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Table of Contents
Part I: Introduction.................................................................................................................. 1
This Guide...................................................................................................................................... 1
THE IWGDIS.................................................................................................................................. 1
Why Guidance is Needed and What It Will Achieve.......................................................................2
Electronic Dissemination Can Improve Service to the Public.........................................................3
The Value of Information.................................................................................................................4
Adding Value to Information............................................................................................................5
The Policy Framework on Electronic Dissemination.......................................................................6
Typical Distribution Media and Vehicles.........................................................................................6
Who Uses the Information and How?.............................................................................................7
Secondary Information Services.....................................................................................................7
The Process of Setting Up an Electronic Dissemination Initiative..................................................8
Dissemination Options Available to Government Managers...........................................................8
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Annex A
44
Table of Contents - Business Plan................................................................................................44
Annex B................................................................................................................................ 47
Additional Information................................................................................................................... 47
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Part I: Introduction
This Guide
This document is designed to give federal government managers basic guidance in disseminating
information electronically. It provides a background to the current legislative, policy and
administrative framework for electronic dissemination. It outlines the typical steps and options
available for electronic dissemination. It discusses some of the key factors and issues involved in
typical electronic dissemination initiatives and it gives advice on how to deal with some of the
typical obstacles and how to approach some of the key decisions.
After reading this material you can expect to be able to:
A. appreciate the general flow of events in putting an electronic dissemination initiative into
place; and
B. have an understanding of the major options, factors and issues involved in implementing
such an initiative.
You cannot expect to be a "practising expert" on the strength of reading this material alone. To
help you and those assisting you in the practical work associated with implementing an
electronic dissemination initiative, references to relevant policy, practices, case studies, samples
and other documents are provided where appropriate. These are no substitutes, however, for the
expertise that legal, procurement, information management and other services in your
department, elsewhere in the government or outside can provide you on a case-by-case basis.
For purposes of this document, the term private sector is used to describe any business partner
that is non-government in nature. For example, non-profit institutions and associations might be
possible partners.
There are two parts to this document - this introduction Part (I) and a set of guidelines Part (II).
Also available is a more concise document entitled Information Management: A Primer on
Databases for Managers." Both documents were prepared by the Interdepartmental Working
Group on Database Industry Support (IWGDIS) for use by federal government managers and
their potential electronic dissemination partners in the private sector.
THE IWGDIS
Chaired by the Department of Communications, the IWGDIS was formed in December 1988 in
response to a number of requests for the federal government to rationalize its dealings with
industry in releasing federal government-owned data. The working group is made up of
representatives of 14 departments and agencies. Its purpose is to examine and then implement
means by which concerted government action can positively influence the growth of the database
industry in Canada. This can be accomplished by increasing the availability of federal
government information while improving government operations through increased use of
electronic database services. The industry, through the Information Industry Committee of
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C. contribute to departmental and program objectives and help improve service to the public;
D. enhance access by Canadians to government information;
E. assist in developing a more viable, competitive Canadian information industry; and
F. create opportunities for developing value-added products and services.
This document should also help the private sector gain a better appreciation of the issues and
procedures involved in dealing with government-held information.
Information services is a notion frequently mentioned in the course of the document. It is
broader in scope than, but includes, electronic dissemination. A working definition for
information services is "those services which create, gather, organize, convert, process, analyse,
manipulate, customize, distribute, communicate or make available information using electronic
means".
Electronic publishing or dissemination does not always meet the full legal requirements of
publication as stated in some departmental statutes.
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(1) there is clear duty to inform e.g. to satisfy program objectives or to comply with a statutory
requirement; or
(2) users are willing to pay i.e., there is market demand and willingness to pay) for the
information;
C. the full costs of providing information to satisfy proprietary interests of individuals should
not be borne (i.e., subsidized) by taxpayers at large. Where appropriate, there should be
external user fees and charges for providing of information and related services;
D. external user fees and charges may be reduced or waived where appropriate (e.g., where
health and safety issues are involved);
E. private sector (rather than government) facilities should be given priority consideration in
selecting who will supply electronic information, on demand, to external users;
F. programs and institutions can partially retain increased revenues achieved through the
electronic dissemination of government information.
