Canadian Government Executive - Volume 24 - Issue 03

24 / Canadian Government Executive // May/June 2018 Procurement On the Need for P rocurement modernization has been a Government of Canada (GC) policy priority for the last decade. In recognition of the criticality of transformation, the Prime Minister’s 2015 mandate letter to the Min- ister of Public Services and Procurement Canada (PSPC) directed her to (1) modern- ize procurement practices so that they are simpler and less administratively burden- some, (2) deploy modern comptrollership, and (3) include practices that support eco- nomic policy goals, including green and social procurement. The choice to assign this mandate to the Minister of PSPC in itself raises an inter- esting dilemma: how does one determine who is ultimately responsible for the mod- ernization of the procurement function, when procurement policy is owned by the Treasury Board of Canada Secretariat (TBS); strategic procurement and category management are the responsibility of PSPC and Shared Services Canada (SSC); and accountability for operational pro- curement is left to line departments? The complexity and vastness of the GC organization poses daunting challenges to the establishment of one clear leadership position, responsible and accountable for public sector procurement policy and op- erations. A model must be implemented that can harness the critical factors essen- tial for successful transformation, while by Vincent Robitaille and Jessica Sultan Departmental Chief Procurement Officers navigating the intricacy inherent in the federal system. Specifically, the position of Departmental Chief Procurement Officer (DCPO) should be created to achieve the priorities set out by the PrimeMinister, as well as modernize the procurement function overall, lead pro- curement talent-management, and place focus on innovation and results. The current environment is optimal – the opportunity for real transformation must be seized. A government keen to deliver measurable improved outcomes, combined with an appetite within the public service to modernize, work smart- er, and deliver world-class services, offers a true prospect for change. The creation of one departmental authority for procure- ment will enable the transformation re- quired to deliver on results for Canadians, as well as facilitate continued excellence in the procurement community. What is a Departmental Chief Procurement Officer? For the purposes of this paper, a DCPO is defined as the principal public procure- ment official for a federal organization. This position is accountable for the pro- curement of goods, services and construc- tion within a department’s authority. The DCPO enables strategic procurement planning, as well as application of depart- mental procurement policies, tools and practices in accordance with GC-wide direction. The DCPO sets sustainable pro- curement priorities and is responsible for recruitment, retention and talent manage- ment within the department. The DCPO provides advice to the Deputy Head and the Comptroller General (as appropriate) on complex procurement issues. Rationale for Departmental CPOs in the Government of Canada The rise of the CPO in most high-perform- ing private sector companies, as well as forward-thinking public sector institu- tions, is a clear demonstration of the criti- cal role procurement plays in enabling or- ganizational success. The CPO has become an essential strategic leader and advocate for greater operational effectiveness. The CPO model can be applied similarly to the public sphere as in the private sec- tor, making adjustment for the fact that private business is focused on the bottom line, while GC focus is on outcomes for Ca- nadians. In an organization as vast as the GC, the benefits of the CPO position can be gleaned through creation of DCPOs, with the same outcomes. There is not one entity with the man- date or resources required to address GC- wide procurement issues, on both a policy and operational level. Within the TBS, the Comptroller General is the champion for the procurement workforce. This office serves as a policy centre, but is not account- able for procurement operations. PSPC and SSC, while looked to for guidance on opera- tions, do not have the mandate to set stan- dards for procurement processes GC-wide. As a general rule, Chief Financial Of- ficers are accountable for procurement in departments. However, accountability for procurement operations follows vari- ous centralized and decentralized models where ultimate responsibility for planning, comptrollership, efficient operations, socio-