Municipal Procurement Is More Than Just RFPs

Over the past few months we’ve been out at a number of municipal conferences and events, and it always surprises me to hear the number of folks who think municipalities are only able to procure goods or services via the RFP (Request for Proposal) process. They express their dislike for the process and they report the process discourages many small and medium enterprises from attempting to find work in municipalities.

No doubt, in the municipal sector procurement is a dynamic, sometimes complex process. However, what many are not aware of is that there is a variety of procurement methods available to municipalities to procure the goods and services they need. The procurement of consulting and professional services still must be a competitive process, but whether you’re a large company or a small or medium consultant or professional enterprise, it is still possible to acquire work in municipalities without ever needing to respond to a RFP.

Municipalities must comply with the procurement requirements set out in the MunicipalAct,2001,S.O.2001,Chapter 25, Section 270(1) 3. The legislation requires municipalities to develop policies tobe adopted on the types ofprocurement processes thatwill be used, the goals ofeach, the circumstances under which eachtype will be used, and the circumstances where a tendering process is not required.

Here are some of the procurement methods municipalities can employ to procure goods and services.

1. Request for Proposal (RFP) – used to solicit solutions for the delivery of complex goods, services or constructionforobtaining uniqueproposals designed tomeet broad outcomes toa complex problem or need forwhich thereis no clear or single solution.

2. Request for Tender (RFT) – used to acquire goods and services based on stated terms and conditions and forobtaining competitive bids based on precisely defined requirementsfor whicha clear or single solution exists.

3. Request for Quotation (RFQ) – is where the municipality specifies the product or service and the criteria is based solely on price. The goals are the same as for Request for Tender,except thatbid solicitation is done primarily on an invitational basis from a pre-determined bidders list – but maybe supplemented with public advertising ofthe procurement opportunity.

4. Request for Expression of Interest (RFEI) – is a procurement used to determine the interest of the marketplace to provide goods or service(s) which the agency is contemplating purchasing.

5. Request for Information (RFI) – isarequestused asageneralmarketresearchtooltodetermine whatgoodsandservicesareavailablethat maymeetbusiness/operationalrequirements and acquisition strategies.

6. Request for Pre-Qualification (RFPQ) – is a procurement document used to solicit financial stability, technical information,productorservice suitabilityfrompotentialvendorsandmeasured againststatedevaluationcriteria. Successfulvendor(s) are pre-qualifiedorshort listedtobidonspecificcategoriesofworkor providespecifictypesofgoodsorservices,or respond to a particular RFP or RFT.

7. Informal, Low Value Procurement – used toobtain competitive pricing fora one-time procurement in an expeditious and cost-effective manner through phone, fax,e-mail, other similar communication method, vendor advertisementsor vendor catalogues.

8. Non-Competitive Procurement/Invitational Competitive Procurement – in some circumstances, competitive procurements are not required. Municipalities can invite three or more qualified suppliers to submit written proposals to supply goods or services as specified by them. The goal is toallowfor procurement inan efficient and timelymanner withoutseeking competitive pricing.

Non-competitive procurement includes sole sourcing and single sourcing. Sole sourcing is the procurement ofa good or service thatis unique toa particular vendor and cannot be obtained from another source. Single sourcing is the procurementofa good or service from a particular vendor rather than through solicitation ofbids from other vendors who can also provide the same item.Single sourcing may be the best course totake in some circumstances, but it is important for the municipality tobe transparent about what those circumstances will be.

Typically, non-competitive procurement is used in the following circumstances:

• when there is a statutory-or market-based monopoly on the item
• when no bids were received inacompetitiveprocess
• when the required item is covered by an exclusive right such as a patent, copyright or exclusive licence
• when the purchase is already covered by a lease-purchase agreement where payments are partially or totally credited tothe purchase
• when it is necessary toensure compatibility with existing products or toavoid violating warranty/guarantee requirements when service is required
• when the required item is in short supply due tomarket conditions
• when competitive sourcing forlow value procurement would be uneconomical or would not attractbids
• when competitive procurement may be foundtobe impractical forsuch items as meal expenses, incidental travel expenses (e.g.taxi service, phone calls), and training and education expenses
• when an urgent procurement is necessary forfulfilling a statutoryorder issued by a federal or provincial authority,such as an environmental, public health, or workplace safetycompliance order

So, if you’re a consultant and/or a professional who would like to find work in municipalities – don’t give up. There are opportunities that do not involve wasting endless hours filling out an RFP only to find that on the 99th page of the 100 page document, there is one requirement you can’t meet.

