Achieving Value for Money in Public Sector ... - Federated Press

Best practices: delivering savings and value for money in public sector spending 

Achieving Value 

for Money in Public 

Sector Procurement 

Case studies from procurement, supply chain management and finance 

“Very professional, 

interesting & thought 

provoking.” 

Optional workshops 

Getting value for money from your procurement department 

Leo Gotlieb, Director, Western Management Consultants 

Achieving value for money savings through effective procurement-business unit collaboration 

Ron Edgar, Senior Consultant, PPI Consulting 

Danielle Sanagan, Consultant, PPI Consulting 

Emily Chiang, Consultant, PPI Consulting 

Participating organizations 

ACM CONSULTING INC. 

BAYCREST 

CARLETON UNIVERSITY 

CITY OF MISSISSAUGA 

DELOITTE & TOUCHE LLP 

KPMG LLP 

MINISTRY OF GOVERNMENT SERVICES 

MINISTRY OF HEALTH & LONG-TERM CARE 

MINISTRY OF TRANSPORTATION 

Conference highlights 

“Very dynamic, 

very interesting.” 

“Lots of valuable 

information.” 

June 13, 14 & 15, 2011, Toronto 

ONTARIO REALTY CORPORATION / INFRASTRUCTURE ONTARIO 

ORNGE 

PLEXXUS 

PPI CONSULTING 

PWC ADVISORY SERVICES 

ROUGE VALLEY HEALTH SYSTEM 

THE HOSPITAL FOR SICK CHILDREN 

TRILLIUM HEALTH CENTRE 

WESTERN MANAGEMENT CONSULTANTS 

• Learn how Trillium Health Centre achieves value for money through collaborative procurement 

• Hear how the Ministry of Transportation uses life-cycle costing to ensure value for money over the life of the purchase 

• Discover how the Rouge Valley Health System streamlined its procurement process to get value for 

money not only from the procurement department, but from the goods & services it buys 

• Learn how Ontario Realty Corporation and Infrastructure Ontario achieves value for money from public sector real estate assets 

• Hear how the Ministry of Health & Long-term Care manages and measures spending efficiency and effectiveness 

• Discover how Baycrest has devised smarter procurement strategies so that money saved can 

be reinvested in infrastructure, upgraded materials and patient care 

• Hear how Carlton University achieves value for money when procuring maintenance and construction services 

• Discover how the Hospital for Sick Children has developed KPIs that allow it to measure value for money in its spending

Dear Colleague, 

From Management Board of Cabinet procurement guidelines, to the Broader Public Sector Procurement Directive (effective April 

1st) to annual Auditor General VfM reports, the government has introduced tighter controls over achieving value for money from 

government procurement and all public sector organizations are struggling to comply. 

Indeed, as a result of this heightened focus, improving the efficiency and effectiveness of spending and achieving value for money 

in purchasing has become of paramount importance to all government departments, municipalities and the broader public sector. 

Join leading procurement executives from these provincial, municipal and broader public sector organizations and learn how they 

are achieving value for money from their external spend. 

- Ministry of Health & Long-term Care 

- City of Mississauga 

- Ministry of Transportation 

- Carleton University 

- Trillium Health Centre 

- Ministry of Government Services 

- Ontario Realty Corporation / Infrastructure Ontario 

As they discuss their approaches to: 

- Achieving value for money through collaborative procurement 

- Communicating and devising clear KPIs 

- Measuring and achieving value for money over the life cycle of the purchase 

- How to integrate social value into sustainable purchasing cost effectively 

- Using streamlined approaches to improve supplier relationship management 

- Ensuring fairness, objectivity, accountability and transparency and achieving value from your spend 

- Complying with the new Broader Public Sector Procurement Directive 

- Achieving value for money in the procurement of maintenance and construction work 

With the level of practical experience at this conference, this is one event you cannot afford to miss. 

P.S. Don’t miss our optional workshops on getting value for money from your procurement department and achieving value for 

money savings through effective procurement-business unit collaboration. 

