CANADIAN PUBLIC PROCUREMENT C 2007...ments (e.g., LEED building standards), or to include product...

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OUR J UDGES Derek Bates City Manager City of Prince George (BC) Jane Burns Area Coordinator, Contracts Materiel Management David Thompson Health Region, Alberta Stephen Cook Manager, Procurement & Contracts University of Waterloo Ron de Vries Vice President, Contract and Client Services Defence Construction Canada Greg Lusk Executive Director, Government Services Nova Scotia Transportation and Public Works Mike Tipman Managing Director Tipany Consulting in collaboration with CANADIAN PUBLIC PROCUREMENT COUNCIL presents the Summit magazine is your source – the source – for information on everything and anything to do with public sector procure- ment – who is doing what, where and how! Three years ago, Summit, in keeping with its mandate, decided to establish an award program: first with the Leader- ship Award and this year, the Green Procurement Award. Both the magazine and our partner, the Canadian Public Procurement Council, are delighted with the success of the program, which is due entirely to your participation and the generous time given by our judges. THANK YOU 2007 L EADERSHIP A WARDS OUR J UDGES Tom Appleby Director, Supplies and Services Regional Municipality of York Kevin Brady Director Five Winds International Jean Carruthers Senior Policy Analyst Office of Greening Government Operations Public Works and Government Services Canada Chris Ferris Assistant Manager, Facility Contract Services Purchasing and Distribution Services Toronto District School Board David Lawson Chief, Shared Services Fraser Health Authority (BC) Rodney C. McDonald, MA, LEED AP Manager, Building Policy and Sustainability Office of the Fire Commissioner Manitoba Labour and Immigration Larry Proud, B.Sc., C.P.P. Purchasing and Inventory Control Manager BC Transit Proud sponsor of the 2008 Leadership in Public Procurement Award

Transcript of CANADIAN PUBLIC PROCUREMENT C 2007...ments (e.g., LEED building standards), or to include product...

Page 1: CANADIAN PUBLIC PROCUREMENT C 2007...ments (e.g., LEED building standards), or to include product specifications based on pos-itive environmental impacts (i.e. percentage of fly ash

OUR JUDGESDerek Bates City Manager

City of Prince George (BC)

Jane Burns Area Coordinator, Contracts

Materiel Management David Thompson Health Region, Alberta

Stephen Cook Manager, Procurement & Contracts

University of Waterloo

Ron de Vries Vice President, Contract and Client

Services Defence Construction Canada

Greg Lusk Executive Director, Government Services

Nova Scotia Transportation and Public Works

Mike Tipman Managing DirectorTipany Consulting

in collaboration with

CANADIAN PUBLIC PROCUREMENT COUNCIL

presents the

Summit magazine is your source– the source – for informationon everything and anything todo with public sector procure-ment – who is doing what,where and how!

Three years ago, Summit, in keeping with its mandate,deci ded to establish an awardprogram: first with the Leader -ship Award and this year, theGreen Procurement Award.

Both the magazine and ourpartner, the Canadian PublicProcurement Council, aredelighted with the success ofthe program, which is dueentirely to your participationand the generous time givenby our judges.

THANK YOU

2007LEADERSHIP AWARDS

OUR JUDGESTom Appleby

Director, Supplies and Services Regional Municipality of York

Kevin BradyDirector

Five Winds International

Jean CarruthersSenior Policy Analyst

Office of Greening Government OperationsPublic Works and Government Services Canada

Chris FerrisAssistant Manager, Facility Contract Services

Purchasing and Distribution ServicesToronto District School Board

David Lawson Chief, Shared Services

Fraser Health Authority (BC)

Rodney C. McDonald, MA, LEED APManager, Building Policy and Sustainability

Office of the Fire CommissionerManitoba Labour and Immigration

Larry Proud, B.Sc., C.P.P.Purchasing and Inventory Control Manager

BC Transit

Proud sponsor of the 2008 Leadership in Public Procurement Award

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10 Novembe r /Decembe r 2007

ONTARIO SHARED SERVICES (OSS) is adivision within the Ontario Ministryof Government Services (MGS) that

re places the existing system of individualministries providing their own support serv-ices and enables the delivery of a coordinat-ed, consistent and flexible level of service toall ministry and agency customers, leadingto overall business improvement and mod-ernization. A strategic business area withinthe OSS is Supply Chain Management Divi-sion (SCMD). SCMD is responsible for policydevelopment, planning, operational imple-mentation, procurement and controllershipof the procurement function with the On -tar io Public Service (OPS).

