expediting procurement timelines through an innovative · pdf fileexpediting procurement...

Expediting Procurement Timelines through an

Innovative VOR

Bayan A. Hariri

Sherry S. Bernatchez

CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 1

Expediting

Procurement

Timelines through

an Innovative VOROUR FUTURE HEALTH BUILT WITH CARE

As the Ontario government’s advisor on the cancer and renal systems, as well as on access to care for key health services, Cancer Care Ontario (CCO) drives continuous improvement in disease prevention and screening, the delivery of care and the patient experience for cancer and renal services.

WHO WE ARE…

Known for its innovation and evidence-based approaches, CCO leads multi-year system planning, contracts for services with hospitals and providers, develops and deploys information systems, establishes guidelines and standards, and tracks performance targets to ensure system-wide improvements in cancer, chronic kidney disease – through the Ontario Renal Network – and access to care.

CCO directs and oversees approximately $1.8 billion in funding for hospitals and other cancer and chronic kidney disease care providers, enabling them to deliver high quality, timely services and improved access to care. CCO employs about 1,000 staff members, all of whom are critical elements that contribute to the success of this organization and ensuring high quality care to cancer and renal patients in Ontario.


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 2

Ontario Management

Board of Cabinet

(MBC) Procurement

DirectiveCCO PROCUREMENT POLICY

The purpose of the Procurement Policy is to ensure that CCO acquires good and services through a process that is fair, open, transparent and consistent with the provisions set forth in the Ontario MBC Procurement Directive.

CCO has an established Procurement Policy.

CCO Vendor of Record Arrangement - Policy

Appropriate approval authority must be secured

prior to initiating a VOR Arrangement. The approval

authority is based on the Procurement method and

the total estimated Procurement Value of all

Procurements expected to be conducted under the

VOR Arrangement.

4

CCO may choose to participate in an existing VOR

Arrangement established by the Ontario Ministry of

Government Services in accordance with the

Ontario’s Procurement Directive.

Alternatively, CCO may establish CCO-specific VOR Arrangements for the supply of a particular good/service upon completion of an Open Competitive Procurement.


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 3

CCO Definition & Approach to VOR Arrangement

5

“Vendor of Record (VOR) Arrangement” means a Procurement arrangement that authorizes

multiple qualified vendors, typically by way of a formal second stage process or rostering, to

provide goods or services for a defined time period on terms and conditions, including pricing, as

set out in a particular VOR agreement.

“Vendor of Record (VOR) Ceiling Price” means

the maximum value per assignment, or per

multiple project-related assignments. The process

to determine VOR Ceiling Price shall be set out in

the applicable VOR User Guide.

“Create a VOR User Guide” that provides users

with information about the VOR Arrangement such

as vendor contact information and pricing, specific

user requirements such as insurance

requirements, etc.

When establishing a VOR, a few things to consider

Use appropriate Procurement process” which includes

1. Planning 2. Securing Approvals

3. Executing the Procurement 4. Evaluation

5. Issuance of Purchase Orders (PO’s) 6. Contract Management/ Document Retention

6

Current CCO VOR’s

Application Development & Quality Assurance

Recruitment & Staffing (HR)

Legal Services Security Services

SharePoint Privacy Consulting & Advisory Services

Smoking Cessation

French Translations

Fairness Monitor Business Intelligent Enterprise Edition (OBIEE)

Informatics (Reporting & Analytics)

X-ray Computed Tomography

Treatment Planning System (TPS) Radiation Oncology Information System (ROIS)


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 4

Application Development & QA Services VOR

7

Issuance of the Development & Quality Assurance VOR RFP

�Back in 2013, CCO issued a competitive procurement for the establishment of an Application Development & QA Services VOR

�The procurement process was completed in under four months

�Resulting in five (5) qualified Vendors being added to this VOR

Evaluation Team Members

� Business Analyst

� Application Developers

� Quality Assurance Leads

� Security & Finance

Procurement’s Role

� Facilitate & manage the procurement process

� Provide guidance to the Evaluation Team

� Consolidate & finalize evaluation results

� Conduct Negotiations to establish MSA

RFP Evaluation Process – Stages & Phases

8

RFP Evaluation Framework

Stage1

RFP to Establish VOR

Phase1 Phase2 Phase3

Stage2

Standard RFS

Project Task

(“Stage 1”) of the RFP Process was intended to identify and pre-qualify a shortlist set of Respondents demonstrating capabilities of and have the capacity to provide Application Development and QA Services on both a Project and Task Service basis.

Stage 1 was completed once the Successful Respondents signed an MSA or declined to sign an MSA and were removed from consideration. All Respondents who participated in Stage 1 received a result notification from CCO and only the Successful Respondents proceeded to the next Stage of the RFP Process.

