ITFC Increases Accessibility of The Procurement System

 A Government Mandate- “ Take measures to increase the accessibility of the procurement system”

From the Government web pages:

Our network/platform is effectively re-engineering section 2.6.2 of the Contracting Policy Notice put forward by the Treasury Board and alleviating the pressure of the procurement officers, (contracting authorities),  who are tasked with the responsibility of…..

 

“Conclusively determining whether there are any qualified Aboriginal suppliers”!

According to this notice, someone somewhere, in offices all across the country, a single person is making very important decisions! That’s a lot of pressure when you consider it’s a multi-billion-dollar file!

We, (ITFC),  are taking measures to increase the accessibility of procurement, establishing partnerships, demonstrating enhanced capacity, establishing a new capability, providing incredible value propositions and engaging the Indigenous community in a way that PSAB was mandated to do! 

Why are bringing to light an intersect within the value chain you should know about!

Along the supply chain, there are multiple intersects where millions of dollars of procurement, (tender opportunities), that are disguised as “request for quotes, expressions of interest, invitations to bid”! Often referred to as “the hidden-tiers” within the process, is the procurement that most businesses do not hear about!

Understanding, regardless of the nature of the project, how money flows to finance projects within Indigenous communities across Canada. Our knowledge will enhance your understanding of why we are promoting an enhanced engagement with Indigenous communities!

The check box mentality! (Have three small checkboxes with a checkmark in each)

 

Indigenous leaders are moving away from an old practice where they were forced to get three quotes just so that their funding gets released on time. Indigenous leaders are recognizing the purchasing power they have and demand value for their dollars Technology, like ours, is opening new doors, establishing new partnerships and enabling Indigenous communities to do more with less! 

Introducing Voluntary Set-Asides! Now it gets interesting!

Imagine procurement officers NOW have a capability to identify procurement as a voluntary set aside! WOW!

In fact, it’s true if capacity exists and all the factors are there to “conclusively” determine where operational requirements, the best value, prudence and probity, and sound contracting management can be assured.” The procurement officer/contracting authority can recommend the procurement as a voluntary set-aside to further the objectives of the Procurement Policy!

So, in our “reengineering” approach we do not want to wait for the procurement officer/contracting authority to look for, as it states in the Contracting notice….

 

“……..by means of appropriate advertising either in the Government Business Opportunities publication or by the electronic bidding methodology…”

We believe we can identify, prepare and inform the procurement officer/contracting authority well in advance of planned projects, establishing a strategic position for our membership!

Just so you know this is what the Contracting Policy Notice’s states

Section 2.6.1: ” The PSAB requires all contracting authorities, where the procurement is valued in excess of $5,000, and is destined primarily for Aboriginal populations as defined in TBS Contracting Policy Notice 1996-2, to restrict the procurement exclusively to qualified Aboriginal suppliers where operational requirements, best value, prudence and probity, and sound contracting management can be assured.”

Section 2.6.2: “Given the significance of the Aboriginal population set-aside to the PSAB, departments and agencies should always, as an initial step in any procurement destined primarily for Aboriginal populations, set aside the procurement in order to conclusively determine whether there are any qualified Aboriginal suppliers. This can be done by means of appropriate advertising either in the Government Business Opportunities publication or by the electronic bidding methodology, as necessary. Only if this first step fails to identify qualified Aboriginal suppliers, should the procurement be then opened up to a larger market?”

Consider The Possibilities

When you become a member of our network, we will work diligently in identifying opportunities for you, not just procurement opportunities but potential partnerships where your core product/service will complement that of one or more Indigenous communities where the partnership is mutually beneficial!

Accept our offer and join this incredible network today

 

Image: What is Procurement-Procurement Methods-Procurement Process

What is Procurement | Procurement Methods | Procurement Process

What is Procurement?

 

Procurement in any company is a strategic process of acquisition or purchasing of goods, works, and services from the external sources or organization by inviting them through the different procurement methods like tenders, rate contracts, and purchase orders mainly.

 

The need for Procurement:

In any business sector, every organization always trying to improve the profitability using different processes and strategies. In this procurement is one of the processes that every business follows. Procurement is viewed as a strategic function working to improve the organization's profitability.

 

Procurement can save money, time, and be the way to success for any business, most of the organizations are agree with this. Its savings directly impact bottom-line profits and are one of the most beneficial models for driving a company’s profitability and increasing shareholder value.

Different Methods of Procurement:

Procurement methods are the processes of inviting suppliers or vendors to fulfill the organization’s needs in terms of auxiliary products, services, and goods at the best possible cost.

 

Image - Different Types of Procurement Methods

This procurement invitation process gets done by different methods:

1. Auction

2. Acquisition

3. Rate Contract

4. Purchase Order

5. Agreement

6. Tenders

 

Auction:

An auction is a sales event wherein potential buyers or vendors place competitive bids on goods or services either in an open or closed format. Auctions are popular because buyers and sellers believe they will get a good deal of buying or selling assets.