Who should attend 

Director and Heads of Procurement 

Purchasing 

Supply Chain 

Contracts 

Contract Management 

Accommodations 

Materials 

Controllers 

Department Directors 

including IT 

Construction, Health 

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Value for money in 

the supply chain 

May Chang, Vice President, Corporate Services and Chief Financial Officer, 

Trillium Health Centre 

9:00-9:45 

ACHIEVING VALUE FOR MONEY WITHIN THE 

GOVERNMENT OF ONTARIO 

Fil Stabile, Director, Corporate Services, 

Ministry of Government Services 

The Government of Ontario has set great store in achieving value for 

money in an effort to reduce costs and increase value. This discussion 

details the approach used by the Ministry of Government Services to 

ensure value for money in government spending. 

· What value for money really means for government 

and its relationship to outcomes for citizens 

· Assessing value for money 

· Securing efficiencies in order to maintain front-line services 

· Strategies and options for government as a whole to 

cut costs and work more efficiently 

· Using a collaborative approach 

9:45-10:30 

CASE STUDY: ACHIEVING VFM THROUGH 

COLLABORATIVE PROCUREMENT 

May Chang, Vice President, Corporate Services and 

Chief Financial Officer, Trillium Health Centre 

This discussion details how Trillium Health Centre has adopted the 

strategy of group procurement as a way of reducing procurement costs, 

while ensuring continuity of supply without compromising quality. 

· Determining when collaboration is appropriate and 

when it is more cost effective to tender individually 

· What are the constraints and how can they be tackled? 

· Ensuring all partners gain from the arrangement 

· Achieving procurement benefits: 

· Cost savings 

· Reducing cost and performance variation among suppliers 

· Improved patient pathway 

10:30-11:00 NETWORKING BREAK 

11:00-11:30 

CASE STUDY: USING LIFE-CYCLE COSTING TO EVALUATE 

VALUE FOR MONEY: MEASURING THE COST OVER 

THE LIFE CYCLE OF THE PURCHASE 

Sarath Liyanage, Team Lead, Information Management – Investment 

Planning Section, Provincial Highways Management Division, 

Ministry of Transportation 

Evaluating costs over the life cycle of a purchase is essential to determining 

whether the organization is truly getting value for money from 

its spending or whether its simply getting the lowest purchase price 

today. This discussion details how to ensure value for money through 

life-cycle costing. 

· Using life-cycle costing to minimize construction, 

operational and maintenance costs of infrastructure 

· Factoring in all phases of the infrastructure life cycle 

· Taking into account all costs of purchases, planning, 

installation, operation and disposal 

· Measuring social and user costs 

11:30-12:00 

HOW GREEN PROCUREMENT CAN PROVIDE SAVINGS 

Andrew Miller, President, ACM Consulting Inc. 

With billions of dollars spent on goods and services each year, public 

procurement can be a driver for change and a leader in contributing 

to the sustainable prosperity of Canadian communities. Indeed, green 

procurement has become a strategic option for organizations that are 

focused on improving performance and increasing the sustainability of 

their supply chain and it can lead to powerful savings opportunities. In 

this session, attendees will learn: 

· How to integrate social value into sustainable 

purchasing cost-effectively 

· How to assess the social and economic impact a green 

procurement strategy can have for their organization 

· How to implement the beginning elements of a green 

procurement strategy an achieve quick results 

12:00-12:30 

CASE STUDY: CREATING VALUE FOR MONEY IN 

PUBLIC SECTOR REAL ESTATE 

John MacKenzie, Director, Development and AFP Initiatives, 

Ontario Realty Corporation / Infrastructure Ontario 

This discussion details how the Ontario Realty Corporation and Infrastructure 

Ontario achieves value for money from public sector real estate 

assets through effective and efficient real estate portfolio management, 

procurement and collaboration with other levels of government 

and stakeholders. 