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Part II of this document presents a more comprehensive outline of these options and relevant
issues associated with them.
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(1) information contained in the databases is subject to the provisions of the Acts;
(2) database information that is available to the public electronically (e.g., through a private
sector vendor) is considered published and is thus excluded from the provision of the Access
to Information Act;
(3) published information is subject to market fees; ATIP information is subject to prescribed
fees; and
(4) electronic dissemination initiatives are means to making information available via desirable
informal, rather than legal, means; (a clue to when this should be considered is when
repeated ATIP requests involving the same or the same type of information).
B.
(1) for any work prepared under the direction or control of Her Majesty (including electronic
databases), the copyright belongs to the Crown for 50 years from the date of publication.
The Crown has exclusive right to use the work in any manner or to authorize others to copy
it;
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(2) commercializing databases that are Crown works can be achieved through (a) donation,
(b) assignment, (c) loan, (d) licence (note: a donation or assignment involve an assignment
of rights and require Treasury Board approval and an Order in Council a licence does not
require prior approval as long as Crown copyright and ownership of the data are protected in
the loan or licensing agreement); and
(3) the responsibility to administer Crown copyright rests with Canada Communication
Group-Publishing (CCG-P). Before initiating an electronic dissemination initiative,
manager's should consult with CCG-P about Crown copyright. As well, CCG-P has
developed standard clauses and complete pro-forma licensing agreements that departments
can use as models.
C.
(1) published databases, just like any other publications, are perceived as a "service" under
Section 25 of the Act, which provides that such disseminating is to be in both official
languages; and
(2) provisions related to the presentation of the information on screens and paper reports will
apply.
D.
(1) is the overall statutory framework for financial transactions including those related to
information dissemination;
(2) legal authority to impose charges for database dissemination can be derived, where not
otherwise available, from the general provisions of Section 19 dealing with services and the
use of facilities;
(3) when using the general provisions of Section 19, the new or amended regulation will be
enacted via an Order in Council "on the recommendation of the Treasury Board" (i.e., prior
approval from TB is required); and
(4) N.B. Section 19 applies only where the fees and charges do not exceed the cost to the
department of providing the information or related services. Where fees and charges exceed
the cost of providing the service, a specific decision by the government (i.e., a Cabinet
Directive) may be required.
E.
(1) departmental or program Acts and Statutes may contain specific direction (and implicitly
authority) for disseminating information. In some cases, specific references to information
products in specific media (paper) are made. In other cases, the references are more generic
both as they relate to information products and services and the medium of distribution;
(2) the same legislation may already provide the legal authority to charge for the information
product or service. Where references to information products and services are sufficiently
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generic, the existing authority may be used in relation to electronic products and related
services; an
(3) where legal authority to charge exists, amendments to regulations under the specific Acts and
Statutes under which the program is delivered may be necessary to establish new products
and services and set the fees to be charged. The process is similar to amending regulations
under Section 19 of the FAA described above.
B.
Policy on Management of Government Information Holdings (MGIH) August
1989
(1) departments are to manage their information holdings throughout their life-cycle regardless
of the form or medium in which the information is held;
(2) departments are to ensure that information holdings (including databases) are identified and
described (listed and indexed) in the appropriate public reference sources. They must also
ensure that the information is effectively disseminated where there is a duty to inform the
public. The inventory requirement of the policy applies to all information, published or
unpublished;
(3) departments are to make their information holdings available for purchase by the public,
where appropriate and there is a significant public demand;
(4) departments are to make information available within the government to ensure optimal use,
non-duplication of effort and a minimal response burden on the public. Information-sharing
within the government is subject to appropriate legal and policy constraints (e.g., Privacy Act
and the Government Security Policy); and
(5) departments are to ensure that material that is published (including published electronically)
is easily accessible within the institution and to the public on request.
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C.
