ARCHIVED Division of Responsibilities Between PWGSC and DND for the Acquisition of Goods and Services

Policy

The "Division of Responsibilities Between PWGSC and DND for the Acquisition of Goods and Services" is revised as per Annex A attached, further to a collaborative effort between Public Works and Government Services Canada (PWGSC) and Department of National Defence (DND).

Effective immediately, Annex A replaces Annexes 3.1 and 3.1.1 of the Supply Manual (SM), and will be incorporated into the June 10, 2005 release.

The "Division of Responsibilities Between PWGSC and DND for the Quality Assurance of Materiel and Services" (SM, Annex 3.2) remains unchanged.

Contact

N/A

Annex A: Changes to the Supply Manual

Annex 3.1: Division of Responsibilities Between PWGSC and DND for the Acquisition of Goods and Services

3.1(i) This matrix is an assigned division of responsibility, agreed by
the Ministers of the Department of National Defence (DND) and Public Works
and Government Services Canada (PWGSC) .* It forms the foundation for an efficient
and effective partnering relationship for those who are responsible for activities
within the procurement process.

• * (a) The matrix does not represent delegation of procurement authority by the Minister of PWGSC, and does not affect the responsibility of the contracting officer as defined in Treasury Board (TB) Contracting Policy.
• (b) Legislation, regulations and policy will take precedence over this matrix in the case of any ambiguity.

3.1(ii) This matrix is to be used for all DND goods and services procured
by PWGSC. An "X" represents the assignment of each activity to a "Lead" and "Participatory" department. An "M" represents the norm for Major Crown Projects (MCPs) and MCP-like projects.

3.1(iii) The assignment of each activity to a "Lead" and "Participatory department" as indicated in this table is to be considered the normal way of doing business. However, as every procurement and associated contract differs with respect to complexity, risk,value and availability of skilled resources, deviations can be agreed jointly in advance as long as justifications are formally filed in an agreement between the two Departments, which consider reasons why the norm cannot be applicable in specific areas.

3.1(iv) In all activities, it is incumbent upon each "Lead" to always consider as prudent, continuous communication with the procurement representatives of the other department, even if this "Lead" is identified as the sole "X". Finally, it is important to note that this matrix of assigned responsibilities is not necessarily sequential.

3.1(v) Effective communications between DND and PWGSC must be worked out on a project-by-project basis. The matrix below sets out anticipated DND internal responsibilities. For any individual project, DND requests that communications be through the procurement functional contact, the applicable DND Procurement Manager/Officer, unless otherwise discussed and agreed to with that procurement functional contact.

DND/PWGSC Responsibility Matrix

PO: Procurement Officer
PM: Project Manager
TA: Technical Authority - includes LCMM
PD: Project Director
M: denotes for MCP or MCP-like projects where
role is defined in the PMP
PM/TA: Uusually the PM for Capital/NP project
procurement and the TA for in-service procurement

1. Define DND Operational
Requirements

1.1 Define essential characteristics - Statement
of Capability Deficiency or Statement of Requirement
Responsibility:
DND: PD

1.2 Seek procurement input/ advice from DND procurement authority
Responsibility:
DND: PO

1.3 Delineate all feasible solutions, within government
policy, to meet operational needs (ROM costs)
Responsibility:
DND: PD
PWGSC Normally Participates: M

1.4 Identify Total ROM project cost and schedule estimates for
SSID
Responsibility:
DND: PO

1.5 Obtain operational approval to continue with project (SSID)
Responsibility:
DND: PD

1.6 Preparation of cost benefit analysis including life cycle
costing analysis of alternatives and uncertainties
Responsibility:
DND: PD

1.7 Determine requirement for cooperation & involvement
of other Departments/Countries (excluding 3.5.9)
Responsibility:
DND: PD

1.8 Determine national and international obligations applicable
to operational need
Responsibility:
DND: PD

1.9 Determine requirement for phased cycles for project
implementation
Responsibility:
DND: PM
PWGSC Normally Participates: X

1.10 Determine maintenance and support requirements
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

1.11 Determine total resource requirement for the project
Responsibility:
DND: PM
PWGSC Normally Participates: X

1.12 Identify Total Project cost (substantive) and schedule estimates

1.12.1 Obtain and collate cost and schedule information
Responsibility:
DND: PD/PO
PWGSC Normally Participates: X

1.12.2 Develop Total Project cost and schedule estimates
Responsibility:
DND: PO

1.13 Initiate a PMP (formerly PIP) for project (Responsibility
Assignment Matrix)
Responsibility:
DND: PM
PWGSC Normally Participates: X

1.14 Develop DND's Procurement Master Plan
Responsibility:
DND: PO

1.15 Obtain approval (SRB and PRC/SPAC)
Responsibility:
DND: PM
PWGSC Normally Participates: X

1.16 Prepare project submission and obtain approval (PMB,
SS PPA and SS EPA, and Project Briefs)
Responsibility:
DND: PD/PM & PO

