Insights Newsletter

Insights Newsletter
September 9, 2011
Fall Edition
President’s Message
Upcoming Member Events Listing
In This Issue
Upcoming SIPMAC Member Events
2011/12 SIPMAC Board of
Directors and District Chairs
2011/12 Workshops & Seminars
Upcoming PMAC & SCM Events
President’s Message
Upcoming Member Meetings
Congratulations SCMP Graduates
Congratulations Diploma in
Supply Management Graduates
SIPMAC 2011/12 Education
Schedule
Continuing Education Seminar
Offerings
SIPMAC Golf Tournament
Updates
Feature Article: Recent
Developments in Competitive Bidding
Law
Member Feedback
Upcoming SIPMAC
Member Events
September 22, 2011
Saskatoon Dinner Meeting
Parktown Hotel, 5:30 pm
October 5, 2011
Regina Lunch Meeting
Ramada Hotel, 11:30 am
November 2, 2011
Regina Dinner Meeting
Speaker: Richard Venerus, LLB
Regina Best Western, 5:30 pm
On behalf of the Board of Directors for 2011-2012, I
would like to extend a warm and sincere welcome
back to all returning and new members for the
upcoming year. Many of us are returning from
family time or summer vacation; and now it’s time to
once again pursue our professional development
activities for the year. With fall approaching, it’s
already shaping up to be another busy year.
Saskatchewan continues to be the province of
activity, prosperity and growth; the province of
choice.
Since elected President in May, I was fortunate to have attended the 86th
Annual PMAC National Conference held in beautiful Whistler BC. Perched
in amongst the majestic Canadian Rockies, this conference turned out to be a
very successful and well attended event, especially in such a beautiful
setting. My congratulations to the Whistler Conference Organizing
Committee for an excellent job. Well done! I look forward to attending and
participating in next years’ annual PMAC National Conference, to be held in
Moncton NB.
Our plans for the upcoming year, and certainly the future, will be to work
closely with the Government of Saskatchewan and our members toward the
implementation of legislation and the formation of the SIPMAC Act. This
legislation will add credibility and protect our profession, the Institute and
our designation. Our other strategic priorities for the coming year include a
focus on our education programs, marketing initiatives and the maintenance
and growth of our membership. Progress will also continue on the
development and implementation of a strategic plan for our Institute. During
these processes we will be looking for key members and volunteers to assist
with these new strategic initiatives as we work to better align ourselves with
our National strategic plan and communication strategy.
With your input and member feedback, we sincerely hope that you find our
activities and programs to be of great value and special interest. I encourage
all of you to take advantage of the benefits of being a SIPMAC member.
Please feel free to contact us to suggest programs, events or member services
that would be of benefit to you or your organization. I also wish to
encourage you to become involved in SIPMAC as a volunteer, chair person
November 17, 2011
Saskatoon Dinner Meeting
Speaker: Robert Worthington, LLB
New Developments in Competitive
Bidding Law
Parktown Hotel, 5:30 pm
January 17, 2012
Saskatoon Social Night
Location TBC
Time TBC
January 18, 2012*
Regina Social Night
Golden Mile Bowling Hall
6:00 pm *new date
March 14, 2012
Regina Dinner Meeting
Delta Hotel, 5:30 pm
March 22, 2012
Saskatoon Dinner Meeting
Parktown Hotel, 5:30 pm
Contact your Program Chair to
register for the next meeting
Regina
[email protected]
Saskatoon
[email protected]
SIPMAC 2011/12 Board
of Directors
President
(3 year term)
Les Anderson, SCMP
Mosaic Potash
Vice President
(2 year term)
Gail Lepp, SCMP
SIAST
Past President
(3 year term)
Fred Hofmann
Hitachi
National Director
(3 year term)
Brett Schaitel, SCMP
Prairie West Technical Services
Finance Director
(3 year term)
Jamey Wolfe, SCMP
Mosaic Potash
or board member. We need your participation to ensure success and keep
growing as an organization.
