OntarioBuys 2013-14 Funding Application Guideline (PDF)

ONTARIOBUYS
2013-14 Funding Application Guideline
BPS Supply Chain Secretariat
Ministry of Government Services

2013-14 OntarioBuys Funding Application Guideline
Table of Contents
OVERVIEW ............................................................................... 3
Broader Public Sector Supply Chain Secretariat (BPS Supply
Chain Secretariat) .................................................................... 4
Applying for funding ................................................................. 5
Application Evaluation Criteria ................................................. 7
Project Governance and Oversight ........................................... 8
Project Cost Eligibility .............................................................. 8
Budget Requirements ............................................................. 10
Project Stages ........................................................................ 11
Funding Process ..................................................................... 11
Application Procedure ............................................................ 13
Contact Information ............................................................... 13
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2013-14 OntarioBuys Funding Application Guideline
OVERVIEW
A provincial initiative managed by the Broader Public Sector Supply
Chain Secretariat, OntarioBuys provides funding and support to a wide
range of projects that help broader public sector (BPS) organizations
embrace innovation and achieve savings and operational efficiency in
their supply chain and back office processes.
OntarioBuys has funded innovative solutions in supply chain. In the
healthcare sector, the creation of nine hospital shared service
organizations and the Operating Room Supply Chain Pilot are among
some of its more notable projects. For the education sector,
OntarioBuys funded the establishment of the Ontario Education
Collaborative Marketplace, a strategic sourcing and collaborative
purchasing organization for Ontario’s schools, colleges and
universities.
For fiscal year 2013-14 the Secretariat is accepting applications for
OntarioBuys funding from Ontario BPS institutions, their shared service
organizations, institutions supporting the BPS, and associations for
projects that impact the broader public sector 1 supply chain and back
office functions.
Applications are welcome from the healthcare, education, colleges and
universities, and community and social service organizations.
1 “broader public sector” means every authority, board, commission, committee,
corporation, council, foundation or organization that received public funds in the
Government of Ontario’s previous fiscal year, but does not include
(a) the Office of the Lieutenant Governor,
(b) the Office of the Assembly or the office of an officer of the Assembly,
(c) a ministry,
(d) an agency of the Government of Ontario, or
(e) any prescribed entity
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2013-14 OntarioBuys Funding Application Guideline
Broader Public Sector Supply Chain Secretariat (BPS
Supply Chain Secretariat)
The BPS Supply Chain Secretariat facilitates and co-ordinates the
adoption of supply chain and other back office leading practices across
Ontario’s BPS to realize greater operational efficiencies and
accountability in BPS organizations.
Improved operational processes result in efficiencies such as savings,
enhanced service delivery, and more effective use of taxpayers’
money.
On April 1, 2013 the Secretariat merged with the Supply Chain
Management Division, Ontario Shared Services, at the Ministry of
Government Services (MGS). Its mandate and staff remain the same.
The hospital Operating Room Supply Chain Pilot Project is an
example of an innovative and collaborative approach to operating
room supply chain transformation across hospitals in Ontario. The
fourteen hospitals that participated in the pilot are generating
savings, enhancing patient care, creating efficiencies in service
delivery and reducing surgical wait-times. As well, public funds are
being used more effectively with lower costs per surgical case.
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2013-14 OntarioBuys Funding Application Guideline
Applying for funding
When applying for funding, it is important that the project proposals
align with the OntarioBuys mandate to transform supply chain and
back office functions and contribute to the provincial government’s
priorities of creating a sustainable and innovative service delivery
system, and any other sector specific priorities.
Funding through OntarioBuys is not intended to fill gaps in program
funding, or provide an alternative stream of funding for an existing
business model. Funding is not intended to support ongoing
operations.
All projects must be results-focused. Project proposals therefore must
include quantifiable goals for the project and describe measures of
success. A project must yield demonstrable and measurable
implementation benefits. Benefits include quantitative metrics (cash
and capacity), qualitative benefits and cost avoidance.
♦ “Cash” benefits reduce institutions’ operating costs, freeing up
budget for other activities.
♦ “Capacity” benefits free up resources (e.g. staff time, space) in
ways that can be quantified but do not free up budget for other
activities.
♦ “Qualitative” benefits improve effectiveness, responsiveness and/or
risk management in ways that are beneficial but not easily
quantified.
♦ “Cost avoidance” means actions taken to avoid future expenditures
or increases in future costs.
Plexxus is a not-for-profit shared service organization with expertise
in supply chain management, information technology and business
transformation. It works collaboratively with its stakeholders to
deliver cost efficient savings through scalable systems and
processes.
