1. Local Purchasing
Buysmart Workshop
October 27, 2011
LOCO BC
Amy Robinson
amy@locobc.com
604-351-1664
Supporting local business, building community and
growing the local economy.
2. Local Procurement: Who is LOCO?
• We’re building a movement!
– Connect, support & promote local businesses
– Build community
– Grow the local economy
• Spending as a Lever for Sustainability
– Consumers: Own Your Own Campaign
– Businesses: Connect and Support
– Government: $100+ billion/yr lever
3. Local Procurement: Agenda
• Overview
– Benefits, Drivers & Challenges of Buying Local
– Case Studies & Presentation by Victoria
Wakefield, UBC
4. Local Procurement: What is Local
Procurement
• Purchasing goods or services
• Balancing factors of
cost, quality, service, sustainability &origin
– Origin of goods
– Ownership of the goods/services provider
• Seeking out alternatives
• Giving access, consideration and potentially
preference to local supply/suppliers
5. Local Procurement: Benefits
• Enhance our communities
• Provide security and diversity of supply
• Build employment and wealth
by circulating dollars many
times between local
businesses
• Reduce the transportation
impacts of global supply
chains
6. Local Procurement: Benefits
• Economics:
– BC’s small businesses (<50
employees) are:
• 98% of provincial economy
• 57% of private sector jobs
(46% of all jobs)
• 32% of provincial GDP
• Ex. $100 Spend
– Economic multiplier
• Non = $43
• Local = $68 (+25%)
7. Local Procurement: Local Procurement
Drivers
• Private Sector:
– Brand
– Deliver on corporate values
• Supporting community
• Reduced footprint
– Build relationships
• Public Sector:
– Reinforce organizational goals & values
• Supporting community
• Economic development
• Reduced footprint
– Ensure public spending for public good
• Labour:
– Maintain relationships with members
– Protect Canadian jobs
8. Local Procurement: Challenges
• Defining local
• Cost
• Efficiency
• Supply & capacity
– Supply criteria
– Small business capacity
• Regulatory issues
9. Local Procurement: Challenges
• Challenge: Defining “Local”
– Products & service differences
– Supply chain vs. company ownership
• Strategies:
– Geographic boundary
– Company size or composition
• SMEs
• Women owned, Minority owned
– Ownership & Control
• Locally owned; Canadian owned (50+%)
• Control over procurement & marketing
10. Local Procurement: Challenges
• Strategies: Defining “Local”
– Use whatever definition inspires/allows you
to build alliances & take action
– Ex. City of Ventura
“The City of Venture supports small local businesses. A
business is small if it employs less than 100 and has
average annual gross revenues of less than $20M. A
business is local if it has held a business license in the City
for 12 months preceding the bid. Small local bidders are
given preference on City projects of up to 5% when
responsibility and quality are equal to competition on
contracts <$250K”
11. Local Procurement: Challenges
• Challenge: Cost
– Local environment & labour standards
– Local land prices & tax structures
• Strategies:
– Buy local services
– Products:
• Buy in season
• Increase size of buy or term
12. Local Procurement: Challenges
• Challenge: Efficiency
– Bundled contracts
• Strategies:
– Create & communicate a policy
– Work with existing suppliers
– Alter process (ex. split into ‘lots’)
13. Local Procurement: Challenges
• Challenge: Supply & Capacity
– Availability of products & services
• Consistency of supply
• Specific needs
– Small businesses capacity to supply needs
• Strategies:
– Seek out available supply
– Address specific needs (product substitution)
– Build capacity by ensuring access:
• Avoid bundling contracts
• Advertise locally
• Communicate needs to local suppliers
14. Setting the Stage: Increasingly
Competitive Environment
Procurement processes are subject to:
1. Statutory and common law rules
2. Administrative policies or directives; and
3. Rules of applicable Trade Agreements (“TAs”)
Provincial & municipal public procurement will become much more open and
competitive:
• Canada is under intense pressure from its trading partners
(e.g., US, China, Europe, India) to open up non-federal procurements to
foreign suppliers e.g. Crown corporations, utilities, provinces and
municipalities
• Previously only federal procurements subject to TA
• Pressure from Canada’s trading partners is being fuelled
by their own suppliers who want access to “the entire” Canadian
procurement market
15. Key Agreements
Agreement Covers
Agreement on Internal Trade (AIT) Applies to provincial, municipal and MASH contracts
being bid on by “Canadian” suppliers
New West Trade Partnership Agreement Applies to B.C. Alberta and Saskatchewan
(NWPTA) provincial, municipal, crown corporations and
MASH procurement being bid on by suppliers carrying
on business in those provinces
Canada-US Agreement on Government Applies to provincial and municipal procurements
Procurement (CUSPA) being bid on by US suppliers
NAFTA-Chapter Ten Applies to federal and provincial contracts being bid
on by US, Canadian and Mexican suppliers
WTO Agreement on Government Procurement Applies to federal contracts being bid on bysuppliers
(GPA) from 37 countries
Canada-EU Trade Agreement (CETA) May apply to procurements by federal, provincial,
Negotiations municipal, Crown corporations and
utilities/commissions being bid on by EU suppliers *
implications for Can-US AGP
16. Canadian Regulations
Agreement on Internal Trade (AIT)
Purpose: Reduce/eliminate barriers to movement of
persons, goods, services, and investment in Canada.
