Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Presentation to FMI
Making Contracting Work in the CRA May 22, 2013
2
Agenda
• Elements of an Effective Procurement Framework
• Procurement Vision and Strategy
• CRA Authorities
• Procurement Oversight
• Supporting A Professional Organization
• Processes & Tools
• CRA Strategic Sourcing
• Success Stories
• Results
Elements of an Effective Procurement Framework:
• Procurement Vision and Strategy
• Delegated Authorities
• Strong Procurement Oversight
• A Professional Organization
• Processes & Tools
3
4
Procurement Vision and Strategy
Our procurement vision is aimed at leveraging purchasing power across the Agency:
• Use contract independence to build procurement solutions catered to CRA operations
• Focus on value-added procurement
• Use a commodity-based approach that establishes long-term partnerships with vendors
• Use self-service to extent possible to provide more efficient and effective solutions
• Use PWGSC solutions where it makes business sense to do so
• Work closely with Shared Services Canada for IT procurement
5
CRA Contracting Authority
Under the Canada Revenue Agency (CRA) Act, the Agency has full contracting authority (Section 61) excluding legal services;
High-level policy direction for the CRA’s procurement regime approved by the Board of Management
CRA Procurement Policies consistent with PWGSC but uniquely CRA’s
The CRA procurement delegation instruments effectively
supports: • Procurement by F&A national procurement team for all
national procurements and regional procurements subject to trade agreements
• Regional procurements below trade agreement thresholds centralized in a regional centre of expertise (in Laval, Quebec)
6
Delegation Authorities Model
Acquisition Limits:
Procurement Methods:
Roles and Responsibilities
Budget Manager
Designated Procurement Specialist
Regional Centre - Laval
Contracting Officer
AD - HQ
Acquisition Card ($5K)
E-Procurement (Synergy)
Acquisition Card
E-Procurement (Synergy)
Requirements Definition
Development of Statement of Work (SOW
Create Requisition CAS Role 25
Budget Release of Requisition - Expenditure
Initiation Section 32- CAS Role 26
Receipt & Inspection of Goods
CAS Role 35
Section 34 Approval of Invoice
Contract Management
< $25K for Goods
< $78.5K for Services
Call-ups
Low Dollar Value Contracts
Contract Award in accordance
with policies and procedures
Contract Management
Advice and Guidance
Role 24/124
All values for goods and/or services
Establish Strategic Sourcing
Arrangements:
Standing Offers
Supply Arrangements
Contracts
Policy Development
Training Framework
Monitoring Framework
QA Framework
Contract award in accordance with
policies and procedures
Contract Management
Advice and Guidance
Role 24/124
Financial Delegation Procurement Delegation
7
CRA Oversight & Compliance • AC level Procurement Steering Committee approves procurement
strategies for all high dollar/ high risk procurement
• Regular cyclical review of all aspects of procurement by Corporate
Audit and Evaluation Branch (CAEB)
• Separate Compliance and Program Review Section
External Oversight • Canadian International Trade Tribunal (CITT)
• Office of the Procurement Ombudsman (OPO)
• Office of the Auditor General (OAG)
Reporting
• Quarterly reporting to Board of Management
• Disclosure of contracts over $10K
• Annual reporting to PWGSC
Procurement Oversight
8
Clients are to follow these steps in selecting the procurement approach:
• Select applicable catalogues from Synergy;
• Use acquisition card under $5K where allowed;
• Proceed with contracting action by Laval or Ottawa
Implemented an acquisition card monitoring program with the regions and new
on-line tool to administer the program;
• Monthly monitoring to identify and investigate transactions that appear outside the
norm
• Remedial actions taken where appropriate
Processes & Tools
Processes & Tools
CRA Self-Services Catalogues for Clients: • 1,300+ Synergy users using 18 Synergy catalogues for
supplies(e.g. office supplies, paper, computers, translation
services, IT Supply Chain and 12 External catalogues using
acquisition cards (Health Services, Language Training, etc.)
• 64,000 client transactions annually under self-service.