Plexxus serves 11 hospitals in the Greater Toronto Area,
representing 6,500 beds, 45,000 employees and a $4.5 billion
budget. It offers supply chain services to its members including
Strategic Sourcing, Sourcing and Contract Management, Clinical
Support, Purchasing, Central Distribution Centre and In-Hospital
Logistics.
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2013-14 OntarioBuys Funding Application Guideline
Subject to availability of funding, MGS will fund projects that support:
♦ increased utilization of supply chains, engagement of new
participants in existing supply chains and expansion of offerings
from existing supply chains
♦ scalable pilot projects focused on integrating and transforming
supply chain practices and other back office functions in Ontario’s
BPS
♦ opportunities to increase collaborative procurement and adoption of
innovation within Ontario’s BPS.
MGS will consider projects that include the integration and
transformation of supply chain and other back office functions
including HR transactional services, such as payroll; financial
transactions, such as accounts payable and accounts receivable; and
clinical support functions, such as laboratories and pharmacies.
Mohawk Shared Services is a shared service organization with a long
history of building efficiencies in operations by sharing services among
its member hospitals. Its business streams – linen and laundry,
diagnostic image repository, and supply chain services, and an
employee assistance program – follow a business model guided by
leading practices.
Member hospitals have joined efforts to benefit from the combined
strategic sourcing, contract management, warehousing and logistics
services offered by Mohawk Supply Chain Services.
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2013-14 OntarioBuys Funding Application Guideline
Application Evaluation Criteria
Proposals will be evaluated against the following criteria:
♦ extent to which the proposed project aligns with government
priorities for the sector beyond the project’s timeframe
♦ extent to which the project can be replicated across the sector or
potential applicability to other sectors
♦ reapplies new learnings from other implementations
♦ extent to which the project creates opportunities for BPS
organizations to become engaged and participate in supply chain
and other back office transformation projects
♦ the strength of the proposed measurement methodology and the
project’s ability to capture quantitative and qualitative benefits
♦ ability of the project members to implement the project results
based on relevant experience
♦ sustainability of the proposal post-implementation
♦ potential for expansion on a geographic basis within Ontario
♦ strength of the project feasibility study (where relevant) and
financial analysis
♦ financial viability of the project’s participants
♦ extent to which the project leverages funding from other sources
♦ level of commitment from senior management within the
organization to commit to tangible, measurable actions.
Additional criteria may be applied, if appropriate.
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2013-14 OntarioBuys Funding Application Guideline
Project Governance and Oversight
The applicant must demonstrate that the management of the project
will be both accountable and possess the authority to ensure public
funds are used appropriately.
Transfer payments are made only to legal entities. Applicants must
demonstrate the capacity to undertake the project and to report
regularly to MGS on their progress using standardized reporting
templates.
The proposal must clearly identify and explain the following areas
pertaining to project governance:
♦ the transfer payment partner(s) and their ability to lead the project
on behalf of all institutions involved;
♦ project sponsorship and governance; and
♦ stakeholder engagement plan.
Project Cost Eligibility
Eligible costs are those that pertain directly and solely to the
undertaking of the project:
♦ Project-dedicated internal staff resources (including salaries and
benefits). These resources must be shown to be essential to
completing the project. 2
♦ Project-related newly-purchased equipment, goods and supplies.
♦ Project-dedicated external resources (e.g., consultants, professional
services). Consultants must be shown to be essential to the project
as internal subject matter expertise and/or resources are not
available for the project, and must be properly procured. Consultant
fees should reflect reasonable market rates.
2 A dedicated internal resource (such as a “secondment”) means a resource
committed at least three full days per week to the project (with their home position
backfilled). MGS will fund the lesser of the resource and backfill costs. As a project
progresses, the division between “project work” and “operating work” becomes less
clear. It is expected that an increasing portion of costs to be operational in nature
beyond the first year.
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2013-14 OntarioBuys Funding Application Guideline
♦ Transitional costs (e.g., project-related training, change
management and administrative costs).
♦ Related information technology (hardware, software and
implementation costs).
♦ Project-related new lease costs, or equivalent ownership costs, for a
maximum of 24 months.
Non-eligible costs are those that do not pertain directly and solely to
the undertaking of the project:
♦ all operating and ongoing costs, including
o supply chain and other back office operating costs; and
o all clinical operating costs
♦ service contracts, including the value of such contracts in projectrelated
equipment, goods and supplies costs
♦ personnel restructuring costs (e.g., severance or wage
harmonization)
♦ insurance
♦ property
♦ building construction
♦ project financing costs, including interest
♦ other costs determined by the Secretariat to not pertain directly or
solely to the project
In-kind contributions of previously-purchased equipment, goods and
supplies may be eligible and will be considered on an individual case
basis at the sole discretion of MGS, for purchases made up to 12
months prior to the TPA date. This may be treated as the recipients’
contributions to the project costs where the purchase was clearly
made in contemplation of potential MGS funding.