As you can see, municipalities can and do employ other methods to procure goods and services, particularly the informal low value and non-competitive methods when possible – and they do use muniSERV’s searchable database to find those they want to invite to bid or quote on the services they need.

Helping municipalities and professionals connect is the best way I know of to enhance the municipal procurement process and connect municipalities looking for a particular service to the professionals who provide it. Simple right?

Susan Shannon is Principal of Shaping Organizational Solutions (SOS) & muniSERV.ca. For most of her career she was a municipal CAO and it continues to be her passion to find ways to assist municipalities. You can reach her at [email protected] or toll free 855.477.5095.

Note: The information contained herein represents procurement processes in Ontario and processes may be different in other provinces. If so, we would love to hear your input on any differences so we can be sure to address these in future articles. If you liked this article, I’d be so thankful if you’d share it and join our muniSERV LinkedIn Group so I can continue to write and share with you on a variety ofmunicipal topics. Thank you, Susan

Did you know office environment plays a key role in staff’s productivity and how the public views your efficiency and the services you provide?

Does this look like your municipal office?

What kind of message do you think this is sending to your citizens?

Morale and business will be better with the right interior design and décor! It doesn’t have to take a lot of money from the budget, start by simply clearing the clutter, dead plants, old chairs, and torn carpets and you’ll soon see that your office functions with more enthusiasm and interest!

Improving your municipal office’s efficiency and functionality is actually pretty easy. From simply changing the colours of your walls, to the comfort of employee’s chairs, it all makes a difference.

The Facts: 

• 90% of workers believe that better office design leads to better overall performance and gives the company a competitive advantage
• 90% of senior executives believe that a better physical working environment has a positive impact on the bottom line
• 21 % more productivity
• up to15 less sick days taken per year!

Deborah Stephenson is the owner of Impressive Interiors. She would be pleased to arrange a free professional consultation to discuss a plan for your office makeover project. Find her muniSERV profile here or contact her at 705 739-0088.

As managers and/or entrepreneurs, we all too often tend to think we, “can do it all”.

Spoiler Alert – No one can be good at every task and skill that is required to run a small business or manage an organization, and sooner or later some sort of division of labour becomes necessary for survival.

Our individual personalities will dictate our delegation beliefs but the bottom line is, that a manager who does not delegate, is simply not managing.

Perhaps some of us simply don’t know how to delegate. So let’s start with what delegation is.

Delegation is the assignment of responsibility or authority to another person, (normally from a manager to a subordinate), to carry out specific activities.[1] 

It involves giving away operating work to persons who have the skills and ability to successfully complete it.

In order for them to take on the responsibilities you assign, delegation includes empowering them to do what is necessary to carry out the tasks effectively and then making them accountable to you for the results.

 A Quick Word about Delegation and Outsourcing

The terms “delegation” and “outsourcing” are similar but their use depends on the business you’re in. In practice, delegation and outsourcing are often indistinguishable.

Organizations with employees will tend to use the term “delegation” because it’s often in reference to the transfer of responsibilities to employees, whereas, the term “outsourcing” involves purchasing goods or subcontracting services from an outside company. Outsourcing is often deemed more comfortable because it is not connected with the idea of “giving up control”.

Sometimes we make up excuses for not delegating. Any of these sound familiar?

• I don’t have enough time to bring someone up to date with what I want done
• The job is way too important for me to risk someone not doing it right
• I can do the job best
• I’m the only one who knows how to do it

What Can be Delegated?

Well, contrary to what most of us might believe, almost everything can be delegated or assigned to someone else, except for the responsibilities that demand your personal attention, such as those decision-making tasks which involve high-risk for your business or organization.