Contract management in OSS concen-trates on the day-to-day contract administra-tion, including monitoring, record keepingand being reactive to issues. However, thatap proach provided little value added to theclient, vendor and SCM’s strategic businessinitiatives. What was required was a processthat would ensure:• mutual understanding of customer and

vendor the expectations;

• established metrics that give early warn-ing of potential problems;

• defined and proactive processes for prob-lem resolution;

• a structured approach to assessingimpacts of changing conditions on contracts (market, economic, technicaletc.); and

• adequate information flow and knowl-edge management in relation to contractobligations and experience, and

• adequate methodologies and tools.The result is a Centre of Excellence for

Contract Management, which will deliver aContract Management Tool Kit – an integrat-ed suite of processes and tools, available on -line through the Ontario Public Service’sMyOPS employee portal. The toolkit wouldembody the following guiding principles:• embedded SCM strategy and priorities;• simple, pragmatic, Web-enabled, and

easy-to-use, access and sustain;• raise the bar on performance expecta-

tions (both staff and suppliers);• aligned and anchored with validated

business processes;• showcase existing internal best practices;• optimize stakeholder engagement; and• be the foundation for building OPS-wide

contract management excellence.The toolkit would be based on contract

management best practices (internal and ex -ternal) to support three identified best prac-tice areas:• service delivery management,• contract administration, and• relationship management.

From January to April 2007 process mapswere reviewed to identify practices, process-es and tools to be updated or developed tosupport contract management within OSS,and in-depth focus groups were conductedto identify what was working/not workingwith present tools and processes. A toolkitpro totype was drafted comprising severalmodules along with close to 100 forms andtemplates with detailed instructions to en -sure consistency in approach.

Contract management staff were deter-mined that the tool kit would be a dynamic,on-going product sustained as a cornerstonein the evolving Centre of Excellence in Con-tract Management. The staff embraced theready access to tools and templates. Man-agers observed that the cycle time was re -duced considerably for developing key con-tract documents and they were producedwith fewer rewrites.

The tool kit is an excellent tool for newstaff orientation. With a short overview/intro duction, new staff can review specificmodules of the tool kit depending on thelifecycle of a particular contract – hence theycan obtain the information they need toknow, when they need it. Experienced con-tract management staff use the tool kit tocoach and mentor new staff. Plans are un -derway to integrate privacy concepts and con-tract management performance measuresinto the tool kit.

This project provides several benefits. It:• improves the delivery of internal govern-

ment wide services and ensures enter-prise programs are delivered in a stan-dardized, effective and efficient way;

• ensures that enterprise contracts aremanaged to meet government fiscal priorities. Standardization, processes,protocols and tools are being developedthat support modern controllership withintegration to corporate governance andrisk management; and

• helps identify aggregation opportunitiesresulting in greater purchasing leveragewith suppliers driving lower total costsand providing business intelligencethrough proper analysis of informationabout contracts and contracted activities.

The tool kit has become the standard forall division staff managing enterprise-widecontracts for the Ontario government. Amulti-ministry team will develop a versionfor all staff in ministries who manage con-tracts. The tool kit will become available tothe broader public sector advancing profes-sionalism within the public procurementcommunity.

WINNERContract Management Tool Kit

ONTARIO SHARED SERVICES

Goods and Services Procurement Branch,Supply Chain Management Division,Ontario Shared Services, Ministry ofGovernment Services

Project Manager: Heather Barnett, SeniorManager, Contract Controllership

Team Participants: Elaine Mowat, Manager, Contract and Services;Glynnis DeJong, Manager, Contractand Services; Carol Sabean, Strategic Sourcing Analyst

WINNERContract Management Tool Kit

ONTARIO SHARED SERVICES

Goods and Services Procurement Branch,Supply Chain Management Division,Ontario Shared Services, Ministry ofGovernment Services

Project Manager: Heather Barnett, SeniorManager, Contract Controllership

Team Participants: Elaine Mowat, Manager, Contract and Services;Glynnis DeJong, Manager, Contractand Services; Carol Sabean, Strategic Sourcing Analyst

Karen Owen, Director, Goods and Services Procure mentBranch and the project team

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Novembe r /Decembe r 2007 11

SINCE JANUARY 1, 2007, GVRD has applieda sustainable procurement policy frame-

work to all formal competitive processesand related procedures. The frameworkembeds sustainability – all three compo-nents: financial, environmental and social –in GVRD’s practices and those of its con-tractors and suppliers.

