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Proposed Procurement Strategy for Office Furniture

Government Office Furniture Advisory Committee
Meeting - March 15, 2011
Gatineau, Quebec

Scope

  • Office Furniture, 8 sub-commodities
    • Cabinets, Desking, Freestanding, Shelving, Panels, Office Seating, LAN Racking, Remanufactured panels
  • Consolidated Procurement Instrument ("program")
  • Open & Procurement Strategy for Aboriginal Businesses (setaside)
  • Up to $10M

Planned Change

To Supply Arrangements

Two-phased procurement

  • Phase I = Solicitation & SA award
  • Phase II = Individual Bid & Contract Award process, on-going opportunities and maintenance

Not SO & SA

Supply Arrangement - Phase I Solicitation & Award

For office furniture

  • PWGSC carries out
  • Request for Supply Arrangement (RFSA)
  • Basket of goods, additional products, services
  • Ceiling prices - client estimate
  • No median evaluation
  • Compliant bid becomes SA holder ("pre-qualified")
  • SA - no expiry date

Supply Arrangement - Phase II Individual Bid Requirement & Contract Award

For office furniture

  • Clients' individual needs
  • Solicitation, bid and contract award - scope of SA to $10M
  • Bids accepted only from SA holders

Clients

  • Procure to $400K

PWGSC

  • Procure >$25K to $400K (upon client request)
  • Procure >$400K to $10M
  • Manage SA's
  • Competition amongst SA holders - <$25K - $10M
  • Sole source allowed - <$25K
  • On-going opportunity (qualification) to become SA holder
  • Periodic opportunities
    • Ceiling prices refresh
    • Add additional products & environmental attributes
  • SA holders can withdraw
  • PWGSC can cancel and revise
  • PWGSC can update SA requirements if changes not significant - no need for new Phase I (RFSA)

Supply Arrangement
Issues and Planned Resolution

Issues and how SA resolves

Issue Resolution
1. Closed access 1. On-going opportunity
2. Lengthy evaluation 2. Distributed evaluations
(parallel: being examined)
3. Bid clarifications disallowed 3. On-going opportunity
4. Test Report Form complex 4. On-going opportunity
(parallel: being revised)
5. Complex 5. Simplified
  1. Templates Phase II
  2. Single CPI, uniform approach (Tiers)
  3. Same products to $10M (Tiers)
  4. No Price List to become SA holder
  5. No discount to become SA holder
  6. Choose descriptive literature
  7. Use BoG, related products, services (preestablished)
6. Test costs 6. Relief:
  1. Open SA period - return on investment
  2. Cost management - choose when to bid
7. Pressures on laboratories, bidders, PWGSC 7. Relief
  1. Choose when to bid
  2. Distributed evaluations
8. Over 2 years, maintain prices/costs and/or improve discounts 8. Relief
  1. Bid current (firm) prices in Phase II
  2. Refresh products and ceiling prices during Phase II
9. PWGSC turn-around for client individual needs 9. Faster:
  1. Client procures to $400K
  2. Select pre-qualified products (BoG, optional products)
10. Lowest price 10. Best value (limited):
  1. Best delivery
  2. Other under consideration

Issues and Planned Resolution

Questions?

National Strategy Planned

September 2010 - Commodity Review - office furniture

  • Eight sub-commodities
  • National
  • Varied data - GoC internal & external (including informal consultations with clients & industry)

October 2010 - February 2011

National Strategy for procuring office furniture drafted considering:

  • Commodity Review data
  • Current policies, directives and practices
  • Commodity Management Review Framework
  • Aligned with planned resolutions herein
  • Publish draft Strategy & Commodity Review for comment by clients and industry - targeting June 2011
  • Comments considered for final National Strategy (NS)
  • Final NS to have executive approval (estimated February 2012)
  • Approved NS becomes policy for a set period
  • Approved NS to be published
  • Implementation: succeed expired consolidated procurement instruments (CPI)

Questions?

Moving Forward

CPIs expiring BEFORE the final NS (Feb. 2012 planned)

CPIs expiring AFTER the final NS

Moving Forward - Proposed Interim Measure
CPIs expiring BEFORE final NS

  • Office Seating - June 2011
    • Succeed by planned SA, aligned with NS
    • Extend commensurate with Phase I process for issuing SAs

Pilot

  • Mobile Shelving - July 2011
    • Request for Information (RFI) for specifications to be released
    • Same as Office Seating
  • Panels
    • Competitive: Sept. 2011, Negotiated: Jan. 2012
    • RFI for specifications to be released
    • Same as Office Seating
  • Cabinets
    • March 2012
    • Succeed by final NS
  • Remanufactured Panels
    • March 2012
    • Succeed by final NS
  • LAN Racking
    • October 2012
    • Succeed by final NS
  • Desking
    • Standing Offers <$25K, 1 year + option years (soon)
    • Succeed by final NS
  • Freestanding
    • Planned expiry March 2013
    • Succeed by final NS