OTE 2017
Wednesday 12 April
09:45 - 10:45 AM
Strategic
Procurement
OPTA Procurement Committee –
Ideas for Bringing Value
to Transit System
Members
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Agenda
1. Procurement Committee
2. Chair’s Remarks
3. Vice-Chair’s Remarks
4. Metrolinx TPI Update
5. Recap & Next Steps
6. Closing Remarks
7. Q&A
12 April 2017
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Procurement Committee
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Who are we?
Our Mandate
Terms of Reference
Introduction of Chair and Vice-Chair
Expected outcome of this OTE session
12 April 2017
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Procurement Committee
• The OPTA Procurement Committee began in
June 2016, has met 3 times.
• TOR approved by Committee in January ’17.
• The OPTA Board is very supportive of this new
committee and believes that significant
member benefits are possible by coordinating
strategic procurements.
• Large systems helping small systems.
12 April 2017
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Procurement Committee
• Mandate is three-fold:
1
2
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FORUM | establish and maintain a forum for transit procurement
professionals to dialogue and share best-practices; and
PIGGY-BACKING | investigate opportunities for “piggybacking” onto existing procurements; and
OPPORTUNITIES | identify opportunities for transit systems to
reduce costs through cooperative procurement initiatives.
• For clarity, the mandate of this Committee is not to duplicate the
efforts of joint procurement initiatives that may be delivered under
the Metrolinx Transit Procurement Initiative (TPI) Program.
12 April 2017
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Procurement Committee
• Chair:
Ted Zlotnik,
Head – Materials & Procurement
• Vice-Chair:
Leslie Williamson,
Manager – Purchasing & Risk Services
12 April 2017
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Chair’s Remarks
Excited about building a “Buying Group” with goals to:
1.
Leverage group spend to driving deeper discounts for OPTA
members
2.
Make contract administration easy for members to tag onto a
‘Group Buy’
3.
Not re-invent the wheel – start with potentially leveraging existing
OPTA member or existing co-op contracts to start
4.
Choose with a “Transit” product or service that will benefit the
majority of members
12 April 2017
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Chair’s Remarks
Leverage Existing Cooperative Buying Groups - Ontario
12 April 2017
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Chair’s Remarks
Vendor Commitment Crucial:
1.
Obtain a vendor guarantee that they have capacity to supply all
members regardless of geographical location
2.
Suppliers commit to giving all members equal pricing, i.e. the
smaller transit organization gets the same price as the larger
organization
3.
The new Group Buy price is better than the member’s existing
pricing
Start with:
- Inventory of what is out there in existing competitive contracts
- Choice of a commonly used product or service by all members
- Tag On to an existing deal before we consider going on our own
12 April 2017
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Vice-Chair’s Remarks
• Brings a small system perspective
• Develop Procurement Guide/Toolkit:
– Piggybacking | Quick-win (0-1)
– Cooperative Buys | Medium - Longer term (2-5)
– Joint Procurements* | Medium - Longer Term (2-5)
*non-TPI as appropriate.
• Potential opportunities and challenges
12 April 2017
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Vice-Chair’s Remarks
PIGGY-BACKING CLAUSE
“DISCLOSURE OF INFORMATION TO PUBLIC SECTOR ENTITIES”
• The Company acknowledges and agrees that the (Insert Listing Agency) may
disclose details of the Contract, or a portion thereof, to Public Sector Entities. If
the Company wishes to provide the same Products or Work to a Public Sector
Entity, it shall use commercially reasonable efforts to negotiate for the purpose of
entering into separate and distinct contracts with the Public Sector Entity based on
the same or comparable terms (including price and duration) as set out in the
(Insert Listing Agency)’s Contract with the Company.
•
The Company acknowledges and agrees the (Insert Listing Agency) shall not be
liable for any separate contracts negotiated with any Public Sector Entity.
•
For further information regarding which entities are eligible to access Ontario’s
Vendor of Record (VOR) Program, Refer to:
https://www.doingbusiness.mgs.gov.on.ca/
12 April 2017
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TPI
• TPI stands for Transit Procurement Initiative
• The program began in 2006 under MTO, transferred to
Metrolinx in 2008
• The program objective is to facilitate Joint Procurements for transit
related goods or services on behalf of Municipal partners
• TPI works strategically with our partners to achieve value for money
• Governance Agreement covering multi-year period, no fee to join
and on a volunteer basis
12 April 2017
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TPI Partners
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•
40
Overall Program participants since 2006 as of Fiscal 2016 /2017 members
• Exceeded target goal of 36 partners this year as per Metrolinx 5 Year Strategy
Participating Transit Agencies (TA) in active contracts:
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ITS/AVL – 8 participating TA’s overall
8m Low & High Floor Specialized Buses - 23 participating TA’s combined
Mini Bus - 10 participating TA’s
12/18m Conventional Transit Buses (2014-2016) – 17 participating TA’s
12 April 2017
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TPI Program Achievements
• Continued program growth
• 1000th bus delivered in partnership with 26 TA’s across Ontario this past
Fall (2016)
• Expansion of product categories
• To date TPI has completed seventeen (17) Joint Procurements with an
estimated savings of $18 million
• Program Value feedback from partners:
o ITS/AVL Joint Procurement Satisfaction Survey – 98% (June 2016)
o Mini Bus Joint Procurement Satisfaction Survey - 94% (March 2017)
12 April 2017
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TPI
12m/18m Conventional Bus
• 2017-2020 RFP currently “in market”, closes April 20, 2017
On-Board Camera Surveillance System
• Potentially 10 Participating Transit Agencies, est. quantity of 300 buses
• Preliminary stages (Term of Reference draft, RFP brainstorming)
• MERX release & contract award Summer 2017
9m/10m Buses
• TPI is currently researching market options and Transit partners’ needs to
commence RFP process
12 April 2017
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Recap & Next Steps
• Garner membership (focus on procurement SME’s).
• Piggy-backing clause (purchasing & legal).
• Identify & catalogue short, mid, long term priorities.
– Sources: Fed & Prov Funding Programs (FGT/PDGTF/PTIF/Etc.)
• Identify key contacts within and utilize existing co-op buying
groups; expand capacity via OPTA PC outreach.
• Selecting an appropriate “test case” commodity - perhaps
tires as an example.
• Engage vendors to gauge feasibility of test case commodity to
ensure viability.
12 April 2017
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Key Consideration
Ongoing, predictable, and sustainable
support (Federal & Provincial) is
needed in terms of investing in green
infrastructure and clean technologies:
1. Planning
2. Purchasing
3. Operating
12 April 2017
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Closing Remarks
• Ground-breaking path
• We have the right people, at the right time
– Transit and Purchasing professionals coming together with
the key ingredient being substantial infrastructure funding.
• Look forward to the future and guiding this new
Committee to drive out real savings and efficiencies
on behalf of all our members.
12 April 2017
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Q&A
12 April 2017
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