Presented by: Frank MacKinnon Ontario Small Vendors Association In Collaboration with York Technology Association 1

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Ontario Government In ReviewPresented by: Frank MacKinnon

Ontario Small Vendors Association

In Collaboration with York Technology Association

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Ontario Government In Review

• Expectations• Current level of Government of Ontario

contracting• Interest in co-venturing

What Do You Want Out of This Session

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Setting the stage Getting to “GO” Learn from the leaders Taking the next steps

Agenda

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Who We are: ◦ We are that part of the SME with less than 200

employees which has made the Ontario Government an important part of our business plan.

What we do:◦ Initiate, promote, and facilitate enduring business

relationships between the small business community and their customers in the public and (eventual) private sectors.

Ontario Small Vendor Association

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Province Queens Park

Ontario Provincial Government

Cabinet

Premier

Ministers

Provincial Auditors

Premier’s Office

Government Services

Cluster / Ministries Agencies Boards & Commissions

Municipalities Universities

Schools Hospitals

BPS

Central Agencies

Decision Making & Implementation Accountability

Purchase Decision At A Glance

Central Procurement

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Program / Projects – Important to understand the connection

Who makes decisions – No one person makes any contract decision

The janitor can send a project into tilt mode; if they are on the committee, which is quite possible if they are to be the implementer

Things You Really Should Know

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How to Sell to Government – Procurement 101; 201◦ Where you can get training, why it is important,

and, why it probably won’t help you sell at the Cluster/Business level

MERX – How MERX plays in the greater scheme◦ What you will find on MERX, and ◦ Where you will find the rest (the bulk) of the

unsolicited business

Things You Really Should Know

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70,000 employees 28 Ministries Eight I & IT Clusters

1. Land and Resources I & IT2. Central Agencies3. Community Services4. Health Services5. Children, Youth and Social Services6. Economics and Transportation7. Justice8. Government Services Delivery

Ontario at a Glance

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Extremely complex environment Can be difficult to navigate While lucrative to some, can be

disappointing to others

Vendor Supply Chain - 45,000 Vendors

Ontario at a Glance


Uses an array of technologies ◦ Could be considered leading edge

Has a common component policy ◦ To reduce redundancy in technology

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Ontario At A Glance


Uses MERX for RFPs and VOR (RFS) ◦ Procurement policy for acquiring

services and/or products Uses Vendor of Record process

◦ Management of Vendor Community (Supply Chain)

◦ Pre-qualifies suppliers Has open policy for unsolicited proposals

◦ To encourage innovation and initiative from the vendor community to meet a unique need

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Ontario At A Glance MERX

VOR

Unsolicited


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Government I&IT Structure

CCIO CTIO

CIO

CIO

Other

CIO

1 CCIO – 8 CIOs CTIO responsible for CIO needs


Serve the IT needs of like Ministries. Have Service Level Agreements (SLA) and

other penalty facing agreements in place with Ministries to ensure best service practices

Have their own IT Services organization setup to support Clusters at this level.

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Cluster Responsibilities


Serve the IT needs of like Ministries. Have Service Level Agreements (SLA) and

other penalty facing agreements in place with Ministries to ensure best service practices

Have their own IT Services organization setup to support Clusters at this level.

Intent on removing redundancy in services◦ Help desk, email, Desktop, etc.

Currently reviewing ways to expand IT services internally.

Looking to private sector to assist in delivery.

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Cluster Responsibilities


One of the biggest challenges is the lack of knowledge at the Vendor level.

A weak economy!

They believe in what they are doing! AND, they know better than us the restraints of their procurement policies.

◦ Serve the taxpayer, consumer and business.◦ Its all about Service!! Health, justice, Insurance…

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Government Message


Initiatives:◦ Think tank

opportunities ◦ Not just for the big guy!

Programs:◦ Concepts become Initiatives that when funded

(millions $) become Programs, out of which better service to the community is realized

Projects:◦ Spin off program deliverables

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Initiatives / Programs / Projects

Concepts

Initiatives

Programs


Design/decision by committee – a safe approach

“Who was ever fired for buying IBM?” Consider the Influencers…

◦ Those responsible for project deliverable◦ Are often found below line management◦ Tend to have the ear of the CIO

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Decision Making


How is this different from the rest of us?◦ Government staff are measured by their ability to

deliver on time and to follow the established procedures

◦ Failure will likely result in loss of bonus and/or promotion…

The point is… understand and respect what is behind their motivation regardless of whether you believe in it

They must deliver it

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Decision Making


Lead Generation

As VOR you are already qualified for this market◦ Don’t need brochures but have a good

elevator speech

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Structure Prospecting and Lead Generation


Lead Generation

Listen carefully and remember it’s not about you◦ These people meet with hundreds of sales

people who promise the world. How well you listen will be what you will be remembered for.

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Lead Generation

It is like time with the CEO - most of the time you get ½ hour◦ Understand what information you need to

gather ◦ Be real clear on what you need to impart

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Know who you are talking to. Not unlike the Private sector, the government relies heavily on its foxes. Your challenge is to determine who they are. Watch for those quite voices and 3rd party consultants.◦ Strategic, Think Tank, Out of the Box, Keen on

concepts.◦ Reports to the Deputy and is very aware of the politics

of his office.

It may be too high…if, you don’t fit the profile, there is likely a better person to talk to.

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CCIO


Reports to the CCIO and is very aware of the politics of his bosses office.

Is either dynamic, or, career (cautious) staff Responsible for delivering on initiatives /

programs. Is always on the look for winners. Largely responsible for developing an equal

playing field for all vendors.

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CIO


Relies heavily on his Directors and Heads of departments.

Will listen to creative ideas for improvement that will leverage his resources and improve quality of service.

