Supplier Advisory Committee: June 5, 2024

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Agenda

Meeting location: Native Women’s Association of Canada in Gatineau QC.

Agenda (9:00 to 3:00 pm, Eastern Standard Time (EST))

Time (EST)	Subject	Speaker
8:30 to 9:00 am 30 minutes (min)	Networking Refreshments served at the first break	Not available (N/A)
9:00 to 9:15 am 15 min	Gathering and opening ceremony Land acknowledgement Roundtable introductions Opening ceremony Opening remarks	Co-chairs, Supplier Advisory Committee (SAC): Mollie Royds, Associate Assistant Deputy Minister (AADM) Procurement, Public Services and Procurement Canada (PSPC) Michele Lajeunesse, Senior Vice-President, Government Relations and Policy, TECHNATION Louise Garrow, Indigenous Elder, Sagamok Anishnawbek First Nation
9:15 to 9:20 am 5 min	Approval of Record of Discussion SAC meeting of February 21, 2024	Co-chairs
9:20 to 9:40 am 20 min	Contract Modernization Initiative Update (5 min) SAC feedback (15 min)	Joëlle Paquette, Director General (DG), Procurement Support Services Sector (PSSS), PSPC Mohit Sharma, Director, Buy and Sell, Acquisitions Program Transformation Sector, PSPC
9:40 to 10:00 am 20 min	Procurement Assistance Canada (PAC) Update Update (10 min) SAC feedback (10 min)	Clinton Lawrence-Whyte, DG, PAC, PSPC
10:00 to 10:15 am 15 min	Health break and networking Coffee and refreshments provided	N/A
10:15 to 10:30 am 15 min	Supplier Diversity Program update (Embargoed) Update (10 min) SAC feedback (5 min)	Levent Ozmutlu, DG, Strategic Policy Sector (SPS), PSPC Angus O'Leary, Senior Director, Social and Environmental Procurement Policies (SEPP), SPS, PSPC
10:30 to 10:45 am 15 min	Green Products Procurement Tool Overview (5 min) SAC feedback (10 min)	Levent Ozmutlu, DG, SPS, PSPC Angus O'Leary, Senior Director, SEPP, SPS, PSPC
10:45 to 11:30 am 45 min	Budget 2024: Industry consultation on small business and innovation targets Overview (10 min) SAC feedback (35 min)	Levent Ozmutlu, DG, SPS, PSPC Ricardo Seoane, Executive Director, Compliance and Integration Directorate, SPS, PSPC Bradley Goodyear, DG, Innovative Solutions Canada (ISC), Innovation, Science and Economic Development Canada (ISED) Christopher Baird, Senior Director, ISC, ISED Kathleen Cavarello, Acting Director, ISC, ISED
11:30 am to 1:00 pm 90 min	Lunch break and informal discussion Lunch provided	N/A
1:00 to 1:30 pm 30 min	Reciprocal Procurement Overview (10 min) SAC feedback (20 min)	Michèle Govier, DG, International Trade Policy, International Trade and Finance, Finance Canada Nadine Nickner, Director, Procurement, Trade and Environment, Market Access, Trade Policy and Negotiations, Global Affairs Canada
1:30 pm to 2:00 pm 30 min	Supplier Integrity and Compliance Office Overview (10 min) SAC feedback (20 min)	Catherine Poulin, Assistant Deputy Minister (ADM), Departmental Oversight Branch (DOB), PSPC David Naus, DG, Integrity and Forensic Account Services (IFAS), PSPC Daniel Whalen, Senior Director, Integrity Regime (IR), IFAS, PSPC
2:00 to 2:20 pm 20 min	Professional Services Transformative Solutions update Overview (10 min) SAC feedback (10 min)	Lysane Bolduc, DG, Professional Services Transformative Solutions Sector (PSTSS), PSPC
2:20 to 2:35 pm 15 min	Health break and networking Coffee and refreshments provided	N/A
2:35 to 2:50 pm 15 min	SAC Priorities and Forward Agenda SAC Priorities (10 min) Forward Agenda (5 min)	Co-chairs
2:50 to 3:00 pm 10 min	Roundtable and closing remarks Roundtable (5 min) Closing remarks (5 min) Next meeting: October 16, 2024 (virtual)	Co-chairs

Record of discussion

June 5, 2024, from 9 am to 3 pm (ET)

Attendees

The following regular members and guest speakers attended or sent their regrets.

