Evidence of meeting #8 for Government Operations and Estimates in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was business.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Shereen Benzvy Miller  Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services
Pablo Sobrino  Associate Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services

3:30 p.m.

NDP

The Chair NDP Pat Martin

Good afternoon, everyone, and welcome.

I'm going to call to order the 8th meeting of the Standing Committee on Government Operations and Estimates.

Today we have guests from the acquisitions branch of the Department of Public Works and Government Services. We have the ADM, Mr. Pablo Sobrino. Welcome, Mr. Sobrino.

And from OSME, the Office of Small and Medium Enterprises acquisitions branch, we have Shereen Benzvy Miller, director general. Welcome to you as well, Madam Benzvy Miller.

I understand you have a 10- or 15-minute presentation, and then the committee members will be looking forward to asking you some questions.

3:30 p.m.

Shereen Benzvy Miller Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Thank you, Mr. Chair.

3:30 p.m.

Pablo Sobrino Associate Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services

Thank you, Mr. Chair.

Good afternoon.

I am pleased to appear before you today to discuss one of the programs within my organization, the Office of Small and Medium Enterprises. I am Pablo Sobrino, the associate assistant deputy minister responsible for the acquisitions branch in the Department of Public Works and Government Services Canada.

With me is Ms. Shereen Benzvy Miller, the director general, who oversees both the Office of Small and Medium Enterprises and the client engagement sector of the acquisitions branch.

At the outset, I would like to underscore our understanding that small and medium enterprises are a very important aspect of the Canadian economy and an engine of job creation.

Accordingly, in 2005 PWGSC's Office of Small and Medium Enterprises—the OSME—was created to advocate on behalf of SMEs in federal procurement.

Our goal is to provide these enterprises with access to government contract opportunities by reducing procurement barriers, simplifying the contracting process, providing training and education, collaborating to improve procurement policies, and working to ensure the concerns of SMEs are brought forward and heard.

In 2006, the OSME's regional presence was increased through the Federal Accountability Act action plan, which saw the establishment of six offices across the country. Thanks in part to this increase, OSME has assisted many individuals and suppliers throughout reach seminars, trade shows, meetings and a national, toll-free, information service.

In June 2009, officials of Public Works and Government Services appeared before this committee to discuss the subject. The committee subsequently identified five goals, with recommendations, regarding procurement policies and practices involving small and medium enterprises. We thought we'd take the opportunity to go over those.

The key themes based on these goals are raising awareness of the federal marketplace, improving access to federal contracts, breaking down procurement barriers, ensuring fairness, and supporting innovation.

We are committed to promoting fair, open, and transparent access for SMEs to government procurement opportunities, and since our last appearance we've been focusing on how best to meet the goals set out by this committee.

I would like to outline our progress to date in view of the identified key themes and briefly touch on some future directions we're considering.

Let's talk about the first theme, which is raising awareness of the federal marketplace.

We encourage and assist SMEs across Canada to participate in the federal procurement process through our regional offices. The regional offices provide face-to-face assistance to businesses including free one-on-one counseling and procurement information seminars on doing business with the Government of Canada.

We touch on topics such as understanding the procurement process, registering your business, promoting yourself, searching for bid opportunities, and bidding on opportunities. We have also introduced other seminars that focus on specific subjects about which SMEs have expressed an interest.

Our seminars are often offered outside regular business hours, in several languages, and are delivered in person and/or by teleconference and/or seminars over the web. Feedback that has been received from attendees at our seminars indicates a satisfaction rate of approximately 95%.

We also provide a national information service with the toll-free InfoLine. Through this tool, business operators are able to retrieve information on subjects such as how to register as a supplier or how to get on a standing offer.

We also make special efforts to reach out to aboriginal and women-owned businesses, as well as minority-language communities, to provide support and broaden their understanding of the federal marketplace.

OSME has assisted over 140,000 individuals and suppliers since becoming operational. Each year this number grows substantially, and last year we helped over 44,000.

As to improving access to federal contracts, in September 2010 our new procurement website, buyandsell.gc.ca, was launched to provide a one-stop portal for suppliers to access information they need to do business with the Government of Canada in one location.