 

Acquisition:

The acquisition is the method of acquiring a company and reporting the purchase on the balance sheet of the company that acquires it. The resources of the targeted organization are added to the balance sheet.

 

Rate Contracts:

This is the agreement between the purchaser organization and supplier firm to provide assets at a specified price for the mentioned period as in agreement.

Rate contracts are mainly Fixed Price(FP) contracts, Time and Material(T&M) contracts, and Cost Reimbursable(CR) contracts.

 

Purchase Order:

In this method purchaser or buyer send a legal document called Purchase Order(PO) to the vendor or supplier. This document outlines the specific goods or services that buyers want to purchase. When the vendor accepts this it becomes a Bidding Contract.

 

Agreement:

In this method, a legal document is signed by both purchasers and buyers that is called an agreement. This is between a buyer and a seller in which the buyer agrees to purchase goods or/and services from the seller in exchange for payment transactions.

 

The agreement outlines detailed price lists, conditions of delivery, date of delivery, payment method and information, legal terms, and condition.

 

Tenders:

A company or organization specifies its requirement of goods or services in front of the potential seller or vendor. Subsequently, it will open bidding in a process known as tendering. 

 

Among all above the methods mostly public sector companies or organizations used the tendering method where they choose the lowest cost bidder due to the budget constraints.

 

What is Procurement Cycle or Procurement Process:

The procurement cycle is a series of steps to acquire goods and services after identifying needs and specify them. This cycle follows by every industry and every organization.

 

Image - Procurement Process or Cycle

From the first step identify the needs for payment and record maintenance this cycle has different stages. These areas follow:

 

1. Identify Needs

2. Specification of Need

3. Selecting Procurement Method

4. Shortlist & Select Suppliers

5. Award of Contract

6. Receive Goods/Services

7. Evaluate Performance

8. Supplier Relationship Management

9. Invoice Approvals and Payment

10. Record Maintenance

 

Identify Needs:

The first step of the procurement cycle is to identify what services and goods should exactly need and why. The purchasing department, technical expertise, and some other company department discuss the needs and summarizes the need, and prepare a document.

Specification of Need:

All team members and experts specify the needs of services and goods. Specify the quantity, quality, product, and service they want to acquire. After that, a legal document prepares with all specifications.

 

Selecting Procurement Method:

Select one of the procurement methods suitable for the purchaser, buyer, and business workflow. Most of the time public or government organizations choose the tendering methods because of some budget constraints.

On the other end, private companies and organizations choose methods like rate contracts, purchase orders, or maybe some time acquisition.

 

Shortlist & Select Suppliers:

After the process of tendering and bids are done, shortlisting and selecting the most likely vendor is becoming the most important stage. The solicitation contains all of the criteria that a prospective offeror must accommodate and honor in order to be considered for award.

 

Award of Contract:

After selecting the most likely vendors the next step is to award a contract. This happens when the buyer organization received and finalizes whose proposal fulfills the required criteria and requirement.

 

Sometimes, the offeror needs more information and details about the proposal than the offeror discuss with the vendor. In this stage, selected firms will enter negotiations with the buyer so the additional information hashed out and a final award made.

 

Receive Goods & Services:

This stage of the procurement process involves the logistic department to come into action. The supplier sends goods and services as mention in the contracts and agreement.

Purchasers receive the goods and services they want.

 

Evaluate Performance:

The performance of the goods and services evaluated in this step. Purchaser monitor and review at agreed periods against Key Performance Indicators (KPIs) as mention in the contractual terms.

 

Supplier Relationship Management(SRM):

This is the systematic approach an organization takes in assessing supplier contribution. This clears the scenario for the supplier on how its services impact the business of the buyer.

 

This also introduces the scope of improvement in the supply chain process between needed and provider. This most important part of the Supply Chain Development in Supply Chain Management (SCM).

 

This step also important because it is carried out to determine if business requirements have changed.

 

Invoice Approval & Payment:

This stage of the procurement process will involve the company’s finance department. The finance department receives bills and invoices from the supplier. After this finance team matching the invoice against an approved Purchase Order(PO). If everything is in accordance with the contract terms and purchase order finance department sends payment to vendors.

 

Record Maintenance:

This final step of the procurement cycle is most important to justify all procurement needs and how had this impacted company’s profit. The audit department keeps all purchase requisitions through the invoice.

 

Summary:

The procurement process is the long-term strategic process for any organization. The objective of this article is to provide the information and knowledge of an effective procurement process that helps organizations to create a well-structured cycle.

 

After reading the complete post your last question may be “How and where to find procurement opportunities?” then some organizations come into the picture that offers procurement services for both purchasers and sellers to make easy business development.