· Utilizing the award winning ORC Geoviewer System GIS system 

to assess and inform planning for government land assets 

· Developing strategies for unlocking and 

creating value on government lands 

· Procuring technical experts to help meet business 

needs and to create greater value for taxpayers 

· Creating certainty for new government infrastructure investments 

by eliminating timing and financial risks for AFP projects 

· Measuring value for money in recent development projects 

12:30-1:30 LUNCH 

SESSION 1 

Monday, June 13 th 

Monday, Tuesday & Wednesday, June 13, 14 & 15, 2011 • Registration: 8:00 – 9:00

Ensuring efficient 

procurement 

Kurt Ritcey, Partner, 

Deloitte & Touche LLP 

1:30-2:15 

CASE STUDY: STREAMLINING THE PROCUREMENT PROCESS 

Boris Tsinman, Joint Director, Procurement & Supply Chain, 

Rouge Valley Health System 

A procurement procedure that is mired in red tape and inefficient processes 

is highly unlikely to obtain value for money from its external 

spend. This discussion details how to streamline the procurement 

process to ensure that procurement itself achieves value for money for 

the organization. 

· Driving internal performance to establish a 

streamlined procurement process 

· Creative strategies for improving the efficiency of the procurement 

stream through innovation and greater accountability 

· Reducing the cost of procurement for both the 

public sector and private bidders 

· Using streamlined approaches to improve 

supplier relationship management 

· Instituting the right technology, policies and processes 

· Facilitating innovative contracting approaches, such as 

e-procurement, remote requisitioning, tendering sites 

· Ensuring you have the right people in place with the 

skill set to support your long-term structure needs 

2:15-3:00 

CASE STUDY: ACHIEVING VALUE FOR MONEY WITHIN 

THE GOVERNMENT’S PROCUREMENT POLICY 

Kathleen Callan, Manager, Procurement, Ornge 

At first glance, government procurement directives designed to foster 

fairness and transparency can appear to be a roadblock to achieving 

value for money. Strategies and approaches adopted by the private 

sector to negotiate or squeeze value from suppliers are often not part 

of the public sector approach. However, getting value for money while 

working within these constraints is possible. This discussion details 

how Ornge, Ontario’s transport medicine organization funded by the 

Ministry of Health, achieves value for money in their spend, while complying 

with government directives. 

· Improving efficiency and effectiveness of the spend 

· Driving additional value from supplier relationships 

· Encouraging competition among contractors 

· Obtaining the highest quality of goods and services 

· Ensuring fairness, objectivity, accountability and 

transparency and achieving value from your spend 


3:30-4:15 

CASE STUDY: COMPLYING WITH THE NEW BROADER PUBLIC 

SECTOR PROCUREMENT DIRECTIVE - MAXIMIZING VALUE 

FOR MONEY FROM HOSPITAL PROCUREMENT AT BAYCREST 

Mark Wilson, Manager Supply Chain, Baycrest 

With government dollars in short supply, patient care costs increasing 

at an exponential rate, a decreasing tax base and the provincial 

government’s recently introduced Broader Public Sector Procurement 

Directive, hospitals now have to look closely at maximizing the value 

they receive from the use of public funds. This discussion details how 

Baycrest has identified inefficient processes and faster, smarter ways 

to conduct business so that the money saved can be reinvested in infrastructure, 

upgraded materials and patient care. 

· SSOs (JIT), GPOs 

· Competitive RFTs, RFPs (invitational or directed) processes 

· Government VORs 

· Long-term service contracts: Maintenance, Repair 

· Proactive contract administration 

· Leaning purchasing and logistics functions 

4:15-5:00 

ACHIEVING VFM THROUGH LEAN SOURCING 

Kurt Ritcey, Partner, Deloitte & Touche LLP 

Continuous improvement tools such as lean and six sigma may have 

originated in a manufacturing environment, but they have been successfully 

deployed in many public sector procurement departments. 

Indeed, applying these continuous improvement methodologies to 

advance strategic sourcing policies and procedures can help secure 

significant savings and further cost reductions over the life of the contract. 