While the financial considerations, in -clud ing life cycle costing, continue to be key,sending a message to all GVRD contractorsand suppliers that GVRD procurement deci-sions now include all key aspects of sustain-ability is the most significant benefit of imple-

menting the sustainable procurement poli-cy framework.

Bidders are required to complete and sub -mit a “Declaration of Environmental Prac-tices and/or Declaration of Social Practices”form. The form addresses compliance to envi-ronmental and social laws and regulations,and requires bidders to advise GVRD of anyconvictions over the past three years. GVRD’s“sustainable procurement” selection processtakes into account the bidder’s past practicesregarding environment, human rights, em -ployment and workplace safety laws and reg-ulations, and their extraordinary environ-mental and/or social impacts in addition tothe specifications/requirements and overallcost. Bid documents clearly state that a poorhistory can result in disqualification.

While GVRD relies on voluntary disclo-sure of information, it leverages the publicdomain in which it operates to assist in the

policing aspect. Public review of the informa-tion submitted is frequent, and false state-ments will likely be brought to the attentionof GVRD. Should it become aware of falsestatements, GVRD may disqualify a bid orcancel a contract during the bid or contractperiod.

GVRD’s simple yet innovative approach,allows the discipline of sourcing (who we buyfrom) to operate independently from thespecifications/requirements (what we buy).It has the distinct advantage of working inpartnership with other sustainable aspectsof a bid package or in the absence of any.The new procedures allow GVRD to specifysustainable design standards in its require-ments (e.g., LEED building standards), or toinclude product specifications based on pos-itive environmental impacts (i.e. percentageof fly ash in concrete mix) and to encouragere-cycling or re-using products.

WITHOUT INCREASING THE investment inprocurement resources, VIHA Purchas-

ing Services set out to sustain and reduce thecost of goods consumed by the new VIHAby focusing on developing and initiating amore strategic approach to procurement.Moving away from the adversarial/trans -action based procurement approach offeredthe potential to increase the flow of benefitsinto the organization from:• effectively managing strategic relation-

ships between buyer and supplier;• reduced total relationship costs by

reducing points-of-contact between thebuyer and supplier, and using buyer andsupplier resources more efficiently;

• optimized planning and logistics by fur-ther integrating suppliers into the sup-ply chain, eliminating inventory, reduc-ing lead times, optimizing costs ofdoing business, improving forecasting;

• optimized resource allocation deployingof resources where needed, just-on-timewith the right skills and decision-mak-ing authority;

• quality assurance: the appropriatenessof specifications, setting ground rulesfor quality audits, and linking demandand supply in terms of requirements;and

• joint process and product development:capturing supplier and buyer innovationcapacity enabling innovative productsand services development.

VIHA needed to identify opportunitiesto build strategic relationships with vendorsto create win-win acquisition opportunities.The following factors were critical to success:• early identification of stakeholders;• senior management must drive strate-

gic procurement policies;• senior management fully engaged in the

approval process;• resources with the right skills set to

implement the process;

• resources being made available; and• early successes to generate momentum

and build commitment.

In the transition year, 2003/04, benefitsflowing into the organization increased by$800,000 (0.9 percent of total commodityspend). In 2005/06, they increased to over$3.0 million (2.8 percent of total commodi-ty spend). In the first year, 70 percent of thecommodity spend was consolidated underthe top 25 vendors and now improved strate-gic procurement allows 95 percent to be con-solidated under the top 25 vendors. Health-care manufacturers rank VIHA as the bestorganization in Canada in its ability to buildand maintaining vendor relationships.

Given the strategic nature of procurementnegotiations, business transparency be cameimportant so as not to compromise publicprocurement principles. Due diligence by allparties is required; the processes need to bewell defined, and, as with any business rela-tionship, managing the relationship well willmaximize the benefits.

