Information Technology Sector: Meeting Report

Created With: Information Technology Association of Canada
March 2011

Open for Business is Ontario’s initiative to create faster, smarter and streamlined government-to-business services and to establish a modern system of government. It’s a key part of the Ontario government’s commitment to make the Province more attractive to business while continuing to protect the public interest.

Open for Business has three key areas of focus:

• Modern Government – create a streamlined and focused regulatory environment that delivers results for business, while protecting public interest
• Modern Services – deliver better products, including service standards that support business needs
• New Relationship with Business – create an open and responsive working relationship between business and government

Ontario’s Business Sector Strategy

One of the ways Open for Business is implementing a new relationship with business is through the Ontario Business Sector Strategy which establishes an open dialogue and collaborative relationship between government and key business stakeholders.

Under the strategy, sector representatives are asked to identify five priorities under jurisdiction of the provincial government that would strengthen their sector’s success. Ministries have two months to address these priorities, or explain why they cannot be addressed and deliver alternative solutions. This joint understanding of priorities allows government and the business sector to work together more effectively to generate economic growth, create jobs for Ontario families, and protect the public interest.

Open for Business is responsible for working with ministries to ensure progress and resolution of each sector’s issues within appropriate timelines.

Information and Communications Technology (ICT)

The Ontario information and communications technology sector contributes approximately 272,000 jobs, $26.7 billion in GDP – 65% of Canada’s total private sector ICT R&D spend – and $14.1 billion in exports to the provincial economy. During the sector strategy process, the ICT sector was represented by the Information Technology Association of Canada (ITAC).

The ICT Sector and Ontario’s Business Sector Strategy

November 2010 saw the kick-off roundtable of the information and communications technology (ICT) sector. In welcoming representatives from the Information Technology Association of Canada and business leaders from the sector, Minister of Economic Development and Trade, Sandra Pupatello, noted that the Business Sector Strategy will ensure that "the change mechanisms we put in place are in-line with business needs. Ontario wants a thriving ICT sector and is working to promote better integration between business sectors to ensure that 'Ontario-grown' technology is used domestically and internationally."

Building on a solid track record of collaboration in addressing the competitiveness and growth of the province’s information and communications technology industry, ITAC and the ministries of Finance, Government Services/ServiceOntario, and Economic Development and Trade worked together to arrive at solutions to ITAC's priorities. And, two months later on January 24, 2011, Minister Pupatello welcomed back senior members of ITAC and other business leaders from the sector, as well as deputy ministers, assistant deputy ministers, political staff and key personnel from the identified ministries for the final roundtable in the Ontario Legislature Building.

Both the government and ITAC were pleased with the results, noting that the sector strategy process had deepened an already solid collaborative working relationship. As noted by Bernard Courtois, President and CEO of ITAC, "We view the Business Sector Strategy as a very positive step towards the government’s development of an updated Ontario ICT Strategy that leads the transformation of Ontario to a world-leading digital economy."

Executive Summary

Priority 1: Bringing Leading Technology and Innovation to Ontario’s Health Care System

ITAC believes that the ICT industry can significantly benefit Ontario’s health care sector by providing better, timelier services for patients and by making the health care system more efficient and effective. However, the complexities of public procurement rules and processes are not conducive to adopting new technologies and innovations.

Coincidentally to the ICT sector strategy request, the medical technology sector represented by their industry association, Medec, in the Business Sector Strategy process also identified that procurement practices in Ontario had become cumbersome and complicated. As a result, ITAC Health recommended that they work with Medec and the Ministry of Finance/OntarioBuys on the development of a procurement handbook to clarify these shared concerns. ITAC suggested that the handbook include information on 'who are the buyers', how innovation can be evaluated as part of the procurement process and how the intellectual property for innovative products and services can be protected.

Government Response

(Lead: Ministry of Finance)

Building on their work with Medec, the Ministry of Finance has incorporated ITAC feedback in the newly developed handbook, Doing Business with the Broader Public Sector.

This valuable resource is targeted to small and medium enterprises and provides context, basic principles and procurement information to support an 'access to market' philosophy. Additionally, the handbook includes links to relevant information and resources, including the Broader Public Sector Procurement Directive, provincial legislation such as the Broader Public Sector (BPS) Accountability Act, 2010 and related trade agreements. Links to health care and educational institutions, and Ontario government programs and initiatives – potential buyers for innovative products and solutions – have also been included.

