Facilitate
Suppliers calling the Office often do so because they have been unsuccessful in dealing with a department. It is not uncommon for a caller to be frustrated. In these cases, one of the Office's primary functions is to understand the supplier's concerns and find ways of de-escalating the issue. This is the basis for the Office's Facilitate strategic objective: to assist suppliers and departments in resolving potential conflicts through constructive dialogue.
When procurement-related issues are brought to OPO's attention, the Office makes every effort to stimulate dialogue and de-escalate potential conflicts by leveraging its neutral and independent third-party status. When suppliers bring issues to OPO's attention, the Office:
- provides assistance to increase their overall understanding of federal procurement;
- informs them of available options; and
- with the supplier's written consent, contacts the department in question to facilitate dialogue.
OPO's business model encourages the parties to discuss issues in an open and straightforward manner. We see our role as guiding suppliers and departments through issues based on an understanding of their respective requirements and concerns. The aim of this approach is to facilitate effective solutions in an expedient and cost-effective manner.
Of the 111 issues received by the Office last year, 87 (78%) pertained to the award of a contract and 20 (18%) to the administration of a contract. The remaining 4 (4%) were other requests for either Alternative Dispute Resolution (ADR) services or procurement practice reviews.
OPO's approach in handling procurement-related issues is prescribed by the Procurement Ombudsman Regulations, which provide the parameters for the Office's activities. To be pursued by the Office, complaints must be filed in accordance with the criteria established in the Regulations (more specifically, subsection 7(1) for contract award or sub-section 16(1) for contract administration).
Of the 111 issues brought to the Office's attention by suppliers, 36 (32%) of the filed complaints allowed the Office to formally intervene.
In instances where suppliers elect not to file a complaint or the assessment of the complaint determines it is outside OPO jurisdiction, the Office attempts to facilitate a resolution or provide options for suppliers to consider. For example, if the issue clearly falls outside the Office's regulatory parameters, we will put the supplier in contact with an organization that may be in a better position to provide assistance.
Alternative Dispute Resolution
Contractual disputes can jeopardize the timely completion of contracts, lead to increased costs and result in late payments. Conversely, facilitating the resolution of disputes may salvage the original intent of the contract and preserve business relationships, the objective of the OPO Alternative Dispute Resolution (ADR) service.
When contracts are already in place and a dispute arises, the Regulations stipulate that the Ombudsman will ensure an ADR process is provided when requested by one of the parties to the contract and agreed to by the other party. This applies to disputes pertaining to the interpretation or application of the terms and conditions of an issued contract. For example, a supplier contacted the Office regarding a verbal agreement to amend the contract that had been signed between the supplier and the department. The verbal agreement centred on a change to the delivery site, which resulted in costs savings to the department. After the delivery had been completed, there was a disagreement between the parties on the magnitude of the savings. The supplier informed OPO that, as a result of the dispute, the department refused to pay the outstanding balance resulting from the verbal agreement. The Office contacted the department in question and obtained their agreement to participate in an ADR process. The process resulted in the parties reaching a mutually acceptable agreement that avoided a lengthy and costly legal process. As an independent ADR service provider, OPO helps facilitate the resolution of these types of disputes and the development of legally binding agreements.
In 2011-12, the Office received five requests for ADR services. One case is ongoing. In two cases suppliers decided not to proceed and the files were subsequently closed. In the two remaining cases, the disputes were resolved to the satisfaction of the supplier and the implicated department.
| Year | ADR requests | Not within Regulations | Department declined to participate | ADR process initiated | Outcome: Settlement reached or request withdrawn |
|---|---|---|---|---|---|
| 2011-12 | 5 | 2 | 0 | 3 | 2 (1 case ongoing) |
While OPO has often been effective in facilitating the resolution of issues between suppliers and government departments, occasionally the Office is made aware of specific cases or systemic procurement practices which bring into question the fairness, openness or transparency of federal procurement. In these cases, the Office relies on its third strategic objective: Investigate.
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