Shared Services Canada

Procurement – A Reflection on 2012-13 and the Way Forward

Information Technology Association of Canada (ITAC) Executive Briefing Series

Gina Rallis, Senior Assistant Deputy Minister and CFOCorporate Services BranchMay 21st , 2013

Objective and Context

Objectives• To provide a summary of SSC’s procurement year for 2012-13• To provide an overview of SSC’s plans to support transformation

agenda through procurement

Context1. Current state procurement environment SSC

2. Spend analysis

3. Procurement Planning at SSC

4. Engagement: Information Technology Infrastructure Roundtable

5. Update on Procurement Instruments

6. Procurement of End User Devices

7. Next Steps

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SSC’s procurement environment

• Over the past 12 months we have: Obtained legislative authorities Sought approval of increased procurement limits Undertaken a procurement health check for SSC Supported the transformation agenda and enabled email transformation Absorbed contracts and commitments from over 43 partners

♦ 5,025 contracts ♦ 3,000 individual commitments♦ $1.05 billion in total contracted value

Started to plot out our future state for:♦ Planning♦ Governance♦ Policy♦ Strategic engagement and♦ Acquisition strategies

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SSC Contracted Spend Analysis – FY2012-13

• Breakdown of SSC’s procurement spend by commodities (right)

• Contracts for Telecommunication Services represent SSC’s largest category of contracted spend

Hardware18%

Other0%Professional

Services9%

Software22%Telecommu-

nications Services

51%

Training0%

SSC’s FY2012-13 Total Contrac-ted Value by Commodity

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SSC Contracted Spend Analysis – FY2012-13 Cont’d.

Corporate Services1%

Operations - Econ. Portfolio2%

Operations - Finance Portfo-

lio18%

Operations - General

1%

Operations - Government

Operations Port-folio34%

Operations - In-ternational Port-

folio3%

Operations - Na-tional Security

Portfolio20%

Operations - Science Portfo-

lio7%

Operations - Social Portfolio

10%

PCR2%

TSSD2%

SSC’s FY2012-13 Total Contracted Value by SSC Branch

Data Centre Services

29%

Email Services

1%

Management Costs

6%Non-Manda-tory Services

8%

Other1%

Telecom/Network Services

54%

SSC’s FY2012-13 Total Con-tracted Value by SSC Busi-

ness Line

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Procurement Planning at SSC

• Getting our arms around what we have procured and what we need to procure will take time

• Working towards a departmental procurement plan that integrates into: The Departmental Investment Plan Integrated Planning across the department and aligns to DPR, RPP and

PAA• Collecting requirements based on historical spend from across

business lines and validating which transactions will need “treatment” over the next 6,9 and 12 months

• Working towards a 3 year plan with annual refresh• Integrating the results into the established SSC governance –

Procurement Review Board and Senior Project and Procurement Oversight Committee

• Possible release – Summer 2013

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Engagement : Information Technology Infrastructure Roundtable

(ITIR)

Procurement Benchmarks Advisory Committee SSC has established an advisory committee to support the ITIR on

matters related to procurement practices The committee is chaired by SSC Sr. ADM, Corporate Services and

CFO, with the Assistant Comptroller General, Acquired Services and Assets, from the Treasury Board Secretariat as vice-chair♦ Committee membership includes officials from SSC, PWGSC, and industry

representatives from the information and communications technology sector Specifically, the committee has been established to contribute to the

improvement of the execution of government-wide procurement and has been established with the belief that business outcomes need to drive procurement activity.

SSC has committed to adopt best practices with respect to focussing on outcomes and avoiding over-prescriptive specifications for all its procurement needs.

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Engagement : Information Technology Infrastructure Roundtable (ITIR)

Cont’d

Smart Sourcing Advisory Committee SSC has established an advisory committee to support the ITIR on

matters related to sourcing decisions The committee is co-chaired by SSC Sr. ADM, Corporate Services

and CFO and SSC. Sr. ADM, Transformation, Service Strategy and Design♦ Committee membership includes officials from SSC, PWGSC, and industry

representatives from the information and communications technology sector The committee supports the ITIR by considering the ways in which

the ICT sector can better position itself for potential opportunities to work with SSC.

The committee provides advice on the potential sourcing models that SSC will pursue for delivery of its mandate and assists in outlining the core functions and skills sets for the delivery of the Government of Canada’s IT infrastructure.

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Engagement : Information Technology Infrastructure Roundtable (ITIR) Cont’d

Innovative Canadian Enterprises Committee discuss current barriers to innovation within the Canadian

Information and Communications Technology (ICT) sector, and provide strategic and tactical advice to the IT Infrastructure Roundtable (ITIR) on what Shared Services Canada (SSC) can do to accelerate innovation and commercialization in the Canadian ICT sector.

Chaired by the Head of Analytics for Shared Services Canada and co-chaired by the Director General Information and Communications Technology Branch from Industry Canada

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Engagement : Information Technology Infrastructure Roundtable (ITIR) Cont’d

Architecture Framework Advisory Committee Chaired by the Senior ADM Transformation, Service Strategy

and Design and is vice-chaired by the Chief Technology Officer for the Government of Canada.

Explores and weighs options and makes recommendations through SSC on all aspects of enterprise architecture as it relates to SSC’s transformation initiatives, in particular email data centers and networks/telecommunications

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Update on Procurement Instruments

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Standing Offer/Supply Arrangement Status

Task and Solutions-Based Informatics Professional Services (TBIPS/SBIPS)

SSC provided equivalent contract limits as PWGSC.

Cyber Protection Supply Arrangement (CPSA) SSC provided equivalent contract limits as PWGSC. Networking Equipment Support Services (NESS) SSC provided equivalent contract limits as PWGSC. Mass Storage Systems and Storage Area Network (SAN) NMSO

SSC provided elevated, but not equivalent to PWGSC, contract entry limits.

Network Infrastructure Management Service (NIMS) SSC provided equivalent contract limits as PWGSC. Integrated Services Digital Network (ISDN) SSC provided equivalent contract limits as PWGSC. Audio Visual, Projection and Videoconferencing Equipment Standing Offer

Equal contract entry limits to be provided to SSC.

Microcomputers NMSO (Servers, Desktops, Workstations, Notebooks, Mobile Workstations, and Tablet PCs , etc.)

SSC provided elevated, but not equivalent to PWGSC, contract entry limits.

Software Licensing Supply Arrangements (SLSA) SSC provided equivalent contract limits as PWGSC.

Procurement of End User Devices (EUD)

• Departments are to continue to procure EUD Hardware and Software off of existing methods of supply (where available) or through traditional contract entry limits contained within their own authority or that of PWGSC PWGSC will process requirements that exceed the call-up limits of

departments or contracts above the contract entry limits as designated by the Treasury Board Contracting Policy

• This process will be complimented with the implementation of a review process for EUD software requirements, and a subsequent process for EUD hardware requirements

• This approach will ensure ‘business as usual’ for departments and suppliers until SSC develops an EUD transformation strategies

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Next Steps

• Continue with departmental procurement planning exercise by validating data with business lines and looking across the department for consolidation opportunities

• Leveraging information to support category management strategies, define categories and build governance

• Acquire and deploy procure to pay system to input, manage, track and execute procurements contained in the procurement plan

• Build digital catalogues where possible and enable tiered procurement to ensure maximum flexibility for business partners

• Develop procurement strategies in partnership with business lines and assist them to engage industry in a timely manner

• Continue to compete requirements in an open, fair and transparent manner and support the transformation agenda.

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