Procurement management manual

procurement management audit and procurement management notes pdf
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Dr.NoahHarper,United Kingdom,Professional
Published Date:17-07-2017
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Real P Real Prop ropert erty y B Branch ranch Procurement Management Procurement Management Manual Manual Jan Janu uar ary y 2011 2011 2.0 Objectives The objective of the Procurement Management Manual is to provide tools and techniques to: acquire architectural and engineering services, professional services, constructions services in a manner that enhances access, competition and fairness and results in best value to PWGSC. Treasury Board Contracting Policy requires that government contracting facilitate access to federal opportunities, encourage competition and reflect fairness in the spending of public funds. Therefore, whenever possible and appropriate, contractors/consultants are to be selected using a competitive process open to as many interested bidders as possible. The Government Contracts Regulations require the soliciting of offers, commonly called bids, before any contract is awarded. No work on a project can be performed until an offer has been received and accepted, and a contract issued. While providing support to meet the mandate of the organization, the Procurement process will ensure that Contracting Authorities and Technical Authorities: comply with the government's obligations under the North American Free Trade Agreement, the World Trade Organization - Agreement on Government Procurement and the Agreement on Internal Trade conduct contracting in a manner that will stand the test of public scrutiny in matters of prudence and probity, facilitate access, encourage competition, and reflect fairness in the spending of public funds ensure adherence and consistent application of Government Contract Regulations mitigate against risk and liability apply uniform interface with private sector firms For constructions services, the thresholds are:  Agreement on Internal Trade (AIT) 100K  North American Free Trade Agreement (NAFTA) 9.9M  World Trade Organization Agreement on Government Procurement (WTO-AGP) 8.5M For consulting services, the thresholds are:  Agreement on Internal Trade (AIT) 100K  North American Free Trade Agreement (NAFTA) 76.6K (75K current practice)  World Trade Organization Agreement on Government Procurement (WTO-AGP) 221.3K 3.0 Real Property Context PWGSC has two primary organizations involved in the procurement process under the Government Contract Regulations, namely the Real Property Branch (RPB) acting as the Technical Authority and Real Property Contracting (RPC), acting as the Contract Authority. RPB is responsible for the definition, administration and management of services and ensuring 'value for money' while RPC is responsible for the integrity and the fairness in all procurement processes. RPB has developed a working relationship with RPC to include their staff on the project team early in the planning stages of a project to advise on procurement strategies. RPB and RPC have also developed working relationships and business specific procurement practices with the Canadian Construction Association (CCA), the Royal Architectural Institute of Canada (RAIC), the Association of Canadian Engineering Canada (ACEC) and the Interior Designers of Canada (IDC). The terms and conditions of PWGSC real 5 property contracts and procurement processes have been established in consultation with these organizations resulting in standard terms and conditions for contracts as well as standard sourcing and solicitation processes. In the context of Real Property, RPB engages three types of standard services through contracts: Professional and technical services (i.e. soils testing, air balancing, etc.) Architectural and engineering services (i.e. designing a building) Construction services (i.e. constructing a building, highway, bridge, etc.) Each of these service types has a procurement process that has specific definitions, regulations, systems, processes and approval process based on dollar limits. These are imposed by legislation (i.e. trade agreements), Government Contract Regulations, Treasury Board, business specific practices, PWGSC policies etc. The structure is intended to provide checks and balances in order to ensure that contracting is conducted with prudence and probity and that the principles of openness, integrity and transparency are upheld. 3.1 Accountability Framework for the Management of Real Property Contracting 3.1.1 Roles and Responsibilities between Real Property Branch and Parliamentary Precinct Branch - Project and Property Managers and Acquisitions Branch - Real Property Contracting Officers PWGSC‘s Real Property Branch (RPB), Parliamentary Precinct Branch (PPB) and Acquisition Branch (AB) work cooperatively to ensure that real property projects and services are being delivered and their related supporting contracts are being put in place. Each party must work together to ensure smooth operations and thus, there can be no confusion over roles and responsibilities. The intent of this section is to clearly identify the accountabilities of RPB/PPB Project and Property Managers and AB Real Property Contracting (RPC) Officers. Accountability for the management of real property contracts is with RPB/PPB, and more particularly with the Project Manager or the Property Manager who plays a central role as the ―Technical Authority‖ for the relevant contract. Whether identified as the ―Departmental Representative‖ or the ―Technical Authority,‖ the RPB/PPB individual acts as the principal point of contact between the Department and the private sector for issues related to the management of real property contracts, including the evaluation of the private sector‘s performance. AB is responsible for providing procurement-related common services to federal government departments and agencies (including itself, PWGSC). RPC as part of AB acts as the ―Contracting Authority‖ and, as such, supports the Technical Authority by performing contracting functions, including: managing the solicitation process, awarding contracts, producing contract amendments, monitoring contractual compliance, and providing contractual advice on financial, legal and insurance issues, as well as in the areas of dispute resolution and contract renewal. CONTEXT This Accountability Framework is consistent with the principles for effective accountability identified by the Auditor General for Canada. The principles are based on the understanding that accountability is a relationship based on the obligations to demonstrate and take responsibility for performance in light of agreed expectations. The principles are: Clear responsibilities: The responsibilities of the parties in the accountability relationship should be well understood and agreed to; Clear performance expectations: The objectives being pursued, the accomplishments expected and the rules to be followed should be explicit, understood and agreed to by RPB/PPB and AB; 6 Balanced