The website has been well received by businesses. Several industry stakeholders were asked to provide comments about buyandsell.gc.ca, and I'm pleased to say that in September 2010, Corinne Pohlmann, vice-president for national affairs at the Canadian Federation of Independent Business, had this to say:

Buyandsell.gc.ca is a big step forward in helping smaller firms get a shot at government procurement. Government procurement can be a challenging proposition for small and medium-sized businesses and this website can help reduce the confusion and increase the opportunities available to entrepreneurs.

Following our opening remarks, we will be pleased to provide a demonstration of the buyandsell.gc.ca website to this committee, and further elaborate on how the site provides the necessary information for Canadian businesses to do business with the Government of Canada.

Regarding breaking down procurement barriers, we believe that breaking down barriers begins with consultation and speaking with suppliers and potential suppliers to learn more about what aspects of the procurement process cause them problems. Part of the important work done by the Office of Small and Medium Enterprises includes ongoing consultations with both suppliers and clients. This provides an important flow of information both to and from these important stakeholders. For example, earlier this year we coordinated several roundtable discussions to provide suppliers with a forum to discuss procurement barriers and potential solutions directly with Minister Ambrose.

As procurement barriers are identified through these and other efforts, we then take steps to address them.

When we are developing national procurement strategies for goods and services, our consultations include representatives of the SME community. This allows concerns to be raised throughout the process. To this end we have consulted over 4,000 suppliers on 14 potential strategies over the past year and a half. For example these have included food and beverage, office equipment, and janitorial services.

In another example, OSME has worked with departments to improve the availability of procurement documents in both official languages.

With respect to the fourth theme, ensuring fairness, PWGSC undertakes many activities. To highlight a few, OSME sensitizes PWGSC procurement staff in formal training activities by outlining the barriers faced by small and medium enterprises and ways to reduce and remove them.

Buyandsell.gc.ca provides greater access to business intelligence and greater transparency to government processes. This site provides information to both sellers and government buyers. It reduces the time needed for SMEs to search a variety of sites, while at the same time providing deeper information sources that will assist in the preparation of bids.

Finally, for the fifth theme—supporting innovation—we've made some significant progress.

To promote economic growth, in Budget 2010 the Government of Canada committed to the creation of the Canadian innovation commercialization program on a pilot basis. Launched in September 2010, this two-year pilot is a competitive procurement program that helps Canadian businesses to commercialize their pre-commercial innovations through tests and evaluations in federal government departments.

This program will be discussed in more detail on October 6.

Overall, OSME has proven to be a successful program with high client satisfaction ratings. We reach out through conferences, trade shows, and industry associations. We are consulting widely on a significantly streamlined approach to procurement of professional services, we are standardizing and simplifying terminology in procurement documents, and we also continue to offer services via the web, the phone, or in person.

Now, Mr. Chair, if you agree, I would ask Ms. Benzvy Miller to lead a short demonstration of the buyandsell.gc.ca website, following which we would be happy to answer any questions you may have.

3:40 p.m.

NDP

The Chair NDP Pat Martin

I think that would be very useful.

3:40 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

Thank you, Mr. Chair.

Ladies and gentlemen,

…you can see that…

buyandsell.gc.ca is on some screens

…and www.achatsetventes.gc.ca is on the other screens.

Since the creation of the Office of Small and Medium Enterprises, we have listened to the barriers and challenges that Canadian businesses have been facing when trying to do business with the Government of Canada.

Canadian businesses have reported two big challenges. When they are looking to do business with the Government of Canada, they must first master the jargon and understand the federal procurement process.

Before buyandsell.gc.ca, Canadian businesses had to navigate a variety of websites in an attempt to educate themselves about government procurement or to find information about what the government buys.

Canadian businesses expect the government to provide simple, effective, efficient access to services. New technologies such as mobile devices and important initiatives such as open government and open data have raised Canadians' expectations further.

Did you know that Government of Canada procurement represents a market of several billion dollars?

Did you know that the Government of Canada procurement represents a multi-billion dollar marketplace? So how is OSME helping Canadian small and medium-sized businesses to do business with the Government of Canada? OSME developed a single starting point: buyandsell.gc.ca is the government procurement website.

