presented by: frank mackinnon ontario small vendors association in collaboration with york...
TRANSCRIPT
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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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Ontario Government In Review
Setting the stage Getting to “GO” Learn from the leaders Taking the next steps
Agenda
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Ontario Government In Review
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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Ontario Government In Review
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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Ontario Government In Review
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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Ontario Government In Review
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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Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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Government I&IT Structure
CCIO CTIO
CIO
CIO
Other
CIO
1 CCIO – 8 CIOs CTIO responsible for CIO needs
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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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Structure Prospecting and Lead Generation
Ontario Government In Review
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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Structure Prospecting and Lead Generation
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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
Ontario Government In Review
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