expectations and capacities: The performance expectations should be balanced by the commensurate capacities (authorities, skills, and resources) of each party; Credible reporting: Credible and timely information should be shared to further demonstrate the performance achieved and what has been learned; Reasonable review and adjustment: Enlightened and informed review and feedback on the performance achieved should be carried out by the accountable parties, where achievements and difficulties are recognized and necessary corrections made. Accountability can exist in relationships other than hierarchical ones, even when there is no actual ―conferring‖ of responsibility. Accountability is assumed and agreed to by each party in a recognized accountability relationship, as in the traditional case, when one party delegates responsibilities to the other. Developed and created by Real Property Contracting. ACCOUNTABILITIES Below is a summary of the key accountabilities of each party. Shown on the following pages are tables identifying detailed accountabilities applicable to RPB/PPB and RPC. The RPB/PPB Technical Authority Is accountable to deliver the project. The RPB/PPB Technical Authority is responsible for but not limited to, the following items:  Is accountable to deliver the project in terms of scope, quality, schedule and budget;  Clearly identifying the project scope and requirements;  Obtaining project approvals and funding (Preliminary Project Approval, Effective Project Approval) prior to RPC posting of the Notice of Proposed Procurement;  Defining the overall intended procurement strategy (in consultation with RPC when necessary);  Identifying the project risks and development of a Risk Management Plan;  Developing a complete statement of work (SoW) fully describing the work/services to be performed by the contractor/consultant. (Project Brief, drawings and specifications, etc.);  Proposing a selection process (e.g. evaluation criteria, pre-qualification, etc.);  Preparation and submission of a funded requisition (9200);  Providing RPC with all the necessary information related to the program and the project requested in order that PWGSC may conduct its internal contracting processes;  Developing any amendments necessary to clarify or amend the original SoW for distribution by PWGSC;  Evaluate and certify the adequacy of the technical component of a tender/proposal prior to contract award;  Participate in debriefing sessions chaired by PWGSC, when requested by bidders; Managing the contract by:  Acting as the principal point of contact with the private sector firm awarded a contract;  Performing the duties of the Departmental Representative as described in the terms and conditions of the contract as and where they apply to matters related to scope, quality, schedule and budget; 7  Managing the work/services in a competent and professional manner and in accordance with established Departmental/TB policies and guidelines;  Ensuring that all applicable federal, provincial and municipal Acts, regulations and policies applicable to the project are enforced particularly as they relate to building codes and standards, environmental issues, health and safety, Workplace Hazardous Materials Information System, licensing, building permits etc.;  Monitoring the private sector firm‘s performance and accepting and/or rejecting the work;  Preparing progress reports and to certify the progress of the work/services and to issue payment in accordance with the terms of the contract;  Communicating project status;  Managing project risks;  Certifying that any price quotations received from the contractor/consultant for additional work/services are fair and reasonable (as required by the Financial Administration Act);  Negotiating and documenting contract amendments to be issued by RPC. No work to be authorized until contract/contract amendment is issued by the RPC contracting authority;  Leading any claims negotiations and dispute resolution and to fund any settlements that may reached as a result of the performance of the work/service;  Evaluating the firm‘s performance prior to contract close-out inclusive of providing relevant supporting documentation. Consultant/Contractor Performance Evaluation Report Form (CPERF) must be completed and sent to Contracting Officer;  Closing out the project and financial files on the contract. The Acquisitions (RPC) Contracting Officer Is the delegated ―Contract Authority‖ for the contract and is responsible for, but not limited to the following:  Ensuring that the contracting process and the management of the contract is undertaken: - According to federal regulations and policies, - In a fair, transparent and prudent fashion, in support of the guiding principles for procurement, - Ensuring best value to the taxpayer, - By monitoring and evaluating contractual compliance, - Obtaining contracting approvals within the department and/or Treasury Board.  Providing advice, direction, and updates to the Technical Authority on: - Commencement of the work on receipt of key deliverables such as Insurance and bonding, - Contracting requirements and strategies including seeking legal advice, - Contract administration, - Contract management issues, claims, dispute resolution, Canadian International Trade Tribunal (CITT) hearings and contract terminations, - Dealing with Bonding Companies.  Preparing the non-technical component of the contract documentation, in close consultation with RPB/PPB including: - Preparation of tender documents to suit, technical drawings and specifications prepared by RPB/PPB, - Requests for Proposals, Tender Solicitations, etc., - Authority to enter into contracts, final contract documents,  Contract Management by: - Issuing official amendments to the contract as negotiated by RPB/PPB and/or RPC 8 - Issuing official warnings and notices of non-compliance to firms, notices of suspension and notices of termination, etc. - Obtaining a CPERF from the Technical Authority and placing it on the contract file - Obtaining a final Compliance certificate from the Technical Authority and placing it on the contract file. 3.1.2 Chart of Responsibilities The following chart identifies key activities and associated responsibilities during the development and delivery of a real property contract. The responsibilities are identified for both Technical (RPB/PPB) and Contracting (RPC) Authorities as one of the following responsibilities: Primary (P), Joint (J), Support (S), Validation (V), No involvement (-) Technical Contracting A Planning / Front End Phase Authority Authority P -  Identification of Requirement P -  Scope of Work P -  Business Case development - Preliminary Cost and Schedule P -  Development of Implementation Strategy P -  Project and Funding Approvals (PPA, EPA) - Treasury Board Submission(s) (if required) P  Technical document development (Project Brief / Terms of Reference / Drawings and Specifications) P -  Specification follows latest NMS format P V  Specification Table of Contents is accurate (format and page counts) P -  Validate Summary of Work (Division 