MUNICIPAL SECTOR

Sustainable Procurement, Greater Vancouver Regional District

(GVRD)

Submitted by: Tracey S. HusoyPurchasing and Risk Manager

MUNICIPAL SECTOR

Sustainable Procurement, Greater Vancouver Regional District

(GVRD)

Submitted by: Tracey S. HusoyPurchasing and Risk Manager

HEALTH SECTOR

Strategic Procurement, VancouverIsland Health Authority (VIHA)

Submitted by: Martin WaltersDirector – Materiel Management

HEALTH SECTOR

Strategic Procurement, VancouverIsland Health Authority (VIHA)

Submitted by: Martin WaltersDirector – Materiel Management

x

Finalists Leadership in Public Procurement

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ONTARIO AND INFRASTRUCTURE Ontario, aCrown corporation established in 2005,

believe that for larger, complex projects alter-native financing and procurement (AFP)creates overall lower cost for taxpayers. Pri-vate-sector expertise helps eliminate costand schedule overruns; provides better co -ordination and improved decision makingamong the disciplines involved in the design,construction and long-term maintenance andbuilding services; and increases accounta-bility throughout the planning, construction,building life cycle and maintenance phasesof each project.

A competition for the construction of theDurham Consolidated Courthouse (DCC)

under the AFP model (over 30 years) identi-fied qualified proponents and evaluated theirbids. The winning bid for the Design BuildFinance Maintain (DBFM) project was AccessJustice Durham. It is the first AFP projectfor Infrastructure Ontario and, according toErnst & Young Orenda Corporate Finance,the DCC project demonstrates projected costsavings of $49 million, or 11.47 percent, byusing the AFP approach compared to the tra-ditional procurement approach.

The DCC will be built on a four-acrebrownfield site, consolidating on one site Su -perior and Ontario Courts and other justiceservices currently delivered from eight dif-ferent locations throughout Durham Region.

The facility will be the most technologi-cally advanced courthouse in Ontario, beingequipped with video conference and simul-taneous interpretation capability.

Designed for resource efficiency andcost effectiveness in both construction andoperation, the DCC will consume some 54

percent less energy than a comparable court-house completed in 1999. It will conform tothe Canada Green Building Council’s Lead-ership in Energy and Environmental Design(LEED) silver designation and be certifiedunder the Building Owners and Manager’sAssociation Go Green Plus program everythree years, benchmarking the facility’s per-formance against other facilities in Canada.It will be the most energy efficient new On -tario government building.

In March 2007, Access Justice Durhamand Infrastructure Ontario executed theproject agreement. Access Justice Durham’sfinancing partner, ABN Amro (subsequentlysucceeded by Babcock & Brown Infrastruc-ture Group) arranged and underwrote thefinancing required to construct the new facil-ity in accordance with the project agreement.Construction is scheduled for completion bylate 2009. When completed, Ontario will startpaying Access Justice Durham monthly serv-ice payments for the facility.

12 Novembe r /Decembe r 2007

PTSD IS BUILDING its own dark fiber net-work linking all school division sites and

implementing a unified communications(UC) strategy. As well, PTSD implementedenterprise division-wide digital printing andcopying.

The PTSD WAN installation is projectedto recover $275,000 annually with full pay-back estimated at 7 years. PTSD moved to a4-year cyclic replacement of all technologyhardware and software. Repairs are decreasedby 37 percent and IT staff is reduced by al -most 50 percent. The annual, IT budget isreduced, and PTSD has documented aggre-gated savings of $2.4 million over 5 years, notincluding the staff reduction.

To implement its plan, PTSD partneredwith several private sector corporations.

From the inception of the divisional activedirectory structure to the current use of thesharepoint portal, PTSD feels that in manyways, its network is a result of the power ofMicrosoft Enterprise software coupled withthe training, support and vision provided byMicrosoft staff.

Dell Canada supplied both the VMWareused to maintain and modify PTSD virtualservers in the central storage area networkand, at a significant discount, all the switch-es powering the fiber optic cable.

PTSD and Sun Microsystems developeda thin client project. Central servers trans-mit programs and data, without decreasingperformance, to remote terminals in publicareas in schools, i.e., libraries and studentlounges. Login authentication brings up aspecific user’s desktop and file structure. Theterminals (lifecycle is 7-8 years) are virtuallyindestructible. When software applicationschange, only the servers require updating.

PTSD and Objectworld executed the firsteducational rollout of VoIP, supporting trueunified messaging that fully integrates ActiveDirectory®. PTSD supplies its own telephoneexchange. It uses existing teacher profiles to

provide phone, fax, email, and messaging attheir desktops. The VoIP phone system canact as a public address system, or broadcastaudio and video to all or portions of thePTSD, and increases internal and externalphone connectivity, achieving dramatic costsavings. Technicians do not need new skills;any vendor can supply any hardware needed;and, current IT staff handle additions, num-ber changes, support and maintenance.

