June 2, 1999
(Works, Services and Transportation)

Service providers licensed for electronic tendering

Lloyd Matthews, Acting Minister of Works, Services and Transportation (WST), today announced that three private companies will be licensed this week to advertise and distribute WST tenders for goods and services electronically.

BIDS Newfoundland, MERX and PODS were selected through a public request for proposals.

Electronic tendering was prompted as a result of commitments made under the Atlantic Procurement Agreement and the Agreement on Internal Trade (See Appendix 1). The minister said the switch to electronic tendering enables the department to operate in a much more business-like fashion.

The minister said the posting of tender calls electronically is a much more efficient way of doing business and reaches an even wider audience on a more cost-efficient basis.

"It will enable the department to meet its commitments under the various trade agreements by providing equal access to tenders regardless of a company's geographic location," the minister said. "As well, cost savings will be realized by the department as advertising and distribution costs will be shifted to the private sector."

Electronic tendering for goods and services with a value of $5,000 or greater becomes effective July 1, 1999, at which time WST will discontinue traditional newspaper advertising for these services. WST may choose at some future date to reduce the threshold value to zero dollars.

Construction tenders, representing approximately 15 to 20 per cent of WST tenders, will not be distributed electronically at this time and will continue to be posted in newspapers.

Minister Matthews said WST chose to go with multiple service providers to allow all suppliers the ability to choose the company that best meets their particular business needs.

"Multiple suppliers will allow for a competitive environment for those wishing to avail of this service," Mr. Matthews said. "It will ensure that the supplier community receives good value for their money. It will also ensure open and transparent access to all bid opportunities arising from the department."

Providers will charge a fee for their service and the fee will vary depending on how many tenders that a supplier wishes to order together with the manner in which they wish to have them received.

Providers will offer "value added" services whereby suppliers can be automatically matched to a tender document based on their supplier profile. These documents can be provided to the supplier by means of fax, courier, e-mail or regular mail.

Suppliers who do not own a computer may access the local library and, from there, log onto the Internet.

Additionally, suppliers will be able to register with a provider who offers a magazine subscription instead of computer access. In this way, suppliers can still be made aware of all the tenders that are available through printed media and not in an electronic format.

The department will run information advertisements to indicate where public tender information can be found. Guidelines and standards that must be met by private sector companies are contained in the licenses.

Media contact: Gary Callahan, (709) 729-3015.

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APPENDIX 1

The Atlantic Procurement Agreement

The Atlantic Procurement Agreement (APA) came into effect on September 30, 1992 and with its inception a number of commitments. Specifically, the APA requires the parties to the Agreement to provide electronic access to tender notices to all jurisdictions. The intention of this commitment is to provide electronic tender notifications to ensure that suppliers are given accessibility to this information and not restricted by geographical boundaries. The APA was revised in 1996 to include not only government departments but academic institutions, schools and health and social service organizations.

Copies of this can be obtained from GPA or viewed at www.gov.nl.ca/tenders/publink.htm

The Agreement on Internal Trade

The Agreement on Internal Trade (AIT) entered into force on July 1, 1995 and includes government departments, agencies, commissions and Crown corporations of the 10 Canadian provinces, the two territories and the federal government. There is also an Annex to the AIT recently negotiated and ready for signature and will include municipalities, academic institutions, schools and hospitals under the agreement. The effective date is scheduled for July 1, 1999.

Copies of this can be obtained from GPA or viewed at www.gov.nl.ca/tenders/publink.htm

The Public Tender Act and Regulations

The Public Tender Act is the primary piece of legislation governing the acquisition of goods, services and construction by the Government of Newfoundland and Labrador and by agencies of government. The act provides for a competitive bidding process. It was enacted for the purpose of ensuring that government contracts are awarded in a fair and equitable manner, while achieving maximum cost effectiveness for the public purse. The Act and Regulations provide specific guidelines which govern procurement. These documents can be obtained from GPA or the Queen's Printer.

*GPA - Government Purchasing Agency

1999 06 02 1:00 p.m.