01 11 11) is not used P -  Confirm that the appropriate terminology is used (Departmental Representative) - No reference to Owner or Engineer etc. P -  Verify that there are no references to CCDC documents P -  Specifications are open to all through specifying products based on standards or performance specifications P V  Sole sourcing is justified and specified in the correct format (no ―or equivalent‖ or ―to match existing‖ etc.) S P  Prequalification or submissions at bid closing are prepared by Contracting Officer and do not exist in the specification P -  Review Documents to ensure they are technically complete P -  Technical documents finalized and translated (if required) Primary (P), Joint (J), Support (S), Validation (V), No involvement (-) Technical Contracting B Requisition Phase Authority Authority P V  Prepare and submit 9200 Requisition P -  Ensure appropriate signature appears in the box indicating that funds are available under Section 32 of the FAA P V  Prepare and submit Security Requirements Check List (SRCL) P -  Submit copy of approved National Security Exception (NSE) if applicable 9 P V  Develop and submit fully detailed contract risk management plan including estimated contingencies per item P -  Provide Class ‗A‘ estimate P V  Submit Construction Tender Request (500) if applicable P V  If not a publicly advertised requirement, provide either a list of potential suppliers or completed SELECT system selection requirements Technical Contracting C Pre-solicitation Phase Authority Authority - P  Develop a Procurement Management Plan P S  Identify any Insurance Requirements - P  Identify appropriate Terms and Conditions V P  Develop Basis of Payment J J  Develop Proposal/Bid Evaluation Criteria J J  Determine selection methodology P V  Identify Performance Measures (deliverables/milestones) - P  Contractual Clauses, Terms and Conditions finalized and translated S P  Obtain security clause(s) from CISD - P  Assemble full solicitation document - P  Seek Procurement Approvals (CPAA/Proc Plan) Technical Contracting D Solicitation Phase Authority Authority S P  Create Notice of Proposed Procurement - P  Publish and distribute solicitation - P  Receive Questions during Proposal/Bid Period P -  Prepare Answers to Technical Questions in Approved Format (translate if required) - P  Issue Answers to All Bidders/Proponents S P  Bidders Conference or Site Visit Technical Contracting E Evaluation to Contract Award Phase Authority Authority - P  Receive Proposals/Bids S P  Evaluate Mandatory Submission Requirements J J  Establish Evaluation Board, if applicable P S  Evaluate Technical Compliance S P  Evaluate Financial Submission - P  Review Tender Security, if applicable - P  Complete Financial and Managerial Assessment if applicable S P  Seek Clarifications and Negotiations, if applicable S P  Convene and Chair Tender Review Meeting, if applicable - P  Validate security clearance of firm (if required) - P  Obtain Authority to Enter Into Contract - P  Award Contract S P  Proponents/Bidders Debriefing 10 Technical Contracting F Contract Administration and Management Phase Authority Authority P -  Convene Start-Up Meeting P -  Verify Personnel Security Clearances of employees and subs, if applicable - P  Verify Insurance, if applicable S P  Advise the Technical Authority that key solicitation deliverables have been received and work can commence P -  Manage progress and delivery of contract scope of work P S  Chair Progress Review Meetings P -  Review and monitoring of schedule P -  Inspection/Quality Assurance/Acceptance of Deliverables (Section 34 of the FAA) P -  Authorize and Process Payments P -  Obtain Required Forms to Allow Payment of Invoices (e.g. Statutory Declaration, WCB/WSIB Certificate) P -  Identify and Document Required Contract Changes P -  Confirm Change can be completed within funding and project authorities P S  Review Project Risk Implications and Revise Contract Risk Management Plan P -  Negotiate Contract Amendments/Change Orders P V  Prepare Paperwork Necessary for Contract Amendment - P  Obtain Appropriate Contract Amendment Approval - P  Issue and Authorize Contract Amendment P V  Instruct Consultant/Contractor to Proceed with Change Only AFTER Contract Amendment Authorized by Contracting Authority P -  Issue Site Instructions (if required) S P  Issue Notices Related to Removing Work (Potential or Actual) S P  Inform Bonding Company in case of Poor Performance or Termination S P  Approve Extensions of Time to the Contract S P  Issue Notices Related to Suspension S P  Issue Notices Related to Termination P V  Issue Certificate of Substantial Performance, if applicable P -  Release of Holdback According to Contract Terms of Payment P S  Resolution of Contract Disputes P -  Negotiate, Obtain Approval and Pay Amounts Owing from Claims P V  Issue Certificate of Completion S P  Closeout Contract Primary (P), Joint (J), Support (S), Validation (V), No involvement (-) Technical Contracting G Contract Performance Evaluation Authority Authority P S  Conduct Performance Reviews P -  Complete CPERF - P  Enter CPERF Results into System and Place on Contract File 11 4.0 Procurement Process The following provides details of the Activities, Inputs, Tools and Techniques and Outputs for each of the Processes of the Procurement Management. The Processes are: - Plan - Conduct - Administer - Close-out 4.1 Overview Table Process Inputs Tools and Techniques Outputs Requirements Definition Internal and external Procurement resources management plan Scope statement Planning & analysis Statement of work Project description Resource expertise Procurement decision Teaming agreements (Stakeholders) Selection Methodology Source selection criteria Project security (SRCL) Contract type selection Change Requests process Risk register and plan Preliminary cost & schedule Project funding by activity Market conditions – Enterprise environmental factors Organizational Process assets Other planning outputs Constraints /Assumptions Procurement management plan Bidder conferences Procurement documents Statement of Requirements Job showings Statement of work Statement of work Proposal/Bids evaluation updates Request for Proposals Methodologies Bids/Proposals Project Specifications Standard forms Contract, Agreement, Stakeholders/Resources Resource expertise Standing Offer, Open commitment Advertising Agreement, Work/Job Procurement documents Order Weighting system Qualified sourcing lists Project Management Screening system Evaluation criteria Plan updates Independent estimates Organizational Process Assets Document updates Negotiation (Policies and Directives) 12 Conduct Procurement Plan Procurement Process Inputs Tools and Techniques Outputs Project Plan Contract change control Procurement system documentation Procurement documents and /Correspondence Contract Performance reporting Contract change Contract performance standards Inspection and Audits requests/amendment and Deliverables Payment system Payment requests Change requests process Claims Administration Project management Organizational process