Beginning in the spring of 2011, ministry staff will conduct information and training sessions for the health, education and social services sectors across the province to support the implementation of the Broader Public Sector Procurement Directive.

The sessions will include topics such as:

• The use of fair, open and transparent procurement processes
• How privacy provisions play into the procurement process
• Using non-disclosure agreements to protect intellectual property
• Valuing business need, cost to business and product lifecycle considerations vs. lowest price

Furthermore, the ministry has been invited to attend an ITAC education day for vendors to present Doing Business with the Broader Public Sector and provide insights on the implementation of the Broader Public Sector Accountability Act, 2010. ITAC members have also been invited to attend SupplyOntario, a reverse trade show hosted by the Ministry of Government Services where public sector purchasers (e.g., provincial ministries, the federal government, municipalities, agencies, educational institutions and crown corporations) and suppliers network. Suppliers learn how to do business with the Ontario government and the public sector is given access to suppliers of the goods and services available in the marketplace.

Priority 2: Doing Business with Ontario

ITAC recognizes that governments at all levels are some of the most important customers of the information and communications technology sector. In recent months, ITAC and the Ministry of Government Services have worked together to ensure open, fair and transparent procurement practices. ITAC recommends that these procurement improvements be rolled-out throughout the Ontario Public Service in an effective and time-efficient manner. Please see Appendix A for details of these recent procurement improvements.

ITAC has also identified the need for an ongoing process for industry and the government to identify and resolve issues prior to the formal issuance of request for proposals (RFPs) to ensure open, fair and transparent procurements. To this end, ITAC recommended strengthening the ministry’s best practice of pre-release consultations and encourage its further use throughout the Ontario Public Service.

Government Response

(Lead: Ministry of Government Services)

Through consultation with Ontario Public Service buyers and a number of chief administrative and chief information officers, the Ministry of Government Services has recently addressed long-standing barriers to doing business with the Government of Ontario. These efforts include making changes to nine common terms and conditions, with a focus on intellectual property and limitations of liability, including:

• Incorporating the common terms into ministry and enterprise-wide RFPs (completed August 2010).
• Proposing amendments to the Management Board of Cabinet Procurement Directive that would require OPS buyers to consistently apply the common terms and conditions in IT contracts.
• Requiring that any exceptions to the common terms be identified in a separate schedule to the contract in the RFP so that they are readily identifiable by vendors.
• Execution of a multi-level communications plan to ensure that the Ontario Public Service is aware of these requirements.
• Oversight of ministry-specific procurements to ensure they reflect the new terms and conditions.
• Adding the common terms and condition to the government’s procurement intranet site no later than March 2011.

These changes are expected to make it more attractive for vendors to do business with Ontario by removing barriers to entry for vendors, standardizing and streamlining Ontario’s procurement process and reducing costs. More details of the recent procurement improvements can be found in Appendix A.

In response to ITAC's request for an ongoing process to identify and resolve issues prior to RFPs being formally released, the ministry will improve the alignment between what the government is seeking in its RFPs and how the vendor community can respond. This will be achieved through pre-release consultations which can take a number of forms including requests for information, white papers, meetings with the vendor community and release of draft RFPs. The complexity of the procurement would typically determine the type of pre-release consultation. For example, for government-wide procurement efforts, the ministry uses multiple consultation approaches, as appropriate, prior to undertaking procurements. For procurements managed by other ministries, the Ministry of Government Services promotes market analysis and vendor consultation as a best practice to ensure alignment between government needs and market availability.

The ministry will provide strategic advice to ministries on the benefits of, and approaches to, pre-RFP release consultations when ministries engage with MGS about their procurements. In addition, procurement controllership practices will be leveraged to promote and encourage the use of pre-consultations.

Priority 3: Using Ontario’s Programs and Services

The Government of Ontario offers many programs and services to support the ICT industry, including talent development, infrastructure, innovation, research and development, technology adoption, export development and access to capital.

ITAC notes that many of their small and medium-sized enterprises find it difficult and time consuming to navigate the range of services and programs offered by Ontario. And, although the government’s Ontario Business Program Guide brings together program information in a single online location, enhancements that provide a more intuitive, online assessment tool would help small and medium enterprises better navigate the many available programs and services. Therefore, ITAC recommended the following steps be undertaken to enhance the Business Guide and increase its usefulness:

• Add an improved program search function to increase user-efficiency.
• Include key regional business and innovation centres supported by the Ontario Government to the Guide’s listings.
• Continue to raise awareness of the Business Guide through ongoing promotion.
• Analyze site traffic data and feedback from users to determine any implications for the site’s design and marketing.

