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Find public agency in London Ontario and pick one agency and prepared public agency presentation during the class.

Government agencies providing services to the public and they are specialized organizations created by a government to set up and implement rules and policy. Managing various aspects of society, including natural resources, public health, transportation, and education. The services providing from public agencies are impacting the daily life in the public. One good example will be the 'Tax break 2025 until Feb. 15'. It benefits to everyone in Ontario, create a factor to increase every family's spending during holiday seasons which bush the economy up. Creating a good start of 2025.

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Attend the SILEX Introduction zoom session and better understand the report requirement and the assignment purpose. Knowing the procurement process is differ between private sector company and public sector agency. In private company they can develop their own procurement process fits their company organization and structure. However, in public agency they will need to follow public procurement act and regulations straightly. Because every service and/or product procurement purchase is apply and benefit to the people in the public. Therefore, higher standard such as Integrity, Equality, Professionalism, Accountability and Compliance will be required.

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What is BPS? The “Broader Public Sector” refers to the organizations that receive funding from the Government of Ontario. However, they are not a part of the government itself. For examples of hospitals, universities, colleges and school. Besides, there is a directive purpose to ensure the publicly funded service provider, for example: Fanshawe College that the organization's procurement process is open, fair, and transparent. In addition, to establish expense rules when their expenses are reimbursed from public funds.

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Well developed risk management policy and procedures will be able to minimize financial loss and protects every individual's or the company assets and the company reputation. Refer to the in-class case discussion, "But It was only $1000". Failure to follow the procurement review process which didn't appoint the service vendor from the qualify vendor service provider, and ultimately caused financial loss for the school and damage the reputation and work performance for the school facility manager. As we always mention prevention is way better than cure. And this is the reason highlighted the importance of risk management.

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The law of agency, part of commercial law dealing with contract. Identify employee as an agent is authorized to act on behalf of the principal i.e.: the employer to create a contract relationship with a third party i.e.: the supplier or the service provider. The authority grant from principal to the agent is crucial, specific duties and ethics governs the legal framework as well as the responsibility and interests on each party. To set up a third party supplier relationship without a legal binding contract is a risk, including the inability to enforce its rights, lack of remedies, uncapped liability, and an increased likelihood of disputes. Therefore, service contracts and/or sales purchase contracts should be in place, legally sound and enforceable.

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A procurement process results in two contracts:

Contract A - the bidding contract, an open offer

Contract B - the agreement between agency and the successful bidder

“Contract A/Contract B,” Procurement Principles apply in federal and provincial procurement contracts. Underlying purpose of a legal framework for the procurement process is to be open, fair, and transparent and to support the use of money. BCCA - British Columbia Construction Association issues warning about lack of ‘Contract A’ in public sector procurement, a journal of commerce from Warren Frey on June 20, 2024. the rise in incidents of Contract A removal started in the past year with a steady increase over the last six months “which provided the impetus for the industry alert.” Therefore, both private corporation and public sector should execute the procurement process dignity.

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Competitive bidding requires in public sector

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Competitive bidding requires in public sector

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Competitive bidding in procurement process is multiple vendors are invited to bid for the contract for the same material, product and/or service for the particular of time. Most important is go thru an open, fair and transparent process and during the evaluation, avoid conflict of interest between the evaluation team and potential suppliers and set up the agreed weighted criteria. Every supplier is eligible to bid, during the evaluation and selection it will identify qualify and disqualify suppliers and best-fit supplier will be selected and release the award result.

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Specification defines the requirements that the product or service must meet to purchase for the requestor. It goes thru a clear communication meets the need and the expectation ensure the purchase is what it needs at the lowest price or reasonable price from a selected supplier. This is the most important step and cannot afford to go wrong.

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Proper bid evaluation and contractor selection methods ensure that all contractors are treated fairly and justly in the procurement process. Besides, bidder selection criteria has to ensure that the selected bidder is capable of doing what it is claiming in the bid proposal. The bidder should be equipped both financially and resource capability to meet the requirements in all aspect within the requirement timeframe. When awardee released, within a valid time, those unsuccess bidders can request a debrief from the agent and get an explanation the evaluation criteria and reasons of unsuccess bid.

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Procurement ethics are the set of values, behaviors, and rules that guide businesses and suppliers throughout the procurement process. Ethical procurement emphasizes transparency and responsible sourcing. Such important core values apply to all sector both in private and public. Every organization requires an ethical policy and code of conduct ensure ethical values applying the entire procurement process and across all the functional unit or departments.

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In procurement, a conflict of interest may occurs when the following happens:-

1. A procurement professional or agent has a personal stake or relationship with a supplier which could influence the judgement and/or decision-making.

2. And such relationship and personal interests being prejudice during evaluation.

3. Conflict of interest may involving in financial, political and ethical.

To mitigate and manage the risks, recommend to have self-declaration among the evaluation team and procurement team confirming zero conflict of interest with suppliers.

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Identified few inefficiencies in HPC procurement process and led to explore alternative procurement strategies beyond standing offer and request for proposal.

One of the recommendation is to improve supplier engagement to improve the efficiency.

1. Supplier Development Program - this is one on one project and development, objectively to improve particular supplier performance.

2. Diversified Supplier Contracts - this is to explore various suppliers and target to expand supplier pool.

Besides, VMI (Vendor Management Inventory), this is a streamline model in inventory management and order fulfillment, such model could improve the procurement process as well.

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A master service agreement (MSA) is a legal contract that establishes fundamental agreements between two parties before any business commences. Act like a parent contract, from there, child contracts or specific contracts could be established between two parties and the terms and condition will be governance from MSA and apply to those subsequent contracts. It is common in global corporate company, develop MSA in global level and market specific subsequent contract will be developed at regional and/or market level.

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Every supplier is a key business partner, develop good & trustful supplier relationship will have a huge impact to business continuity as well as business success. Therefore, procurement team shall put time and resources to review supplier performance is required and aim for to improve supplier performance. Ensure supplier providing high quality of service or products, accommodate as per contract terms and build up long-term relationship and win-win situation.