· Challenging the team to not just manage cost but also 

streamline process improvements and tackle inefficiencies 

· Conducting lean assessments 

· Taking a six sigma approach 

· Examples of continuous improvement projects 

· Working process improvement into the 

government-contractor relationship 

· Additional cost reduction opportunities via 

collaboration with supply partners 

· Quantifying quality in lean sourcing initiatives 

Collaborative Procurement 

SESSION 2 

Monday, June 13 th

Ensuring costeffectiveness 

of the spend 

Brian Smith, Director, Advisory Services Procurement & Supply Chain, 

KPMG LLP 

9:00-9:45 

CASE STUDY: ACHIEVING VALUE FOR MONEY IN THE 

PROCUREMENT OF MAINTENANCE AND CONSTRUCTION 

WORK AT CARLTON UNIVERSITY 

Darryl Boyce, Assistant Vice President, Facilities Management and 

Planning, Carleton University 

Effective life-cycle planning is key to obtaining value for money from 

Carlton University’s many maintenance and construction projects. This 

discussion details how Carleton University uses multi-year plans support 

more effective management of resources and save money when 

procuring construction and maintenance work. 

· Developing effective capital renewal models 

· Prioritizing renewal projects 

· Minimizing space needs and facility costs 

· Managing and maintaining facilities cost effectively 

· Establishing effective purchasing policies and procedures 

· Value for money in new construction and building retrofits 

9:45-10:30 

CASE STUDY: DELIVERING SAVINGS BY LEVERAGING 

YOUR GOODS AND SERVICES SPEND 

Erfa Alani, Manager, Operational Procurement Policy, 

Government Services 

Delivering savings is no longer one of a number of initiatives fighting for 

time and attention. It has risen to the top of all public sector priorities. 

More effectively leveraging what you spend on goods & services can 

play a significant part in delivering cash savings without cutting frontline 

services. This discussion details how to develop a procurement 

savings strategy that will cut costs without cutting services. 

· Maximizing the purchasing power of the public sector 

· Delivering savings through better collaborative procurement 

· Making efficiency savings and cutting waste quickly 

· Negotiating the best conditions 


11:00-11:45 

CASE STUDY: COMMUNICATING AND DEVISING CLEAR KPIS 

Vicky Zhao, Senior Manager, Purchasing, 

The Hospital for Sick Children 

Public sector organizations are under enormous pressure to cut costs, 

create efficiencies and demonstrate value for money. However, without 

key performance indicators (KPIs), it is extremely difficult to know 

whether an organization is in fact getting value for money from its 

spending. This discussion details how The Hospital for Sick Children 

develops clear KPIs to measure value. 

· What constitutes value for money? 

· Devising clear KPIs 

· How the organization developed value for money KPIs 

· What is measured: efficiency, cost, wider benefits 

· How value for money is reported 

11:45-12:30 

DRIVING CASHABLE SAVINGS WHILE MAINTAINING 

QUALITY SERVICES 

Brian Smith, Director, Advisory Services – 

Procurement & Supply Chain, KPMG LLP 

This discussion details how government departments and agencies 

can reengineer the way they conduct their procurement spend to find 

spare cash that can then be used to fund other services. 

· Using an integrated, comprehensive spending analysis across 

departments to identify potential cashable savings within 

the procurement spend 

· Creating fully integrated working partnerships to 

share information and trace savings 

· Demonstrating results of procurement spending to 

win support among internal and external stakeholders 

· Actual reduction on procurement process costs 

· Cost reduction on items purchased 

· Price savings from collaborative contracts and 

aggregated purchasing 

12:30-1:30 LUNCH 

Streamlining Procurement Processes 

SESSION 3 

Tuesday, June 14 th

Ensuring efficiency and 

effectiveness of the spend 

Lino Casalino, National Procurement & Supply Chain leader and National 

Public Sector Operations Competency Leader, PwC Advisory Services 

1:30-2:15 

PLANNING & MEASURING VALUE FOR MONEY 

IN PUBLIC SECTOR SPENDING 

Brian Habjan, Vice-President, PwC Advisory Services 

The traditional method of managing value for money in the public sector, 

that of squeezing reductions in funding levels forcing organizations 

to become more efficient and obtaining economies of scale, often has 

a detrimental effect on quality and the ability of an organization to adapt 

and cope with change. Indeed, more robust VfM measures are needed 

to measure value delivered rather than simply measuring cost reduction. 