As an example, my management style as a municipal Chief Administrative Officer, was always to set out the tasks to be accomplished and then empower staff to apply their skills and talents to get it done (the art of delegation). However, now as an entrepreneur of a growing company, I am quickly learning I cannot complete all the required tasks myself, (nor am I good at them all), so I am entering the world of outsourcing some of the work.

The art of delegation can really be accomplished in 5 phases:

Preparation – establish the goals of the delegation, specify the task and decide who should do it

Planning – meet with the individual, describe the task and ask them to develop a plan of action

Discussion – review the objectives, the plan of action, any obstacles and ways to avoid or deal with them

Monitor – check the progress of the delegation and make any necessary adjustments to respond to unforeseen problems

Appreciation – accept the completed task and acknowledge the efforts

It’s always best to track and record your delegation efforts – and I have a template for doing so. If you would like it, just email me and I’m happy to send it to you.

Addressing these 5 phases will help ensure you have the right people and resources in place that will contribute to the growth and success of your organization – and most of all, help you work smarter.

Susan Shannon, [email protected]

(Susan’s experiences as both a municipal Chief Administrative Officer and now as a consultant, led to the development of muniSERV.ca and have provided her with the insight she needs to help municipalities and professionals connect)

[1] http://en.wikipedia.org/wiki/Delegation

Article by SmartDraw – January 2014

A new year is a great time for re-thinking your organization’s strategy. But all strategic plans are not created equal. Successful strategic planning involves awareness and avoidance of common, critical mistakes that doom many plans to failure.

Here are 10 pitfalls you must avoid in order to develop a strategic plan that you can successfully execute

1. Lack of Total Team Commitment

Having a valid, executable strategic plan is in everyone’s best interest. But it is crucial to get buy-in from leadership throughout the organization. Without this shared vision and commitment, even the best strategy is unlikely to succeed.

2. Not Getting the Right People Involved

Who are the right people in the strategic planning process? The simple answer is anyone who is crucial to setting forth the organization’s vision as well as those responsible for carrying it out. Having all of the key stakeholders involved in planning helps ensure team commitment.

3. Failing to Focus on the Big Picture

Strategic planning is intended to focus on high-level thinking. What is the organization’s vision? Is the mission clearly defined? Make sure to give priority to those major, over-arching issues critical to the organization’s success.

4. Not Making an Honest Assessment of Where You Are

It’s easy to see ourselves as we want to be seen, or how we envision ourselves down the road. But it is absolutely crucial to make a real, honest assessment of internal and external issues as they exist today. This may even involve bringing in one or more third parties. But without an accurate assessment of where you are, your strategic plan will be flawed.

5. Failure to Consider the Realities Around You

Changing forces, both inside and outside of an organization, require you to constantly assess what is happening around you. Management teams must be acutely aware of these forces. Assess how they affect the organization, its markets, its customers, and its future.

 6. Unwillingness to Change

It is crucial to constantly assess and adapt to change. A good plan yesterday may no longer apply today. Successful leaders must be nimble and ready to adjust with change, rather than fight against it–or even worse, ignore it.

7. Failure to Set Reasonable Goals and Timelines

A good strategic plan sets forth a vision, but also provides a working framework within it. Make sure that goals and milestones are set, and develop a timeframe for achieving them.

8. Failure to Put the Plan into Action

If you don’t put your plan into action, then you are just wasting time. Too often, organizations fail to take the vital next step of transforming knowledge into action – “The Knowing-Doing Gap”[1]

9. Lack of Accountability

It’s pretty simple. If no one is held accountable, nothing gets done. Putting the plan into action is only the beginning. To make sure things get done, assign areas of accountability to specific people. Share the plan openly with the entire team, so all members are openly held accountable.

10. Failure to Monitor and Follow Through

Set regular intervals for formal review of the strategic plan and action items. Most strategic planning experts suggest this be done at least on a quarterly basis.

 [1] The Knowing-doing Gap – 2000, Jeffrey Pfeffer and Robert I. Sutton

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Each year, Customer Service Professional’s Network (www.myCSPN.com) hosts a conference for customer service professionals.  Conference delegates include leaders from municipalities, various levels of government and corporations.  Join us to expand your knowledge in sessions presented by experts in the field, meet with exhibitors and to share stories on how to create a great customer experience.