1.17 Prepare Memorandum to Cabinet (for MCP's only)
Responsibility:
DND: M
PWGSC Normally Participates: M

1.18 Execute DND's Procurement Master Plan
Responsibility:
DND: PO

2. Define Technical Requirements and Raise Procurement Instrument

2.1 Establish team (formal or informal as appropriate) for an individual
procurement instrument, including required stakeholder
Responsibility:
DND: PO
PWGSC Normally Participates: X

2.2 Identify appropriate DND authorities in the PI (e.g. requisition, technical,
QA)
Responsibility:
DND: PO:

2.3 Statement of Work (SOW):

2.3.1 Define SOW and/or Performance Specifications in support of the operational
need
Responsibility:
DND: PM/TA

2.3.2 Identify Earned Value requirements (for MCP's or MCP-like projects)
Responsibility:
DND: M

2.3.3 Review and Refine SOW
Responsibility:
DND: PO
PWGSC Normally Participates: X

2.4 Define Government Furnished Resources (e.g. tools,
test equipment)
Responsibility:
DND: PM/TA

2.5 Define Quality Assurance and Acceptance requirements
Responsibility:
DND: PM/TA

2.6 Define other technical requirements (e.g. warranty,
training, documentation, Initial Provisioning, etc.)
Responsibility:
DND: PM/TA

2.7 Define Technical Evaluation Criteria
Responsibility:
DND: PM/TA

2.8 Prepare Procurement Instrument and Associated
Documents

2.8.1 Validate cost estimate and secure
funding for this PI
Responsibility:
DND: PO

2.8.2 Develop Technical Bid Evaluation
Plan
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

2.8.3 Establish Technical Bid Evaluation
Team
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

2.8.4 Develop proposed procurement
schedule (activities and timeline) for this PI
Responsibility:
DND: PM/TA

2.8.5 Identify and mitigate
DND risks associated with this PI
Responsibility:
DND: PO

2.8.6 Develop Content of Procurement
Instrument
Responsibility:
DND: PO

2.8.7 Review Draft Procurement
Instrument
Responsibility:
DND: PO
PWGSC Normally Participates: X

2.9 Approve Procurement Instrument (Requisition)
Responsibility:
DND: PO

3. DEVELOP PWGSC PROCUREMENT PLAN (*based on DND Procurement Instrument)

3.1 Assess the industrial capability *
Responsibility:
PWGSC: X

3.2 Identify applicable major contracting policy which must
be considered to accomplish procurement *
Responsibility:
PWGSC: X

3.3 Review applicable CITT cases and Federal Court
Rulings of Procurement
Responsibility:
PWGSC: X
DND Normally Participates: PO

3.4 Examine potential problems in relation to patents,
licensing, royalties, and technology transfer
Responsibility:
PWGSC: X
DND: PM/TA

3.5 Develop Procurement Plan including:

3.5.1 Delivery schedule and acceptance requirement
Responsibility:
DND: PO
PWGSC Normally Participates: X

3.5.2 Contracting approach *
Responsibility:
PWGSC: X

3.5.3 Target cost and cash flow plan
Responsibility:
DND: PO

3.5.4 Stating of appropriate quality control
and inspection system standards and qualification approvals
Responsibility:
DND: PM/TA

3.5.5 Communications Strategy (e.g. press
release, etc.)
Responsibility:
PWGSC: X
DND: PM/TA

3.5.6 Risk Management *
Responsibility:
PWGSC: X

3.5.7 Evaluation Methodology *
Responsibility:
PWGSC: X

3.5.8 Industrial and Regional Benefits
Responsibility:
PWGSC: X
DND Normally Participates: PM/TA

3.5.9 Interdepartmental and international
agreements related to Procurement Plan (excluding
DND/PWGSC)
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

3.6 Obtain approval of procurement
plan
Responsibility:
PWGSC: X

4. Contracting Process

4.1 Review requisition or procurement instrument
Responsibility:
PWGSC: X
DND Normally Participates: PO

4.2 Review SOW and Technical Evaluation Criteria for its contractibility
Responsibility:
PWGSC: X
DND Normally Participates: PO

4.3 Prepare Solicitation Bid Package

4.3.1 Identify Applicable Terms and Conditions (including
Basis of Payment)
Responsibility:
PWGSC: X
DND Normally Participates: PO

4.3.2 Develop Contractual Evaluation Criteria (time,
finance incl. transition, contractual & consolidated evaluation
plan)
Responsibility:
PWGSC: X
DND Normally Participates: PO

4.3.3 State appropriate authorities
(e.g. requisition, technical, contract, quality, etc., as applicable)
Responsibility:
PWGSC: X

4.4 Dispatch "Solicitation - Bid" (RFP/ITT)
documentation to Industry and DND
Responsibility:
PWGSC: X

4.5 Distribute technical data packages to suppliers
as required and as applicable
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