Issues: Eliminating local price preferences, biased technical
specifications, unfair registration requirements for non-
resident suppliers to ensure equal access to procurement
for all interested Canadian suppliers.
Applicability: Government entities, MASH Sector, and
crown corporations.
Crown Corp Gov’t MASH
Goods
Thresholds: $25K $100K $500K
Services $100K $100K $500K
Construction $100K $250K $5 million
17. Canadian Regulations
New West Partnership Trade Agreement (NWPTA)
Purpose: Ensures that parties do not restrict or impair trade
between, among the Parties, or investment or labour mobility
between or among the Parties.
Issues: Work toward the enhancement of sustainable
development, consumer and environmental protection, and
health, safety and labour standards.
Applicability: Alberta, Saskatchewan and British Columbia.
Provincial and municipal entities, the MASH sector and crown
corporations.
Crown Corp Gov’t MASH
Goods $25K $10K $75K
Services $100K $75K $75K
Construction $100K $100K $200K
18. Canada - US Regulations
North American Free Trade Agreement (NAFTA)
Purpose: Achieve greater competition for, and transparency
in, government procurement.
Issues: Eliminates the protection of domestic products or
suppliers or discrimination among foreign suppliers.
Applicability: Virtually all federal government agencies in the
three countries, as well as many government-controlled
enterprises and provincial government entities.
Crown Corp Gov’t
Goods $383,300 $27,300 (CD/US) or
$76,600 (CD/MEX)
Services $383,300 $76,600
Construction $12,200K $9,900K
19. Canada – US Regulations
Canada-US Procurement Agreement (CUSPA)
Purpose: A provincial and territorial procurement commitments in exchange
for U.S. sub-federal commitments.
Issues: Temporary Canadian procurement commitments for construction
projects for some provincial/territorial agencies and for a significant
number of municipalities, in exchange for the U.S. exempting Canada from
the “Buy American” provisions of the Recovery Act for seven federal
programs.
Applicability: B.C. has offered access to all
Ministries, Boards, Commissions, Agencies and Committees but not
Legislative Assembly procurement. Procurements by covered varies
Gov’t
between provinces.
Goods $604,500
Services $604,500
Construction $8,500,000
20. International Regulations
World Trade Organization
Purpose: “Like products” are treated similarly, regardless of source.
Issues: Public procurement isn’t covered in general provisions.
However, the WTO’s Government Procurement Agreement applies
directly to 2 categories of procurement not covered before—
services and sub-central entities.
Applicability: Applies to Central agencies, provincial governments and
affiliated agencies and central government contracts.
Crown Corp Gov’t MASH
Goods $355,000 $130,000 $355,000
Services $355,000 $130,000 $355,000
Construction $5,000K $5,000K $5,000K
21. International Regulations
Canada-EU Comprehensive Economic and Trade
Agreement (CETA)
Canada and the EU is in negotiations for a comprehensive economic and
trade agreement.
Issues: Proposed CETA procurement rules would prohibit municipalities from:
• Restricting tender calls to local or Canadian companies or requiring that bidders use
some proportion of local or Canadian goods, services or labour in providing the goods
and services being tendered;
• Using procurement for sustainable development purposes such as promoting food
security by adopting “buy local” food practice.
Applicability: All central government entities, all other central public entities, as well as all
sub-central government entities (i.e., at the local, regional or municipal level), be open
to European goods and services.
In addition, the EU is requesting an opportunity to bid on
contracts awarded by the MASH sector as well as by airports, public
transit systems, ports, municipal water services, and power and
energy authorities such as BC Hydro and Hydro-Québec.
23. Case Studies: University of Victoria
• Policy Context:
Procurement Principles
1. Use Quadruple Bottom-Line (4BL) acquisition evaluation
framework for major procurement decisions –
“People, Planet, Profit, Socio-Cultural “
2. Increase use of locally produced goods and services to reduce
GHG emissions where practical & economically feasible
3. Calculate & incorporate into purchasing decisions the value of
GHG as compared to other supplier products and distribution
points (ground transportation, air travel, energy-
electricity, fuel, coolants, etc).
4. Incorporate into sourcing documents the requirement for
supply of products produced locally where feasible & practical
5. RFP and contract for green cleaning supplies for campus wide
use
24. Case Studies: UVic Local Food
• Goal: Support local food producers whenever and wherever we can.