(1) aims to (a) increase fairness, by shifting the burden of full cost-recovery from taxpayers at
large to direct beneficiaries of services where appropriate, (b) reduce the deficit, e.g., by
reducing the dependence of such services on appropriations from general tax revenues and
(c) improve the allocation and management of government resources, by creating a greater
focus on cost and the bottom-line;
(2) full cost-recovery is the starting point for establishing external user charges. From this
starting point, partial cost-recovery (i.e., implicit subsidy) or even waiving all charges (full
subsidy) can be justified on policy and program grounds. A rigorous review of the need for
and the amount of the subsidy is required;
(3) the policy sets out how to determine appropriate charges, taking into account the impact of
charges on program objectives, broad public benefits and the users of services.
Determining external charges is a three step process:
(a) calculate full cost of providing the service regardless of program or public benefits;
(b) determine if departures from full cost-recovery are justified and, if so, by how much,
documenting the rationale; and
(c) determine the most appropriate charges and how to recover them.
(4) where authorities in place are insufficient to impose appropriate charges, departments should
proceed as far as possible within the existing constraints, while actively seeking to establish
an appropriate legislative framework (i.e., authority to charge) at the earliest opportunity;
(5) Treasury Board will consider a variety of "incentives" on a case-by-case basis, preferably at
the macro level of initiatives, which will include the department's track record and total
revenue plan. Incentives can include start-up funds, allowing a portion of revenue to be
retained and applied to improve services, allowing expenditures to be reallocated internally,
and providing a performance bonus; and
(6) the private sector (rather than government) facilities are to be given priority when choosing
who will supply electronic information, on demand, to external users.
D. Policy on the Retention of Royalties and Fees from the Licensing of Crown-Owned
Intellectual Property, June 1993:
(1) the policy authorizes departments and agencies to receive, through Supplementary Estimates,
an annual appropriation equal to all revenues arising from the licensing of Crown-owned
intellectual property which the department or agency remitted to the Consolidated Revenue
Fund in the previous fiscal year;
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(2) the Multi-Year Operational Plan (MYOP) will be used as the mechanism for reporting on the
previous year's actual revenues and seeking authority to include an item in Final
Supplementary Estimates in the current fiscal year;
(3) this process will begin as part of the 1994-95 MYOP review, which will provide authority for
1993-94 Final Supplementary Estimates, based on qualifying 1992-93 revenues;
(4) these amounts are intended to be used toward the costs associated with incentive awards for
technology transfer and other technology transfer activities undertaken by the department or
agency.
E.
(1) the policy sets out a new system for classifying and designating sensitive information;
(2) the new system is linked to the legal authority to deny access under the ATIP Acts; and
(3) each department has a Classification and Designation Guide, which is the sole source of
authority for classifying and designating sensitive information. This guide is tied into the
inventory of information holdings created and maintained by departments.
F.
Various Chapters of the Treasury Board Manual -the Information and
Administrative Management Component:
(1) various chapters of the Treasury Board Manual contain elements that are relevant or touch on
electronic dissemination initiatives. Such policies may relate to managing information
technology, procurement, contracting, unsolicited proposals, and other related topics; and
(2) references to specific chapters of the manual are provided in the course of this document,
where appropriate.
G.
(1) is a framework for departments under which they may negotiate with Treasury Board
arrangements tailored to the unique circumstances in each department; and
(2) provides the department with more options and flexibilities including the potential to retain
revenues in electronic disseminating initiatives.
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Make the databases available to the private sector via licensing agreements
This option usually applies to databases that are already in use by the federal institution as it
carries out of its mandate. Licensing is a good way to place the information where the public can
conveniently access and use it. It is not uncommon for the originating institution itself to
become a client of the licensee, particularly where sophisticated access methods and value-added
information are also available. Licensing can result from a process that typically starts as:
A. an unsolicited proposal (or proposals) from a private sector information industry
organization(s);
B. a request from a contractor (e.g., a service bureau) to use the information in a service to the
public; or
C. a competitive process to select a suitable licensee (or licensees) for a government database
and associated services.
You can license a database:
A. through an agreement between your department and the licensee(s); or
B. by going through an intermediary that has a legislated mandate to enter into licensing
agreements on behalf of federal government institutions i.e., (CCG-P).