Co-chairs: Present

• Government co-chair: PSPC, Procurement Branch (PB), Mollie Royds, AADM, Procurement
• Private sector co-chair: TECHNATION, Michele Lajeunesse, Senior Vice President, Government Relations and Policy

Members: Present

• Aerospace Industries Association of Canada (AIAC): Louis-Charles Roy, delegate for Dwayne Lucas, Vice President, Special Projects
• Canadian Aboriginal and Minority Supplier Council (CAMSC): Cassandra Dorrington, President & Chief Executive Officer (CEO)
• Canadian Association of Defence and Security Industries (CADSI): Nicolas Todd, Vice President, Government Relations and Communications
• Canadian Association of Management Consultants (CMC-Canada): Donna Ringrose, Executive Director
• Canadian Association of Management Consultants (CMC-Canada): Sandy Moir, Partner at Goss Gilroy Inc. Management Consultants
• Canadian Chamber of Commerce (CCC): Alex Greco, Senior Director, Manufacturing & Value Chains
• Canadian Federation of Independent Business (CFIB): Michelle Auger, Manager, National Business Issues and Projects
• Canadian Gay and Lesbian Chamber of Commerce (CGLCC): Darrell Schuurman, Co-Founder and CEO
• Canadian Manufacturers and Exporters (CME): Haroun Mansour, delegate for Ryan Greer, Vice President, Public Affairs & National Policy
• Council for the Advancement of Native Development Officers (CANDO): Ray Wanuch, Executive Director
• Women’s Business Enterprises Canada Council (WBE Canada): Charli Law Jury, Interim CEO, Director of Finance & Operations, with Jennifer Popowicz, Director of Certification and Community

Members: Absent

• Black Businesses and Professional Association (BBPA): Frances Delsol, Vice President Partnerships, Outreach and Procurement

Special guests and presenters: Present

• Finance Canada, Michèle Govier, DG, International Trade Policy
• Global Affairs Canada (GAC), Nadine Nickner, Director, Procurement, Trade and Environment, Market Access, Trade Policy and Negotiations
• ISED, Bradley Goodyear, DG, Innovative Solutions Canada (ISC)
• ISED, Christopher Baird, Senior Director, ISC
• ISED, Kathleen Cavallaro, Acting Director, ISC
• PSPC, Clinton Lawrence-Whyte, DG, Procurement Assistance Canada (PAC)
• PSPC, Catherine Poulin, ADM, DOB
• PSPC, David Naus, DG, IFAS
• PSPC, Levent Ozmutlu, DG, SPS
• PSPC, Angus O’Leary, Executive Director, SPS
• PSPC, Joëlle Paquette, DG, PSSS
• PSPC, Louise Kelly, Director, Centralized Services Directorate (CSD), PSSS
• PSPC, Mohit Sharma Director, Buy and Sell, Acquisitions Program Transformation Sector
• PSPC, Lysane Bolduc, DG, PSTSS
• Sagamok Anishnawbek First Nations, Louise Garrow

Supplier Advisory Committee secretariat: Present

• PSPC, Louis-Martin Parent, Senior Director, Supplier Engagement and Regional Coordination (SERC)
• PSPC, Richard Lincoln, Manager, Inreach, SERC
• PSPC, Michel Gagne, Inreach
• PSPC, Fresnel Devalon, Inreach
• PSPC, Fabiola Ingabire, Inreach

Gathering and opening ceremony

The government co-chair introduced herself and thanked all for attending this second in-person meeting since January 2020.

Land acknowledgement

The government co-chair acknowledged that this meeting was being held on unceded territory of the Anishinaabeg Algonquin people.

Roundtable introductions

The private sector co-chair invited participants to introduce themselves and their organizations.

Opening ceremony

The government co-chair invited Louise Garrow, of Sagamok Anishnawbek First Nations, to open the meeting with a reflection from the perspective of the Indigenous community. Elder Garrow proceeded to share her thoughts and prayers about our responsibility for this land and people, the blend of knowledge from the western world and Indigenous people and our legacy to future generations.

Opening remarks

The government co-chair invited all to participate in the official language of their choice.

Approval: Record of discussion, February 21, 2024

SAC unanimously approved the record of discussion for the February 21, 2024, meeting.

Contract Modernization Initiative

PSPC-PSSS provided an update on the contract modernization initiative.

Presentation summary

PSPC-PSSS provided highlights of the key changes in the Contract Modernization Initiative (CMI). CMI seeks changes to facilitate bidder applications included simplifying the contract structure, using plain language, while adopting the comprehensive approach of the Standard Acquisition Clauses and Conditions (SACC) Manual.