It was CCO intentions to initiate a Stage 2 process while Stage 1 was being completed, only those Vendors that sign the MSA were eligible to bid on the Stage 2 - RFS01 (Project Service).


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 5

RFP VOR Evaluation Process – Phases

9

Pass / Fail

All that passed advanced to the next Phase 2

Compliance & Completion Review

Phase 1

Phase 1

Mandatory Requirements

Total Score Short Listed Vendors

* Invited to negotiate MSA

* Invited to respond to RFS01

* Set the Task roster order

Qualitative & Quantitative Evaluation

Phase 3

Phase 3

D.

Vendor

Resources

E.

Pricing:

Task Rates

Threshold

Top 8 Respondents that met the threshold of 60 points or above

were invited to advance


Phase 2

Phase 2

A.

Corporate Profile

B. Qualification Experience

C.

Financial Analysis

Top Ranking Vendor

Only the top ranking vendor was invited to enter into SOW negotiations for the

RFS services assignment


RFS Evaluation Phase

Project-Based Service

RFS issued to 5 Vendors

A. Project Plan

B. Vendor Presentation

C. Pricing Evaluation

Application Development & QA VOR

10

Purpose: The purpose of this VOR was to select a limited number of Vendors (Minimum of 5)

through an open competitive process, demonstrating an ability to meet a set of conditions that

would provide CCO with an enhanced ability to obtain Application Development & Quality

Assurance Services in a more efficient and effective matter.

� A non-exclusive, compliant procurement method was structured to meet the needs for

resources & project support within the Technology domain.

Key attributes of the Established VOR:

� A comprehensive Vendor Management Approach (good governance)

� Each selected vendor signed a Master Services Agreement defining the relationship and

expectations for any and all future statements of work awarded under this VOR.

� The VOR contains an all encompassing ceiling value, to be spent based on business needs

over the term of the contract via an Request for Services (RFS) – 2nd Stage.


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 6

Application Development & QA VOR

11

Objectives & Benefits

To support new and existing CCO Programs with increased scope, complexity and quick

response requirements and to address certain resource constraints through the use of third

party vendors.

To implement a fair, efficient and transparent procurement process that meets CCO’s need

to:

� Support CCO strategic initiatives with the appropriate balance of internal and external resources

� Expedite procurement timelines subject to terms and conditions

� Comply with Government of Ontario policies and directives

� Obtain key information technology (“IT”) industry skills for rapid deployment

� Obtain Microsoft .NET platform and mobile application development skills inclusive of Design and Quality Assurance services

� Ensure value for money is achieved through a competitive bidding process; and

� Manage vendors in a consistent and standardized manner

Application Development & QA VOR – Scope

12

Application Development, Maintenance, Systems Integration, Solutions Architect

Services relate to the development & maintenance of IT systems and solutions within the Microsoft Framework.

These systems and solutions will support CCO Programs and operations, and may process sensitive and health

care data, including Personal Health Information (“PHI”). Vendors within this VOR are expected to follow a

formalized software development lifecycle, compliant with CCO’s Privacy statutes and deliver services using

leading practices.

Services available under this VOR…

Application Development & Maintenance

� Development of new systems or extension of existing systems to support CCO Programs;

� Maintenance of existing systems to support CCO Programs

Systems Integration

� Integration of subsystems of pre-existing or out of the box applications;

� Customization or configuration of pre-existing or out of the box applications;

� Implementation of pre-existing or out of the box application

Quality Assurance (QA) / Testing

� Application testing;� Database testing;� Performance & load testing;� Automated use case testing; and� Acceptance and regression testing

Solutions Architecture

� Design of information systems or applications;� Design of database;� Definition of logical data models


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 7

2nd Stage RFS - Task & Project Based Services

13

Two needs... which approach?

The Project Service refers to situations where vendor resources are sought to develop complete

applications or application components (SDLC) as needed via a team of resources which consists of its

employees and if required, subcontractors or other resources.

Project Service…

Task Service…

The Task Service refers to situations where vendor resources are sought to deliver development services

on an individual basis via its internal resources or employees.

The pricing models available for use within the Project Service can be either “Fixed price”, or “Per Diem

Rate Basis” dependent on the project. The pricing model will be specified within each individual RFS.

The pricing model available for use within the Task Service is a Per Diem rate at, or below, the rates

established for a particular role. Resources supplied via Task Service should be the vendors employee

resources, there will be no additional service fees paid beyond the Per Diem rates.

.

