Office of the Procurement Ombudsman

The Office of the Procurement Ombudsman (OPO) assists Canadian firms selling goods and services to the federal government and government officials purchasing those goods and services, to address procurement-related issues. The Office is an independent organization, available to help when contract-related issues arise that cannot be resolved between suppliers and federal organizations.

The Office’s mission is “to promote fairness, openness and transparency in federal procurement” and its motto is “We are here to help!”

The Office’s strategic objectives are focused on the following three areas:

• Educate: Raise awareness of procurement issues and exchange information.
• Facilitate: De-escalate disputes and help resolve issues.
• Investigate: Examine and review procurement issues.

History

In April 2006, the Government introduced the Federal Accountability Act and its associated action plan, which included the establishment of the position of Procurement Ombudsman. The position of Procurement Ombudsman was created through an amendment to the Department of Public Works and Government Services Act. The Office became fully operational in May 2008 with the passing of the Procurement Ombudsman Regulations which provide specifics on how the Procurement Ombudsman’s authority is to be exercised.

Procurement Ombudsman

Frank Brunetta retired in December 2015 at the conclusion of his five-year mandate. Mr. Lorenzo Ieraci was appointed Interim Procurement Ombudsman on May 9, 2016, and will remain the Ombudsman for a period of one year, or until a new Ombudsman is appointed.

• Lorenzo Ieraci (Interim), 2016–present
• Frank Brunetta, 2011–2015
• Shahid Minto, 2008-2011

Mandate and Role

The Procurement Ombudsman leads a team of professionals whose mission is to promote fairness, openness and transparency in federal procurement.

The mandate of the Procurement Ombudsman is specified in the Department of Public Works and Government Services Act and the Procurement Ombudsman Regulations, and requires the Procurement Ombudsman to:

• Review the practices of federal departments for acquiring materiel and services to assess their fairness, openness and transparency and make any appropriate recommendations to the relevant department for the improvement of those practices;
• Review any complaint respecting the award of a contract for the acquisition of goods below the value of $25,000 and services below the value of $100,000 where the criteria of Canada's Agreement on Internal Trade would apply;
• Review any complaint respecting the administration of a contract for the acquisition of materiel or services by a department, regardless of dollar value; and
• Ensure that an alternative dispute resolution process is provided, if both parties to the contract agree to participate.

The Procurement Ombudsman’s mandate applies to all federal entities listed in Schedules I, I.1 and II of the Financial Administration Act . However, the Procurement Ombudsman Regulations lists the Canadian Security Intelligence Office and the staff of the Senate and House of Commons as exemptions from the Procurement Ombudsman’s mandate.

Complaints Procedure

Canadian suppliers must submit a complaint in writing. There is no charge for filing or handling a complaint. In the case of a complaint regarding the award of a federal contract, the supplier has 30 working days after public notice of the award of the contract to file a written complaint with OPO. If there was no public notice, the supplier has 30 working days after the day on which the supplier became aware, or should have become aware, of the award of the contract. In the case of contract administration, the supplier has 30 working days after the day on which the supplier became aware, or should have become aware, of the issues on which the complaint is based. Once a complaint has been filed, OPO must assess the complaint against the Procurement Ombudsman Regulations to determine, within 10 working days, whether or not it can review the complaint. OPO will review complaints that meet criteria specified in the Regulations, including:

• Complainant is a Canadian supplier.
• Complaint is filed in writing, within prescribed timeframes.
• For a complaint regarding the award of a contract, the value is less than $25,000 for goods or less than $100,000 for services. For a complaint regarding the administration of a contract, there is no dollar threshold.

The Procurement Ombudsman is required to notify the complainant and the implicated department of the decision on whether or not to review the complaint. The Office is also required to provide the department with a copy of the complaint and all document(s) the complainant provides regardless of whether or not the complaint is reviewed. If the assessment determines the complaint can be reviewed, OPO will advise the complainant of the launch of the review and keep the complainant informed of how the review is proceeding. Once the review is complete, the complainant will receive a copy of the report with the finding(s) and recommendation(s). Consistent with the requirements of the Procurement Ombudsman Regulations, a copy of the report is provided to the Minister of Public Works and Government Services and the Minister of the implicated department. A courtesy copy is also provided to the Deputy Head of the implicated federal department. Summaries of these reports are available on OPO’s website.

If the complaint cannot be reviewed, the Procurement Ombudsman will inform the complainant in writing and explain why. OPO will also try to provide the complainant with options for consideration. In cases where the interpretation or application of the terms and conditions of the contract, or the scope of work of the contract, are in dispute between a supplier and a federal organization, OPO can provide an alternative dispute resolution service if both parties agree to participate.

Alternative Dispute Resolution Services and Procedures

Alternative dispute resolution (ADR) is a confidential and voluntary process in which a neutral third person assists parties in resolving a dispute. ADR provides an alternative to litigation. The Office of the Procurement Ombudsman offers ADR services for contractual disputes regarding the interpretation or application of a federal contract's terms and conditions. According to the Procurement Ombudsman Regulations, a party to a contract - the supplier or the federal government organization - can make a request for ADR. A request must be submitted in writing.

Once a written request for ADR is received, the request and supporting documentation are reviewed against the Procurement Ombudsman Regulations. The Office has ten working days to determine if the request falls within OPO's mandate to provide ADR and, if it does, to invite the other party to the contract to participate in an ADR process. A copy of the request and any supporting documents submitted will be provided to the other party at this time. The other party then has ten working days to respond. If the other party agrees to participate, the Office will prepare a proposal for an ADR process and send the proposal to both parties for approval.

Once all parties agree on the proposal, OPO sets-up the ADR session. Both facilitation and mediation services are offered by OPO's certified ADR facilitators and mediators. These services are provided on a no-fee basis to the parties and whenever possible the process is conducted on-site at OPO's office.During facilitation or mediation, both parties to the contract are given an opportunity to explain their view of the situation and discuss their dispute, issues and interests. The goal is to allow the parties to generate options to reach a mutually-agreeable solution; if an agreement is reached, both parties sign a legally binding agreement.

ADR discussions are voluntary, meaning both parties must agree to participate and parties can end their participation at any time.

Reports and Publications

• Annual Reports
• Procurement Practice Reviews
• Investigation Summaries
• Other Reports

References

1. The website of the Office of the Procurement Ombudsman [1]
2. The Federal Accountability Act [2]
3. The Department of Public Works and Government Services Act [3]
4. The Procurement Ombudsman Regulations [4]
5. Agreement on Internal Trade [5]
6. Financial Administration Act [6]
7. Make a Complaint Frequently Asked Questions [7]
8. OPO Complaint Form [8]
9. Alternative Dispute Resolution Frequently Asked Questions [9]
10. OPO Annual Reports [10]
11. OPO Procurement Practice Reviews [11]
12. OPO Investigation Summaries [12]
13. OPO Other Reports [13]

External links

• The website of the Office of the Procurement Ombudsman

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