The address of the Government of Canada procurement website is www.buyandsell.gc.ca.

Buyandsell.gc.ca makes the experience of Canadian businesses trying to find out more about doing business with the government simple, fast, and efficient. GWGSC developed buyandsell.gc.ca

—www.achatsetventes.gc.ca in French—

by consulting with hundreds of Canadian businesses and government representatives across Canada. As we continue to listen to Canadian businesses, the site will evolve as a user-friendly, intuitive, and useful suite of services, leveraging the power of the Internet to help Canadian businesses do business with us.

Have we been successful? Since its launch in September 2010, buyandsell.gc.ca has served 230,000 visitors who have viewed over 840,000 pages.

Linda Oliver, the vice-president of the Information Technology Association of Canada, was among the major industry players supporting buyandsell and she said:

The facilitation of fair and easy procurement is a major priority for ITAC. We see great value in a website that could contribute to this end by providing both government and industry procurement professionals with the resources they need to buy and supply as efficiently as possible.

Let me give you an example. Let me introduce you to George. George is a cabinetmaker who owns a small construction business. George is looking to expand his construction business by exploring opportunities with the Government of Canada.

George would like to know where to start to sell his services and wood products to the Canadian government.

He would like to know where to begin his search for federal government opportunities to sell his services and wood products. After contacting the Office of Small and Medium Enterprise, he was directed to buyandsell.gc.ca.

From the www.buyandsell.gc.ca home page, he is directed to the section for businesses.

What are the steps to sell to the government?

George reads the various steps. The first is "understanding the process"; the second is "register your business"; the third is "promote yourself"; the fourth is "search for opportunities"; and the fifth is "bid on opportunities".

George clicks on the first link, step one, “Understanding the Process”. He scrolls down and finds out that for a small business, construction opportunities below $100,000 are facilitated through a web service called “Select”. That was simple. Prior to buyandsell.gc.ca, it was complex. This sort of information was buried below many mouse clicks and hidden behind terms not widely known or understood outside of government.

From wondering about how to do business, to registering, to selling, George will find it all on buyandsell.gc.ca.

Continuing on his first experience, he registers his company to get a procurement business number. Then, still on the site, he will see how to promote his business across government. He will find opportunities to bid on.

If George wants more information, the Office of Small and Medium Enterprises offers free seminars to help Canadian businesses interested in doing business with the federal government.

Across the country, six regional offices of the Office of Small and Medium Enterprises will help new businesses to understand the procurement process with seminars on registering, finding contracts, conducting market research, and more. With a greater knowledge of how to navigate the procurement process, George can begin bidding on opportunities to expand his business.

Buyandsell.gc.ca is the result of collaboration with Canadian businesses and government procurement professionals.

The www.buyandsell.gc.ca website guides new and experienced users through the various steps required to do business with the federal government.

Because it's easy to use and provides users with web-based services they need to do business with us, buyandsell.gc.ca revolutionizes the way SMEs do business with the Government of Canada.

With buyandsell.gc.ca, businesses can now focus more on doing business and less on finding out or figuring out how to do business.

Thank you for your time.

3:45 p.m.

NDP

The Chair NDP Pat Martin

Thank you very much, Ms. Benzvy Miller. That was very useful. My only observation is that George must have better eyesight than I do or he wouldn't be doing much business.

I'm sure it would be easier on a computer screen.

3:45 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

Mr. Chairman, it's easy to find on your computer—buyandsell.gc.ca.

3:45 p.m.

NDP

The Chair NDP Pat Martin

I understand.

That is interesting. I was part of the study earlier in 2009 when we went through some of the problems, some of which it seems you have resolved by this streamlined, single-window opportunity. That's an interesting connection, and perhaps gratifying that the work of the committee does in fact sometimes translate into meaningful change within bureaucracy.

3:45 p.m.

An hon. member

Let's not get carried away.

3:45 p.m.

NDP

The Chair NDP Pat Martin

Let's not get carried away. You don't want any of this to catch on.