Project-Based Services – Thresholds & Posting

14

Project Service Key Attributes

� 2nd Stage Request for Service

� Posted on the electronic bid tendering system e.g. MERX

� Vendor resources sought to develop complete applications or application components as needed, accountability for delivery rests with the vendor

� Pricing Model – Fixed Price or Per Diem basis Dependent on the project, clarified at the time of RFS drafting and prior to submission

� 2nd Stage selection – issued to full VOR list

Thresholds RFS Response Posting

� Large $500K + � 14 – 28 days

� Medium $100K to $500K � 14 – 21 days

� Small < $100K � 7 – 14 days

Evaluation & Selection Process

� Technical > Presentation > and Pricing� Top Ranking Vendor Selected, > Recommendation to proceed to Contract Negotiations


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 8

Task-Based Services – Thresholds & Posting

15

Task Service Key Attributes

Directed Request for Service (RFS)

Example:� Rank 1 – Vendor RFS 1� Rank 2 – Vendor RFS 2� Rank 3 – Vendor RFS 3� Rank 4 – Vendor RFS 4� Rank 1 – Vendor RFS 5, etc.,…

Vendor resources sought to deliver development services on an individual basis. Be given specific deliverables for which the Vendor resource is accountable.

� Pricing Model – Standardized per diem rate per role

� 2nd Stage selection – Rostering approach which is administered by Procurement

Thresholds RFS Response Posting

� Small < $100K, per RFS

� up to a maximum of two per 30 days

� 3 – 5 days

� No interviews conducted

Evaluation & Selection Process

� Review of candidate CV based on roles, responsibilities and skill set (as set out in the MSA) � Hiring is finalized by Procurement, based on above

Vendor Management Approach & Accountability

16

R A S C I

Activities

CC

OC

LIE

NT

PR

OC

UR

ME

NT

FIN

AN

CE

LE

GA

L

CONTRACT MANAGEMENT

�Day to Day Performance to Scope & Financials A, R C I

�Contract & Scope Changes A, R S I

�Commercial Terms & Conditions S A, R C

PERFORMANCE MANAGEMENT

�Weekly/ Monthly progress reporting or Timesheet Validation A, R I I

�Quarterly SLA reviews and reporting/ meeting S A,R I

RELATIONSHIP MANAGEMENT

� Contract Escalations (Major Disputes) C A,R C S

� Payment Issues A I C

RACI = Responsible, Accountable, Supportive, Consulted, Informed

Note: This table does not take into consideration, Vendor’s roles under R.A.C.I.


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 9

Pro’s & Con’s Under Project-Based Services (VOR)

17

Several notable advantages to establishing a VOR, specifically around Project-

Based Services includes:

Disadvantages under Project-Based RFS

� Low vendor bid submission; limited number of vendor bids

� Closeness with vendor to a specific CCO group or technology

� Heavy-vendor reliance/ vendor dependency

� Lack of objectivity by CCO to promote competition; vendor bias by CCO

Advantages under a Project-Based Services

� 2ND Stage procurement process completion is quick/ efficient inviting only pre-qualified vendors

� Faster evaluation process based on limited number of vendor bids

� Vendors are familiar with CCO IT Technology, Standards and Practices

� Established Master Service Agreements in place, allows for quick SOW finalization

While there are several advantages to establishing a VOR, the process is

without some challenges, a few noted disadvantages include:

Pro’s & Con’s Under Task-Based Services (VOR)

18

Several notable advantages to establishing a VOR, specifically around Task-

Based Services includes:

Disadvantages under Task-Based RFS

� Inability for vendors to supply suitable candidate (skillset / experience)

� Candidate unavailability based on required start-date

� Gaming the system by CCO staff

� Poor performance by candidate

Advantages under a Task-Based Services

� Quicker onboarding process of candidate and candidate reliability

� No interviews

� Established / negotiated rates based on MSA

� Continuation and continuity of expertise and skillset

� Expose to CCO technology standards, IT systems and architect

While there are several advantages to establishing a VOR, the process is

without some challenges, a few noted disadvantages include:


Innovative VOR

Bayan A. Hariri


CPPC Forum 2015

Tuesday, November 3

14:45 – 15:30 10

VOR Challenges & Role of Procurement

19

Challenges Role of Procurement

� Established relationships with certain vendor

� Procurement’s role is to manage the RFS process, and to ensure that the procurement process around vendor selection is adhered to

� Procurement’s role is to provide ongoing education to CCO staff

� Perceived bias

� Scope of Work changes without consultation with Procurement

� Procurement’s role is to manage agreement changes by being engaged with CCO client & Vendor on an ongoing basis;

� High emphasis on vendor management/contractmanagement

� Change Request (CR’s) raised after the fact, post engagement

Audience Participation What are some of your challenges?

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