theproposed solution.


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Tips on how to do businesswith the Government of Ontari

The rules When the Government of Ontario wants to procure goods or services over a certain dollar amountit must follow procedures that ensure a fair, open and transparent competition. As for the dollaramounts that trigger the procurement rules, they vary depending on whether goods, services orconstruction are being procured (i.e. $25,000 or more for goods and $100,000 or more forservices and construction).

There are also exceptions to the application of the procurement rules, such as in the case of urgency,or cases in which only one supplier can meet a very specialized need. There are also exemptions forcertain de ned goods and services, but otherwise the rules apply.

Notification of procurement The governments intention to acquire the goods, services or construction in question must beopenly advertised so that all potential bidders have notice of how to obtain the tender documents.

What is the government buying? The governments requirements the scope of work, speci cations for the goods, etc. must beclearly and precisely set out in the tender documents. In other words, you must be able todetermine exactly what it is you are bidding on.

How are the bids ranked? The evaluation criteria that the government will use to choose the winner must be clearly set out.The tender documents must clearly state which requirements are mandatory and which aredesirable. The weighting of the areas to be scored (such as past experience, product performance, etc.) must be set out.

Who wins the contract? The government must clearly specify the selection factors that will determine the winner, e.g. lowest price, best value, or some other combination of measures of ranking bids.

You must be told about all the requirements The tender document must tell each potential bidder exactly what they must do to submit a compliant bid in order to potentially win the contract. It is up to the bidders to make sure their bid

is compliant and competitive. It is important that you write a proposal that stands out.


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Here are some hints on writing effective proposals:

Ask us questions Every tender document (e.g. Request for Proposal (RFP)) is unique, so read it very carefully. Review the requirements and the evaluation criteria. If you do not understand something, contact the designated person noted in the tender document and ask for clari cations. Do not call yourclient department contacts as this could jeopardize the bidding process. Questions must beasked within a speci ed number of days before the closing date, so be sure to ask them in plentyof time. We compile all questions and answers and make them available to each supplier that hasreceived a copy of the tender document so that everyone has the same information.

Organizing your proposal The tender document will tell you exactly how to lay out your proposal and how it will be evaluated.Make sure you follow the instructions. Review the general conditions and standard instructions.Make sure that you address all the mandatory requirements. Only bids meeting the mandatoryrequirements will be further evaluated.

Non-compliant bids are typically the result of failure to read the tender document carefully enough.The other leading reasons are failure to understand how to write a compliant bid and failure to utilizethe question and answer process.

Mandatory requirements Before you start writing, note which requirements are mandatory - the must haves. Mandatoryrequirements are evaluated objectively on a simple pass/fail basis. You have to meet all mandatoryrequirements for your proposal to be responsive, and only responsive proposals get further evaluation. Address every mandatory requirement directly. Give us enough information to work with.

Technical section This is where you usually provide the most detail in response to the speci c requirements that your bid document evaluation will be based on. It is your chance to show us that you understandthe requirements. This is the point where you would describe what and how you would do thework if you were awarded the contract.

You would typically start with a short introduction that includes an overview of the current state and the need for the project, the objectives of the proposed work, the reasons for carrying it out asproposed and the bene ts that will be derived. Usually you would then describe and substantiate the work plan, methodology and techniques that you are proposing and identify any problems anticipated and contingency plans in the event that problems arise.

You would also typically identify speci c tasks and deliverables and the schedule for completion ordelivery, as well as, provide information about how many people you will assign to the various tasks,their levels (explained by title, not salary) and how many hours or days they will be assigned. Do not include any pricing information in this section.


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Management section You usually have an opportunity to introduce your team and indicate why they are the best peopleto do the work. Describe each team member and the part of the contract he or she will work on. Include a description of their education and experience. The same information should be providedfor any subcontractor or sub-consultant involved in the process.

Financial section In this section you would typically be asked to provide a detailed breakdown of the quoted price interms of its cost elements. The tender document will tell you what cost items will be considered inthe nancial evaluation. No other costs will be considered.