• Benefits:
– Use local labour
– Minimize carbon footprint of food purchases.
• Means:
– Standard Sourcing Clauses for all Formal Solicitations
– Stewardship Provisions
• Initiatives:
– Local Produce Acquisition Initiative - Organics
– Local Meats and Dairy Acquisition Initiatives
– Produce RFP – Islands West
• Success: 46% produce from Vancouver Island farms; 36% of meat and poultry comes from BC
producers; Baked goods including bread, muffins, pastries, buns & pizza from bakeries located on
the southern part of Vancouver Island
25. Case Studies: UVic Local Procurement
• Produce RFP 402 and Contract
– Assessment of local availability
– 46.4% by VI producers (38.7% of the contract value approx $1mil/year)
– VI firm was awarded the contract; Supplier uses local labour
– Calculated GHG emissions in award decision
• Pizza RFP 441
– Approx. $400,000
– VI firm was awarded the contract; Supplier uses local labour
– Vancouver Island Products Clause
• Future RFP’s
– Meats (Approx. Annual Value $1 mil); Dairy (Approx. Annual Value
$800,000); Eggs; Baked Goods
26. Case Studies: UVic Local Procurement
• Vancouver Island Products & Services RFP Clause
• UVic acquisitions are conducted with compliance to Federal, Provincial, and Local
legislation, regulation, and policy directives as stipulated in UVic Policy 5105 as
follows:
– It is the policy of the University of Victoria to acquire goods and services
through a competitive process whenever practical that results in supply
arrangements at the most effective net cost, in the correct quantities, of the
appropriate quality, and from the most responsive and responsible source.
– Purchasing Services shall comply with the letter and spirit of laws and
regulations governing the public procurement function.
– Purchasing Services will make purchases in compliance with legislation and
statutory regulations including CSA for safety standards, WHMIS for hazardous
products, customs duties, excise taxes, GST and provincial sales taxes.”
– 4BL in best-value analysis and evaluation addresses monetary value placed on
the carbon footprints of the respective products and or services.*
*BSI - PAS 2050 Methodology to calculate GHG emission values in RFP evaluations
27. Case Studies: City of Toronto
• Policy Context
– Local Food Procurement Policy (2008)
• Progressively % of food budget from local sources
• Defines “local” as food grown in the Greater Toronto
Area, the Greenbelt of Ontario and other regions of
Ontario
• Phased approach for implementation - Phase I by
Children’s Services
– Goal of 50% Local Food Procurement
– Climate Change, Clean Air & Sustainable Energy
Action Plan
28. Case Studies: Toronto Local Food
• Toronto Environment Office with Children’s
Services Department targeting Municipal Child
Care Services ($2.2 million/yr)
– Mapped out process for menu prep, food ordering
and on-site food prep
– Worked with food distributor to assess existing
supply chain (600+ manufacturers & suppliers)
– Analysis of food expenditures
– Tracked food purchases by supplier & site for one
year
29. Case Studies: Toronto Local Food
• Outcomes:
– Origin Map
– Baseline
– Opportunities
• Results:
– Increase local sourcing 13.4% to 33% ON
produced goods
– Minimal operational & financial impacts
• 15K increase in budget anticipated (none seen as of 1st
quarter 2009)
30. Local Procurement: Case Studies
• Other examples
– Federal Government:
• National Shipbuilding Procurement Strategy
– $35 B shipbuilding initiative
» $25 billion combat vessel contract Irving Shipbuilding
(Halifax)
» $8 billion non-combat contract to Seaspan (Vancouver)
– Ontario Government:
• Clean Energy Program
– Domestic content requirement
» Domestic content provisions
» Requires that 60% of value of wind and solar be sourced
from within Province
» Incentives to local rather than barriers to others
31. Local Procurement: Case Studies
• Other examples
– City of Toronto:
• Subway car contract required Canadian-made
• Created 1,000 well-paying jobs in Thunder Bay
– City of Victoria:
• Required local servicing in office machines contract
• Sources consulting services from island suppliers within law
– City of Ottawa:
• Local preference on contracts where they have a tie
– Vancouver Convention & Exhibition Centre (VCEC)
• Local purchasing a requirement for operations (local ingredients
“whenever possible”)
• Annual purchases include:
– 12,000 heads hothouse butter lettuce
– 18,000 bottles BC wine
– 1 tonne mushrooms
– United Way & CUPE
• Buy Canadian policies
32. Local Procurement: Case Studies
• Other examples
– Eclipse Awards
• Local recycled glass
• Local FSC certified wood
– Saul Good Gift Co.
• BC products and businesses
– Peake of Catering
• Locally sourced products wherever possible
33. Local Procurement: Next Steps
• 10 Action Steps:
1. How does local support organizational mission/brand
2. Assess what you buy most of (by product or spend)
3. Assess what is available locally
4. Think about broader context - what local industries need
the most support? Ex. forest products, food, etc.
