CIVIC TENDERING REPORT
The City of Winnipeg is currently reviewing many of its services and functions to determine if Alternate Service Delivery (ASD) mechanisms could provide increased or more efficient service levels at a lower cost to taxpayers.
Although a number of civic services, such as police services, operate as a “monopoly,” many services are provided by the private sector. Some service delivery is split, whereby civic staff provide some of the service and the private sector the balance (i.e. – garbage collection, janitorial services and engineering).
“Monopoly” situations are not the best to effectively increase productivity levels or create the synergy needed to provide new and better ways of getting things done, including adjusting to modern technology and advances in methodology. In protecting the status quo, this system can reflect the needs and wants of existing employees, instead of reflecting those of customers. This can result in response levels gradually diminishing or costs escalating too quickly.
This inflexibility is created by universal restrictive labour agreements, a lack of competition and motivation and a lack of experience/education with respect to modern methods. As well, there is often political influence and motivation.
With no competition, there is little or no pressure to change because there is a feeling that customers can’t be lost as they have nowhere to go. However, customers are lost over time as economic growth and the growth of the tax base are sacrificed because of higher-than-necessary taxes and lack of foresight.
Winnipeg Chamber of Commerce Recommendations:
- Base the process on longer-term thinking that reflects “life-cycle costing” as opposed to the lowest current price.
- Issue a Request for Proposal (RFP) for a solution to a problem as opposed to providing a price for a process that has a pre-determined methodology and activities.
- Follow a process that promotes and encourages new practices and technologies to arrive at the final solution.
- Encourage thinking outside accepted and city-standard practices, and embrace alternative and innovative solutions.
- Promote the widest range of bidders possible, making it easy and simple to qualify and to provide a bid.
- Ensure the process is open and transparent to bidders / taxpayers.
Adopted by the Winnipeg Chamber of Commerce board of directors, November 2001