Address each and every point Read the tender document and respond in the exact terms requested. While the government canlegally ask you to clarify your bid after the tender has closed, it cannot ask you to repair your bidit is non-compliant, that is, if it states something clearly but incorrectly. The government might knowwhat you intended to say, and may know that you have the capability in question, but it willbe forced to reject your bid if you have not used words or provided the details that were asked forthe tender document. The government cannot make assumptions about your proposal. It can onlyevaluate the information you provided.

As you set about preparing your proposal, keep the requirements and evaluation criteria at handand refer to them because you are required to respond to the requirements stated in the tenderdocument. Address each and every point directly and with a suf cient amount of technical and management information.

It is a mistake to assume that because you have dealt with the government or this particular clientbefore that we know your organization and skills. Each proposal is evaluated solely on its content. Ifyou develop an alternative solution to the problem described in the tender document, and would liketo propose it, you should respond to the speci c request made in the tender document rst but youmay also offer your solution as an alternative. Do not offer it as a substitute for what we are askingor your proposal might be deemed non-responsive. Accepting major differences to what is asked forwould jeopardize the fairness of the competition.

As you set about preparing your proposal,keep the requirements and evaluation criteria at hand

and refer to them because you are required torespond to the requirements stated

in the tender document.


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Key points to remember

Organize your proposal so that it matches the sequence of the tender document.Make your offer complete, concise and precise.

Once you have drafted the project goals and objectives, check them against the prioritiesand requirements spelled out in the tender document. No matter how good the proposal, or

how creative the project; if it does not address the speci ed priorities it will not be selectedas the successful bid.

If the proposal is long, write an executive summary and include a table of contents withpage numbers.

If your company has a track record of successful projects, or if you have won awards,mention them.

Note the sections that carry the most evaluation points and provide responses accordingly.

Put your logo or company name on each page so we can identify them if we take theproposals apart to compare similar sections.

Provide the number of copies we ask for in the tender document.

Sign the bid document and attach it to make your proposal a legally binding offer.

Follow all directions! If there is a page limit, adhere to it. If certain information is requested,provide it. When in doubt or not clear on anything, contact the designated contact within

the allowable period for questions and answers.

The government cannot makeassumptions about your proposal.It can only evaluate the information

you provided.

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Who evaluates my bid?Bids are usually evaluated by ministry staff, which could include procurement of cers and potential users of the goods and services required. In cases where bids are received for larger and morecomplex contracts the evaluations are reviewed and approved by one or more senior of cers.

What do contracts with the Ontario government include? A contract is required for all procurements. Typically the contract sets out responsibilities of the vendor and the purchaser. Prices may decrease under the terms of the contract, and may increase but only under special circumstances (such as a sales tax increase). Contracts include cancellationclauses, and describe how the vendors performance may be evaluated by us.

How do I find out if my proposal was successful? All successful bidders are noti ed when we award contracts. Unsuccessful bidders are entitled toknow why their bid was not selected. Bidders who participate in procurements valued at $25,000 ormore are offered an opportunity for a debrie ng. Contract award noti cations are published in thesame manner they were advertised (e.g. electronic tender service) at the electronic tendering site.The name of the successful bidder and the total bid price can be providedupon request . In order toprotect vendor con dential information, no further information regarding vendors will be disclosed. Any additional information may be available through a Freedom of Information request in accordancewith the Freedom of Information and Protection of Privacy Act.

How am I paid? Vendors to the Ontario government are typically paid within 30 days after the receipt of goods orservices, or after the invoice is received, whichever is later.

Vendors accepting the Ontario Government Purchasing Card for purchases of goods andservices from authorized government employees, either in person or over the phone, can expect to receive prompt payment from BMO - MasterCard.

Vendors please note:

Cards are embossed with the employee name, ministry name, and expiry date

Cards have restrictions as to merchant category codes, as well as dollar limits pertransaction and monthly credit/transaction limits.

For more information on the Ontario Government Purchasing Card, contact:

Ontario Shared Services Contact CentreTel: (416) 212-2345 (local) 1-866-320-1756 (toll-free, from outside of Toronto)

TTY: (416) 327-3851Fax: (416) 314-8910

E-mail: [email protected]


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How to accessbidding information

Vendors who want to sell to the Ontario government have several ways of nding out about bidding opportunities.

Electronic Tendering Service - MERXMERX is an internet-based electronic bulletin board which provides information on bid opportunitiesfor several governments across Canada.