Ensuring that comprehensive, user-friendly information on these programs is available in a quick and easily accessible way serves both the industry and the province in their common goal of economic growth and innovation.

Government Response

(Lead: Ministry of Economic Development and Trade)

The Ministry of Economic Development and Trade is enhancing the Ontario Business Program Guide by adding clear welcome text and 'how to' instructions to the Business Guide’s home page. The ministry has added the 14 regional business and innovation centres that are part of the Ministry of Research and Innovation’s Ontario Network of Excellence (ONE) to the listings of the Business Guide. This will help increase awareness of the province-wide scope of the network and provide additional resources to Ontario’s businesses.

Going forward, the ministry will:

• Provide a clear link in the Business Guide to the search page of ServiceOntario’s ONe-Source for Business, providing users with instant access to ONe-Source’s customizable search function to help find and evaluate programs against their current needs. The link will be implemented by April 2011.
• Harmonize the delivery of business program information to users of the Business Guide and ONe-Source through ongoing integration of the information contained in both systems, including reciprocal links. Work with ServiceOntario has been initiated and implementation of initial improvements will commence in June 2011.

ITAC will have an opportunity to provide continuing input on the ongoing improvements to the Business Guide at proposed semi-annual eGovernment consultations (Priority #4). These consultations will involve ITAC, ServiceOntario and Ministry of Economic Development and Trade, and the initial meeting will be held during the summer of 2011.

The ministry continues to promote the Business Guide through a comprehensive marketing initiative. Promotional activities will continue on an on-going basis and will include promoting the Business Guide on ITAC's website and in its newsletters.

The ministry will improve the analysis of the Business Guide’s website traffic data and feedback from users to enhance marketing activities and identify opportunities for site improvements. The ministry is also working with the Ministry of Tourism and Culture to understand, and where possible, adopt its best practices for website performance measurement based on its experience with the Ontario Tourism Marketing Partnership Corporation’s promotional site. These discussions will be completed in February 2011. Meanwhile, review of the Business Guide’s website traffic data has been initiated and analysis will be completed by May 2011. Results will be shared with ITAC at the summer 2011 eGovernment consultation (ITAC Priority #4).

Lastly, the ministry is currently partnering with ServiceOntario to improve customer service by jointly enhancing the process for analysis of, and response to user feedback from the Business Guide and ONe-Source. The new process will be implemented in June 2011, concurrent with the ongoing integration of information in the Business Guide and ONe-Source, as referenced above.

Priority 4: Enhancing eGovernment Services

ITAC addressed the need to reduce administration burdens, particularly for small and medium businesses, by streamlining government processes through digital technology. ITAC encouraged Ontario to have an eGovernment strategy in place to deliver faster and smarter government-to-business services that allow business to:

• Transact and engage with multiple ministry programs simultaneously.
• Provide and submit all relevant information, forms and applications in one location.
• Access basic business identifiers and tombstone data in a single location to avoid the need to input the same information multiple times.
• Receive immediate, relevant notification of program, policy and process changes.

Additionally, ITAC requested that the ICT industry be engaged in the process of determining achievable goals and ensuring that solutions reflect business needs and global best practices.

Government Response

(Lead: Ministry of Government Services/ServiceOntario)

ServiceOntario, as the government’s service delivery arm, has a mandate to deliver high-demand, routine services to the individual and business community and is well-positioned to champion electronic service delivery for many of Ontario’s registration and licensing requirements. ServiceOntario is currently in the process of streamlining interactions to make it easier for business to work with government.

One such service is ONe-Source for Business, a new online portal for business. Phase I of this initiative was launched in October 2010 and provides information on how to open and operate a business in Ontario, including how to register a business, apply for appropriate permits and licences, search for financing and other important information. The first phase of this portal and its subsequent phases will meet ITAC's desired functionality and capability needs as outlined in its priority recommendation.

Today, ONe-Source offers the following capabilities:

• Brings together information from multiple Ontario government programs and other jurisdictions relevant to a particular business, including information on grants and government requirements.
• Aggregates forms and applications from multiple jurisdictions relevant to a particular business.
• Provides a guided search function, based on sector, location and lifecycle of a business.
• Allows a business client to create multiple business profiles and save information and partially-completed forms in an online briefcase, which can be accessed at a later time via the client’s personal profile.
• Pre-populates forms and applications with tombstone information and submits online forms electronically to government program areas, with a record of submission provided immediately to the business.