Unlike a contract for services (as in option 2) which usually sets a very precise and specific role
for the contractor, a licence typically gives the licensee the right to use the information within
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relatively broad parameters. A portion of a licence agreement may, however, direct the licensee
to provide very specific services. You may wish to consider licensing when:
A. the information is frequently featured in ATIP requests and disseminating it electronically
relieves the burden and costs on both requesters and ATIP personnel;
B. there is indication of demand and willingness to pay for the information in the marketplace;
or
C. the database is available internally, to government users and there are indications that
opportunities exist to add value to the information, create related products and services and
develop a market outside the government.
4.
Provide direct (e.g. on-line) access to users of the electronic information using in-house
facilities and operations.
In choosing this course of action, you would want to be particularly mindful that you have
available within your program or institution:
A. the technical environment, the capacity and support capabilities to accommodate the
projected user population;
B. adequate software, expertise and development capabilities;
C. sufficient excess capacity to accommodate growth in demand;
D. appropriate administration, billing and other procedures normally associated with supporting
external users;
E. appropriate security, information integrity and other procedures in place to prevent
unauthorized access to or destruction of the information;
F. market development skills and capabilities, if market growth or diversification are among the
objectives of the initiative; and
G. the means to provide secondary services related to the information contained in the
databases. Such secondary services (e.g., publication ordering, and retrieving information
through an expert intermediary), increasingly make a difference in the success of an
electronic dissemination venture.
It would also be advisable, before proceeding with this alternative, to determine whether a
private sector partner or another government department or agency could provide the information
products and services more appropriately or cost-effectively. In particular, you may wish to look
carefully to options involving a disseminating partner before deciding to provide the service
yourself.
5.
Use the facilitation, brokerage, licensing, co-publishing and contract management
services provided by CCG-P
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The CCG, in particular its Publishing Division, provides on a fee-for-service basis, a variety of
facilitation and brokerage services to client departments and the private sector. Such services
include expert assistance, project management services for both print and electronic projects,
Crown copyright administration, licensing arrangements, co-publishing and complete
(end-to-end) management of electronic disseminating initiatives.
The CCG-P negotiates royalties on behalf of the Crown, manages the financial and contractual
arrangements and collects revenues. It also provides a means of crediting departments from
revenues collected.
The latter may be particularly attractive for a manager who has neither the time nor expertise
available in-house to get an electronic dissemination venture off the ground or to manage its
outcome - the ongoing relationship with the disseminating "partner(s)".
6.
Develop a working arrangement with a lead government institution or common services
agency to use their facilities or to disseminate the information as an add-on to potentially related
services that are already available
A number of well-developed, specialized electronic dissemination channels are currently in place
among government departments and agencies. For example, Statistics Canada disseminates
electronically a variety of numerical and statistical information. The Canada Institute for
Scientific and Technical Information (CISTI) maintains and disseminates electronically
scientific, technical and technological and medical information, both bibliographic and project
(stand-alone). Both could be - and currently are - the lead institution or agency in consortia
involving electronic dissemination of such information. Both organizations provide a number of
services associated with delivering information products. General criteria to determine if this
option is appropriate include:
A. the information to be disseminated is of the same type, is compatible with, or is
complementary to, information handled by the lead department or agency;
B. the target clientele for the information products and services is largely the same as, or
overlaps with, the current clientele of the lead department or agency; and
C. the delivery and services infrastructure already available in the lead department or agency are
suitable and can be used to support delivering the information products contemplated.
Managers can appreciate that the costs of establishing new infrastructures for delivering
information and services are very high. The costs associated with tapping the market and
becoming known and established in the marketplace, training, assistance, support and other
services to users are high as well. Therefore, you will want to establish that no existing
government or external infrastructure can do the job for you before you proceed on your own.
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private sector organization to further exploit the information and expand the market. A tangible
benefit of this approach is that some of the licensing proceeds (such as royalties) could be used
to help offset the costs of the services provided by the private sector company.
The approach ultimately chosen must reflect the objectives of the originating department or
program organization. Two examples are provided below.
Case 1: a program organization wants to ensure (1) that the commercial potential of its
information is maximized and (2) that the users of the information (who are both within and
outside the federal government) enjoy the benefit of the information through a variety of related
value-added products and services. In this case, issuing non-exclusive licence(s) for the
information seems the most appropriate route.
