Tuesday September 29, 2009

• GOFAC Meeting September 29, 2009 (PDF 123KB) (Help on File Formats)

PowerPoint Presentation

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Government Office Furniture Advisory Committee (GOFAC) Meeting
September 29, 2009
Place du Portage, 111, 14A2, Room 101
Gatineau, Québec

Agenda GOFAC Meeting of September 29, 2009

• Presentation and discussion on the proposed revised procurement strategy for office furniture
• Fine tuning the strategy over the medium term

Office Furniture Renewed Procurement Strategy

Context

• The purpose of this meeting is to table discussion points with GOFAC members on a renewed procurement strategy for the acquisition of office furniture.
• The proposed revised procurement strategy involves the award of competitive National Master Standing Offers for requirements below $25K and Supply Arrangements for requirements above $25K for four of the five sub-commodities of office furniture (i.e. Office Seating, Desking, Freestanding and Filing Cabinets)
• With respect to the panel systems sub-commodity, given:
  • the level of effort put forward by industry in the current solicitation process
  • the anticipated positive outcome, and
  • the soon to be released new set of NMSO's
  it is recommended to re-align the procurement strategy for this sub-commodity with a future generation of contractual documents.
• Standing Offer Agreements offer ease of use for clients and pre-establish terms and conditions as well as prices (discount rates).

Defining a Supply Arrangement

Supply Arrangements are methods of supply where the client, under the framework of the Arrangement, may solicit bids from a pool of pre-screened vendors.

A Supply Arrangement is not a contract and neither party is legally bound as a result of the signing of this document alone. The intent of the Supply Arrangement is to establish a framework to permit the expeditious processing of legally binding contract for goods or services.

The proposed procurement strategy will offer ease of use by clients for smaller requirements (below $25K) and greater competition for larger requirements (greater than $25K).

Suppliers will have the opportunity to qualify throughout the supply period for Supply Arrangements.

An ongoing qualification process for Supply Arrangements will increase the number of qualified suppliers.

Standing Offers - General

• 2 years firm prices
• Limit the number of series
• Firms are to quote list price, less discount, plus installation for each category
• Requirements less than $25K
• Evaluation will be based on median +10%
• Evaluated median price will be based on the basket of goods per category
• Additional items from the same series meeting the technical requirements will be considered but not included in the median calculation
• Additional items must offer the same discount as the basket of goods to be considered
• CGSB QPL listings on the CGSB website at date and time of closing will be considered
• It is the firm's responsibility to ensure that listing is up to date and meets the RFSO requirements.
• Aboriginal RMSOs/NMSOs items must be on the non-Aboriginal NMSOs.
• All missing substantiating documentation, including technical and environmental details, to be submitted within 5 business days of the request of the Contracting Authority.

Standing Offers Specifics related to each sub-commodity

Cabinets

• Limit the number of series to a maximum of 2 commercially available series per category
• There will be 4 categories (lateral, vertical, storage, personal)

Freestanding

• Limit the number of series to a maximum of 2 commercially available series per category
• There will be 4 categories (executive, full panel, metal leg fixed height, height adjustable)
• A minimum installation fee of $50 will be accepted

Desking

• A minimum installation fee of $100 will be accepted
• Basket of goods will be layouts
• Limit the number of series to one commercially available series

Panel Systems

• No proposed change to the current strategy at this time. It is planned to align the procurement strategy to the others with a future generation of contractual documents.

Office Seating:

• Limit the number of series to a maximum of 3 commercially available series per category
• There will be 2 categories (side chairs and rotary chairs) in the basket of goods
• Side chairs shall consist of 3 sub categories (4 legs with and without casters and stacking)
• Rotary chairs shall consist of 4 sub categories (conference, multi-function passive back adjustment, multi-function manual back adjustment, task).
• There will be a fifth category which will not form part of the basket of goods or be included in the calculation of the median price. This category will be green chairs
• A minimum installation fee of $40 will be accepted
• PWGSC will advise the most commonly procured chairs, which will be utilized in establishing the basket of goods
• 1 soft copy, or link to the Internet Address (URL) of the commercial catalogue for the series offered will be required along with a soft copy of fabric charts
• We will be requesting comments on the environmental criteria established by the sub committee and posted on the PWGSC website

Supply Arrangement (General):

• Open qualification process through a continuous posting on MERX.
• All technically compliant firms are issued a Supply Arrangement.
• Limit the number of series to the same series and additional items offered for the National Master Standing Offers.
• Additional items must offer the same discount as the basket of goods to be considered.
• CGSB QPL listings on the CGSB website at date and time of closing will be considered
• It is the firm's responsibility to ensure that listing is up to date and meets the RFSO requirements.
• Aboriginal Supply Arrangement items must be the same as on the non-Aboriginal Supply Arrangements.

Supply Arrangement Options:

• Option 1 - Utilize e-purchasing updating discounts to published price lists periodically for requirements above $25,000.
• Option 2 - No prices at all, with bids solicited from all Supply Arrangement holders.
• Option 3 - Ceiling prices with bids solicited from all Supply Arrangement holders in the form of a discount to the price.

Option 1 - Utilize e-purchasing updating discounts to published price lists periodically for requirements above $25,000

• Both clients and suppliers are familiar with e-purchasing.
• Competition is online. Users need only have two manufacturers products to be considered competitive.
• New firms could be added through an open qualification process.
• Clients would be able to determine winner based on the results list provided by the system (ranking).
• Discounts are located in e-purchasing thus reducing amendments.
• Substantial time savings as clients would not have to prepare solicitations and for suppliers in not preparing and submitting quotes (159 call ups over $25k and 71 over $40k not including panels). All figures 2008/09.
• Volume discounts will be utilized with e-purchasing and can be increased or decreased only on a monthly basis. Discounts offered will never be less than the original quote.
• Additional items may be added to e-purchasing provided there is competition, i.e.. Two manufacturers offering the same items.
• E-purchasing will be modified to incorporate environmental attributes, provided there is competition in what is being offered, i.e., Two manufacturers offering the same attributes.

Option 2 - No prices at all, with bids solicited from all Supply Arrangement holders

• Competition is at it's strongest, with all firms competing for every requirement.
• There is no limit to the lifespan of the Supply Arrangement unless the requirement changes.
• New firms could be added through an open qualification process at any time.
• No amendments required to change pricing.
• Clients would be able to determine a clear winner through price comparison after receipt of quotes as transportation charges would be included.
• Determining a winning bidder cannot be manipulated by adding or deleting additional items.

Option 3 - Ceiling prices with bids solicited from all Supply Arrangement holders in the form of a discount to the price

• New firms could be added through an open qualification process at any time.
• Clients would be able to determine a clear winner through price comparison after receipt of quotes as transportation charges would be included.
• No amendments required to change pricing.
• Determining a winning bidder cannot be manipulated by adding or deleting additional items.