assets Records management plan updates Invoices system Project Plan update Procurement audits Contract file Contract documentation Negotiated claims Formal acceptance and settlements closure NPMS/Sigma Close files 4.2 Plan Procurement This is the process of identifying which project needs are best met by procuring services from the private sector. It is undertaken during the scope definition phase and involves consideration of whether or not to procure, how to procure, what to procure, how much to procure, and when to procure. This process involves the preparation of the documents needed to support Invitations. PWGSC, as the primary owner of federal real properties, undertakes substantial amounts of procurement of real property services. As a result, it has developed standardized procurement documents in consultation with the Professional Associations of Architects and Engineers and also the Canadian Construction Association. Bids and proposals are received from prospective proponents detailing how project needs can be met. Most of the actual effort in this process is expended by the proponents, normally at no cost to the project. The Project Management institute‘s Guide to Project management Body of Knowledge, now calls these Invitation to Sellers as generic nomenclature to simplify terminology and ensure it is understood in any language. 4.2.1 Activities I. When the client sends the requirements to the Project Manager, the contract requirements are defined at the same time; verify that the funds have been identified and signed by the client under Section 32 of the FAA; II. Review the estimates and determine the dollar value and the authority level required; contact the Contract Authority to inform them of the upcoming requirement; III. Discuss with Contract Authority the potential contracting process. Although still early in the process, it will provide an opportunity to include the timeframes in the project plan, assist in the preparation of the procurement plan for the project plan and for the documentation the contracting officer will have to prepare; IV. The statement of requirements; V. Identify Security requirements with the Security Requirement Checklist; 13 Close Administer the Procurement Contract VI. Develop the Risk Management plan or if already done, integrate contract risks, with mitigation strategy and potential costs; this will be used to determine the level of authority required for the Pre-Approved Amended Authorities, if required. 4.2.2 Inputs Scope statement: describes project needs, strategies and boundaries. Project description: description of the project and technical issues/concerns must be included on, or in addition to, the Requisition for Goods and Services (9200). Risk Management Plan: description of the various risks, prioritized, their associated potential costs, if the event occurs and their mitigation strategy and costs of mitigation. This plan and related checklist and establishment of pre-approved amounts for anticipated amendments (PAAA) based on the plan are essential. Project security requirements: identification of security requirements for firms and individuals contracted for the project must be reviewed and identified on the Requisition for Goods and Services form, along with the applicable Security Requirements Checklist (350-103). Market conditions: consideration as to what product/services are available, from whom, and under what terms and conditions. Cost estimates and schedule: provide a preliminary cost estimate and schedule. Project approval: For all PWGSC projects a Preliminary Project Approval (PPA) is required to contract with a consultant to further develop the design and provide more detailed cost estimates. These cost estimates will be the basis to seek Effective Project Approval (EPA) to proceed to the tendering process for construction. For low dollar value PWGSC projects, the approval will be within the organization based on the Specific Service Agreement (SSA) (5031). All government organizations projects approvals are based on similar funding approval documents and are expected to be standardized under the Policy on Project Management. Project Funding approval: Confirmation of funding and cash flow projections is required. Funding must be provided by the client and the Project Manager must ensure that these funds have been signed off under Section 32 of the FAA by their client. Organizational Process Assets: Processes and procedures for conducting work available to the project team within the organization in which the project is being conducted, such as standard processes, policies, product life cycle, quality, standardized guidelines, templates, performance measurement criteria. Other planning outputs: quality management plans, work breakdown structure, human resource plan for staffing etc. Constraints identification: i.e. funding availability, project location, site conditions and restrictions, weather, etc. Assumptions: factors that, for planning purposes, are considered to be possible or certain. 4.2.3 Tools and Techniques Planning and analysis: is undertaken on the initial scope definition process to determine the optimum procurement strategy. Various investment analyses, cost benefit analysis, make-or-buy analysis (i.e. build, buy or lease a building) are undertaken; resourcing strategies (i.e. utilize internal professional and technical resources or contract with the private sector). Analysis should include both direct and indirect costs and reflect the perspective of the performing organization, as well as the immediate needs of the project. 14 Resource expertise: identify professional and technical resource discipline expertise required on the project team, including their roles and responsibilities; identify procurement resources assigned from RPC (whether partially or fully dedicated basis). The use of other methodologies such as design build or construction management requires senior management approval and custom tailored contract documentation and processes. 4.2.4 Outputs Procurement Plan: (also called Procurement Management Plan) this plan may be detailed or broadly framed based on the size and complexity of the project. It is an element of the Project Plan and describes how the remaining procurement processes (from solicitation planning through contract close-out) will be managed, i.e. Types of contracts to be utilized (typically require individual contracts for professional and technical services (P&T), architectural and engineering services (A&E), and construction services). where independent estimates are required as evaluation criteria, identification of who will prepare them and when these estimates would be available roles and responsibilities of RPC and RPB organizations in the procurement process; identification of the change management process, processes for joint approval and exceptions where independent approvals suffice, etc. procurement documents to be utilized such as the P&T services contracts (short form or long form), A&E contracts, open agreements, standing offers, construction, whether electronic or manual format and where they may be accessed, etc. forms to be utilized, i.e., tender and acceptance forms, specifications, change orders, work orders, amendments, etc. strategies for the management of consultants, contractors, sub-contractors/suppliers interface with clients, and professional and technical disciplines. Statement of Work (SOW): (also called statement of requirements (SOR), scope of work, project brief, terms of reference (TOR)): description of the services required to be procured in sufficient detail to allow prospective consultants and contractors to determine if they are capable of providing the service. It will also include any services required after the initial delivery of the goods or services, such as post project operational support for the product, training on the use of equipment etc. 