In summer 2024, PSPC-PSSS removed the SACC Manual from BuyAndSell and archived and migrated information to CanadaBuys.

SAC members provided the following feedback:

• SAC members, especially CADSI and TECHNATION, expressed concerns that bidders, especially small businesses, will still need to access clauses in the SACC Manual. PSPC-PSSS noted that all the SACC archives are built into, and easy to find, on CanadaBuys and that this change was communicated to suppliers
• TECHNATION inquired whether profit transparency has been incorporated into the changes, as it might be part of SAC’s discussion on professional services. PSPC-PSSS indicated that the transparency aspect is a new clause that came out in November 2023, and was not part of CMI
• CANDO wanted to know the number of Indigenous bids that were received under CMI. PSPC-PSSS indicated that they simply surveyed numbers, not the type of bidders, and added that all policies (e.g., Indigenous procurement) that are now under development will have clauses for procurement officers to easily incorporate into procurement

Procurement Assistance Canada update

PSPC-PAC provided an update on Procurement Assistance Canada developments.

Presentation summary

PSPC-PAC began by noting its mandate to work with small and medium enterprises (SME) and diverse businesses to pursue economic reconciliation and supplier diversity. PAC also reminded SAC members of outreach services through PAC-organized or -supported events including Small Business Information Expos (SBIE) to connect businesses with subject matter experts; Public Sector Buyers’ Expo to connect prospective suppliers with government buyers; and PAC Coaching Service for personalized sessions.

PSPC-PAC has surpassed its national targets for participation to raise awareness of procurement. Community partners provided positive feedback, increased participation of socio-economic businesses, and a high-level of satisfaction of participants. PSPC-PAC will continue to enhance collaboration with Indigenous businesses, support the launch and implementation of the Supplier Diversity Program (SDP) as well as build connections between major initiatives, programs, and federal procurement.

SAC members provided the following feedback:

• CAMSC and CGLCC, applauded PSPC-PAC’s support to diverse suppliers. CAMSC inquired about whether PSPC-PAC was tracking the rate of conversion from business to “new supplier.” PSPC-PAC indicated that it would consider this new data point
• CAMSC also raised the issue of limited rural broadband as an issue for providing virtual services to rural businesses to learn about procurement. PSPC-PAC recognized that broadband could pose issues for virtual webinars while noting its ability to reach to a greater number of businesses across Canada. PSPC-PAC did note that in cases such as Indigenous communities, headway was made in terms of reach through in-person events
• CGLCC asked about buyers’ feedback for Buyers Expos and whether these events are done regionally or in one location. PSPC-PAC noted that, at this point, government buyers’ feedback is anecdotal; however, there is a growing level of support for the opportunity to engage with industry. PSPC-PAC also replied that Buyers Expos happen across the country and are sequenced to build participation

Supplier Diversity Program update

PSPC-SPS provided an update on the supplier diversity program.

Levent Ozmutlu, SPS, briefed SAC on the upcoming Supplier Diversity Program (SDP), as part of PSPC’s continuing consultations on the program. The presentation and input from SAC members on the SDP are embargoed until the program is launched. SAC secretariat will then update the record of discussion.

Green Products Procurement Tool

PSPC-SPS provided an update on the Green Products Procurement Tool.

Presentation summary

PSPC-SPS highlighted that the primary objective of the Canadian products Green Products Procurement Tool (GPPT) is to help procurement officers and clients easily identify cleantech products. GPPT is a database to help buyers select from suppliers’ green products. PSPC-SPS added that GPPT is a platform that can also function as a market research tool for government buyers and policy researchers to learn about the environmental attributes of competing cleantech products.

SAC members provided the following feedback:

• TECHNATION suggested that buying from sustainable suppliers should receive higher value in terms of evaluation. PSPC-SPS replied that green public procurement is meant to facilitate the purchasing of green products
• CANDO asked if a company that buys a carbon offset qualifies as being green. PSPC-SPS replied that this might be an area for future exploration
• TECHNATION and CGLCC sought to understand if other elements such as ethical procurement or diversity could also be used to select suppliers or products through the GPPT. SPC-SPS replied that it may consider this in the future

Budget 2024: Industry consultation on small business and innovation targets

PSPC-SPS and ISED-ISC provided an overview on the industry consultations on small and medium business and innovation targets with regards to Budget 2024.