Case 2: the same program organization has a number of objectives in addition to the two outlined
in Case 1, namely (3) that is can rely on "core" (basic) information services being available at
pre-determined price levels to government (internal) clients and (4) that the Crown must be in a
position to switch suppliers or take delivery of the service in-house without delay if the supplier
does not perform. In this case, a more sensible route to meet the objectives appears to be a
combination of:
a contract to provide "core" services to government (internal) clients at pre-determined
price levels; the Crown retains rights to all software developed by contractor and
a non-exclusive licence(s) for "non-core" (non-basic and value-added) services to all
clients. It usually makes sense to include the contractor among the licensees. As well,
where there is a lot of uncertainty with regard to market size or demand, the contractor
could be the only holder of a non-exclusive licence for a set period of time. This
provides the licensee with a fair chance to achieve a presence in the market and to recoup
its investment.
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While most of these answers can be determined only after a market demand assessment,
potential information that could play a role in adding value could be identified up-front. The
following could be considered in identifying and establishing the potential of such information:
A. program and departmental corporate managers could provide indications as to "natural
linkages" between their information and other information held by a program, department;
B. frequent ATIP requests could point to related information that could be included; and
C. a profile of potential clients could also point to related information that may be useful.
The market assessment could include information holdings that are thus identified to establish if
sufficient demand for them also exists.
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Potential uses
At least two questions are particularly relevant in establishing potential uses for the information:
A. why do potential users need the information and what will they use it for?
B. how does electronic dissemination of the information relate to the objectives of the program
and, in particular the service-to-the-public objectives?
Linking the two questions will create an opportunity to explore and develop approaches that
accommodate both the motivations of users and the objectives of program delivery, where
appropriate.
Some of the typical uses for the information are:
A. to comply with statutory program requirements,
B. to comply with legal requirements,
C. for information ("mission-critical" or otherwise) purposes,
D. to avoid duplication in collecting or storing information,
E. for general research purposes,
F. for bibliographic research purposes,
G. to help provide services to clients,
H. to order a printed publication, or
I. to conduct transactions electronically.
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Market segments
Determining the main market segments answers the question: "what are the main groups among
those interested in the information and what differentiates them?". Market segments will be
different based on segmentation criteria used. For instance, from a technical standpoint, two
segments may be relevant: "the computer-literates" and "the others". However, from a
marketing standpoint, relevant segments are "those easy to reach" and "the others", while from
an ability to pay perspective, you may find "those who can pay commercial rates" and "those
who cannot".
Segmenting the market helps identify the key characteristics of the client markets; this facilitates
a better-focused, client-driven approach in all activities. Otherwise, the temptation is to adopt a
"one-size fits all" or "supplier-driven" approach.
Market worth/value to users
Having determined the demand, users, uses and market segments, it would be extremely useful
to now establish what the information is likely to be worth to the main user groups. This would
provide a useful basis for planning the pricing strategy, developing and targeting the products
and services, and prioritizing the market for these products. In practice, however, the difficulty
in determining with precision what the information is worth to the main user groups is directly
proportional to its usefulness. Reliable quantitative information on the value of information to
users is best obtained through market surveys. However, more qualitative information on the
relative position of various user groups on the "value ladder" is available through informal means
(e.g., contacts with user group members).
Market willingness and ability to pay
Market worth (value) of the information to the user groups provides an indication of how
important it is to them. However, what these groups can obtain for the products and services
based on this information is more closely related to what they are likely to be able and/or willing
to pay. However precious the information is to a user, the ability to pay for it will have a limiting
effect on the pricing and return potential of the information. Depending on what the information
is worth to them and their economic standing, different user groups will vary in their willingness
and ability to pay.
Information on the market willingness and ability to pay can be obtained through:
A. market surveys,
B. informal contacts with potential key user groups,
C. a review of rates paid for similar or like information services, and
D. discussions with information industry representatives.
"Safety-net" requirements
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The market assessment will often reveal situations where (1) the information has substantial
value to user group(s) with limited ability to pay the types of charges that a regular business user
can afford or (2) the information fulfils an important government, department or program
objective. This may include information that universities and students could benefit from or
information which a debtor in bankruptcy finds extremely useful. As well, some types of
information (e.g., information about toxic releases in the workplace, and drug recall alerts) are
sufficiently important to society that they should be broadly made available at the least cost to
users.