5. Create a list of opportunities
6. Address your policy context (sustainable
procurement, carbon, economic development)
7. Build support
8. Add standard clauses
9. Advertise widely where small businesses are likely to
look
10. Work with existing suppliers and reach to find new ones
34. Local Procurement: Next Steps
• Build Support:
– Sustainability Office
– Food Advocacy Groups
– Sustainability NGOs
• LOCO
• Buysmart
• Local Food Plus
– Existing supplier base
– Other aligned purchasers:
• Universities
• School board
• Labour organizations
35. Local Procurement: Commodity Areas
Buysmart Top 10 (with a few LOCO additions)
1. Electronic Equipment
2. Office Supplies
3. Office Furniture
4. Paper
5. Lighting
6. Cleaning Supplies & Custodial
7. Meetings/Conferences/Events
8. Business Travel
9. Gifts & Apparel (incl. uniforms)
10. Coffee, Tea, Food& Other Commodities
11. Food & Catering
12. Couriers
36. Local Procurement: Next Steps
Don’t Accept the Status Quo
Take Action
Collaborate & Communicate
37. Thank You
Amy Robinson
amy@locobc.com
www.locobc.com 604-351-
1664
Thanks to Our Partners
38. Thank You
LOCO BC
Amy Robinson
Info@locobc.com 604-351-1664
BuySmart
Bob Purdy
bpurdy@fraserbasin.bc.ca604 488-5358
Supporting local business, building community and
growing the local economy.
Hinweis der Redaktion
We’ll amend this as we go.
Local businesses reinforce principles of sustainability.Social benefits – hiring, charitable giving, strong support to local authors, artistsSecurity – ex University of Victoria ferry strike in 2003. In just two days, supermarket shelves were nearly empty on Vancouver Island. Ferry strike had escalated to a complete service shutdown, which meant no ferries, no trucks and far fewer food shipments. Diversity – supporting and allowing access to local/regional suppliers ensures their survival. If they don’t survive, we’ll be left with a few multi-national companies to choose from. A few large businesses means less competition and innovation which is worse for consumers.Economic – public spending represents approximately 15-20% of GDP in OECD countries, local merchants keep the majority of their profits in the community, do you want some of the stats from the Civic Economics? Collaboration/Innovation – locally based businesses have a stake in the local economy and are more likely to collaborate with gov’t purchasers to solve local problems or meet their needs.
Just to highlight the economic side…BC primarily made up of small businessEconomic multiplier - $100 figure is from the 10% shift campaign.
Supply criteria – consistency, prepped foods, etc.
CHALLENGEDifference between defining local for a product and a service. Critical difference is based on supply chain (local products) versus company ownership.In an ideal world you get a locally owned company supplying local products.STRATEGIESGeographic BoundariesExamples Vancouver Island grownCanadian made100 mile radiusBusiness Address/Postal codeProblem with a business address/postal codes and business licenses is ownership. Ex Vancity uses postal codes.SMEs – definition for small business in BC is <50. Industry Canada SMEs are less than 500, small is less than 100.
Ventura, CA just expanded resolution to include businesses that use at least 30% local subcontractors.
CHALLENGELocal environment and labour standards do sometimes mean that local costs more. Also small businesses don’t have the economy of scale.STRATEGIESLocal services shouldn’t cost more, so start there.For products that sometimes cost more, you can buy what’s in season or increase the size of the buy to drive costs down.
CHALLENGEBundling - (ex. Vancity wants to buy everything from office supplies to janitorial to tissue from one contract)STRATEGIESCommunicate a policy – for staff to follow, for suppliers to understand your needsWork with existing suppliers – to substitute products, help sources supply for youAlter process – several exs. Including Uvic upcomingUK Northumberland County Council allowed businesses to bid on a combination of up to seven food categories in four geographic areas of the county. They say this system gave them the most competitive total service because it could combine tenders in a number of ways. The procurement team also used Best Value criteria, weighting quality and price at a ratio of 60:40. The quality criteria also required that the contractor be prepared to assist the Council’s Catering Services Department in pursuing a sustainable food procurement strategy.)
CHALLENGESConsistency of supply – ex. no local food in winterSpecific needs – Requirements might not be obviously met by suppliers (ex. prepped pineapples)Small business capacity to respond to bids, have sufficient inventory and staff to fulfill contracts. STRATEGIES (first two can work hand in hand – might change specs as you find what’s available)Seek out available supply (ex. what food is available locally all year – carrots, potatoes, onions)Address specific needs (product substitution) – substitute products, create seasonal recipes, work with suppliers/producers to determine what is possible (ex. Canadian made t-shirts)Build capacity by ensuring access:Avoid bundling contractsAdvertise locallyCommunicate needs to local suppliers (in the VC ex. perhaps a local office supply company like Mills would bring in new products to meet needs)In the UK the public sector proactively works with SMEs to find ways to make them fit to compete for contracts. The North West NHS Supplier Bureau is working with SMEs so they can compete for NHS contracts in the region. Support includes tender training delivered by the NHS Purchasing and Supply Agency (PASA) and one-to-one support delivered by Groundwork to enable suppliers to sharpen their health, safety, and environmental management.
