In the Legislative Assembly on November 4th, 2014. See this topic in context.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Wendy Bisaro

Wendy Bisaro Frame Lake

Thank you, Mr. Speaker. My questions today are for the Minister of Public Works and Services and I want to follow up on my Member’s statement about procurement.

I gave an example in my Member’s statement and the example I gave means that there’s an extra cost to both the government and to the taxpayers. We are paying a premium in this case which is at least 40 percent, 50 percent more than what we should.

So, I’d like to first ask the Minister something that I asked in my statement. Is there a maximum amount or what is the amount that we are willing to pay before we will cancel a tender and start again?

I mentioned 200 percent, 300 percent; in this case it’s 40 or 50 percent. But is there a policy or a guideline that we use? I would like to remind the Minister that in his statement today he talked about reasonable prices, and this is a perfect example of an unreasonable price that we are paying. Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

The Speaker

The Speaker Jackie Jacobson

Thank you, Ms. Bisaro. Minister of Public Works, Mr. Beaulieu.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Tom Beaulieu

Tom Beaulieu Tu Nedhe

Thank you, Mr. Speaker. When a department puts out a tender that Public Works and Services is going through their procurement for, we use a budget as the limitation. The budget will govern how high we’re able to go with the tender. Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Wendy Bisaro

Wendy Bisaro Frame Lake

Thanks to the Minister for that. It’s hard for me to believe in this case that the budget allowed a differential of $60,000.

In the Minister’s Statement earlier he started off his statement by saying, we want to make sure that local businesses can benefit from government contracting opportunities, and that’s a lot of the point that I’m trying to make today.

I’d like to ask the Minister, what does he ensure, or what does Public Works and Services, would procurement shared services do to ensure that northern businesses get government contracting opportunities? How does procurement maximize the process for northern vendors? Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Tom Beaulieu

Tom Beaulieu Tu Nedhe

Thank you. The procurement shared services follows the Business Incentive Policy. The Business Incentive Policy is

there to give an advantage to the northern suppliers, northern providers of service. So we use that to make up the difference usually in a product that comes from the South versus something that we’re procuring in the Northwest Territories. Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Wendy Bisaro

Wendy Bisaro Frame Lake

BIP doesn’t always apply and I have discovered that BIP doesn’t apply if you are considered non-compliant or unresponsive, which I guess if you’re out you’re out, but in this case one of the difficulties was that the tender was made difficult to understand. The tender document was looking for equivalencies to a particular product, but it doesn’t define the term “equivalencies” and it’s left to the bidder to try and figure out what that is. In a lot of cases they will state equivalencies are acceptable, but ultimately want a very specific product, and as I said in my statement, why do we not just say so? We want product X and never mind the equivalencies because if they’re trying to match it to something that already exists, an equivalency won’t do.

So in a case like this, what adjustments will the department make to assist bidders in better understanding our tenders and what we’re looking for in a bid? Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

November 3rd, 2014

Tom Beaulieu

Tom Beaulieu Tu Nedhe

We can add the definition of equivalent into the tenders if that would be of help. Anything that has the right form, fit, function and quality would be considered to be an equivalent product. Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Beaulieu. Final, short supplementary, Ms. Bisaro.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Wendy Bisaro

Wendy Bisaro Frame Lake

Thank you, Mr. Speaker. In this case it was a matter of furniture and, as the Minister says, form, fit and function. They all fit, but they were off enough because it was not the exact same product, a product not available in the North, it was deemed unresponsive.

Lastly I’d like to ask the Minister, with centralized procurement shared services, it’s a new product, it’s a new service that we are putting out. I presume we expect to see improvements.

Will there be any kind of an evaluation or any kind of an analysis of whether or not there are improvements and when will we see that? Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

Tom Beaulieu

Tom Beaulieu Tu Nedhe

Thank you. When the government determines to put together a shared service, whether it be a financial shared service or any other shared services that we offer, we do that based on efficiency and effectiveness of the product or item for the task that we’re trying to perform. So it would be essential, I believe, for us to review procurement shared services. We could perhaps run it for two years and then do an evaluation to see if it did function and did meet its

intent to improve efficiency and effectiveness of procurement services. Thank you.

Question 516-17(5): GNWT Procurement Policy And Tendering Process
Oral Questions

The Speaker

The Speaker Jackie Jacobson

Thank you, Mr. Beaulieu. The Member for Hay River South, Mrs. Groenewegen.