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Cocktail Reception sponsored by Interactive Intelligence, May 6, at 4:45 pm

This year we have 24 dynamic speakers, including David Forget, Manager of Quality Service and Special Projects at the Town of Ajax, and Jacqueline Spencer, Director of Retail Customer Care of the Central Region at ServiceOntario. 

Join us to learn more about:

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This conference is sold out every year, so hurry and register before you miss out.  We promise you will learn, discover, and glean new insights! The early bird registration deadline is March 6, 2015.  For more information, please contact us;905-477-5544 or [email protected]

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Municipalities know that a competitive procurement process is integral to ensuring the products and services they purchase offer the best value for the public. It’s well-known that the process for procuring consulting and professional services, differs from the process for purchasing goods because, among other differences, it is more difficult to compare the responses received in the two scenarios. That’s why it’s first and foremost imperative that care is given to the design of the Request For Proposal (RFP) or solicitation document itself, before it is posted. There are two approaches in particular that I’ve noticed being used to develop RFPs or solicitation documents.

On the one hand, I’ve witnessed municipalities that simply ask another municipality for a copy of the RFP they used for a similar project, and then they copy and paste their municipal information into the RFP without really reading the clauses and ensuring that they apply to their own situation. While there is nothing inherently wrong with using someone else’s RFP template to ensure you’ve touched on all the criteria you want in it, what worked for municipality “A” most likely will not be identical to what municipality “B” needs. If the wording is incorrect in the solicitation document and you award the work based on that wording, you’ve incurred risk and you may be stuck with the results.

Alternatively, I’ve also witnessed that in their quest to develop thorough solicitation documents, municipalities end up creating a document that is so lengthy and cumbersome that they are inadvertently eliminating some experienced and knowledgeable consultants and professionals from being able to respond, and driving up the price quotes of the ones who do respond, as a result. It takes time to fill out a lengthy RFP and the costs for doing so will no doubt be added into the quote.

Here are some tips that may help you find a happy medium between these two extremes and increase the number and quality of the responses you receive.

Reduce the length of your RFP whenever possible

More and more consultants I’ve spoken to report that they no longer respond to RFP documents that are too long and cumbersome. It simply takes too much time and time is money to them. I could almost guarantee that you will receive more responses and ultimately more competitive quotes by simply reducing your document and posting it on correctly targeted platforms.

Only include the criteria you need in the RFP

Be sure to carefully examine the scope of your project and include only those criteria you absolutely need to meet your needs, because more is not always better. If you have too many requirements that are not absolutely critical to the success of your project, you may be missing an opportunity to work with smaller firms and/or highly experienced professionals, simply because they cannot possibly meet all the criteria. This results in limiting the responses you will receive and you may end up paying more for the work.

Provide enough time for responses

Responders need a reasonable amount of time to fill out a RFP and ensure they can meet the criteria. Thirty (30) days is considered to be an acceptable standard and is a reasonable amount of time to allow for responding to a services RFP.

Include opportunities for responders to add alternative solutions

Give responders some opportunity to apply a creative solution or alternatives in your RFP. If the RFP is too rigid you could be missing out on other solutions you were not even aware of, but they can still meet your needs and provide potential cost savings or efficiencies to boot.

So how do you know your solicitation document will appeal to potential bidders yet still mitigate risks for the municipality? If you do not have trained procurement personnel in house, you may want to consider outsourcing the RFP development, and in some cases the entire RFP process itself, to a RFP project manager. There are costs for doing so, but given the increased legal challenges municipalities are now facing on the manner in which contracts are awarded, the cost of a legal challenge will be much greater than paying for an expert to do it right in the first place. You can find some of these experts on muniSERV.ca.

Finally, to increase the number and quality of the responses you receive, make sure you post your final document on as many sites as possible that target the service providers you’re trying to reach, including muniSERV.ca. Doing so will ensure you’re reaching as many potential bidders as possible.

Remember, whenever a prospective bidder decides not to bid, it’s your loss!