Want to do business with the government? Changes are coming to the procurement process in the public sector.
This fall, the ON-Demand VOR will replace the current Task Based VOR (OSS-00430429) set to expire at the end of Sept, 2017 and targeted to be in place by October 1, 2017. On May 24, 2017, the ministry issued a Draft-ON-Demand IT Services VOR to provide vendors with information about the proposed changes and invite them to provide their feedback to this VOR before its release.
Here are some highlights of the proposed changes in the Draft ON-Demand VOR:
1. Shortening vendor list: Cutting list of approved vendors from 317 down to 10 vendors (these 10 vendors will receive all the RFS).
2. New tenure rule for Resources: There will contain a maximum continuous service limit of eighteen (18) months (under one (1) or multiple SOWs) for work performed for a specific IT Resource for Ontario. If the IT Resource is to engage in another SOW with the province, there will be a mandatory 13 week break between any subsequent SOW. If you work at more than one ministry, your combined work will be accounted for. Once you’ve hit the 18 month mark, you will be required to take a 13 week leave (over three (3) months.
3. New market rates provided by outside firm: OPS will establish and use market rates from a 3rd party vendor (max per diems) through a separate competitive process once this VOR is awarded. These rates will be reviewed and adjusted annually.
4. Introduction of multiple discounts that new vendors will be responsible for:
- Tenure discounts: Once a Contractor works over 150 days a discount will be applied.
- Volume discount: Discounts will be based on the volume of business for each particular vendor.
- Early payment discount: This will remain at 2% off each invoice (invoices will be paid within 15 business days from receipt).
- Vendor management tool: This will be used to issue out requirements (RFS’s). An unknown fee will apply to all approved vendors once this VMS tool is in place.
5. Vendor performance management program introduced: Each approved vendor will have to be part of this program and be evaluated on their service. The VPM Program will use a scoring system to indicate how well a Vendor is meeting the established performance benchmarks.
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