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Another way vested outsourcing can be used by my organization when contracting for services is by implementing a “Win-Win” Incentive Pricing Model
While traditional contracts often penalize providers or force them to cut corners to stay profitable. Vested outsourcing uses an incentive-based structure where the provider is financially rewarded for exceeding standards or creating cost savings.If the provider finds a more efficient way to deliver the service, the savings are shared between the buyer and the provider. This ensures the provider is constantly looking for ways to improve rather than just meeting the bare minimum.
While working as a Contract Administrator I reviewed a Office Cleaning contract and in the scope was all the tasks that was required to be completed. There were no mandatory requirement for unsuccessful outcomes. I believe if the contract instead of providing a rigid checklist of tasks (e.g., mop floors every evening, clean washroom once per day), the contract should focus on the desired result (e.g. floors must maintain a clean appearance throughout the day, and washrooms should be refreshed at all times). This gives the service provider the flexibility to prioritize work based on real-time needs like responding to a spill or a messy washroom or floors rather than following a static schedule that might ignore current priorities.
Negotiated Contract Request for Proposals is commonly used in the Government of the Northwest Territories that I work,
Unlike the strict “Contract A” paradigm used by E-COMM an negotiated contract RFP allows for extensive negotiations after the right proponent is selected.The organization evaluates proposals to find the best partner, then enters into negotiation phase to hammer out the final price, scope, and legal terms.
This approach is used when there is a high likelihood that the project scope will need to change during the final contract signing or when the Contract is highly complex.
This provides maximum flexibility for the organization to get the best deal possible through direct negotiation, provided the process remains transparent. Therefore, while price is a factor, proposals are evaluated based on qualitative merits, project team experience, and the feasibility of the proposed solution.
I totally agree with the approach to get the end users involved to get a better understanding of what is required, is the most important things to focus on. I believe that the people who are out in the field responding to these calls and operation would provide invaluable expertise and would definitely encourage the acceptance of the new system once fully implemented.
I was also reading up on other procurement types that could be an approach in the E-COMM 911 Procurement and came across this:
Best Value Procurement (BVP)
BVP shifts the focus away from technical specifications and places it almost entirely on the expertise of the vendor.
The Process:
Vendors are asked to submit a short proposal focused on their “Project Capability,” “Risk Assessment,” and “Value Add.” The vendor identifies the specs, not the buyer.When to use:
When the buyer admits that the vendors are the experts and the buyer does not want to “micromanage” the technical requirements.Benefit:
It significantly reduces the time spent on detailed technical evaluations and shifts the risk of performance onto the vendor.A different approach to this type of procurement could be instead of procuring a big “all-in-one” system over five years, the project could be broken down into smaller, manageable or modules.
This could be done by The organization issues smaller RFPs for specific components (e.g., just the core network software first, then regional hardware towers later).
When to use: In environments where technology is changing so fast that the “latest” tech at the start of procurement will be obsolete by the time it’s installed.
Benefit: It allows for “failing fast” on small pieces without jeopardizing the entire $100M+ program.
The Approach to Implementation of Fair Trade Policies
There are a number of issues involved in implementing Fair Trade Practices in government the highest of which relate to cost, supply chain constraints, and administrative burden.
Most of which can be addressed through setting realistic expectations, phased implementation, clear communication, and implementation of mechanisms for continuously identifying and onboarding new suppliers.
Government Purchasers may be particularly concerned with developing an approach to managing reputational risks in circumstances where significant commitments are made without consulting the technocrats.
Key Consideration in implementing Fair Trade Policies: Supply Chain constraints
The Fair trade certified products are still limited in availability in some categories the limited availability restricts the ability of purchasers to implement fair trade policies on a wide scale as well as cause delay in meeting procurement timelines.
Organization/Government considering implementing Fair Trade Policies will need to identify multiple suppliers, recognize that it may not be able to be a Fair Trade only purchaser and may need to accept a hybrid scenario that includes Fair Trade and Non-Fair Trade products.
Costs associated with Fair Trade policies
Financial costs
Fair Trade products are often higher in price thereby, increasing procurement or program costs for governments, institutions, and consumers.
Increased Administrative CostsMunicipalities and governments may face increased administrative workload (tracking compliance, reporting, certification, verification).
Fairtrade is a better way of shopping and doing business uniting farmers, shoppers, businesses and governments to co-create a world that is fair to people this means all local business/ producers have greater bargaining power and control over their businesses and cost associated with their produce.
In the community where I live in the North, I see a lot of young people not interested in attending school, I believe that a great business opportunity for a small business could be to have a Specialized Vocational Training & Employment business. Where the focus is not only on theory but learning skills that can be used to help build the community.
Small communities often face “brain drain” or high unemployment in specific sectors despite having local labor needs.
The Outcome: Long-term job retention (e.g., a worker remains employed in a local trade for at least 12 months).
The Logic: The provider isn’t just paid to run a workshop; they receive the bulk of their funding only when the participants successfully transition into the local workforce and stay there.
In Terms of Homelessness and supportive housing this can be done on Evidence-Based Funding where funding is tied to success, allowing the government to invest in programs that demonstrate real, measurable improvements in clients’ lives, such as housing retention, improved well-being, and greater independence.
Totally agree with you on this, at times we tend to be very reactive and wait until the situation gets to a point where is harder to fix or controlled. Especially as it relates to Long – Term care services. This would be a better out come for some people if they are not at a critical stage.
While this is not a practice in any of the Government with which I have worked to date. Outcome-based Commission would be an interesting experiment particularly in these government programs that are designed to foster economic development. For example our contracts with service providers to assist persons wishing to set up their own business would in my mind be an ideal candidate. Currently there are limited measures to access the outcome of these contracts or to give incentive to contractors to perform.
Hello,
My name is Colisha, A Procurement Specialist with the Government of the Northwest Territories in the Procurement Shared Services Department.
I have been promoted to this role since February 2026, my job focuses on preparing change orders, preparing air charter contracts, sole source service contracts as well as RFTs
My hope is after completing this course I will have a better knowledge and understanding of Government procurement.
Thanks,
Colisha