Once again, on behalf of SIPMAC, I wish to say welcome back and “thank
you” for your personal contribution and time. I look forward to the
upcoming year and in joining you at our future events. If you do have any
questions please feel free to contact either myself, Nicole at the SIPMAC
office or any one of the board members, at anytime.
Sincerely,
Les R.W. Anderson, SCMP
SIPMAC President
Upcoming Member Meetings
Our first general member meetings for the 2011/2012 year will take
place on September 22nd in Saskatoon at the Parktown Hotel and on
October 5th in Regina at the Ramada Hotel. Member meetings continue
to provide a unique opportunity to network with fellow members, learn
more about the Association, enjoy great food and take advantage of
professional development opportunities. A complete listing of member
events for the year can be found in the left hand column and are
available on the SIPMAC website.
Please note that the deadline to register for the Saskatoon meeting is
September 15th and the deadline for the Regina meeting is September
28th.
To RSVP for the Saskatoon meeting, please contact your Program Chair
Aaron Scrobe at [email protected]
To RSVP for the Regina meeting, please contact your Program Chair LoriAnn Litzenberger at [email protected]
For those members who were unable to attend our Annual General
Meeting in Regina this past May 18, 2011, the minutes and annual report
are available on the SIPMAC Member portal.
Congratulations SCMP Graduates
The Saskatchewan Institute of PMAC would like to congratulate the
following individuals who recently completed their requirements toward
the Supply Chain Management Professional (SCMP) designation and will
be granted their certificate at our upcoming member meetings:
Program Director
(3 year term)
Trevor Cooney, SCMP
AREVA
Robin W. Stotz, Cameco Corporation
Darren B. Acton, Highline Manufacturing Ltd.
Wei L. Wan, Mosaic Potash
Membership Director
(3 year term)
At our past March and June meetings we were pleased to present SCMP
certificates to the following individuals:
Keith Hitchings, SCMP
Cameco Corporation
SIPMAC 2011/12 District
Chairs
Regina District Chairs
Program Chair
Lori-Ann Litzenberger
City of Regina
Membership Chair
Kimberley Schneider, SCMP
Farm Credit Canada
Valerie G. Hoeflicher, SCMP
University of Saskatchewan
Shannon D. Manton, SCMP
PotashCorp - Patience Lake
Randy A. Brown, SCMP
Cameco Corporation
Rochelle R. Fjeldstrom, SCMP
Potash Corporation
Saskatoon District Chairs
Program Chair
Aaron Scrobe, SCMP
SNC-Lavalin
Membership Chair
Linda Panchuk, SCMP
JNE Welding
Membership Chair
Kim Robinson, SCMP
Graham Construction
SIPMAC Staff
Nicole Burgess
Executive Director
[email protected]
Candace Finch
Administrative Assistant
[email protected]
There are many great opportunities
for you to get involved with SIPMAC
and provide leadership to its
members. If you are interested in
joining the SIPMAC Board of
Directors or would like to learn more
about becoming a regional chair or
participating on a committee, please
contact the SIPMAC office.
2011/12 Workshops &
Seminars
SMT Seminars
Introduction to Marketing
Regina, Best Western Seven Oaks
Sept. 22-23, 2011
**Sold Out**
Introduction to Business Planning
Saskatoon, Parktown Hotel
Oct. 13-14, 2011
Terry B. Pokolm, SCMP
Cameco Corporation
Cindy Tenaschuk, SCMP
Prince Albert Pulp Inc.
Murray D. Yourkowski, SCMP
Becker Underwood
Designation Reciprocity Recipient
Dianna J. Emperingham, SCMP
Bayer CropScience Canada Co.
Congratulations Diploma in Supply
Management Graduates
The Saskatchewan Institute of PMAC would also like to recognize those
individuals who recently completed the requirements of the Supply
Management Training Program and have been granted their Diploma in
Supply Management. Congratulations!