Xerox multi-function copiers with Web -CRD, Equitrax, and Smart Scan allow print-ing or scanning to any printing device inPTSD from any computer or copier in PTSD,all tracked by accounting software. Teachers,using their existing Active Directory creden-tials, login one time to access all divisionalresources. All the equipment is configured,maintained and monitored remotely, improv-ing quality and speed of service.

Polycom supplied SIP compliant end gearfor the UC project. Under a new nondisclo-sure agreement, PTSD will be privy to up -coming leading edge telephony applicationsand appliance information promoting pru-dent planning and advantageous pricing.

EDUCATION SECTOR

Dark Fiber Network, PembinaTrails School Division (PTSD),

Manitoba

Submitted by: Don ReeseDirector Information Technology

EDUCATION SECTOR

Dark Fiber Network, PembinaTrails School Division (PTSD),

Manitoba

Submitted by: Don ReeseDirector Information Technology

Finalists Leadership in Public Procurement

CROWN CORPORATION

Durham Consolidated Courthouse,Infrastructure Ontario

Submitted by: Lucas GerberSenior Corporate Communications Advisor

CROWN CORPORATION

Durham Consolidated Courthouse,Infrastructure Ontario

Submitted by: Lucas GerberSenior Corporate Communications Advisor

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Novembe r /Decembe r 2007 13

WITH THE INCREASING cost of fuel andenvi ronmental awareness, pave-ment re cy cl ing has become a popu-

lar design alternative that frequently replacestraditional paving techniques. The Ministryof Transpor ta tion of Ontario (MTO) hasimplemented an innovative in-situ pave-ment recycling program to provide a safe,efficient, environmentally friendly and cost-effective sustainable rehabilitation optionthat meets present day needs without com-promising those of the future. MTO haspromoted the program on both the nationaland international level through technicalpapers and presentations.

One of MTO’s most successful recyclingtechniques is cold in-place recycling (CIR),a pavement rehabilitation method that typi-cally processes up to 125 mm of an existinghot mix asphalt (HMA) pavement, sizes it,mixes in additional asphalt emulsion, andlays it back down without off-site haulingand processing.

A recent innovation in CIR technologyis the use of expanded (foamed) asphalt,rather than emul sified asphalt to bind themix. In this new pro cess, hot asphalt cementis pumped through an ex pansion chamber onthe cold recycling unit, where a small amount(one percent) of cold water is injected whichimmediately vaporizes creating thousands oftiny bubbles causing the hot asphalt cementto rapidly expand (foam). This is then mixedwith the reclaimed asphalt pavement andthen profiled and compacted to form a bindercourse layer. This combination of CIR andexpanded asphalt technologies is termed cold

in-place recycled ex pand ed asphalt mix(CIREAM).

To date, MTO has completed 40 CIRand 3 CIREAM contracts, equating to over3,500,000 m2 or 500 km of pavement recy-cling. The placement of CIR and CIREAMconsists of milling the existing pavementsurface to a depth of 100 mm, processingthe material through an in-situ screen ing/crush ing machine and either infusing there claimed asphalt pavement with asphaltemulsion (CIR) or expanded asphalt cement(CIREAM). The material is placed to thedesired profile with a hot mix paver, com-pacted to the desired density, and overlaidwith a single lift of HMA.

To quantify the environmental benefitsof re cycling, the greenhouse gas emissions(GHGs) and aggregate consumption of CIR/CIREAM were compared to a commonly usedpavement rehabilitation technique – mill -

ing the existing asphalt surface to a depth of100 mm, paving 130 mm of HMA in threelifts and compacting to the desired density.

Aggregate is a non-renewable naturalre source. Aggregate extraction, productionand transportation generate GHGs, con-sume energy and have a negative environ-mental impact. When MTO compared thenew aggregate quantities required by CIR/CIREAM, to the new aggregate quantitiesrequired, CIR/CIREAM provided a 62 per-cent savings in aggregate consumption.When the quantity is multiplied by the3,500,000 m2 of CIR and CIREAM complet-ed since 1990, aggregate savings are in theorder of 740,000 tonnes.