The committee members are interested in asking some questions. Up first we have, for the official opposition, Alexandre Boulerice.

3:45 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Thank you, Mr. Chair.

Ms. Benzvy Miller and Mr. Sobrino, I'd like to thank you for your presentation. I'd also like to thank you for being with us today and for your efforts in helping SMEs in obtaining contracts with the federal government.

If you will allow me, I'd like to spend some time on a fairly specific aspect of your Canadian innovation commercialization program, which is entirely new and a good idea in itself. We aren't against the principle in general or in particular. But we've learned that 20 projects a year can be approved and funded in four different priority sectors: health, safety and security, environment and enabling technologies. In the initial calls for proposals that were launched, we noted that Paradigm Shift Technologies Incorporated was among the qualified companies. Its mission, as part of your innovation program is the:

Development and demonstration of environmentally benign technology for life extension of F-35 gun system, a major component that will make the entire aircraft system green.

We were surprised to see that the F-35 could be considered an ecological aircraft. Even today, CBC revealed that, based on the purchases in the United States and Israel, F-35 aircraft actually cost about $130 million or $140 million each instead of $75 million. The federal government would also inject money through the innovation program to make the F-35 gun system ecological. Is that right?

3:45 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

I think we've been invited to speak on Thursday about that very program. Would you like me to try to answer you today or would you prefer me to wait until Thursday? It's a question for the Canadian innovation and commercialization program and we'll be here on Thursday to answer questions about that.

3:50 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

I will be more than happy to repeat my question on Thursday.

3:50 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

It was just a point of order, because I can answer it now or we can answer it on Thursday, but on Thursday we'll be presenting you with the whole program for the Canadian innovation and commercialization program. It's whatever you prefer.

3:50 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

I have another question.

3:50 p.m.

NDP

The Chair NDP Pat Martin

I think that might be a better use of our time. Alexandre, if you want to go after that issue on Thursday, that might be more in order.

3:50 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

No problem.

According to your report, some 60% of jobs in Canada are created by small and medium enterprises. What's more, some 66% of contracts awarded by the federal government are offered to small and medium enterprises. But their contracts represent only 43% of the value of all the contracts that are given.

How do you explain the fact that 60% of jobs in the country come from SMEs, that they get 66% of government contracts, but that these contracts count for only 43% of the value of the contracts distributed by the federal government? Do you find this rate of 43% satisfactory? Should there not be more of an effort to encourage our small and medium enterprises more?

3:50 p.m.

Associate Assistant Deputy Minister, Acquisitions Branch, Department of Public Works and Government Services

Pablo Sobrino

In response to that question, I should say that we award close to 70% of contracts to SMEs. In fact, these contracts are lower in value and, for the most part, are worth over $1 million.

Actually, the Department of Public Works and Government Services is spending $5.2 billion, for a total value of $11 billion, counting internal purchases. This also includes the major purchases that were made through large contracts, particularly military purchases. The contract holders themselves make purchases from small enterprises, but we have no numbers on that. It's a little complicated. But directly, in terms of volume, 70% of contracts are awarded to SMEs.

3:50 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Five years after your office was created, there are still small and medium enterprises that do not really understand the process for obtaining government procurement contracts. Aside from the website and George's efficient journey, what awareness or diffusion programs do you have to inform small and medium enterprises?

3:50 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

We have six regional offices in Canada that offer free seminars. We are working very closely with associations in all markets and with the community organizations. Often, we even offer the outreach service in the community language, such as Punjabi or Chinese. We really try to go to vendors to help them understand the marketplace.

3:50 p.m.

NDP

The Chair NDP Pat Martin

That concludes your time, Alexandre.

For the Conservatives, Mr. Gourde.

3:50 p.m.

Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

Thank you very much, Mr. Chair.

I'd like to thank the witnesses for being here and for their presentation. Your presentation on how the website works was most appreciated.

How long has the website been up?

3:50 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services

Shereen Benzvy Miller

It was launched in September 2010.

3:50 p.m.

Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

How long did it take to get it up? A year or two?

3:50 p.m.

Director General, Acquisitions Branch - Office of Small and Medium Enterprises, Department of Public Works and Government Services