'Sufficient detail' varies based on the nature of the project/needs of the client, or the expected contract form. This is to be included with the Requisition for Goods and Services (9200) to the Contracting Authority. The statement of work forms part of either: a Request for Proposals (RFP) when inviting proposals from consultants or project drawings and specifications when inviting construction tenders. 4.3 Conduct Procurement 4.3.1 Activities 1) With the Contracting Authority, discuss how the contract is going to be issued. The Contracting Authority will provide direction in the following areas:  Competitive or sole source;  Justification for sole source;  Justification for limited tendering, by invitation only; 15  Open on MERX, RFQ or RFP or ITT;  Use of SELECT;  Use of Standing Offers;  Use of Supply Arrangements. 2) Once the approach has been determined, the appropriate documentation must be developed:  Statement of Requirements will be refined, determine methodology of evaluation; develop evaluation criteria and review with Contracting Authority;  Seek Project Authority for sign-off on the commitment of the funds under section 32 of the FAA;  Complete the Security Requirements Checklist;  Provide information package to Contracting Authority, the Contracting Authority will seek the required authorities to proceed to the solicitation ;  The Contracting Authority will review the requisition and documentation for the elements to ensure the integrity of the contracting process such as: - Reasonable closing date of suppliers to submit bids or proposals; - Completeness of documentation; no trademarks or unique designs, which are not justifiable; - Raise any questions with the Technical Authority, which is either the Project Manager or experts in specific fields; 3) The Contracting Authority will confirm the methods of procurement and authorities required for contract approval with the PM and prepare the documentation appropriate to the procurement plan; such as the Instructions to Bidders; the General Conditions, any Supplementary Conditions which may be required; 4) Translation of package; the Statement of Requirements and Evaluation Criteria should be sent to translation as early as possible; 5) Package is posted on MERX or sent to limited suppliers when Sole Source is required; 6) Respond to questions from bidders through the Contracting Authority; 7) Create a team to evaluate the proposals individually, then bring the evaluation team together to reach consensus if possible, if not, use majority vote; 8) All members of the evaluation team shall sign a confidentiality agreement and/or a conflict of interest; 9) Prepare evaluation of the submissions: Administrative review by the contracting authority; Technical review by experts; Summary report of evaluation and results. 10) Report submitted to Contracting Authority for sign-off by the evaluation team members; 11) Contract Authority will put together the package for contract sign-off, through the Contract Review Committee; 12) Acquire any other approvals required to issue the contract; 13) Contracting Authority awards contract to successful bidder; 14) Advise supplier that they must provide:  a Performance Bond and a Labour and Materials Bond, usually if the requirement is higher than 100,000;  proof of insurance; 16  Workers Compensation certificate and;  any other issues which must be addressed; 15) Notify unsuccessful bidders or post on MERX; advising suppliers of their right to have a debriefing if they wish and the recourse mechanisms available to them. 4.3.2. Inputs Procurement Plan: Refer to section 4.2 for Plan Procurement Statement of Work and Statement of Requirements: Refer to section 4.2 for Plan Procurement Construction Document: These are the plans and specifications prepared by the A&E consultant (or in-house designer) based on the ‗National Master Specifications‘. Once design and construction documents and Substantive (Class 'A') estimate is accepted from the consultant by RPB, they form part of the tender documents utilized to solicit tenders for construction from contractors. Request for Proposals (Invitation to Sellers): utilized to solicit proposals from consultants. It consists of the 'Project Brief' (technical requirements) prepared by project managers, and the legal and contractual documentation prepared by contracting officers. Evaluation criteria to rate/score proposals and criteria to evaluate performance of the successful proponent is also prepared by both of the above parties. Select Systems: PWGSC maintains lists of qualified consultants and contractors on its SELECT system. The system contains data on qualifications, licensing, experience, discipline expertise, etc. of individual firms. It is intended for low dollar value procurement and can be utilized for both competitive and non competitive procurement up to a value of 75 K for A&E and 100K for Construction. For larger projects, with higher dollar values and above the Trade Agreements 75K thresholds, all requirements must be posted on the Government Electronic Tendering Services (GETS) to maximize public access to procurement opportunities. The service is administrated on the Internet under the name MERX Procurement documents: these are utilized to solicit proposals from prospective consultants and contractors. The terms 'bid' and 'quotation' are generally used when source selection decisions will be based on price, while the term 'proposal' is generally used when other considerations, such as technical skills or technical approach, are paramount. Common terminology for various types of procurement documents include: Invitations to Tender (ITT), Request for Proposal (RFP), Request for Quotation (RFQ), Request for Standing Offer (RSO). Stakeholders/Resources Commitment: Identify the resources required to be involved in the evaluation process once bids are received and any additional expertise required. Evaluation criteria: description of the criteria requirements which will be used to rate or score bids and proposals. The following are most commonly used criteria, provided as examples. Rate/score bids and proposals Performance cost project management contract management Construction Projects time health and safety 17 achievements of proponents design concept key personnel quality of results achievements of proposed sub- management consultants time design philosophy and approach cost A&E Services understanding of the project scope of services management of services cost The criteria as described in the RFP serve as the basis to rank Contractor/Consultant proposals. As well, presentations and samples of the proponent's previous projects/services may be used to evaluate their capabilities and quality of services. They also may include a review of the proponent's history and verification of references. Organizational Process Assets (policies): PWGSC has established procedures for the evaluation of tenders and proposals. These evaluations provide technical approvals from project managers and contract approvals from contracting officers before contracts may be awarded. The use of a formal 'Consultant Evaluation Board' for the review of A&E proposals is standard practice in RPB. Meetings are chaired by RPB with RPC acting as Board Administrator while the rating of proposals is conducted by RPB professionals. 