Potential recipients should note that all costs must be auditable and
receipts will need to be provided. More specific direction will be given
to those applicants who proceed to the funding phase, but generally,
costs must be reasonable and follow government guidelines.
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2013-14 OntarioBuys Funding Application Guideline
Budget Requirements
The applicants must provide a budget that details all revenue sources
that will support the operating needs of the proposed project. These
sources can include government funding, institutional contributions
and private sector contributions, if applicable.
The proposal requires a high level estimate of the project costs.
Explanations of costing assumptions, financial capacity of the TPA
recipient and sustainability of the initiative will also be required in the
budget proposal.
A detailed justification of each budget line item is required at the
business case stage to allow reviewers to assess and determine
whether the requested resources are appropriate for the execution of
the project. The final determination of an item's eligibility rests with
the Secretariat.
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2013-14 OntarioBuys Funding Application Guideline
Project Stages
Proposal
Stage
Business Case
Transfer Payment
Agreement
Project Execution
Project Post Execution
Evaluation
Description
Project proposals developed by applicants
Project scope and elements identified including
cost/benefit analysis, risks, and financial considerations
Proposals assessed by MGS staff
Business case developed by applicant
Business case reviewed by MGS and external expert (if
required)
Formal funding agreement developed by MGS, reviewed
and approved by all signatories
Implementation of deliverables as outlined in transfer
payment agreement schedules
Regular MGS project oversight to monitor if the project
is on time, on budget and within scope
Regular MGS project oversight to monitor project
expenses and procurement practices
Final report including project deliverables, performance
results, and lessons learned
Projects may be subject to external evaluation and/or
audit
Funding Process
Funding will be provided through a transfer payment agreement
between the applicant and MGS and is typically provided in multiple
payments corresponding to a set of detailed deliverables.
MGS funding is available to support two different stages of the supply
chain transformation project evolution: Planning and Business Case
Development and/or Implementation.
The following chart shows the stages of the project life cycle, expected
output and potential percentage of funding through the OntarioBuys
program.
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2013-14 OntarioBuys Funding Application Guideline
Note that the project overview stage – or feasibility study stage – is
not eligible for funding through this program.
Life cycle Stage of
Project
Expected Output
MGS Funding
Participating
Institutions’
Funding *
1. Project Overview ♦ Project scope and
elements identified
♦ Participating
organizations
committed in
principle
0% - There is no
MGS funding to
support this type of
project
100%
2. Planning and
Business Case
Development
♦ Detailed project
analysis and work
plan completed,
including all costs and
benefits
♦ Participating
organizations
committed to
proceed
♦ Costs and benefits
estimated
♦ Project funding
arranged
♦ Viable project plan
ready to implement
Up to 100%
3. Project Execution ♦ Execute
implementation
Typically up to 75%
Typically at
least 25%
(min. 5% cash)
4. Project Post
Execution
Evaluation
♦ Project evaluated
♦ Adjustments made as
required
Up to 50% At least 50%
*Note: Includes other funding sources.
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2013-14 OntarioBuys Funding Application Guideline
Application Procedure
Interested applicants are encouraged to contact the BPS Supply Chain
Secretariat directly for project-specific guidance and refer to the
Secretariat’s website for tools and templates (business case). 3
Applicants may submit an optional project overview before starting
work on a project business case. Applicants can expect feedback within
4 to 6 weeks from receipt of any submission.
Project overviews and business cases are reviewed by Secretariat
staff; relevant line ministries and other internal or external experts, as
needed. All submissions are assessed against the program criteria.
Once the business case is approved in principle, a transfer payment
agreement is entered into with the applicant, confirming the terms and
conditions for funding and project deliverables.
Approvals are subject to availability of funding and other
considerations. Please note that even if a proposal meets all of the
program criteria and proceeds through the various stages, a project is
only considered approved once a transfer payment agreement is
signed.
To be eligible for funding in the 2013/14 fiscal year, a complete
business case must be submitted to the BPS Supply Chain Secretariat
by Monday, December 2, 2013.
Contact Information
For further information about OntarioBuys, contact:
BPS Supply Chain Secretariat
777 Bay Street, 8th Floor
Toronto, Ontario
M5G 2C8
E-mail: BPSSupplyChain@ontario.ca
3 http://www.mgs.gov.on.ca/en/bpssupplychain/
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