This discussion details key VfM measures. 

· Defining VfM, covering economy, efficiency and effectiveness 

· Framework and approach to VfM measurement 

· Ensuring each KPI supports the value for money plan 

· Key risks in obtaining VfM and avoiding perverse 

incentives in VfM indicators 

· Avoiding over reliance on measures that simply reduce 

cost and quality rather than increase value for money 

· Key financial and non-financial KPIs 

2:15-3:00 

CASE STUDY: VALUE FOR MONEY THROUGH 

EFFICIENT AND EFFECTIVE SPENDING 

Maria Fernandes, Manager, Appropriation and Expenditure 

Management Unit, Fiscal Oversight & Performance Branch, 

Ministry of Health & Long-term Care 

Spending at the Ministry of Health and Long-term Care represents approximately 

40% of the Ontario budget. As such, it is imperative that 

the department achieves value for money in its external spend. This 

discussion details in practical terms how the Ministry has managed to 

improve spending efficiency by 20% and improve value for money of 

its external spend. 

· Leveraging spend data to identify key 

opportunities to curtail expenditures 

· Streamlining criteria for consulting contracts for 

specialized and other services 

· Prioritizing and ranking program expectations and 

costing accurately 

· Assessing & benchmarking performance to 

identify areas for improvement 

· Gaining efficiencies through cost avoidance 

· Collaboration with internal and external partners to 

achieve efficient and effective spending 


3:30-4:15 

CASE STUDY: ACHIEVING VFM THROUGH AGGRESSIVE 

SOURCING AT THE CITY OF MISSISSAUGA 

Marlene Knight, Manager of Material Management and 

Administration, Office of the Chief Administrative Officer, 

City of Mississauga 

Aggressive sourcing employs a reverse marketing strategy to create an 

intensively competitive, flat playing field among suppliers and exploits 

a range of analytical savings strategies to drive down prices without 

compromising quality. This discussion details how the City of Mississauga 

employs aggressive sourcing to achieve VfM. 

· Strategic ways to better manage supplier relations 

· Better understanding of supplier pricing 

· Eliminating non-value adding middle men 

· Gaining a clear understanding of the suppliers economics 

· Key techniques and performance management 

tools used to drive results 

· Leveraging on supplier relationships to achieve cost savings 

4:15-5:00 

CASE STUDY: ACHIEVING VALUE FOR MONEY AT PLEXXUS 

David E. Yundt; President and Chief Executive Officer, Plexxus 

This discussion details how Plexxus, a not-for-profit shared service 

funded by its member hospitals, has developed innovative approaches 

to achieving and measuring value for money within healthcare procurement. 

· Strategies and innovative practices to engage stakeholders 

· Streamlining and standardizing of procurement processes 

· Applying effective governance 

· Tracking and measuring savings and service level improvements 

Lean Sourcing 

SESSION 4 

Tuesday, June 14 th

OPTIONAL WORKSHOP A 

Wednesday, June 15 th - 9:00-noon 

GETTING VALUE FOR MONEY FROM YOUR 

PROCUREMENT DEPARTMENT 

Leo Gotlieb, Director, Western Management Consultants 

Procurement and departmental leaders are feeling the urgency of 

achieving value for money from public spending as never before. 

New directives on achieving value for money from the provincial 

government seem to come out on a monthly basis and the annual 

Auditor General’s report consistently shines a spotlight on achieving 

value for money from public procurement. In the face of severe 

economic challenges and increased pressure to comply with government 

value for money directives, developing an efficient and 

effective public purchasing approach is critical to achieving value 

for money from public spending. This interactive workshop will help 

delegates achieve value for money from their procurement process. 