4.6 If competitive (RFP, ITT or equivalent
process), Evaluate Bids and Recommend Supplier

4.6.1 Carry out Technical evaluation (SOW and
associated t's & c's) in
accordance with the Evaluation Plan
Responsibility:
DND: PM/TA
DND Normally Participates: X

4.6.2 Carry out Contractual evaluation (including
contract t's & c's)
in accordance with the Evaluation Plan
Responsibility:
PWGSC: X
DND Normally Participates: M

4.6.3 Consolidate evaluation and recommend
supplier
Responsibility:
PWGSC: X
DND Normally Participates: PO

4.7 If sole-source, Negotiate contract
Responsibility:
PWGSC: X
DND Normally Participates: PM/PO & TA

4.8 Review draft contract documentation
Responsibility:
DND: PO

4.9 Obtain TB or Departmental contract approval,
as required
Responsibility:
PWGSC: X
DND Normally Participates: M

5. Contract Administration

5.1 Initiate Contract Administration

5.1.1 Implement Tools and Processes for Administration
Responsibility:
PWGSC: X
DND: PO

5.1.2 Kick-Off Meetings with Parties, Stakeholders
Responsibility:
PWGSC: X
DND Normally Participates: PO & PM/TA

5.2 Provide Government Furnished Resources(GFR) in
Support of Contract Work
Responsibility:
DND: PO
PWGSC Normally Participates: X

5.3 Ascertain Contract Performance

5.3.1 Technical and Quality of the Deliverables
Responsibility:
DND: PM/TA

5.3.2 Contractor's Engineering, Production and Quality
Systems
Responsibility:
DND: PM/TA

5.3.3 Contractor's Financial and Management Systems
Responsibility:
PWGSC: X

5.3.4 Contract Cash Phasing/ Cash Flow

5.3.4.1 Cash Flow Actual versus Contracted Cash Flow
Responsibility:
PWGSC: X
DND Normally Participates: M

5.3.4.2 Cash Flow Actual versus DND Planned Cash Flow
for Financial Forecast
Responsibility:
DND: PO

5.3.4.3 Earned Value (monitor progress of work versus
planned work and associated cost) for MCP's
Responsibility:
PWGSC: X
DND: M

5.3.5 Delivery

5.3.5.1 Monitor materiel and services delivery date
Responsibility:
DND: PO

5.3.5.2 Acceptance Trials and Tests
Responsibility:
DND: PM/TA

5.3.5.3 Schedule compliance
Responsibility:
PWGSC: X
DND: M

5.3.6 Progress Review Meetings

5.3.6.1 Requirements/Technical Work Group Meetings
Responsibility:
DND: PM/TA
PWGSC Normally Participates: X

5.3.6.2 Contract Progress Review Meetings with Contractor
Responsibility:
PWGSC: X
DND Normally Participates: PO & PM/TA

5.4 Apply Contract Provisions and Processes

5.4.1 Interpretation and Notifications
Responsibility:
PWGSC: X

5.4.2 Change Control

5.4.2.1 Technical (Engineering Change Notices/Proposals)
Responsibility:
DND: PM/TA

5.4.2.2 Contract Amendments
Responsibility:
PWGSC: X
DND Normally Participates: PO

5.4.3 Warranty Provisions

5.4.3.1 Invoke Warranty
Responsibility:
DND: PM/TA

5.4.3.2 Enforce Warranty
Responsibility:
PWGSC: X

5.4.4 Contractual Issues

5.4.4.1 Identify contractual issues
Responsibility:
PWGSC: X
DND: PO

5.4.4.2 Enforce contractual issues
Responsibility:
PWGSC: X

5.4.5 Accept Contract Deliverables
Responsibility:
DND: PM/TA

5.4.6 Certify and Process Payments
Responsibility:
PWGSC: X
DND: PO

5.5 Close Out Contract

5.5.1 Crown Asset Disposition
Responsibility:
DND: PO
PWGSC Normally Participates: X

5.5.2 Final Contract Audit
Responsibility:
PWGSC: X

5.5.3 Final Payment and Amendment
Responsibility:
PWGSC: X
DND: PO

List of Acronyms:

CITT: Canadian International Trade Tribunal
DND: Department of National Defence
GFR: Government Furnished Resources
ITT: Invitation to Tender
LCMM: Life Cycle Material Manager
MCP: Major Crown Project
NP: National Procurement
PI: Procurement Instrument
PIP: Project Implementation Plan
PMB: Program Management Board
PMP: Project Management Plan
PRC: Procurement Review Committee
PWGSC: Public Works and Government Services Canada
RFP: Request for Proposal
ROM: Rough Order of Magnitude
SOW: Statement of Work
SPAC: Senior Project Advisory Committee
SRB: Senior Review Board
SS(ID): Synopsis Sheet (Identification)
SS(EPA): Synopsis Sheet (Effective Project Approval)
SS(PPA): Synopsis Sheet (Preliminary Project Assessment)
TB: Treasury Board