The situations described above fall in the "safety-net" category, i.e., the need to ensure that
important information reaches its target where (1) there are compelling reasons to get the
information to its users or (2) there is evidence that this would not occur without special
provisions. Such "special provisions" for special user groups may include:
A. negotiating lower rates for special user groups (even lower rates could apply to non-prime
time or delayed services);
B. providing a subsidy to a private sector supplier (licensee) in exchange for lower rates to
special user groups;
C. providing services to special groups under contract - rather than providing a licence. The
department or program may have to pay a fee for service if the pre-set rates established do
not generate sufficient revenues for the contractor;
D. utilizing the Depository Services Programme (through CCG-depository libraries);
E. making information available to special user groups through lower-priced information
services or suppliers typically utilized by such groups; and
F. waiving royalties on revenues from special user groups.
Appropriate delivery methods to client groups
A key component of the market assessment is determining how the target user groups identified
want the information to get to them, i.e. in what form, by what means and through what types of
products and user interfaces. Knowing the preferences and "habits" of the user groups is critical
to targeting and delivering the information products and services to them. Prime sources of
information are:
A. market survey;
B. informal contacts with target user groups to determine what similar or like information
services are currently made available, through what means and how; and
C. informal contacts with the information industry.
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services based on the information it contains. At first glance, it would seem that if the database
is used in delivering a program, enforcing legislation or running a government facility - and is
thus paid for from general tax revenues - it would be a 100 per cent "public good", whose
commercial value is zero. However, the argument can also be made that if specific (rather than
across-the-board) external demand exists for the information, a database should be looked at for
valuation purposes as a combination of "public good" and "commercial value". Under this
scenario, the "commercial" portion only of the database could be used in calculating the value of
the database.
It is impossible to provide hard and fast rules for determining an appropriate split; each case has
different circumstances. Precedent exists, however, for using a 50-50 split between the "public
good" and commercial value of a database.
Full costs to the government of providing the products and/or services
Again, the OCG Guide is the recommended source for guidance on determining the cost of
providing the product or service (output) and the unit cost based on projected output volumes.
Pages 13-14 of the Guide provide a useful recommended costing procedure and pages 15-16
provide definitions of key terms and concepts. A case study is also provided in the document.
The result of the calculations should be the full cost - and the full unit costs, to achieve full
cost-recovery - to provide the products and services using the government's own resources. In a
"make-or-buy" assessment, this is the full "make" cost. The full cost is the sum of all direct and
indirect cash and person-year costs incurred by the government, including services provided
without charge by other departments, depreciation, cost of financing, and other relevant costs.
For a more precise definition, refer to page 16 of the OCG Guide.
"In-house vs. external" analysis
Once the full cost of the "in-house" option is determined, it is possible to formulate and cost
alternatives. The objective is to assess whether the delivery of a service or product (in this case
disseminating information electronically) can be delivered to users more efficiently by the
government or an outside contractor, disseminating partner or licensee. For these decisions, the
relevant costs are those which change depending on which option is selected. This analysis is
sometimes also referred to as "determination of the most efficient organization". For more
information and guidance on the topic, refer to the Treasury Board's draft guide "An Approach to
the Most Efficient Organization".
The pricing policy
Charges for the information product or service must bear a direct relationship to the full cost of
providing them. The policy on External User Charges stipulates that charges for using public
facilities, services provided by the government, or limited rights or privileges must be for the full
cost, subject to the exemptions in Appendix A of the policy. As well, when the value of the right
or privilege to the user is more than the full cost of making it available, it may be desirable to
charge more than the full cost. In establishing charges and developing a pricing policy for an
electronic dissemination initiative, the following elements need to be taken into account:
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A. the full cost of making the information or the service available; refer to the considerations
presented under the heading "Full cost to the government of providing the products and/or
services". The full cost will reflect the expenses associated with producing them;
B. the value of the information or service to the users. This should come out of the market
assessment;
C. departing from full cost recovery, i.e., there may be reasons for charging less than full cost
(as per Appendix A of the External User Charge policy or the provisions of the
Communication policy). These should reflect conscious decisions based on specific
objectives of the program or institution. Considerations provided under the heading
"Safety-net requirements" are also relevant in this context;