If, you fit the profile, the CIO can be an excellent resource. Be aware of an extremely busy calendar.

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CIO


Directors…◦ Responsible for driving Program and major Project

development. Most senior Managers report at this level.

Heads…◦ Most often responsible for technology assessment and

direction.

Senior Manager…◦ Project Management and delivery

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Structure


Broader Public Sector (BPS) ◦ Hospitals, Agencies,

Roads, etc. Ontario I&IT

◦ Ministries, Health, Justice, Education, etc. What this means to the You!

◦ 45,000 Vendors◦ Vendor of Record Procurement Practice◦ Fair, Competitive & Transparent!

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Structure


MERX- RFP routine◦ Invitation to VOR & General Vendor Community◦ RFP becomes the contract◦ Contracts in general allow for 10% change, only!

VOR - RFS routine◦ RFP solicitation – every 3 years◦ A few refreshes at 18 month interval◦ RFS is generally for bodies, not, project ownership◦ Usually offered to 3 – 5 VORs (1 winner)◦ +1,000 released per annum

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Central Procurement


Auditors - Internal◦ Objective to ensure fair & transparent process◦ Most troublesome to staff◦ While rarely used, could be; by either party◦ Supply Chain Secretariat leading development of

standardized procurement practices

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Central Procurement


Legal - Theirs◦ Theirs protect the government◦ Minimize ambiguity◦ Can seem very difficult, but!◦ Must work with hundreds of private sector legal

advisers

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Central Procurement


Legal - Ours◦ Ours protect us, if, they understand the process!◦ Best to use lawyers who are familiar with

government◦ Can cause serious delays, if not cancellations

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Central Procurement


Note: ◦ The government always has a runner-up. At their

discretion they will fall back to this position.◦ Many contracts have been lost to lack of

understanding, or, the unwillingness to take risks!◦ The more government experience your lawyer has

the greater the chance for successful negotiations.

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Central Procurement


The government likes to deal with large companies or groups that have clearly defined leadership

Tend to be specific in focus Have the attention of the government Minimizes the effort to inform & education

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Who’s gett ing the business


2007/2008 Vendor Expenditures Who is getting the business and how much

of it Where to focus your valuable resources Identify companies already well positioned Identify partnership arrangements Be aware of the time and tenacity it takes

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Expenditure Reports – prepared by OSVA


2007/2008 Vendor Expenditures◦ Greater than $50,000,000◦ Greater than $20,000,000◦ Greater than $10,000,000◦ Greater than $5,000,000◦ Greater than $1,000,000◦ Greater than $100,000◦ Less than $100,000

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Expenditure Reports – prepared by OSVA


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Companies who get it


The real players invest in the future They focus and they are reliable and

dependable They appear to be favored over the rest They appear to be large companies

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Who’s getting the business


What they are is committed…◦ They’re in for the long haul◦ They build those important relationships◦ They take a chance on risk◦ They support their sales team◦ They meet their objectives and experience

success!

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Who’s getting the business


eHealth – Agency (quasi Public operation)◦ 1.15 billion $◦ Revamping the entire Health system for Ontario◦ Only 10 years behind schedule◦ They are in a mess!

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Other Considerations


Clusters – Justice, Community, Health…◦ All have major objectives / initiatives◦ Be aware and try to separate from the crowd◦ Learn the business of the Cluster◦ Become strategically important to their needs!

Note: A single Cluster could meet your business objective for the year!

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Other Considerations


The WSIB is a separate business unit and therefore is responsible for their own welfare.

That being said they are driven to protect the best interest of the Government, business, and the general public.

Insurance is not a bad thing, in fact it protects us all. So, what’s the problem?

The Government is trying to figure that out, as we speak! There are many inside government who agree that the demand for insurance, especially from small companies/projects can oversize the actual value of the work to be performed.

Watch for changes to the procurement process.

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Insurance and the WSIB


The government needs companies of all sizes. That is it needs to be able to leverage the Billions $ large multi-nationals invest in their products and services.

The government also knows that large companies often means large dollars for adjunct products & services that are available through the SME.

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Vendor Community


Dilemma! Large companies also means financial stability, extensibility, project management, accountability, knowledge and knowledge transfer.

The Government would like to direct more work to the SME, the question is how to do this and protect the interest of the government / taxpayer.

Using eHealth as the example, the government must appear to always be fair and transparent.

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Vendor Community


SME - Is a dilemma!◦ While small business has large business

aspirations, it isn’t always in the position to wait, support, and/or demand it’s rights

◦ Small Vendors tend to think they must do more, give up more, and perhaps suck it up more!

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Vendor Community


SME - Is a dilemma!◦ Perhaps on their own, they very well have to!◦ The government needs the SME, the question is

how to use it and safe guard the project/$$.◦ Recent economical crisis has had a greater than

major impact on the industry overall.◦ The SME needs to protect itself from this sort of

thing in the future. So, what’s the answer!

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Vendor Community


SME - Has to appear to be larger than life◦ It represents +90% of Canadian business. This is

amazing, but, it is true. Here’s a fact…I think!

◦ The government has stated that it wants to do more with the SME, the question is how!

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Vendor Community


Here’s How… Invest, Organize, Educate, Position!◦ You can do all of this by working together, as a

community with autonomy! ◦ The YTA, and the OSVA are excellent examples of

unobtrusive communities.

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Vendor Community


Invest in the relationships and manage your expectations

Watch MERX◦ Refresh VOR list in September

Collaborate and present a unified face As much as possible use government

experienced lawyers

Get a debrief

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What to do right away


Thank you and

have a great day!Frank MacKinnon

OSVA

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Documents

Presented by: Frank MacKinnon Ontario Small Vendors Association In Collaboration with York Technology Association 1