Emphasize that this is related to gov’t agencies and gov’t-funded institutions (MASH)
Amy to provide amendment slide reducing text.
Regulations:Parties shall not establish new standards or regulations that operate to restrict or impair trade, investment or labour mobility.- Parties shall continue to work toward the enhancement of sustainable development, consumer and environmental protection, and health, safety andlabour standards and the effectiveness of measures relating thereto.Parties shall cooperate to minimize differences in standards or regulations adopted or maintained to achieve legitimate objectives.
Canada-US Procurement Agreement, or „CUSPA‟Temporary provisions require Canadian municipalities to comply with international procurement rules for the first time. Under these rules, Canadian municipalities must open procurement for construction and related services to U.S. companies, but U.S. states and municipalities, many of which maintain local preferences that effectively exclude Canadian bidders, are under no reciprocal obligation.
GATT:Governments cannot apply taxes, charges, or non-tariff trade barriers (NTBs) to imported products to support their domestic industry.Exemptions:This might cover, for example, food purchased for hospitals, prisons and in some cases government employees.But ARE local products “like” with imported conventional products? They appeal to different market segments, often have different supply chains, and serve different economic and environmental purposes.WTO Agreements Agreement on Agriculture- Does not specifically apply to the MASH sector, nor does it say anything about NGOs. - Environmental measure support is permitted. If properly constructed, local programming can generate significant environmental improvements. This means linking environmental measures along the supply chain so that the product benefits are enhanced by their regionality. - Example: Innovative distribution, reducing cooling and refrigeration requirements and reducing supply chain waste. An integrated strategy allows for additional GHG reductions and energy use efficiencies. Agreement on Government ProcurementApplies to Central agencies, provincial governments and affiliated agencies and central government contracts valued at over $217,000. - Primarily about tendering procedures, supplier qualification and selection and awarding of contracts.- May limit the choice of suppliers for a contract, but given that many food procurement provisions are executed through food service firms, the language of the agreement may not limit the ability of tendering agencies to write in local procurement targets.
Add MASH sector?
Action plan includes many items regarding sustainable procurement, including the two listedUvic Procurement Principles1) Utilize Quadruple Bottom-Line (4BL) acquisition evaluation framework for major procurement decisions – “People, Planet, Profit, Socio-Cultural “2)Increase the use of locally produced goods and services to reduce GHG emissions where practical and economically feasible3)Calculate, and incorporate into purchasing decisions the value of GHG as compared to other supplier products and distribution points (ground transportation, air travel, energy-electricity, fuel, coolants, etc).4) Incorporate into sourcing documents the requirement for supply of products produced locally where feasible and practical5) RFP and contract for green cleaning supplies for campus wide use
University of Victoria’s director of purchasing Ken Babich.Uvicspends at least $1 million annually on dry goods, milk, cheese, meat and produce. Pizza toppings alone come in at almost $300,000. In June 2009, Purchasing announced the selection of the next two-year contract on produce: Islands West. Although this is the same company that held the previous contract, the structure of the bidding system was altered to encourage locally-sourced goods.“Over 37 per cent of the dollar value for the 153 items [commonly purchased] will be sourced locally — which is an increase from the last contract,” Babich explained.Babich also described that, while in total there are 153 produce items that UVic procures (like potatoes, cucumbers and strawberries), 20 of which can be sourced locally. He split up these 20 items so that they could be bid on separately. Three companies bid on the 20 items, (Neptune, Islands West and Heritage Foods Co-op) and Islands West came out with the best value. “We analyzed the carbon footprint [it would take to obtain] each of the 153 items, and applied a value to the greenhouse gas that is emitted from the huge distance that food travels — from farmer to distributor, and distributor to UVic,” said Babich.Babich has been involved with Heritage Foods Co-op and Edible Strategies by representing UVic on their Sustainable Institutional Purchasing Committee, a group whose goal is to get institutions to purchase food more locally.UVic Green Purchasing:http://web.uvic.ca/sustainability/GreenPurchasing.htmUniversity of Victoria - which estimates 45 per cent of the produce and 36 per cent of the meat it buys comes from Vancouver Island.