Over the next two years, ONe-Source for Business will be enhanced to:

• Provide secure access to government program account information. Using the Single Business Number, businesses will be able to keep track of their relationships and accounts with various government programs (April 2011).
• Provide immediate broadcast messages to businesses about program, policy and process changes to which a business has subscribed, or based on a particular business profile (e.g., industry or sector) – March 2012.
• Initiate personalized notifications about specific requirements (e.g., licence renewal or due payment) based on program enrolments or licences (March 2012).

ITAC suggested that ServiceOntario take steps to promote the availability of ONe-Source and its benefits to small and medium sized businesses across Ontario. In response, ServiceOntario will continue to promote ONe-Source through a number of communication channels, including online advertising, the government’s toll-free Business Info Line (1-888-745-8888), at Small Business Enterprise Centres, business advisory forums, local business events and libraries. ITAC also agreed to include references to ONe-Source on their website and in their online newsletter.

For more information on ONe-Source, please visit www.ontario.ca/onesource.

ServiceOntario welcomes the opportunity to work with ITAC to help shape the design of ONe-Source for Business solutions to ensure that business needs and global best practices are reflected. To this end, ServiceOntario has agreed to meet with ITAC on a semi-annual basis, starting in the summer of 2011. This industry consultation forum on eGovernment for business initiatives will:

• Provide an opportunity for ITAC to present ideas for priority e-services and/or functionality to be added to ONe-Source for Business.
• Regularly address learnings on global best practices regarding electronic services to business.
• Allow ServiceOntario to provide regular updates to ITAC on the progress of service integration with ONe-Source, as well as other initiatives.

ServiceOntario is committed to broaden and deepen service integration which will require sustained effort and support across government for business process re-engineering and IT integration. Beyond March 2012, ServiceOntario will look to maximize the value of ONe-Source to the business community, seek integration across additional provincial programs and provincial agencies (such as the Workplace Safety & Insurance Board), as well as municipal and federal services.

Priority 5: Energy and the Environment

ITAC requested that the Ministry of Economic Development and Trade arrange for the ICT industry to have a seat at key multi-stakeholder meetings in the areas of energy and the environment in order to:

• Provide a forum for the industry to become familiar with the Ontario government’s agenda and policy priorities in the areas of environment and energy to determine opportunities for further engagement and collaboration.
• Raise awareness within the government of how ICT solutions can be optimized to better achieve provincial energy and environmental priorities and discuss the role that the ICT sector can have in more efficiently and cost-effectively achieving these goals while generating innovative technology-based economic development.

Key participants at this forum would include representatives from the Ministries of Economic Development and Trade, Energy, Environment, Research and Innovation, as well as related agencies, and would mark the first time that ITAC has formally engaged with any provincial government on environmental and energy-related issues.

Government Response

(Lead: Ministry of Economic Development and Trade)

In response to ITAC's request to establish a forum to help Ontario address its environmental and energy challenges, ITAC and the Ministries of Economic Development and Trade, Energy, Environment, and Research and Innovation agreed on the following action items:

1. Agenda Setting Meeting – Staff from the identified ministries/key divisions will hold a meeting with ITAC's Priority #5 working group members to identify specific environmental and energy issues to guide subsequent discussions between senior executives and government decision-makers.

   Target Outcomes:

   • The ministries will introduce the ITAC working group members to the mandates of each ministry and discuss current initiatives, priorities and policy developments.
   • ITAC members will present an overview of environmental and energy issues for discussion.
   • Attendees will arrive at a list of key issues and policy areas for further engagement.
   • An agenda for a subsequent meeting between ITAC working group senior executives and assistant deputy ministers from the key ministries will be drafted.

2. Initiate Dialogue with ICT Sector – The engagement process between ITAC and the Ontario government will kick-off with an inaugural meeting to be held before March 31, 2011 with relevant assistant deputy ministers from Economic Development and Trade, Energy, Environment, and Research and Innovation, and senior executives from the ITAC Priority #5 working group to discuss the agreed upon environmental and energy issues identified in action item #1.

   Target Outcomes:

   • ITAC working group members will present an overview of agreed upon priority issues.
   • ITAC will share information on how other leading jurisdictions have optimized ICT-based solutions to meet environmental and energy challenges.
   • Attendees will agree in principle on a framework for continued dialogue and engagement.