Competitive Bidding, Contract
Preparation & Contract
Management* (credit for Intro to
Contract Law)
Regina, Best Western Seven Oaks
November 2-3, 2011
Edwin A. Sikorski, SaskPower
Janine R. Chevrier, Evraz
Pamela Radke, International Road Dynamics
Communication & Relational Skills*
(credit for Intro to Communications)
Saskatoon, Parktown Hotel
Jan 16-17, 2012
SIPMAC 2011/12 Education Schedule
Introduction to Accounting & Finance
Regina, Best Western Seven Oaks
Mar 14-15, 2012
*course indicated provide dual credit
in the SMT and SSCMLP programs
SSCMLP Workshops
International Business & MultiCultural Skills
Saskatoon, Parktown Hotel
Sept. 8-9, 2011
Competitive Bidding, Contract
Preparation & Contract Management
Regina, Best Western Seven Oaks
Nov. 2-3, 2011
Communication & Relational Skills
Saskatoon, Parktown Hotel
Jan 16-17, 2012
Leadership & Professionalism
Regina, Best Western Seven Oaks
May 9-10, 2012
To register for seminars or
workshops please contact SIPMAC by
email: [email protected] or phone
306-653-8899; 1-866-665-6167
Registration forms also available
online at www.si.pmac.ca
Cost: Member $625(+GST)
Non-Member $775(+GST)
Upcoming PMAC & SCM
Events
Alberta Institute Annual Meeting &
Conference
September 8-9, 2011
Calgary, AB
2011 International Symposium on
SCM
Theme: Exploring the Leading Edge
in SCM
Date: September 18, 2011 September 20, 2011
2012 National PMAC Conference
Rising Tides
June 6-8, 2012 Moncton, NB
The Saskatchewan Institute of PMAC offers two program paths
individuals can choose from toward obtaining their education in Supply
Chain Management. The first is the Supply Management Training
Program, which leads to a Diploma in Supply Management.
The second is the Strategic Supply Chain Management Leadership
Program (SSCMLP) leading to the Supply Chain Management Professional
designation (SCMP).
More information about these two new programs and offerings for the
2011-12 year is available on the SIPMAC Website and is outlined in the
left column.
Continuing Education Seminar Offerings
In response to your feedback, we have scheduled the following seminars
as part of our Continuing Education Series. More information on these
offerings can be found on the SIPMAC website. Space is limited, so be
sure to register today to avoid disappointment.
Secrets to Drafting Procurement Documents 2011
Robert Worthington, LLB
Saskatoon, Parktown Hotel
November 18, 2011
Integrating Purchasing, Transportation & Inventory
Laurie Turnbull, CITT, P.MM
Regina, Travelodge Hotel
February 8-9, 2012
Register
If you have any suggestions for future seminars or if you would like to
register, please contact the SIPMAC office. Dates and locations subject
to change.
Sipmac Golf Tournament Updates
48th Annual South Saskatchewan Golf Tournament
The South Saskatchewan tournament, which featured a new venue (Tor
Hill Golf Course) and a single shotgun start, was an overall success with
nearly 200 golfers registered. Everyone enjoyed a good day of golf, a
great meal at the Turvey Centre and some excellent prizes.
Just for laughs….
The Regina Committee would like to thank all of the sponsors for their
support in making this year’s tournament another success. A special
thank you to this years hole sponsors: Stockdales, Corning Cable
Systems, Acklands Grainger, Prairie West Technical Services Ltd., Tesco,
Goodman Industrial, Nalco Canada, Omni Facility Services Canada Ltd.,
Converteam Canada Inc., Brandt, Derksen Mechanical Services Inc,
Mosaic Potash, Siemag Tecberg, PCL Construction, Graham Group Ltd.,
and Moose Jaw Toyota.
Thank you again to all our sponsors and participants for continuing to
make this tournament such a success!
41st Annual Saskatoon Golf Tournament
The 41st Annual SIPMAC Saskatoon golf tournament was held once again
at the Greenbryre Golf & Country Club on June 17th. Although it was a
rainy day, many golfers were able to complete their game and finish off
the day with a delicious meal. Thanks to the generous donations from
suppliers and members, there were plenty of prizes to go around. We
would like to thank our participants, as well as all of our hole and prize
sponsors for making this year’s tournament an absolute success!
