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Changes are Coming to How the Federal Government Hires IT Contractors

David O'Brien By David O’Brien,
Vice President, East Region & Government Services at Eagle

Changes are Coming to How the Federal Government Hires IT ContractorsThe Federal government last reformed procurement around IT Professional Services over 10 years ago, introducing the supply methods Task-Based Informatics Professional Services (TBIPS) in December 2007 and Solutions-Based Informatics Professional Services (SBIPS) the following July ’08. TBIPS has by far been the most-used vehicle across the Federal Government to acquire IT contractors, with the last known spend figures being over $1 billion in 2016-17 and it’s expected to have topped¬†$1.5 billion the following fiscal year.

Although the spend is significant, there has been a long-building uniform dissatisfaction with the evolution of TBIPS among ALL stakeholders — industry/suppliers, client departments and IT contractors. I currently sit as the President of the National Association of Canadian Consulting Businesses (NACCB). Over the last several years, the organization has been very active in working with the Feds in advocating real changes to the way the Government acquires IT contractors. ¬†The overall objective is to create a process that is simpler, quicker, focuses on quality over price and most importantly, results in a better procurement outcome for Canadian taxpayers.

The Federal government has been receptive and have begun in earnest a full TBIPS Review Process, engaging all stakeholders and have assured us they are willing to put “everything on the table” in order to modernize what has become a very cumbersome and often dysfunctional procurement process.

It is our hope the new process focuses on the quality of IT professionals and away from the over-reliance on lowest price as the primary awarding criteria. After all, contractor quality is a function of both supply and cost. The current way in which TBIPS solicitations are conducted tends to have a negative impact on both supply and cost. At a very high level of generalization, when evaluations are based on lowest price or artificial median bid rates, it guarantees a low price. That in turn all but guarantees two things — a low quality resource and frequent consultant turnover.

When someone is looking to have their roof re-shingled, usually the lowest bid is also of the lowest quality, and so the same concepts hold true for professional services. You get what you pay for, and if the goal is to get someone at -20% of the median, which itself is an artificially downward-skewed measurement of “market rate”, then the result is predictable.

As to supply, the evaluation of solicitations typically takes so long that even if candidates that are bid were legitimately available at the time of submission, by the time the solicitation is awarded there is little chance that they are still available. The current process has created an environment, unfortunately, where unethical vendors are fully aware of the long evaluation process and can bid candidates solely to maximize score (they typically do not consider legitimate availability). When the solicitations are awarded, the candidates are not available and a backfill process must be initiated.

There a number of changes the NACCB strongly recommended that will serve to make for a far better procurement. For example, some of the significant and true process changes that will undoubtedly serve all interests much better include establishing a Vendor Performance mechanism to reward quality-based vendors over under-performing vendors focused on the lowest price only. As well, the elimination of paper only based grids (Ottawa is probably the only city in North America that sees 30,50, 80 page! resumes) and the implementation of a Skills Assessment/Interview both to assure resource availability and to truly vet skills as part of the process.

We know today there is a severe skills shortage that is expected to get more challenging in IT for the foreseeable future. The ability for the Federal Government to compete to acquire these resources will be imperative. Having an efficient, clean and quick hiring process will be critical to that competitiveness.