3. ICT Sector Roundtable with Electricity Utilities – The Deputy Ministers of Energy and Economic Development and Trade will co-chair a roundtable meeting with Ontario electricity utilities and ITAC member representatives by March 31, 2011, to identify challenges facing power utilities and discuss how these challenges can be addressed by Ontario ICT solution providers in support of Ontario’s energy and environmental goals.

   Target Outcomes:

   • Establish a new dialogue between Ontario’s electricity utilities, government/agency stakeholders and the ICT sector in support of new business relationships and mutually beneficial partnership opportunities.
   • Ontario electricity and power utilities will outline the most significant challenges facing utility operators with respect to distribution, monitoring, billing, etc.
   • ITAC members will discuss potential ICT solutions to address these challenges.

4. Participation on Ministry of Energy Forums and Committees – The Ministry of Energy will:

   • Provide ITAC with information and assist with direct outreach to relevant advisory committees of the Ministry of Energy agencies where ITAC might participate to ensure that expertise and awareness of the full range of ICT solutions is available to all stakeholders.
   • Work with the Independent Electricity System Operator to secure ITAC representation on the Standing Committee on Information Technology of the Independent Electricity System Operator.
   • Explore the potential for ITAC participation on the Independent Electricity System Operator Stakeholder Advisory Committee or the Corporate Partners Committee of the Smart Grid Forum of the Independent Electricity System Operator.
   • Facilitate participation by ITAC and its members on relevant multi-stakeholder forums of the Ministry of Energy and its agencies.
   • Support stronger relationships between the ICT sector and Ministry of Energy to ensure awareness of energy issues and potential implications of policy and regulatory changes to the industry.

5. Participation on Ministry of Economic Development and Trade Forums and Committees – The Ministry of Economic Development and Trade will ensure continued broad cross-sectoral representation, including ITAC and its members, in multi-stakeholder forums where business concerns, including environmental and energy issues, are discussed.

   Target Outcomes:

   • Facilitate participation by ITAC and its members at business forums and on committees of the Ministry of Economic Development and Trade and its agencies.
   • Support stronger relationship between the ICT sector and the Ministry of Economic Development and Trade to ensure continued awareness of economic, sector and competitiveness issues and potential implications of policy and/or program changes to the industry.

6. Participation on Ministry of the Environment Forums and Committees – The Ministry of the Environment will facilitate ITAC member participation on relevant multi-stakeholder forums of the Ministry of Environment, where possible.

   Target Outcomes:

   • Facilitate participation by ITAC and its members on relevant multi-stakeholder forums of the Ministry of Environment and its agencies.
   • Support stronger relationships with the ICT sector and the Ministry of Environment to ensure awareness of key issues and potential implications of environmental policy and program or regulatory changes to the industry.

7. Engagement with the Ministry of Research and Innovation – The Ministry of Research and Innovation will continue to engage ITAC and the ICT sector on water projects and clean energy projects, on an as needed basis, with a view to maximizing the economic benefits from Ontario’s research and commercialization activities.

   Target Outcomes:

   • Support strong business-to-government relationships with the ICT sector and the Ministry of Research and Innovation on innovation, commercialization and research projects that address water, energy and environmental challenges, as well as implications of policy and/or program changes to the industry.

Life Sciences Commercialization Strategy

In April 2010, Ontario launched the Life Sciences Commercialization Strategy which combines existing and new life sciences initiatives into a comprehensive and coordinated plan. The strategy helps position Ontario as one of the world’s leading life sciences jurisdictions, and will ensure cutting-edge healthcare discoveries and products are made in Ontario.

Conclusion

As with previous sector strategy roundtables, solutions that extend beyond one sector were created during the ICT process and include:

• Improving procurement processes that are more open, fair and transparent.
• Helping all sectors access broader public sector markets and products through easy to understand and implement 'how-to' information.
• Creating a more collaborative relationship between government and the vendor community to achieve mutual goals.
• Enhancing communication of the government’s programs and services to all business sectors.
• Streamlining the exchange of information between government and business, helping to save industry time and money.
• Promoting the growth and development of other sectors through increased awareness of mutually beneficial activities and available ICT solutions.

Representatives from ITAC and the government were pleased that the sector strategy process had deepened an already solid collaborative working relationship. Bernard Courtois, President and CEO of ITAC noted that "We've done a lot in a short period of time. We got to meet a lot of people we didn't know. And together we're going to help the industry grow – which will be good for the sector and good for Ontario." Minister of Economic Development and Trade, Sandra Pupatello, agreed. "I think we all feel a great sense of accomplishment. The ICT sector is bringing so many benefits to other business sectors, helping all Ontario companies to compete domestically and on the world stage."