To analyze the GHG emissions of CIR/CIR EAM compared to a traditional rehabili-tation tech nique (mill 100 mm and 130 mmHMA), a computer model calculated the

energy required to perform specific rehabil-itation techniques and the as sociated GHGemissions that result from the process. ThePaLATE (pavement life-cycle assess ment toolfor environmental and econo m ics) model,created by Dr. Arpad Horvath of the Univer-sity of Cali for nia Berkley, compared GHGemissions from CIR/CIREAM and a tradi-tional rehabilitation technique. Based on thiscomparison, CIR and CIREAM emit signifi-cantly less GHGs. When the quantity is mul -tiplied by the amount of CIR and CIREAMcompleted since 1990, MTO reduced emis-sion of carbon dioxide by 52 percent, nitricoxide/nitrogen dioxide by 54 percent andsulphur dioxide by 61 percent.

When analyzing the cost effectiveness ofCIR and CIREAM compared to a traditionalrehabilitation technique, identical 1 km sec-tions were analyzed and CIR/CIREAM cost42 percent less.

Using internationally recognized perfor -m ance measures, CIR/CIREAM contracts arecontinually monitored and compared to tra-ditional rehabilitation methods. The perform -ance of the two techniques is similar, withthe traditional being marginally smooth er,resulting in a marginally better performance.However, the life cycle cost analysis over a30 year period shows that the CIR/CIR EAMsolution is the more cost effective includinginitial construction, maintenance and futurere ha bilitation treatments.

To date, CIR and CIREAM are the mostcost effective and environmental friendlypavement re habilitation options in terms ofreducing costs; re-using existing non-renew-able resources; minimizing use of new mate-rial; reducing transportation of constructionmaterials; and lowering greenhouse gas emis -sions.

WINNERConstructing

Green PavementsIn-situ Pavement RecyclingOntario Ministry of Transportation

Andrew Alkins, Becca Lane and Tom KazmierowskiPavements and Foundations Section

Materials Engineering and Research Office

WINNERConstructing

Green PavementsIn-situ Pavement RecyclingOntario Ministry of Transportation

Andrew Alkins, Becca Lane and Tom KazmierowskiPavements and Foundations Section

Materials Engineering and Research Office

Developed in cooperation with the Environmental Choice Program

Sponsored byHewlett Packard

MTO Pavement Recycling Team

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THE IMAGING PRODUCT Management Group(IPMG), a dedicated procurement team

within PWGSC, is responsible for procuringabout 85 to 90 percent of the imaging de -vices for Government of Canada (GoC) offic -es across Canada.

Printers and copiers are often built onother continents and shipped using‘big’trans -portation and ‘big’ packaging; are fairly powerhungry even at rest; emit ozone, impactingindoor air quality; and produce heat, requir-ing more air conditioning. Imaging devicesrequire paper and toxic inks and toners, pack-aged in large multi-material units that oftenend up in the garbage.The machines are cum-bersome to dispose of and the low cost ofsome devices encourages buying new print-ers rather than new consumables, resultingin even more landfill.

For close to 15 years IPMG has workedwith GoC departments and industry to giveadvantages to suppliers having environmen-tal programs in place and to generate data tomake environmentally preferable procure-ment choices easier for government pur-chasers.

A full life cycle approach was chosen anda series of environmental discounts were builtinto the procurement of imaging devices.Most GoC departments and agencies lease orpurchase these commodities through stand-ing offers – a procurement mechanism usedfor recurring needs. In 1992, IPMG includedlife cycle costs like installation and mainte-nance, consumables acquisition and powerusage – significant but sometimes hiddencosts – into the standing offers and improvedthe determination of value for dollar. Exten-sive consultation determined that betterproducts held their value better, so IPMGdecided to:• require that all products come from

proven ISO 9001/9002 certified manu-facturing plants and all printers willhave a one year on-site warranty (withsome geographical restrictions);

• control hidden costs (e.g., installationand consumables cost) by buildingthem into the evaluation process; and

• engage a third party testing organiza-tion, (NSTL Canada Corp.) to bench testall products and assign each printer aweighted score so selection would notbe based on cost alone.IPMG realized that they could add to the

value quotient by allowing reductions in theevaluated cost of a printer based on the sup -plier’s participation in positive, value addingenvironmental programs. It was a win-win.

Over time IPMG became more demand-ing, applying the credit system to differentaspects such as packaging recycling, energyefficiency, and being Energy Star qualified.Suppliers had to prove their participation inthese programs and the information wasposted in IPMG documentation.

