bcts contracting practices

BCTS Contracting BCTS Contracting PracticesPractices

Summary of Audit FindingsSummary of Audit FindingsApril 2007April 2007

BCTS Contracting PracticesBCTS Contracting Practices

7 Business Areas audited to date7 Business Areas audited to date: : 1.1. Seaward tlasta Seaward tlasta 2.2. Babine Babine 3.3. Cariboo Chilcotin Cariboo Chilcotin 4.4. Stuart NechakoStuart Nechako5.5. Prince GeorgePrince George6.6. Okanagan ColumbiaOkanagan Columbia7.7. SkeenaSkeena8.8. 4 more planned for 07/084 more planned for 07/08


Numerous examples of fine contract Numerous examples of fine contract management have been observed. management have been observed.

Significant improvement in many of Significant improvement in many of the contracting practices identified the contracting practices identified as deficient in previous audits and as deficient in previous audits and reviews reviews

Good PracticesGood Practices

Overall contract documentationOverall contract documentation Advertising and award practices Advertising and award practices Number of direct awards. Number of direct awards. Invoice payment processesInvoice payment processes Use of check lists and data sheetsUse of check lists and data sheets Use of equipment hireUse of equipment hire Management oversight of planningManagement oversight of planning

Areas for ImprovementAreas for Improvement

Co-ordination of planning and Co-ordination of planning and activitiesactivities

Management Oversight / Risk Management Oversight / Risk ManagementManagement

TrainingTraining DAs & Equipment Hire DAs & Equipment Hire RFPs – OTR & Multiyear contractsRFPs – OTR & Multiyear contracts


A lack of co-ordination of contracting A lack of co-ordination of contracting activities within Business Area activities within Business Area between field-teams is creating between field-teams is creating inefficient and less than effective inefficient and less than effective contracting practices.contracting practices.


Increased risk of unfair, or perceived Increased risk of unfair, or perceived unfair, contracting practices unfair, contracting practices

Not consistent with the BCTS Not consistent with the BCTS business modelbusiness model

Not client service focusedNot client service focused Has resulted in contractor complaints Has resulted in contractor complaints


Contracting risks will be reduced and Contracting risks will be reduced and the effectiveness of contracting the effectiveness of contracting practices increased by ensuring that practices increased by ensuring that Business Areas function as a single Business Areas function as a single business unitbusiness unit


Increased involvement and oversight Increased involvement and oversight by the TSM and BALT is required by the TSM and BALT is required

Mgmt oversight in planning and Mgmt oversight in planning and monitoring to ensure appropriate monitoring to ensure appropriate accountability and level of risk.accountability and level of risk.

Introduction of regular periodic Introduction of regular periodic management reportingmanagement reporting


Ensure sound principles of risk Ensure sound principles of risk management underscore contract management underscore contract decisions. decisions.

Too frequently high-risk contracting Too frequently high-risk contracting decisions are being made by decisions are being made by Contract Coordinators.Contract Coordinators.


The number, type, award method and The number, type, award method and value of contracts by contractor should be value of contracts by contractor should be reviewed.reviewed.

To ensure the achievement of the To ensure the achievement of the fundamental contracting objective for fair fundamental contracting objective for fair access to government business.access to government business.

More holistic long-term planning within More holistic long-term planning within

Business Areas to help ensure both Business Areas to help ensure both contract and business risks are adequately contract and business risks are adequately addressedaddressed


The Business Officers not used effectively The Business Officers not used effectively or as is intended. or as is intended.

Should assume a greater leadership role.Should assume a greater leadership role. Ensure that effective contracting Ensure that effective contracting

accountability and performance accountability and performance management frameworks are in place.management frameworks are in place.

Provide assurance that contracting Provide assurance that contracting practices are effective and in compliance practices are effective and in compliance with ministry contracting policies.with ministry contracting policies.

TrainingTraining

More training is requiredMore training is required. . A lack of understanding of risk, contracting A lack of understanding of risk, contracting

principles, law, and policies has led to principles, law, and policies has led to inappropriate policy interpretation or inappropriate policy interpretation or avoidance resulting in:avoidance resulting in:– Inappropriate practices and award decisions.Inappropriate practices and award decisions.– Lack of fair access to work.Lack of fair access to work.– The acceptance of individual and Business The acceptance of individual and Business

Area risks well above reasonable levels.Area risks well above reasonable levels.

DAs & Equipment HireDAs & Equipment Hire

Number of direct awards and use of Number of direct awards and use of equipment hire still an issue in some equipment hire still an issue in some locations.locations.

Other locations have significantly Other locations have significantly reduced the number of directly reduced the number of directly awarded contracts and equipment awarded contracts and equipment hire agreements.hire agreements.

RFPs – OTR & MY ContractsRFPs – OTR & MY Contracts

Inappropriate use of RFPs and OTR & Inappropriate use of RFPs and OTR & MYC increase risk of not providing MYC increase risk of not providing fair access to work. fair access to work.

RFPs for silviculture contracts not RFPs for silviculture contracts not consistent with policy. consistent with policy.

OTR & MYC changes to tender and OTR & MYC changes to tender and contract terms not always consistent contract terms not always consistent with policy.with policy.


Fail to achieve objective for Fail to achieve objective for defensible and justifiable contract defensible and justifiable contract awards.awards.

Have resulted in several complaints Have resulted in several complaints of unfair award practices. of unfair award practices.

Significant legal exposure. Significant legal exposure.


Contracting risks will be reduced by Contracting risks will be reduced by ceasing to use Requests for ceasing to use Requests for Proposals and increasing the use of Proposals and increasing the use of Invitations to Tender to procure Invitations to Tender to procure silviculture services.silviculture services.

Sharing Lessons & Best PracticesSharing Lessons & Best Practices

Final Reports and Action Plans all on Final Reports and Action Plans all on BCTS HQ Corporate Operations web BCTS HQ Corporate Operations web site.site.


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bcts contracting practices

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