· Optimizing whole-of-life value for money in purchasing 

· Developing efficient procurement procedures designed to 

achieve value for money from external spends 

· Achieving the appropriate level of competition 

· Ensuring efficiency by avoiding unnecessary process costs 

· Encouraging competition by purchasing in a way that 

maintains the long-term sustainability and 

competitiveness of the supplier market 

· Measuring the procurement function against key 

efficiency and value for money metrics 

· Systematic and timely identification, analysis, 

treatment, management and mitigation of risks 

· Proactively managing contract delivery to ensure and 

maintain value for money spent 

· Monitoring performance of suppliers to ensure value for money 

Leo Gotlieb has over 25 years experience in consulting to a 

wide variety of clients including resource companies, financial 

institutions, retailers, school boards, municipalities, utilities, 

associations, agencies, provincial governments and national 

governments. His major practice areas are IT, governance and 

organization, technology acquisition, organizational design, project 

assurance and business process improvement. A recent area 

of focus is procurement, including fairness advisory services. Leo 

often acts as a bridge between the technology and business side 

of the organization, and his clients are split about equally between 

systems and user groups. 

He was awarded the Fellow Certified Management (FCMC) designation 

in recognition of his contributions to the management 

consulting profession, and served for many years as chair of 

certification for the Canadian Institute of Certified Management 

Consultants. 

OPTIONAL WORKSHOP B 

Wednesday, June 15 th - 1:30-4:30 

ACHIEVING VALUE FOR MONEY SAVINGS 

THROUGH EFFECTIVE PROCUREMENT- 

BUSINESS UNIT COLLABORATION 

Ron Edgar, Senior Consultant, PPI Consulting 

Danielle Sanagan, Consultant, PPI Consulting 

Emily Chiang, Consultant, PPI Consulting 

The public sector’s current drive to achieve greater value for money 

from its spending has led many organizations to critically examine 

their purchasing practices to determine how best to align them with 

changing business needs and priorities. This interactive workshop 

will help delegates develop a governance framework in which procurement 

and the business units work together to reduce inefficiencies 

and achieve better value for money outcomes in their spending. 

· Integrating people, processes and tools 

· How to get business units to write a proper statement of work 

· Working together to determine the business 

need for the purchase 

· Examining alternatives to the government’s 

traditional life-cycle practices 

· Collaborating in investment planning: examining where one 

spends money today and how that money can be better spent 

· Developing a governance framework to ensure that 

procurement is deeply involved with business 

units to develop the specifications 

Ron Edgar is a seasoned professional with more than 30 years 

experience encompassing business management, project management 

and procurement management skills. His professional 

experience includes project development in both commercial enterprises 

and government. For the last 6 years, he has specialized 

in management consulting on major strategic procurement activities 

involving both IT and business procurements. 

Danielle Sanagan is a certified project management professional 

with more than 5 years experience encompassing project management 

and operational work. Her professional experience includes 

project management in both public and private sectors. For the last 

2 years, she has focused on managing the IT operations of a small 

Toronto-based hospital overseeing projects, strategic direction and 

IT systems management. Prior to joining PPI, Ms. Sanagan held 

a role at Shared Information Management Services (SIMS) and 

worked with a number of Partner Sites including University Health 

Network, Providence Healthcare, Women’s College Hospital and 

St. Michael’s Hospital as a Project Manager and Sr. Project Manager, 

and most recently held the title of SIMS IT Site Manager for 

Women’s College Hospital. 

Emily Chiang joined PPI in 2010 and has focused on assisting public 

sector clients with procurement and fairness advisory services. 

Previously, Emily was a Senior Consultant in Deloitte & Touche’s 

Financial Advisory Services group specializing in Corporate Finance. 

Emily has worked extensively with clients and management 

to refine value propositions and strategic growth plans.

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Best practices: delivering savings and value for money in public sector spending 

Achieving Value 

for Money in Public 

Sector Procurement 

Case studies from procurement, supply chain management and finance 

“Very professional, 

interesting & thought 

provoking.” 

“Very dynamic, 

very interesting.” 

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