Due to the generosity of our participants, we are also pleased to report
that we raised $620 for the Children’s Wish Foundation through proceeds
collected from the “dingy thingy” and sales of licorice mulligan’s. Thank
you to all the participants for your generosity.
We look forward to seeing you next year at our 42nd annual tournament!
Feature Article: Recent Developments in
Competitive Bidding Law
By Robert C.
Worthington, LLB
The avowed purpose of competitive bidding
procurement for a purchasing organization is to
use the power of competition amongst Suppliers
to obtain the best offers to perform defined tasks
or to obtain specific goods. The purchasing
organization (whom we call the “Owner”) defines
its needs and then issues a call for offers either to
select Contractors/Suppliers or to the world at
large, usually by a formal document. Those who
are interested and qualified submit their offers to
perform the work or supply the products to the
Owner by a fixed date. Thereafter, the Owner
reviews all of the received offers from Bidders and may (but not
necessarily must) choose one or more of the offers to accept. The parties
(the Owner and the successful Bidder(s)) enter into an agreement to
perform the previously defined tasks or supply the requested goods.
The justifications for utilizing competitive bidding as the mode of
procurement (as opposed to the alternative of sole source procurement)
range from being fairer, being more defensible, and being the best way
to obtain better offers all the way to being required by law and/or policy.
Competitive bid procurements can be all these things or not, in part
depending upon the nature of the procurement and the parties involved.
The process is utilized world-wide by both private industry and
Governments as the preferred way to find good Contractors and
Suppliers. In most of the world, it is a non-legally binding process. In
Canada, it is a legally binding process which can create significant,
additional legal risks for all the parties involved.
Due to these increased legal risks, everyone involved in competitive
bidding (Owners, Bidders and Sub-Contractors) are being forced to
review the reasons for choosing the competitive model, to re-examine
their policies and procedures, and most critically, to revise their
contractual documentation (both at the competitive procurement stage
and at the final project contract stage).
Since the first decision which created “competitive bidding law” in 1981
(The Queen v. Ron Engineering (1981) Supreme Court of Canada) to
today, the Courts have been very busy laying out firstly the basic rules
(1981-92) and secondly, detailing the variations, permutations and
combinations of these basic rules (1992-present). Today, the legal
landscape of these “new” laws of competitive bidding has largely been
delineated and we can fairly confidently say what the basic rules, rights
and obligations of all parties will be. There are still some major gaps in
definitive coverage and the Courts continue to add new nuances to
existing rules or to add new laws to the mix. But, by and large, we now
know what the laws are and what principles the Courts continue to
uphold in making these laws.
It should not have been surprising when the Supreme Court of Canada
stepped in with new rules governing competitive bidding. All of contract
law is judge-made law, after all. Parliament had no rules governing the
area and a challenging case was before the Courts. However, it has
taken years for some to adjust their practices. Today, there are still
those who seek to avoid or ignore these laws. They do so at their peril
and at great cost to their pocket books. These laws are not going away.
They may be adjusted and we can create hybrids and write rules which
allow for more flexibility of action but at the end of the day, competitive
bid procurement in Canada, whether public or private, will be legally
binding.
What these laws actually are and how we can best manage the process
to fit what we need are the real challenges that face us. Much has been
happening in competitive bidding law of late. Here are the highlights of
some recent important cases in contracting and competitive bidding.
•
In a recent contract law case, a Sub-Trade failed to supply the proper
custom-made product, which failure caused the Owner to fire the
successful bidder now-Contractor. The Contractor then sued the SubTrade for the lost profit from the contract they could not complete
due to the Sub-Trade’s failure. The Court found the Sub-Trade was at
fault and was liable to the Contractor for the lost profit from the
contract the Contractor had with the Owner.
•
Following a competitive bid solicitation for “as and when required”
Contractors, the lowest unit priced Bidder unsuccessfully tried to
argue that he should have received most of the work. The Court
found that the Invitation’s wording gave the Owner discretion to
award based upon “lowest cost,” which was not the same as “lowest
price.”