Produce RFP 402 and Contract 153 line items - 20 items had to be supplied by VI producers; 54 items were offered that could be supplied by VI producers46.4% of the produce is being provided by VI producers (38.7% of the contract value approx $1mil/year)VI firm was awarded the contract; Supplier uses local labourAudit conducted as to engagement of listed farmers in the supply chainCalculated GHG emissions in award decisionPizza RFP 441 VI firm was awarded the contract; Supplier uses local labour Annual Value – Approx. $400,000 Vancouver Island Products Clause: The selected Proponent is required where feasible and practical to use Vancouver Island produced raw materials in the manufacture of pizzas and calzones without price escalation nor quality degradation. Proponents shall identify where ingredients materials are manufactured and/or grown and/or produced by firm name, contact name and contact phone/fax/email.Future RFP’sMeats (Approx. Annual Value $1 mil); Dairy (Approx. Annual Value $800,000); Eggs; Baked Goods
Sourcing provisions covers them against the legislative concerns.
City of TorontoIn 2008 Toronto City Council adopted a Local Food Procurement Policy committing to progressively increase the percentage of the City’s food budget from local sources, with an objective of 50% local food procurement. The Policy is expected to help fulfill Toronto’s goal to reduce greenhouse gas and smog causing emissions as under the Climate Change, Clean Air and Sustainable Energy Action Plan. Helps meet their goals for reducedGHG & smog-causing emissions under Climate Change, Clean Air & Sustainable Energy Action Plan
Toronto Environment Office with Children’s Services Department targeting Municipal Child Care Services ($2.2 million/yr)Mapped out process for menu prep, food ordering and on-site food prepWorked with food distributor to assess existing supply chain (600+ manufacturers & suppliers)Analysis of food expenditures based on:Expenditure by category Annual expenditure% of total annual budget# of suppliers (58 suppliers, 242 products, 37 child care centres; small suppliers providing ingredients to the 58)68% of budget:LunchesFresh fruitsProcessed grain productsMilkTracked food purchases by supplier & site for one yearDetermine if origin of food items could be verified by suppliersContracted 30/58 suppliers to ask about origin of product ingredients (only one unwilling to provide info!)City of TorontoThe City’s Children’s Services Department, jointly with the Toronto Environment Office, is implementing the first phase of the Local Food Procurement Policy and Implementation Plan.The process the City followed was to assess the food budget of $2.2 million annually from Toronto’s Municipal Child Care Services (MCCS). The following was the process they followed: Map out the business processes for menu preparation, food ordering and on- site food preparation; Work with the current food distributor to determine which suppliers the food is purchased from. The distributor dealt with over 600 manufacturers and suppliers to supply all the products they sell. For the 37 child care centres they are sourcing over 242 products from 58 different suppliers and manufacturers. Many of these suppliers and manufacturers in turn deal with another set of smaller suppliers to obtain their ingredients, thus reflecting the cascading nature of the entire food procurement process. Staff prioritized food suppliers to be contacted based on budget expenditures and type of food provided. Analyze food expenditures by category and overall budget. They analyzed expenditures according to food category, annual expenditure, % of total annual budget and number of suppliers and determined that 68% of the food budget was for lunches, fresh fruits, processed grain products and milk.Track food purchased by supplier and site for the period of May 2007 until April 2008. Determine if the origins of food items being purchased could be verified by suppliers. They contacted 30 of 58 known suppliers to ask about ingredients of their products and where these foods come from. Only one supplier was unwilling to provide information. Based on the information provided, the City mapped out food origin (locally sourced and grown in Ontario, non-locally sourced and cannot be produced in Ontario, non-locally sourced and are produced in Ontario, and unknown at this time), the types of food, % of total annual budget and annual expenditure. Based on these figures, a baseline of existing food procurement was created (20% in locally sourced products like milk, eggs, poultry products and meat). Where inadequate evidence currently exists as to product’s origin, suppliers indicated a willingness to work with MCCS going forward to map food origins and to gather better information about what local food producers can offer.Review existing research including reports by the Toronto Food Policy Council; and Analyze data and findings. The analysis of budgets and food origins indicated that three areas where the level of local food purchased could be increased (fresh fruits and vegetables, cheese products, and prepared entrees). The City estimated cost increases for procurement of local foods in these areas and directed suppliers to: a) choose Ontario produce when available, of good quality and affordable, and b) purchase a number of products locally when they are available regardless of cost (since they are available throughout the year).Ongoing tracking will rely on the accuracy of information provided by suppliers. The City engaged staff responsible for meal preparation at child care centres to enlist their help in identifying local food options. At a workshop, staff were also introduced to many local food items currently in season and a successful menu planning session was held to encourage creative uses for seasonally available Ontario produce. The vast majority of staff felt that the forum provided opportunities for further expansion of the use of locally produced foods. The City created an Interdivisional Implementation Team with staff representatives from Children’s Services, Facilities and Real Estate, Long Term Care Homes and Services, Parks, Forestry and Recreation, Public Health, Purchasing and Materials Management, Shelter, Support and Housing Administration (Hostel Services) team, and the Toronto Environment Office.Cost implications of the program were identified at a $15K increase in the MCCS budget. In the first quarter of 2009 MCCS was able to increase their locally sourced purchases by 13.4% to approximately 33% in terms of utilizing Ontario produced foods in its 37 pilot child care centres when Ontario grown fruits and vegetables are not at their peak availability, with minimal financial and operational impacts. As of the first quarter of 2009, the increase in local food purchasing had not caused any cost increases.