Presentation summary

In Budget 2024, the Government announced its intent to consult with industry regarding proposed legislated procurement targets for small and medium sized businesses and innovative firms. Procurement was recognized as a mechanism by governments for its ability to help address key industrial development issues such as research and development, intellectual property creation, and productivity.

Internationally, strategic procurement to support innovation is achieved through different tools. For instance, the US has legislative targets to small businesses, procurement programs to engage with small businesses, the Small Business Innovation Research (SBIR).

SAC members provided the following feedback:

• TECHNATION opened the discussion by noting that the government does not drive innovation and instead needs to be a good buyer of innovative products and services from small businesses. Regarding innovative procurement, Canadian Association of Management Consultants (CMC) inquired about a target for SMEs or increasing procurement for SMEs. ISED replied that it is working on options for Cabinet to consider in the fall and the proposal that goes forward will be shaped by consultation with industry regarding innovation
• AIAC and CADSI asked if defence procurement is part of the initiative, and while AIAC inquired about how Industrial and Technological Benefits will be impacted. ISED indicated the goal is to help Canadian firms be innovative and sell to all parts of the federal government
• CCC and CME expressed concerns that Canadian innovations, funded by Canada, often fail to be purchased by Canadian public sector buyers. CCC also suggested looking at the Defense Advanced Research Projects Agency in the US to understand how to create a vibrant ecosystem for government-private sector partnership to drive innovation and address SME challenges. CMC reminded ISED that Canada has a longstanding program with Industrial Research Assistance Program (IRAP) to build up businesses to sell to the government. TECHNATION also proposed to look at Shared Services Canada’s Scale-Up Program to drive innovation from women-owned and Indigenous businesses. CFIB and CAMSC suggested that financing and program support to SMEs is a key missing part to reach the next level for innovative products and services. ISED indicated they have a target and, at the same time, appreciated the recommendation for program support to achieve the targets
• CANDO brought up the rural versus urban dynamic and inquired about how an innovative rural Indigenous business is going to sell to the federal government
• Due to timing constraints, PSPC-PB and ISED concluded the discussion. They invited SAC members to submit any remaining questions by June 26

Reciprocal Procurement

The teams of Finance Canada and Global Affairs Canada provided an overview on the reciprocal procurement.

Presentation summary

The Canadian government is developing options for reciprocal procurement to make sure that Canada only buys from those countries that buy from Canadian businesses. This initiative is inspired by similar programs put in place by other international jurisdictions.

Based on consultations with industry, academics, provinces, and territories, three broad approaches are being considered to implement reciprocal procurement policies in Canada, which include applying reciprocity to federal procurement; placing conditions on federal funding for infrastructure projects; and creating a preference program for procurement from Canadian small businesses. The government could also consider the origin of suppliers by way of their location or the origin of the commodity.

SAC members provided the following feedback:

• SAC members, including CAMSC and TECHNATION, were concerned about the impact of such policies on Canada’s current economic situation, specifically the way it affects the manufacturing industries
• GAC replied that all three approaches are based on what US is doing with the Buy American Act, and they are consistent with Canada’s approach to international trade. Finance continued to say they are dedicating strong efforts to the policies to chart the way forward
• PSPC-PB added that this is a good opportunity to get feedback ahead of finalization of the policies

Office of Supplier Integrity and Compliance

PSPC-DOB provided an overview on the supplier integrity and compliance office.

Presentation summary

PSPC recently launched the Office of Supplier Integrity and Compliance (OSIC) to help ensure the Government of Canada does business with ethical suppliers.

A key component of the new office is the updated Ineligibility and Suspension Policy (the Policy). The Policy has been modified to broaden consideration of business ethics and enable PSPC to engage suppliers on a case-by-case basis, in the absence of criminal charges or convictions when they present a risk to federal procurement. Moreover, OSIC is responsible for the development and deployment of further data analytics capacity to detect potential fraudulent schemes and other types of wrongdoing.

Following the announcement in late March 2024, PSPC has undertaken broad engagement activities—both internally and externally.