When ordered through MERX, bid documents will be sent to you quickly and in the manner of yourchoice (ie. paper copy or electronically).

New opportunities are added to the system daily and the service provider keeps you informed aboutany change affecting bid documents you have ordered.

To obtain more information or to subscribe to MERX call this toll free number:1-800-964-MERX (6379), or visit their web site: www.merx.com

Newspaper AdvertisingIn conjunction with the electronic tendering service, a ministry may also advertise a procurementopportunity in a national newspaper. The Daily Commercial News can be used for constructionprojects.

In addition, ministries may use other daily or local papers to request bids for procurements. English is used in advertising unless otherwise required by legislation.

MERX is an internet-based

electronic bulletin board which provides information

on bid opportunitiesfor several governments

across Canada.

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Selling information technologyto the Government of Ontario

Information technology vendors who want to sell to the Ontario government may improve their chances of success if they know how we buy. The following outlines our competitive process for buying

information technology.

How is the technology used?We are committed to using information technology throughout the province for ef cient service de-livery to the public.

What kinds of information technology do we buy? We buy equipment, software and services for creating, storing, processing and communicating infor -mation. There are several ways we use this technology - as numeric and textual data,images, graphics, on video and through telecommunications.

What is the procurement process for information technology?When we buy goods valued at $25,000 or more, and services at $100,000 or more, we use an opencompetitive process. First, a bidding document is prepared. It explains the technology to be ac-quired and sets out required functions, processes and activities. Sometimes we set standards or require technical features that match our existing technology.

Next, we follow these seven steps:

1. Advertise the call for bids using the national electronic tendering service and/or newspaperadvertisements. On occasion we may use these venues to provide notice to the vendor

community of an upcoming business opportunity;

2. Provide bid documents to interested vendors;3. If needed, organize brie ng sessions to provide answers to vendors questions;

4. Receive and evaluate written vendor bids;

5. Select the highest ranked proposal that meets all the mandatory requirements;

6. Award the contract to the successful vendor;

7. Inform unsuccessful bidders of the results of our selection and offer each vendor anopportunity for a debrie ng.

What about confidential data?

Program data that is con dential or essential to the operation of ministry programs must be stored and processed in Canada.


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Selling consulting servicesto the Government of Ontario

Consultants wishing to work with the Ontario government should know the following about the kindsof services we buy, and how we do our buying.

A competitive procurement process must be used for all consulting services, irrespective of the value ofthe contract. In addition, consultants will not be paid for any hospitality, food, or incidental expenses.

We buy a variety of services:

Management consulting (i.e. helping Ministries improve their performance, primarily throughthe analysis of existing problems and development of plans for improvement. This includes

organizational change management assistance and strategy development);

Information technology consulting (i.e. advisory services that help clients assess differenttechnology strategies, including aligning their technology strategy with their business orprocess strategy);

Technical consulting (i.e. activities related to actuarial science, appraisal, community planning,employment/placement, engineering, health sciences, interior design, realty, social sciences);

Research and development (i.e. investigate study for the purpose of increasing the availablestore of knowledge and/or information on a particular subject);

Policy consulting (i.e. the provision of advisory services to provide policy options, analysisand evaluation); and

Communication consulting (i.e. the provision of strategy and advice in conveying informationthrough various channels and media)

When are these services used?We use external consultants only when it is not possible to use our own ministry staff.

What is the buying process?When the value of the contract is $100,000 or more, we use the following competitive process: request, receive and evaluate proposals, select the quali ed bid which provides the best value forthe funds to be expended, award the contract and notify unsuccessful bidders.

Ministries may use an invitational competitive procurement process for services valued at under$100,000. This process requires a minimum of three (3) quali ed vendors to submit a written pro-

posal in response to the ministrys written requirements.

Do you ever hire more than one consultant for any given project?Yes, if a project is complex or large, it may be divided into several smaller parts. When this happens, speci cations for each part are provided in the individual tendering documents.

A ministry or agency may also decide to hold a competition for part of a larger project. If certainconditions are met, the successful vendor may be awarded more parts of the same project withoutfurther competition.

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Selling consulting servicesto the Government of Ontario

Are agreements always in writing? Agreements with vendors must be in writing.