Origin MapLocally sourced & grown in ONNon-locally sourced & grown in ONNon-locally sourced & can’t be produced in ONUnknownBaseline20% locally sourced milk, eggs, poultry & meatSupplier Engagement for better infoOpportunitiesTop food categories where increased local sourcing possibleCost estimates to increase local procurementGuidelines for suppliers Staff engagementBaseline:Supplier engagement – where origin was suppliers indicated a willingness to work with MCCS going forward to map food origins and to gather better information about what local food producers can offer.Top food categories where increased local sourcing possibleFresh fruit & vegetables Cheese Prepared mealsDirected suppliers to:1) Choose ON when available, good quality & affordable2) Always purchase certain products locally regardless of cost (due to year round availability)Engaged staff responsible for preparing meals. Workshop to:Help ID local food optionsIntroduce them to local food items in seasonMeal planning – creative uses of seasonally available ON produce
http://www.newrules.org/energy/publications/maximizing-jobs-clean-energy-ontario-s-buy-local-policySets a guaranteed price for electricity from renewable energy projects Domestic content requirement encourage local ownership by requiring that sixty percent of the value of wind and solar projects interconnected under the program must be sourced from within the province. Encourages local ownership and distributed generation.The domestic content requirement has already resulted in the promise of 43,000 jobs and dozens of new manufacturing plants to support the 5,000 MW of new clean energy. Ontario’s domestic content provisions have been challenged by Japan and others in a complaint to the World Trade Organization, although it is unlikely that a definitive ruling would occur before the program is implemented. Economic development strategies that offer incentives to in-state business development (rather than barriers to out-of-state businesses) have been upheld in the past.
TO example: http://cupe.ca/municipalities/Local-governments-waUnited WayBuy Canadian Policy announced June 1stCovers all products purchased for sale as part of United Way fund raising.Criteria: Canadian-made, union-made and green.
Focus on the public sector.
Status Quo – question how your purchasing supports your mission and your values. If in larger org, question how staff and suppliers are incentivized to perform and how that these actions relate back to the public body’s mission.Impediments to action:Internal accountability: fostering a conversation and taking some creative steps with budgeting is in no one’s remit. In a lot of the case studies, one person took some action, and once others saw the positive impact of that action, they were willing to have a discussion.External accountability: deliberate and unintended incentives built into contracts. For ex. requiring the same food items throughout the year rather than letting the contractor deliver food based on seasonality can mean that only national suppliers can compete, and only by sourcing low-quality food from abroad grown out of season.Farming versus other activities Food is usually the first spending category identified for changing spending behaviour, simply because we all eat every day. In rural areas, however, public bodies look at food first because of the relationship to the agricultural sector in the area. When trying to kick off action, all of the public bodies in the case studies have started where there is some momentum already. Start with food if there is energy around that issue, but as the case studies demonstrate, rural areas possess a number of assets beyond agriculture that should be explored as well. After all, food is only a small fraction of a public body’s total spending.Where to start? Start small but start. Whether it’s changing procurement or something else, many of us tend to think big and then feel overwhelmed by the amount we have to do. As many of the case studies demonstrate, you can start small.For instance, Annette Williams took the reigns of Strategic Procurement Officer at Devon County Council in 2003 with a goal of raising the profile of procurement throughout the Council as a strategic activity. There was tentative support for this work when Annette started but no resource commitments.Annette used LM3 to evaluate a sampling of Council contracts, such as food, construction and technology. She also undertook a countywide survey of SMEs to understand the opportunities afforded by and barriers faced in working with the Council. In 2004, Annette presented LM3 results alongside the SME survey to demonstrate how strategic procurement activity could contribute to corporate objectives; in this case, local economic development. Using LM3 provided Annette with exactly the type of hard evidence that gets people’s attention: results in pounds and pence.This project was one of the procurement profile-raising exercises that contributed to securing resources for a Corporate Procurement Service, which went live in April 2005. The Corporate Procurement Service emerged from the former Devon Purchasing Office; the name change reflects the transformation at the Council in thinking of procurement as a strategic lever for achieving multiple objectives rather than as a routine operation.Building on the success of the first LM3 evaluations, the newly-formed Corporate Procurement Service has embarked on other LM3 projects, including the base- lining of all food contracts within the Council (with a value of £6 million) as to their ‘local produce’ content.While Devon County Council had been working towards healthier school menus for some time, there had never been focused targets. Using local economic impact as a way to focus everyone’s energy, Annette has established, as a first step, an earlyPublic spending for public benefit39target of increasing locally produced food within the Council’s supply chain by 10 per cent. In addition to considering the health and educational benefits of school meals sourcing, the Corporate Procurement Service will be using LM3 to measure the impact on the local economy before and after the changes are made.Collaborate and Communicate – with others interested in supporting local, with NGOs supporting the issues of local food and local business, and with suppliers to meet your needs and theirs. (sustainable procurement view of suppliers as supply chain partners). Ex. Uvic working with Heritage Foodservices Coop and other local food groups.