Appendix A
Procurement Modernizations: Standardized Information and Information Terms and Conditions

Background

In July 2009, the Government of Ontario invited, through a white paper, the Information and Information Technology (I&IT) vendor community to contribute its views to the development of standardized I&IT procurement terms and conditions. This initiative is part of a broader Procurement Modernization and Open for Business endeavour.

Using a multi-phased approach including vendor consultation, reviewing best practices from international and Canadian jurisdictions, and consultation with Ontario government ministries, I&IT clusters and legal advisors, the government targeted nine key issue areas and identified go-forward approaches that would impact I&IT procurements across the Government of Ontario. It is expected that these improvements will make it more attractive for vendors to do business with Ontario, remove barriers for vendors, streamline Ontario’s procurement process and reduce costs.

Issue 1 – General Indemnity Threshold

Vendors indemnify Ontario for damages arising from "anything done or omitted to be done" while performing their obligations.

Approach

Ontario is not changing this requirement. However, modifications made to Limitations of Liability (below) will favour vendors and mitigate this issue.

Issue 2 – Limitation of Liability

Vendor’s liability is limited by waiving indirect damages and capping direct damages based on risk analysis, except breach of confidentiality and infringement of 3^rd party IP (uncapped).

Approach

Ontario is modifying the current practice to cap damages based on a risk profile of the procurement. The cap will be comprised of both fixed and variable amounts tied to a multiple of fees payable.

Issue 3 – Linkage between Insurance and Limitation of Liability

Vendor’s insurance and the cap in the limitation of liability are linked in Ontario agreements. Vendors are responsible for direct damages equal to insurance proceeds set out by the RFP plus the value of the cap in the limitation of liability.

Approach

• Ontario is modifying the current practice. Limitation of liability and vendor insurance will no longer be linked.
• Limitation of liability to be total amount of damages recoverable by Ontario, regardless if vendor carried more insurance that would have covered a claim.
• Per private sector agreements, Ontario will exclude bodily injury and tangible property from the limitation of liability cap as an offsetting risk mitigation.

Issue 4 – Intellectual Property (IP) Rights Ownership

Ontario’s current IP policy states that ministries "must obtain the necessary rights in any contract which involves creating intellectual property or providing it to the government".

Approach

• Ontario is modifying the current practice regarding the current IP policy and will adopt a vendor ownership model with one or more licences to Ontario.

Issue 5 – Termination for Convenience

Ontario can typically terminate agreements on 30 days notice without liability.

Approach

• Ontario is modifying the current approach and will change the agreement termination notice period from 30 days to 60 days. This is a more commercially viable approach that gives Ontario time to begin the re-procurement process, as appropriate, while providing vendors with a longer notice period.

Issue 6 – Performance Warranty

Ontario often seeks long performance warranty periods, resulting in higher costs for the government and adverse revenue recognition impacts for vendors.

Approach

• Ontario is modifying its current practice and will continue to specify a performance warranty period, but structure it with two phases, each with a distinct remedy:
  1. 120 day full warranty including returns, refunds, and right to terminate.
  2. Repair only after the initial 120 days.

Issue 7 – Acceptance Testing

Ontario RFPs and contracts do not always clearly set out acceptance testing processes resulting in uncertainty for vendors and potential revenue recognition issues.

Approach

• Ontario is modifying its current approach. Ministries will now be required to adopt an objective approach to acceptance testing such as, but not limited to, quantifiable test criteria, time limited acceptance period ("x" days from date of purchase, remediation period) and "deemed" acceptance criteria.

Issue 8 – Setoff and Holdback

• Both setoff and holdback provisions are used by Ontario ministries as a performance guarantee but can create revenue recognition issues for vendors.

Approach

• Ontario is modifying its current practice to adopt more commercially viable provisions.
• Setoff provisions will be eliminated. Holdback provisions will be permitted, but where used, ministries will be required to include management provisions and milestones in contracts.

Issue 9 – Most Favoured Customer (MFC)

Most favoured customer provisions require vendors to provide Ontario with pricing provided to other Canadian public sector entities for similar deliverables in comparable quantities.

Approach

• Ontario is modifying its current practice and ministries will be instructed to remove MFC clauses from procurements.

For more information, please visit www.doingbusiness.mgs.gov.on.ca/mbs/psb/psb.nsf/English/forvendors.