How will I be paid, and can the price change after the agreement is signed? Fees are established in advance and are based on terms and conditions which have beenwritten into the contract. We do not calculate fees based on the results of a consultants work (for example, a percentage of savings achieved through the introduction of a system recommended by the consultant). Fees must be written into the agreement. Generally, a ceilingprice is stated in the agreement. This cannot be exceeded if the terms and conditions of the agreement remain unchanged.

Sometimes the terms and conditions affecting the price of a contract must change after the consultants work has started. This is allowed, as long as the procedures for changing the terms and conditions are followed.

We useexternal consultants

only when

it is not possibleto use our

own ministry staff.


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Vendor of record (VOR)arrangement

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What is it? A vendor of record (VOR) arrangement is a procurement arrangement resulting from a fair, open,transparent and competitive procurement process that authorizes one or more vendors to offer speci c goods or services to ministries for a de ned time period, with terms and conditions andpricing as set out in the particular VOR agreement.

What are the types of VOR arrangements?There are ministry, multi-ministry and enterprise-wide VOR arrangements. Ministries may establisha VOR arrangement for the exclusive use of that ministry. Multi-ministry VOR arrangements maybe established where there is an identi ed need for a particular good/service among one or more ministries but where there is insuf cient demand for an enterprise-wide VOR arrangement. Enterprise-wide VOR arrangements have been established to reduce procurement costs by providing

ministries with access to one or more contracted vendors of goods and services common to morethan one ministry. Use of enterprise-wide VOR arrangements by ministries is mandatory.

Who establishes them?Supply Chain Management Division (corporate use);

Individual ministries (own use).

How does my company become a VOR?Like any other major procurement opportunity, VOR arrangements are established through a Request For Proposal (RFP) distributed through MERX (see p. 10). Bidders who successfully meet all the requirements of the RFP are awarded VOR status and enter into a contractual arrangement with the ministry which issued the RFP.


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Vendor of record (VOR)arrangement

Once I become a VOR, do I have to compete again for contract work?Depending on the estimated cost of the good or service to be acquired under the VOR arrangement, there may be a requirement for a second stage selection process.

If the estimated procurement value is below $25,000 the ministry may use the VOR arrangement toselect any one VOR vendor or, where applicable based on the good or service to be acquired, askmore than one vendor to bid on the speci c project/assignment, in accordance with the terms andconditions of the VOR arrangement.

For contracts valued at $25,000 and up to but not including $250,000, where applicable, at leastthree vendors must be asked to bid. For contracts valued at $250,000 and up to but not including$750,000, where applicable, at least ve vendors must be asked to bid, and for contracts valued at$750,000 and up to the VOR ceiling price (if ceiling price is greater than $750,000) at least eight or

more vendors must be asked to bid.

Like any other major procurement opportunity,

VOR arrangements

are establishedthrough aRequest For Proposal (RFP)

distributed through anelectronic

tendering service (MERX).


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How arecomplaints resolved?

If your bid/proposal was unsuccessful, or if you have any other concerns about contract award, we encourage you to talk to the contracting of cer identi ed in the procurement document. Most problems can be

worked out. We are very open about our procurement processes and ensure that:Bid documents are easy to understand, and contain information about how the bids willbe evaluated;

You have enough time to prepare your submission;

All bidders know when bid requirements change;

Contract awards are based on the criteria outlined in the bid documents.

If a satisfactory solution is not found after talking to the contracting of cer, you may wish tocontact the Manager or Director responsible for the particular procurement opportunity.

IF YOU REQUIRE ASSISTANCE IN PROCUREMENT RELATED MATTERS, PLEASE CALL: 1-866-320-1756 OR ACCESS OUR INTERNET SITE: www.doingbusiness.mgs.gov.on.ca.

You will be offered an opportunity to meet with thecontracting officer to receive a debrief on why your

bid was not successful.

The contracting officer will tell you who won,and where improvements should be made

in your future submissions.

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M i i f G M i

This document printed on recycled paper stock Queens Printer for Ontario, 2008. Reprinted 2009.

ISBN 978-1-4249-8321-6 (Print), ISBN 978-1-4249-8322-3 (PDF)

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HowtoDo Business With Ontario-Eng