Professional Buyers supported by Synergy: • Standard processes for all buyers
• Templates in development to improve compliance
• One single tool for all documentation
Synergy (Ariba) now part of the SAP Suite (Summer
2012)
9
Synergy Catalogues
Internal Catalogues
• Automated External Defibrillators (AEDs)
• Assessment Services – Executive/Cadre (EC) Group
• Chairs – Office and Boardroom
• Desktop Letter Openers
• Computers and accessories
• Envelopes
• Filing and Storage Cabinets
• Headsets (now SSC)
• Long Service Awards (LSA)
• Network Cabling and Related Services
• Occupational Health-Related Services
• Office Supplies
• Paper
• Primary Rate Interface (now SSC)
• Professional Services Supply Chain (PSSC)
• Telephone Sets (now SSC)
• Toner and Cartridges
• Translation Services
10
External Catalogues
• Audio Recording and Duplication Services
• Battery Recycling Services
• Consumer and Commercial Credit Reports
• Finance and Administration (F&A) Intra Agency Courier Services
• Knowledge and Research Products
• Language Training
• Occupational Health-Related Services
• Printing, Publications
• Reference Checks
• Short Run Printing and Copying Services
• Taxi Chits
• Typesetting Services – Large Print
11
Emphasis on commodity management
Strategic business relation with Suppliers
Reduce overall costs (products & process)
Improve service/delivery
Improve supplier relationships
Improve reporting capabilities
Provide the ability to interface with CRA E-procurement tool
Support acquisition card payment
CRA STRATEGIC SOURCING
12
Spend Management Life Cycle
RFP
Evaluation
Contract
Performance Measurement & Reporting
Preliminary Research
Performance Measurement & Reporting
The monitoring, measuring and reporting of performance: contract
compliance, service levels, achievement of operational and strategic objectives.
Evaluation Application of the
evaluation strategy and framework, and its
application to vendor submissions.
Request For Proposal (RFP) Development of the procurement & evaluation strategy; preparation of
the solicitation documents.
Preliminary Research The research and
findings undertaken in advance of preparing a
strategic sourcing procurement vehicle
Contract & Amendments Finalizing the contract for the
delivery of strategically sourced goods and services.
Strategic
Objectives: The key goals of the
strategic sourcing
opportunity
Contract Management &
Administration Contract Management & Administration The day-to-day administration and overall
management of the strategic sourcing contract.
Approvals Management review and approvals: BMC, DMC, Functional Authorities.
Approvals
Complex Process
13
Tax Program Contracts
• T1 Forms and Display Services
• Program Envelopes
• Toll Free Services - now under Shared Services Canada (SSC)
Business Services
• Process mapping
• Human Resource Support Services (Health, training, Employee Assistance Program)
• IT Supply Chain
IT Products/Solution
• Desktops/Laptops
• Synergy Tool
• CRA Application Software (non-SSC)
Agency-wide Goods/Services
• Office supplies, papers, toners
• Translation services and Language Training
Major CRA Contracts
14
Issued 2 Arrangements per type: Orders sent to top Supplier at time of ordering (prices updated monthly)
Orders over $1M competed between the 2 suppliers (3 days)
In 2009 Desktops and Laptops combined together
Benefits obtained: Consistency of products, warranty and standardized maintenance level
Stable technical environment
Stronger relationship with Suppliers to resolve issues
Just in time delivery directly to end users
Life cycle warranty of three years to four years on all commodities reduces or eliminates service calls under the National Maintenance Agreement
Reduced support costs due to fewer varieties of equipment
Available on-line reducing call-ups by 1,000+ annually
SUCCESS STORIES IT Hardware (Desktops, laptops, servers)
15
Key elements: Long term Strategic Alliance to improve the printing process and overall
costs for the T1 Program
Combine hundreds of transactions into one single multi-year arrangement
Improve service delivery
Obtain savings from products and processes
Benefits obtained: 3 year contract with 4 additional one year options
230 annual transactions eliminated (all previously done in 1 month)
Average savings of 10% from previous years on product costs
Clients submit forms directly to supplier under pre-established price structure
Supplier works all year to improve forms, processes to reduced costs on other products (envelopes, printing, inserting, mailing)
SUCCESS STORIES – T1 Program
16
Dashboard
17
Procurement Evolution: FY 2001/02 to FY 2012/13
# of Transactions (,000)
Payment w/o Reference Contracts/Call-Ups/Amendments
Acquisition Card E-Procurement
0
20
40
60
80
100
120
140
160
18
Change in the Contracting Work: Contract value (# Transactions and $ Spend)
< $5K
$5K to $25K
> $25K
19
FY 2012/2013 - Transactions FY 2012/2013 - Value ($,000)
Procurement Activity Distribution FY 2012/2013
20
Procurement Activity Distribution FY 2012/2013
Value ($M) Transactions
Questions?