SAC members provided the following feedback:

• CADSI asked what type of industry consultation PSPC did to update the Policy and to understand ownership and control of suppliers. PSPC-OSIC replied that they conducted extensive consultations starting in 2017 while continuing to conduct research to implement the latest approaches in other jurisdictions
• CADSI, CAMSC and PSPC-PAC asked about specific elements from suppliers in terms of change of oversight and the perspective of other countries’ jurisdiction. PSPC-OSIC will increase focus on risk mitigation to close gaps with the previous regime while considering the approach taken in international jurisdictions to debarment from selling to the federal government. PSPC-OSIC wishes to a measured approach to acting against suppliers and move out of the “black and white” approach of the former regime
• CAMSC also asked about ethical behaviours and performance management. PSPC-OSIC replied that they engage with suppliers to understand their perspective through a fair and due process to review every case
• CANDO also asked whether inputs from Indigenous communities have been integrated into the OSIC. PSPC-OSIC replied that any procurement with Indigenous businesses falls within Indigenous Services Canada, including joint ventures between non-Indigenous companies and Indigenous suppliers

Professional Services Transformative Solutions

PSPC-PSTSS provided an overview on the professional services transformative solutions update.

Presentation summary

PSPC-PSTSS noted that Professional Services have recently received public and media attention, regarding the federal government’s procurement practices and related expenditures. To address these concerns, procurement of professional services is under transformation to include measurable scope definition, resource evaluation after the contract award, revised approach for financial submissions and evaluations, among other factors.

The private sector is engaged throughout the process around key themes such as the evolving role of professional services providers, navigating the federal procurement process and removing barriers, enhancing competition by attracting new suppliers who have been identified.

SAC members provided the following feedback:

• CMC-Canada asked for clarification on why information is being sought from suppliers, such as details on subcontractors. PSPC-PSTSS indicated that they are looking to reduce the number of subcontractors, and noted information requests for subcontractors’ profit and cost margin at the contract award help understand who is doing the work for the contract
• CADSI inquired if sharing information are used against suppliers, and what happens when Parliament asks for information on suppliers. PSPC-PSTSS said they understand the sensitive nature of the information requested only for contractors and subcontractors that won contracts, and not all bidders. PSPC-PSTSS also reassured SAC members that the information is treated confidentially, and this process is part of transparency and competitiveness
• CADSI also expressed concern about restrictive requirements in the statement of work that create barriers to businesses bidding (e.g., those owned by veterans of the Canadian Armed Forces). PSPC-PSTSS said that procurement officers need to work with government departments and agencies on the statement of work to ensure a variety of suppliers can meet the requirements

Supplier Advisory Committee priorities and forward agenda

The Government co-chair invited SAC members to share their priorities for SAC.

Supplier Advisory Committee priorities

The SAC Secretariat led the discussion with SAC members regarding the Committee’s priorities on behalf of the government and private-sector co-chairs.

The secretariat started the discussion by highlighting the priorities identified in October 2023, including:

• Scope and purpose of SAC
• Outcome-based approaches to procurement
• Support to SMEs
• Communications
• Modernization, especially Transformation of professional services
• Vendor Performance Management (VPM)
• Indigenous priorities

SAC members provided the following feedback:

• CMC-Canada proposed to include a topic on the transformation in professional services, including new tools and more consultations. PSPC-PB noted this suggestion and advised that it would be taken into consideration
• CMC-Canada, CFIB and TECHNATION expressed disappointment about the lack of perceived progress on Vendor Performance Management (VPM), as PSPC previously engaged SAC members between 2017 and 2019. The same SAC members also advised that the VPM needs to be carefully integrated into procurement. PSPC-PB reminded SAC that the pilot was paused due to the pandemic, and PSPC wants to reopen it now. PSPC-PB also said that the scale and ratings of VPM need to be clear
• The SAC Secretariat asked if the past priorities could be folded into the current ones as SAC moves forward. CMC asked that former priorities be retired before adding new ones
• CMC-Canada inquired if outcome-based approaches to procurement are part of a stand-alone project or embedded under the SMEs and professional services. CMC-Canada also expressed concern about cross-government procurement and inquired about the role and the scope of the SAC Committee. PSPC-PB reiterated that PSPC is the main contracting authority for the government. PSPC-PB also stated that they develop parameters and scope, and Treasury Board Secretariat (TBS) sets the priorities, while PSPC is a common-service provider
• CANDO asked whether there is a willingness to hear from Indigenous Services Canada and the three distinction-based groups on procurement. CANDO further added that these could be best practices and thought the NACCA and the FNPO could also be invited later
• PSPC-PB offered appreciation to the SAC members’ participation and valued their feedback

Roundtable and closing remarks

The government co-chair invited SAC members to raise any final points or comments before the meeting concluded. No members raised any additional points.

The government co-chair thanked SAC members for their ongoing commitment to represent their industry associations. SAC members were reminded that the next SAC meeting, on October 16, 2024, will be virtual.