Highlight local business, local supply
Contract unbundling – USLocal advertising – UK SMEsthe public sector has proactively worked with SMEs to find ways to make them fit to compete for contracts. In the North West, for instance, the North West NHS Supplier Bureau is working with SMEs so they can compete for NHS contracts in the region. Support includes tender training delivered by the NHS Purchasing and Supply Agency (PASA) and one-to-one support delivered by Groundwork to enable suppliers to sharpen their health, safety, and environmental management.The third step was to alter the specifications in the upcoming tender to open up the playing field to all types of businesses. “We split the contract into lots,” explains Barry, “allowing businesses to bid on a combination of up to seven food categories in four geographic areas of the county.” This system in fact gave Northumberland County Council the most competitive total service because it could combine tenders in a number of ways. The procurement team also used Best Value criteria, weighting quality and price at a ratio of 60:40. The quality criteria also required that the contractor be prepared to assist the Council’s Catering Services Department in pursuing a sustainable food procurement strategy.Many times contracts are long-term and there isn’t local capacity to deliver. You can connect those contractors with local subcontractors.Status Quo – question how your purchasing supports your mission and your values. If in larger org, question how staff and suppliers are incentivized to perform and how that these actions relate back to the public body’s mission.Impediments to action:Internal accountability: fostering a conversation and taking some creative steps with budgeting is in no one’s remit. In a lot of the case studies, one person took some action, and once others saw the positive impact of that action, they were willing to have a discussion.External accountability: deliberate and unintended incentives built into contracts. For ex. requiring the same food items throughout the year rather than letting the contractor deliver food based on seasonality can mean that only national suppliers can compete, and only by sourcing low-quality food from abroad grown out of season.Farming versus other activities Food is usually the first spending category identified for changing spending behaviour, simply because we all eat every day. In rural areas, however, public bodies look at food first because of the relationship to the agricultural sector in the area. When trying to kick off action, all of the public bodies in the case studies have started where there is some momentum already. Start with food if there is energy around that issue, but as the case studies demonstrate, rural areas possess a number of assets beyond agriculture that should be explored as well. After all, food is only a small fraction of a public body’s total spending.Where to start? Start small but start. Whether it’s changing procurement or something else, many of us tend to think big and then feel overwhelmed by the amount we have to do. As many of the case studies demonstrate, you can start small.For instance, Annette Williams took the reigns of Strategic Procurement Officer at Devon County Council in 2003 with a goal of raising the profile of procurement throughout the Council as a strategic activity. There was tentative support for this work when Annette started but no resource commitments.Annette used LM3 to evaluate a sampling of Council contracts, such as food, construction and technology. She also undertook a countywide survey of SMEs to understand the opportunities afforded by and barriers faced in working with the Council. In 2004, Annette presented LM3 results alongside the SME survey to demonstrate how strategic procurement activity could contribute to corporate objectives; in this case, local economic development. Using LM3 provided Annette with exactly the type of hard evidence that gets people’s attention: results in pounds and pence.This project was one of the procurement profile-raising exercises that contributed to securing resources for a Corporate Procurement Service, which went live in April 2005. The Corporate Procurement Service emerged from the former Devon Purchasing Office; the name change reflects the transformation at the Council in thinking of procurement as a strategic lever for achieving multiple objectives rather than as a routine operation.Building on the success of the first LM3 evaluations, the newly-formed Corporate Procurement Service has embarked on other LM3 projects, including the base- lining of all food contracts within the Council (with a value of £6 million) as to their ‘local produce’ content.While Devon County Council had been working towards healthier school menus for some time, there had never been focused targets. Using local economic impact as a way to focus everyone’s energy, Annette has established, as a first step, an earlyPublic spending for public benefit39target of increasing locally produced food within the Council’s supply chain by 10 per cent. In addition to considering the health and educational benefits of school meals sourcing, the Corporate Procurement Service will be using LM3 to measure the impact on the local economy before and after the changes are made.Collaborate and Communicate – with others interested in supporting local, with NGOs supporting the issues of local food and local business, and with suppliers to meet your needs and theirs. (sustainable procurement view of suppliers as supply chain partners). Ex. Uvic working with Heritage Foodservices Coop and other local food groups.