Office of the Procurement Ombudsman Annual Report 2010-2011

Message from the Procurement Ombudsman

It is a pleasure to submit my first annual report as Procurement Ombudsman. Since being appointed in January 2011, I have benefitted from the work undertaken by my predecessor, Shahid Minto, in establishing the Office of the Procurement Ombudsman (OPO). Mr. Minto retired from the Public Service in July 2010 after a distunguished 33-year career. While assuming new responsibilities can often prove to be challenging, my transition was facilitated by Mr. Minto's ability to attract top-rate personnel and his recognized accomplishments in making the OPO mandate operational.

Following Mr. Minto's retirement, Deputy Procurement Ombudsman Oriana Trombetti was responsible for the Office until my appointment in January. Before leaving us for a promotion with the Department of Justice, she was instrumental in helping with my orientation to the Office. I would like to thank Ms. Trombetti and recognize her dedication and professionalism.

Since my arrival, two things have struck me about the Office: the quality of the people who make up the Office and their dedication to improving the federal procurement system. The motto "we are here to help" is deeply ingrained in the Office's culture. This motto is evident in all aspects of our everyday work, be it in the respect and dignity afforded all callers to our toll-free line (regardless of whether their call is related to procurement or not), in the vigour and determination of our investigations, in the genuine interest displayed while facilitating the resolution of contractual disputes between suppliers and government officials, or in the discipline and thoroughness exhibited in procurement practices reviews and studies. The Office is made up of quality people who believe that what they are doing makes a difference to the fairness, openness and transparency of federal procurement and, ultimately, to the Canadian taxpayer. I am proud to have been chosen to lead this valued and trusted organization.

Since my appointment as Procurement Ombudsman, I have been asked to describe the procurement concerns most often reported to the Office. Given the fact that, annually, the federal government issues roughly 325,000 contracts and amendments valued at approximately $20 billion, it is clear that federal procurement has evolved from a purely clerical function to one that is critical to departments and agencies by assisting them in delivering on their strategic objectives.

During the course of our work, the Office has noted a trend toward transitioning the procurement function from a "back room" transaction processing function to an enabling partner in the delivery of departments' and agencies' strategic objectives. These progressive organizations recognize timely procurement analysis and planning as an essential component of effective program delivery. To avoid issues being brought to the Office's attention–which appear to be stemming from last-minute reactive contracts-it is vital that departments and agencies transition to treating procurement as a strategic partner and enabler.

Given the fact that, annually, the federal government issues roughly 325,000 contracts and amendments valued at approximately $20 billion, it is clear that federal procurement has evolved from a purely clerical function to one that is critical to departments and agencies by assisting them in delivering on their strategic objectives.

Likewise, while significant strides have been made in professionalizing the function through training, some of the files the Office has handled suggest more is needed. This is particularly so in the training of program managers who are often responsible for articulating the types of goods and services required in critical procurement documents such as statements of work and bidder evaluation criteria. In the procurement process, the clarity, precision and accuracy of these documents is paramount, as they influence other "downstream" procurement activities and decisions. A continued emphasis on procurement training, including the training of non-procurement personnel, is essential as the federal public service continues to experience substantial demographic change.

A large number of cases that come to our attention involve concerns that could have been avoided through open and clear dialogue.

Clarity, precision and accuracy are also pre-requisites to effective communication between departments, agencies and suppliers. A large number of cases that come to our attention involve concerns that could have been avoided through open and clear dialogue. Whether the concerns stem from a department's reluctance to reveal "too much" information (in its zeal to protect the integrity of the procurement process) or from something as routine as failing to show the common courtesy we all expect by returning a telephone call, the Office hears of numerous cases which escalate due to poor interaction between the parties.

Finally, I have taken note of a concern which, as a proud public servant for the better part of three decades, strikes at the very reason for my interest in becoming Procurement Ombudsman. The Office has heard of supplier reticence to disclose the names of departments, with which they have procurement concerns, for fear of being excluded from future business opportunities. I find this issue particularly troubling. I deeply believe that the values of equity, fairness and justice are fundamental in serving Canadians. Whether this reluctance is rooted in suppliers perceptions or past experiences, this is an issue I plan to closely monitor and better understand in the upcoming months.

For my first annual report, I have two objectives in mind. The first is to report on the Office's activities, outlining our role, the nature of our work and the concerns that have come to our attention. A secondary, but equally important, objective is to provide some initial insight into how the Office will continue to build on the solid foundation established by my predecessor. Given what I have heard from stakeholders in my short time as the Ombudsman, it has become apparent that the Office can, and should, play a more prominent role in improving fairness, openness and transparency in procurement through education, facilitation and investigation. As I lead the Office through the next stage of its evolution, these three pillars will be the basis on which we will deliver our mandate:

EDUCATE – A large part of our responsibility involves helping to prevent federal procurement concerns from escalating through early intervention and the provision of relevant information. Whether it be in taking the time to explain a particular aspect of the procurement process to a frustrated stakeholder, identifying areas of concern regarding fairness, openness and transparency, or disseminating information on good procurement practices being used in federal organizations or elsewhere, our role in educating will be paramount in achieving our objectives.

The Office has heard of supplier reticence to disclose the names of departments, with which they have procurement concerns, for fear of being excluded from future business opportunities. I find this issue particularly troubling.

FACILITATE – Whenever our stakeholders have concerns, we will make ourselves available to stimulate active and effective dialogue to de-escalate the situation and/or address their concern. Through work such as our reviews and studies, we will foster a greater understanding of good procurement practices and the challenges faced by both suppliers and government procurement communities.

INVESTIGATE – Given the volume and complexity of contracts awarded and administered by the federal government, it is inevitable that difficulties will occasionally arise. In such cases, if the Office's role as a facilitator has proven to be unfruitful or the nature of the concern does not lend itself to other available remedies, the Office will use recognized methods to ascertain and report the facts and, as required, make recommendations for improvement.

As the Office takes the next step toward optimal operation and delivery mode, we will be guided by a simple, clear beacon: to promote fairness, openness and transparency in federal procurement. Because when federal procurement is conducted in a fair, open and transparent manner, we all benefit.

Frank Brunetta
Procurement Ombudsman

Date modified:

2018-11-01