4.3.3 Tools and Techniques Bidders’ conference: On a required basis, Bidders‘ conference are held before bids or proposals are received to ensure that all prospective consultants and contractors have a clear, common understanding of the procurement requirements (technical, contractual, environmental, etc.). They can be specifically held for consultants or for contractors/suppliers. Bidders are invited to attend an information session about the requirement and have an opportunity to ask questions. Usually held if the requirement is complex and the client wants to make sure that the potential bidders/proponents understand what is expected. Minutes are taken and posted on MERX, if the requirement was posted on MERX. Where the requirement was sent to specific invited bidders, then all bidders will receive the minutes, whether they attended the session or not. Bidders do not usually have to be present, teleconferencing is also available. Job Showings: Invitation to invited bidders to visit the work site to allow them to physically observe the actual work environment. These are often held to obtain quotations from contractors for minor repairs and maintenance works. Advertising: GETS is actually an electronic bulletin board which places a Notice of Proposed Procurement permitting eligible firms to submit a proposal. In remote areas where GETS is not available, PWGSC places advertisements in general circulation publications such as newspapers or in specialty publications such as professional journals. Selection methodology: Identification of the contract methodology chosen for the project. The design-bid-build methodology is the norm. Project managers (PM) solicit tenders from contractors since they know 'what' they want done and 'how' they want it done. Technical capabilities are mandatory and cost is the main determining evaluation criterion, with the ―Lowest Technical Responsive Bid” being awarded the contract. However, for architectural and engineering (A&E) consultants, PM's use a Request for Proposals (RFP) to encourage both competition and creative input from proponents. They detail the 'what', 'when', and 'why' but not the 'how'. Request for Proposals are used when RPB is looking for the solution to a problem and the solutions are expected to be varied and more complex to evaluate. Mandatory criteria, rated criteria and cost will be evaluated. Cost is NOT the main evaluation criterion, and the final selection of the proponent is expected to be based on a more complex process using a mix of technical merit and price. Standard forms and contract documents: Identification of primary standard forms/contracts to be utilized is made in consultation with a contracting officer. These are described in the specific sections for each type of contract requirement. 18 Contract negotiation: Standard contract clauses have been mutually developed with the Canadian Construction Association (CCA) and Professional Associations which include, but are not limited to, responsibilities and authorities, applicable terms and law, technical and business management approaches, contract financing, and price. Refer to Standard Acquisition Clauses and Conditions (SACC manual) on PWGSC website. Weighting system: Is a method used to evaluate qualitative criteria to minimize the effect of personal subjectivity during source selection. The system involves assigning a numerical weight to each of the evaluation criterion, rating proponents on each criterion, multiplying the weight by the rating, and totalling the resultant products to compute an overall score. Screening system: Involves establishing minimum requirements of performance for one or more of the evaluation criteria. For example, a proponent might be required to propose a project manager who has specific qualifications, i.e. a ® PMP , before the remainder of the proposal would be considered for evaluation. Independent estimates: For all procurement items, RPB prepares its own independent estimates as a verification of on proposed pricing. Significant variances from these estimates may be an indication that the project brief/statement of work was not adequate or that the proponent either misunderstood or failed to respond fully to the project brief. 4.3.4 Outputs Bids: are offers made by contractors to perform specified services for a certain price. On construction contracts over 100K, the bidder must provide a bid bond or other acceptable bid security with their offer. The contractor awarded the contract must then replace bid security with a labour and material payment bond and a performance bond or other acceptable contract security. There may be various other related requirements such as insurance, health and safety certification etc. Proposals: are documents prepared by consultants that describe their firm's ability and willingness to provide the requested product at a proposed cost. Proposals are prepared in accordance with the requirements of the relevant procurement documents and may be supplemented with an oral presentation. The real property methodologies are described in the individual section addressing the specific requirements. Sole Source contracts may be utilized for any type of contract ONLY if it meets one or more of the exceptions established in Treasury Board Contracting Policy, Section 10.2.1 and Government Contract Regulations (GCR), Part I,Section 6: the estimated expenditure does not exceed 25,000 or 100,000, where the contract is for the acquisition of A&E services. a pressing emergency in which delay in taking action would be injurious to the public interest (see RPB 'Emergency Contracting Process'). the nature of the work is such that it would not be in the public interest to solicit bids i.e., security issues etc. only one person or firm is capable of performing the contract. Note: project managers should read Section 6 of the GCR's for more detail. Construction Contract / Consultant Agreement: These documents are signed by the authorized representative of the firm and the contracting officer delegated with contract approval authority. The signed contract is a legal obligation of the two parties, the consultant/contractor must provide the specified services and RPB may pay for these services. Since real property contracts are standard, the review, approval and execution of the documents is normally a routine process. NOTE: With the exception of a pressing emergency, when only one proponent is invited to submit a proposal, it is usually required that an Advance Contract Award Notice (ACAN) be posted on GETS for a period of 15 calendar days. This informs other firms of the intent to award on a sole source basis and provides opportunities for other firms to advise the Contracting Authority that there are, potentially, other firms capable of meeting the requirement. 