•
In an electronic competitive bidding case, a Bidder unsuccessfully
tried to argue that their late e-bid was submitted on time, that the
late bid could be accepted, and that the non-compliance (i.e., being
late) was the fault of the Owner’s e-bidding system. The Court found
that late bids can not be “waived” into a competition, that the onus of
proving the system was at fault was upon the Bidder and that
submitting an electronic bid on time was not the same as it being
received on time.
•
In a competitive bidding case where a Bidder missed a mandatory
site visit and was disqualified, the Court held that the Bidder was
properly disqualified and the non-compliance could not have been
waived by the Owner.
•
In another competitive bidding case, the Owner’s Invitation required
bonding “upon acceptance of the bid” but the Owner later awarded to
a bid with a Letter of Credit. The Trial Court held that the bid should
have been disqualified but the Court of Appeal found that the
obligations of the Bid Contract A had ended at award and thereafter
the Owner could modify its security requirements if the successful
Bidder – now Contractor and the Owner agreed to the modification.
•
In a third competitive bidding case, a non-compliant Bidder was
considered to be substantially compliant, and the Court found that
the Owners’ decision to accept the non-compliant bid was reasonable.
•
In a fourth competitive bidding case where there was only one Bidder
whose bid was over budget and the Owner hired a Project Manager to
do the work instead – without first cancelling the competition – the
Court found that the Owner was in breach of competitive bidding law
for acting unfairly.
•
In a fifth competitive bidding case, the Owner accepted a bid which
offered a price reduction after close of bidding. The unsuccessful
lowest original Bidder proved the Owner acted unfairly but was
ultimately unsuccessful because it was also non-compliant with the
Invitation and, as a result, had no Bid Contract A with the Owner.
•
In a sixth competitive bidding case, a Sub-Contractor tried to sue the
Owner for breach of competitive bidding law but was unsuccessful as
they were not a Bidder to the Owner and had no Bid Contract A with
the Owner.
•
In a seventh competitive bidding case, an Owner was faced with
three bids less than 3% apart on price, sought further information
after close from all three Bidders, and then awarded to the third
lowest Bidder based upon the new information. The Court found that
the Owner was not acting unfairly to the lowest Bidder and that the
Owner exercised a “reasonable business judgment that must be
respected by the Court.”
From the first case in competitive bidding law to today’s myriad of cases,
the Courts have held fast to a simple principle – competitions for a
contract award must be conducted fairly – to protect the integrity of the
competitive process. Fairness and integrity – how wonderfully Canadian
of us to make those principles into actual laws. May it always be so.
ABOUT THE AUTHOR: ROBERT C. WORTHINGTON
An award-winning lecturer in law, Robert C. Worthington, LLB, has
taught purchasers and contract managers throughout Canada for over 26
years, specializing in the laws of contract, competitive bidding and
procurement. He has written two Canadian books on procurement law
designed especially for purchasing and contracting professionals, entitled
The Purchasing Law Handbook and The Public Purchasing Law Handbook.
His seminars are designed to bring you up-to-date, helpful information
on issues in contracting, competitive bidding and purchasing. Robert’s
publications and seminar presentations are entertaining as well as
informative. For more information, please visit his website at
www.purchasinglaw.com.
Robert C. Worthington will be presenting a seminar in Saskatoon
entitled “Secrets to Drafting Procurement Documents” on
November 18, 2011 and will be the presenter at the Member
meeting on November 17, 2011. Register early as space is
limited!
Member Feedback
Member feedback is always welcomed and greatly appreciated. If you
have any comments or suggestions on our events, administration,
education programs or any other area of the Association, please feel free
to send an email to [email protected] or call the SIPMAC office at 306653-8899 or 1-866-665-6167. It is only through this feedback that we
can ensure that our members’ needs are being met.
Saskatchewan Institute PMAC
p: (306) 653-8899
211A 3521 8th Street East
1-866-665-6167
www.si.pmac.ca
f: (306) 653-8870
Saskatoon, SK S7H 0W5
e: [email protected]