When IMPG was convinced that adher-ence by the suppliers would provide audit -able improvement in either the product orthe processes to produce or deliver it, reduc-tions were added for new programs, butnever adding up to more than a 10 percentreduction. The request for standing offer(RFSO) in 2000 contained new criteria –ISO 14001 certification and Canada’s Envi-ronmental Choice EcoLogo certification –and older criteria was realigned and reval-ued. Eventually, IMPG also included certifi-cations from other 3rd party tested eco-labels. Packaging and consumables recyclingbecame mandatory in last year’s RFSO.Suppliers must take back all printers sup-plied through the NMSO at end of life anddispose of them in a defined environmen-tally appropriate manner. All printers mustbe delivered configured to default to dou-ble-sided printing. Similar programs willlikely apply to digital copier standing offers.

Most suppliers eventually achieved thefull 10 percent reduction. As well, some sup-pliers have ‘sold’ the creation of environmen-tally conscious programs to their uppermanagement because of the visibility of GoCinformation and the potential size of the GoCmarket. IPMG also works with the multi-lateral Sustainability Purchasing Networkin the Pacific region to assist all levels of gov-ernment and private industry to green theirpurchasing and encourage the green goodsand services sector.

The town of Leaf Rapids had a problem.Bond Ryan, Leaf Rapids’ chief adminis-

trative officer, noticed that the communitywas spending almost $5,000 a year to cleanup discarded single-use plastic shopping bagsand remove them from the trees in the forestsurrounding the community’s landfill site.In May 2006, Bond approached MunicipalCouncil and suggested that the town pur-chase 1,000 reusable bags from the localConsumers Co-Operative store for $1 eachand donate five of the reusable bags to everyhousehold in town. Once this was done, whenconsumers packed their purchases in single-use plastic shopping bags, they would becharged a $.03 levee per bag. MunicipalCouncil agreed.

At Bond’s urging, the town decided totake the initiative one step further; it wouldban single-use plastic shopping bags bymunicipal by-law. Bond searched the Inter-net for the wording of a by-law on which tobase resolution 462 and found one in Dublin,Ireland.

In the meantime, Matt Wittek of InstoreProducts contacted Bond and explained thathis company had been trying to reduce theuse of plastic shopping bags since 1992. Wit-tek made a public presentation to the mayorand council and Leaf Rapids’ two major re -tailers regarding the environmental impactsof single-use plastic shopping bags versusreusable shopping bags. They supported thetown’s initiative by donating 5,000 reusableshopping bags.

To ensure community support, Wittekalso suggested that a public relations cam-paign be conducted prior to passing resolu-tion 462. The Leaf Rapids’ retailers recom-mended students in the Leaf RapidsEdu cation Centre be educated about theeconomic and environmental advantages ofmulti-use shopping bags. The students couldthen support the initiative by encouragingtheir parents to use reusable shopping bags.The public relations campaign has been

14 Novembe r /Decembe r 2007

FEDERAL SECTOR

The Greening of Imaging ProductsPWGSC, Western Region

Submitted by: Mike DayActing Regional Director

FEDERAL SECTOR

The Greening of Imaging ProductsPWGSC, Western Region

Submitted by: Mike DayActing Regional Director

MUNICIPAL SECTOR

New Municipal By-lawLeaf Rapids, MB

Submitted by: Joan Seddon, Director Leaf Rapid National

Exhibition Centre,

MUNICIPAL SECTOR

New Municipal By-lawLeaf Rapids, MB

Submitted by: Joan Seddon, Director Leaf Rapid National

Exhibition Centre

Finalists Leadership in Green Procurement

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Novembe r /Decembe r 2007 15

lauded as a landmark process to introduce what some might consider controversialmuni cipal legislation. In passing this by-law, Leaf Rapids wanted to:• protect and preserve the environment

by eradicating the negative impact ofsingle-use plastic shopping bags;

• reduce the annual cost of cleaning upLeaf Rapids;

• educate young people, shoppers andretailers about single-use plastic shop-ping bags and also on the environmen-tal and economic advantages ofreusable shopping bags;

• enhance public awareness of the posi-tive impact of recycling; and serve as anexample for other communities inCanada and elsewhere.Determined to be first in North America

to ban single use plastic bags, the mayor andcouncil met in the middle of the night onMarch 22, 2007 to pass By-Law 462, whichsimply states, “Retailers will no longer bepermitted to give away or sell plastic shop-ping bags that are intended for single use.”Leaf Rapids had created a “made in Canada”by-law that other communities could refer-ence as they developed their own. And theyare. Within days, Leaf Rapids was bombard-ed with calls of congratulation and enquirieson how the town had developed the by-lawand its wording. In addition to its public rela-tions support, Instore Products then provid-ed media management services.