19 4.4 Administer the Contract This is the process of ensuring that the contractor/consultant's performance meets the contractual requirements. On larger projects with multiple contracted parties and resource expertise, managing the interfaces among the various providers is paramount. The legal nature of contractual relationships makes it imperative that the project team be acutely aware of the legal implications of actions taken when administering the contract. Where consultants are engaged to provide project management services, they may recommend actions for RPB approval, but cannot authorize contracts, commitments, amendments, change orders or payments since they are not an employee nor an 'agent' of PWGSC. Contract administration includes application of the appropriate project management processes to the contractual relationship(s) and integration of the outputs from these processes into the overall management of the project. This integration and coordination often occurs at multiple levels when there are multiple consultants/contractors and multiple services involved. RPB promotes open communication with consultants and contractors to explain these processes The key processes are: Project plan execution: to authorize consultant/contractor's work at the appropriate time Performance reporting: to monitor consultant/contractor cost, schedule, and technical performance Quality control: to inspect and verify the adequacy of the consultant/contractor's services Change control: to ensure that changes are properly approved and that all those with a need to know are aware of such changes. Payment terms are defined within the contract and involve a specific linkage between contractor/consultant progress. 4.4.1 Activities 1. Pre-planning meeting: contractor, CA and PM and client to establish roles and responsibilities and review the Statement of Requirements and ensure that the contract starts with everyone understanding their role in the process; 2. Once contract is in place, the PM will manage the execution of the work; 3. Monitor and document progress of the contract with all its elements; 4. Resolve any difficulties as soon as they are encountered. Document the problem and its resolution and send one copy to the Contracting Authority. If the problem cannot be resolved, seek assistance from your Senior Project Manager or Regional Manager, then support from the Contracting Officer; 5. Should problems persist, contact Contracting Officer and/or Claims Management and Prevention Unit for advice before talking to the Contractor/Consultant; 6. For any Change Orders processed within RPB authority, complete a change order log and submitted to the Contracting Authority; 7. For Change Orders processed through RPC, complete a change order log and submitted to the Contracting Officer for approval; 8. Document the file for all change orders or issues which might surface later; 9. Record action, telephone conversations, meetings; 10. Ensure to exercise only your authorities as they were given to you through your supervisor; 11. Work is progressing and invoices are received; assess that the work is progressing as it should be, in accordance with the schedule; 20 12. Sign off on invoices, with financial coding, for the work completed as per the contract terms and conditions for payment; 13. Work is completed, contractor to provide a list of deficiencies and a list of warranties. 4.4.2 Inputs Deliverables: these are the consultant/contractor's services; identification of which deliverables have been completed and which have not, to what extent quality standards are being met, what costs have been incurred or committed, etc. These were identified as part of the Statement of Work. (see Plan Procurement and Conduct Procurement) This information is monitored as part of project plan execution. Change requests: may include modifications to the terms of conditions of the contract or to the description of the project to be provided. Where modifications are required to terms and conditions it is imperative that RPC approval be obtained. Since the contracts are standard as agreed with the industries, changes to terms and conditions should rarely occur. If the consultant /contractor's services are unsatisfactory, various alternatives are available to project managers (see appropriate clauses), dispute resolution, taking the work out of the contractor's hands, or termination of the contract. Contested changes, those where the consultant/contractor and the project management team cannot agree on compensation for the change, are called claims, disputes, or appeals. Contractor/Consultant invoices: invoices (also referred to as progress draws) are submitted monthly to request payment for services performed. Invoicing requirements, including necessary supporting documentation, are defined within the contract. 4.4.3 Tools and Techniques Contract change control system: defines the process by which the contract may be modified. It includes the documentation, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system should be integrated with the project change control system. NCA have established a centralized Contract Change Management Unit that provides a quality assurance process. Inspection and Audits: Each SOW and/or SOR should have inspection and acceptance criteria to determine the standards under which the product or service will be accepted. The audit requirement will be stated in each contract, that once the work has been delivered, the option of audit is available to the buyer for a specific period. Performance reporting: provides management with information regarding how effectively the consultant/contractor is achieving the contractual objectives. Contract performance reporting should be integrated with project performance reporting. PWGSC in conjunction with the Canadian Construction Association and the Professional Associations of Architects and Engineers have established generic performance measurement criteria. Payment system: payments to consultants/contractors are administered by the PWGSC accounts payable system. The payment system must include appropriate reviews and approvals by the project management team and must adhere to the departmental contracting and financial delegated authorities. 