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