Leaf Rapids is the first town to use a by-law in such a manner. Eliminating single-use plastic bags will result in a significantsavings for the town by drastically reducingthe cost of cleaning up the community, willlessen the non-biodegradable footprint thetown is leaving on the environment; andgreatly increase civic pride and interest inthe town both by residents and visitors. Theprocess to develop and pass the by-law hasraised awareness in the community, and nowLeaf Rapids is seeking other ways to reduceits environmental footprint.

Manitoba Lotteries Corporation (MLC)recognized that purchasing plays a key

role and provides the most opportunity toenhance sustainability. However, placing theresponsibility for green procurement sole lyon MLC’s centralized purchasing depart-ment would result in the department operat-ing as a “silo,” placing the onus for developingsustainable specifications primarily on thepurchasing agent without the benefit of inputfrom the internal.

So, MLC developed a governing sustain-able development policy integrating sus-tainable requirements into all financial pro -cesses from business planning to purchasingto surplus item disposal. A sustainable dev -elopment (SD) coordinator, with a back-ground in environmental sciences, was hiredto evaluate the environmental, social andlocal economic issues associated with MLCbusiness operations and determine thosemost significant and requiring evaluationand mitigation. Reviewed by executive man-agement, the evaluation was articulated in aposition paper that provided staff and otherstakeholders with an overview of the sustain-able issues MLC chose to address, which are:• greenhouse gas emissions reduction;• solid waste reduction;• green product selection;• fleet vehicle management and alternative

fuel use;• procurement (goods and services) from

Aboriginal and local businesses; and• sustainable education and awareness.

Staff could now connect their commercialoperations and job functions with resultingsignificant environmental and social impact.Those whose responsibilities and businessactivities place them in the best position toenhance sustainability are provided with sus-tainable development education and aware-ness. The objective was to create an internaldemand for green goods and services,encourage innovative thinking within MLCand ensure internal customers understandand support the purchasing agents’ respon-sibility to buy green.

With a clear policy in place, the financedepartment reviewed financial processesand modified existing financial policies, pro-cedures and guidelines to allow for the evalu-ation of business activities, not only by eco-nomic value, but by social and environmentalvalue. Modifications were made to financialpolicies, procedures and guides and sustain-able education.

During MLC’s annual business planningsession, capital expenditures are evaluatedus ing life cycle assessment concepts to en surefull understanding of the environmental andsocial burden associated with proposed prod-ucts from design, through production, pur-chase, use, and finally disposal. Assistancewith this evaluation is provided within busi-ness case guidelines, and, if requested, thepurchasing agents and SD coordinator.

At MLC purchasing, green specificationswill be placed in all bid specifications regard-less of dollar value. Prior to initiating an RFPfor significant capital and operating expen-ditures, the business planners/internal cus-tomers, along with the purchasing agent,submit to the executive and/or board forapproval a recommendation that includes thegreen specifications that will be in the biddocument and their expected impacts with-in MLC. Environmental and social criteriaused in competitive bid documents aim to:• stimulate demand for environmentally

friendly products by letting manufac-turers and suppliers know expectedenvironmental product performance;

• minimize the use/consumption of non-replaceable natural resources;

• find alternatives to products and pro -cesses detrimental to the environment;

• minimize waste (packaging, waste pro-duced during product manufacture anduse, and waste generated by productdisposal);

• maximize opportunities for reuse andrecycling; and

• ensure social aspects associated withthe purchase are met including ethicaland social policies (e.g., InternationalLabour Standards, Fair Trade, cruelty-free and local procurement policy issues. At MLC, the disposal of all surplus items

is done in compliance with the sustainabledevelopment policy. Under the policy, meth-ods of disposal other than those that onlyseek to maximize revenues or minimize costmay be considered.

CROWN CORPORATION

Creating a demand for “green”Manitoba Lotteries Corporation

Submitted by: Donna Dagg

Sustainable Development Coordinator

CROWN CORPORATION

Creating a demand for “green”Manitoba Lotteries Corporation

Submitted by: Donna Dagg

Sustainable Development Coordinator

Finalists Leadership in Green Procurement