4.4.4 Outputs Contract documents: contract terms and conditions require written documentation related to various aspects of the contract, such as notices, warnings of unsatisfactory performance, contract changes, clarifications, etc. NCA has established a centralized Claims Prevention and Management Unit to assist Project Management with the analysis and resolution of claims. Claims management: The Claims Prevention and Management Unit assist project manager with the analysis and resolution of contractual claims. 21 Contract changes: (approved and not approved) are fed back through the appropriate project planning and procurement processes. All changes should be reflected in the Project Plan or any relevant documentation. Payment requests: are submitted for the services performed. The amount of services or progress of the services to date are certified by the technical authority and recommended for payment. Actual payment is made by the financial authority and logged in the PWGSC‘s account payable. The payment sequence normally begins with several monthly progress draws, followed by a Certificate of Substantial Performance (Interim) and Certificate of Completion (final) following warranty periods, etc. The contract specifies the conditions to be met prior to the release of payments i.e., statutory declarations, clearance certificates, etc. 4.5 Contract Close-out Contract close-out involves both product verification (ensuring all work was completed correctly and satisfactorily) and administrative close-out (updating the records to reflect final results and archiving the information for future use). The contract terms and conditions prescribe specific procedures for contract close-out and RPB has developed specific documentation requirements for use by its project managers. 4.5.1 Activities 1. Evaluate contractor/ consultant, and review performance and the capability of the contractor / consultant with Contracting Authority (Construction PWGSC/TPSGC CPERF 2913, and Consultant PWGSC/TPSGC CPERF 2913-1.) 2. Contract close-out. Ensure financial system is aligned with the project file, for documentation and audit trail. 3. Prepare Lesson Learned. 4.5.2 Inputs Contract documentation: includes, but is not limited to, the contract itself along with all supporting schedules, requested and approved contract changes, any technical documentation developed by consultant/contractor, performance reports, financial documents such as invoices and payment records, and the results of any contract-related inspections. 4.5.3 Tools and Techniques Procurement audits: are structured reviews of the procurement process from procurement planning through contract administration. The objective of a procurement audit is to identify successes, failures, lessons learned etc., that warrant consideration for other projects in PWGSC. 4.5.4 Outputs 1. Records Management and Contract file: a complete set of indexed records must be documented for inclusion with the final project records. 2. Formal acceptance and closure: the organization responsible for contract administration should provide the consultant and contractor with formal written notice that the contract has been completed. Requirements for formal acceptance and closure are defined in the contract. 5.0 Delegation of Authorities Delegation of Authorities is an instrument that specifies the types and limitations of authorities delegated to a specific position. The Minister and Deputy Minister grant these delegations to officers of the Department on the condition that the authority so delegated be applied only within the delegated officer‘s area of responsibility. For example, the Minister‘s 22 office is the only position given power through legislation to approve contracts and requisition payments. Therefore, the Minister is ultimately accountable for all financial and contractual actions of the Department. Where the Minister has delegated this authority to officers of the Department, the objective is to provide authority commensurate with their operating needs. There are four key parameters to the delegations of authorities which affect the domain and the scope of their application. Specifically, the delegations: are made to specific levels of positions, have specific transaction limits attached and are subject to restriction by management, are subject to any additional limitations defined in statutes, Treasury Board regulations, policies and directives, receiver general directives and other PWGSC directives, and are restricted to those activities allowed by legislation and as approved by the Deputy Minister and which are described in official departmental documents in terms of mandates, operational plans, and budgets. 5.1 Delegation of Authorities (Schedule 2) –Real Property Branch 5.2 Delegation of Authorities (Schedule 3) –Common Service Acquisition Authorities Procurement Management for Architectural and Engineering Services 6.1 Procurement Methodologies Architecture and Engineering (A&E) contracts are solicited through RPC contracting authority for sole source and competitive contracts. A Requisition for Goods and Services (9200) is mandatory for all A&E contracts. For contract values estimated below the North American Free Trade Agreement (NAFTA) threshold, the PWGSC SELECT system (up to 75K) (rotational sourcing system) is utilized. For those above the threshold, a Request for Proposal is issued through the Government Electronic Tendering System (GETS) (electronic bulletin board on Internet for public tendering). The main consideration when choosing a selection method is the expected dollar value of the consultant services. There are, however, other factors that should be taken into account; for example, the project‘s complexity and specificity, or time associated with a particular selection process. It is the joint responsibility of Project Management and Real Property Contracting (RPC) to ensure that an appropriate consultant selection mechanism is used. Since the estimated cost of services constitutes the principle criterion for choosing a selection method, it is very important that the scope of the project and related professional fees be determined before a request for consultant services is processed. Once the technical and cost parameters of a project are established, the Project Manager should discuss the service acquisition methodology with a Contracting Officer. While a final decision concerning the consultant selection process needs to be made by the Project Manager, departmental policies or thresholds of trade agreements that impose limits for usage of a particular method must be respected. In many cases, these limits will determine which method is used. The limits set by departmental policies and trade agreements are periodically reviewed and closely monitored by various authorities. It is the responsibility of the Project Manager to contact the Contracting officer to ensure that they have the most up-to-date information on thresholds of policies and trade agreements. Contracts must not be split to avoid the obligations under applicable agreements or policies. 23

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