D. information provided in Section 1 of the Guidelines associated with the External User Charge
policy on Appropriate Charges; and
E. information provided in Section 2 of the Guidelines on Pricing Considerations.
ANNEX A is a recommended Table of Contents for a business case.
Revenue forecast, resource and organizational implications
Over the time horizon of the electronic dissemination initiative (or at least for the first
three years), the implications of the initiative can be summarized in terms of:
A. revenues; compare revenues based on the new charges to revenues based on existing charges
(if applicable);
B. expenditures; this applies to out-of-pocket dollar and person-year-related disbursements
(one-time and ongoing) to implement the initiative;
C. organization; how will the initiative affect the organization (e.g., it may require creating a
new group, or changes to the current structure and classification levels);
D. savings and service level adjustments; what actual and potential cost savings are expected to
accrue; and
E. net out-of-pocket cost recovery; how and over what period of time the net out-of-pocket costs
(disbursements minus actual savings) will be recovered through the revenue stream.
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based on unit costs are usually more appropriate in situations where there are substantial
variations in the costs of providing various services.
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B. to turn over the management of the entire electronic dissemination initiative -a service which
CCG-P is equipped to handle on behalf of the manager.
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C. through the terms of voluntary, negotiated contract(s) issued under the authority of the
ministers to enter into contracts for goods and services.
In the absence of specific departmental or program legislative authority, you may wish to
consider the following ideas when looking into securing authority:
A. in the case of special and specific services with a known clientele, well defined parameters
and a relatively high degree of predictability, investigate first the possibility of charging
based on contract(s) (using the authority of the minister to enter into contract; you may also
include a royalty provision within the contract). This process is faster and usually less
tedious than other alternatives;
B. in more general cases, investigate the possibility of using the FAA Section 19 as the authority
to charge by characterizing information-related activities or the granting of limited rights and
privileges (e.g., licences) as services; bear in mind that under Section 19 charges may not
exceed the costs of providing the service. Where what is regarded as "appropriate charges"
for limited rights and privileges would exceed their full cost, an explicit policy decision of
the government (Cabinet decision) is required; and
C. in more complicated, larger or more controversial cases or where the relationship between
charges and the cost of providing the service is not material or appropriate, amendments to or
new departmental or program legislation may be more appropriate. Naturally, this route is
longer and more tedious. When legislative change is required and where such change is not
considered significant or controversial, such procedural shortcuts as "Omnibus Bills" are
available (your departmental legal counsel would be the authority on this subject).
Where authority to charge for the information is available in specific departmental or program
legislation, consider the following:
A. where the language in the Act or regulations is sufficiently generic as to apply to an
electronic product or service and where the fees in the regulations are not unreasonable in the
circumstances, consider using the same fees and charges, at least as a starting point. This
approach will require no regulatory change; and
B. in situations other than those described above, you will need to initiate a regulatory change
process to establish appropriate fees and charges for proposed information products and
services. The requirements associated with this process are set out in The Federal Regulatory
Process, An interim Procedures Manual for Departments and Agencies (1991), published by
the Regulatory Affairs Directorate of the Treasury Board Secretariat, 613-952-3460).
The legal services division of your department should be closely involved. As well, the
departmental regulatory affairs coordinator of your department should be familiar with the
process.
Process and documentation to set charges
Most user charges will be established through regulations prescribed either by:
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A. the Governor in Council (GIC) "on the recommendation of Treasury Board" (under the legal
authority provided by an existing Act or Statute, be it departmental, program or the FAA) or
B. by ministerial order (e.g., under the FAA Section 19(b)).
Key requirements include:
A. listing the proposed changes in the Annual Regulatory Plan;
B. preparing a Regulatory Affairs Impact Assessment Statement (RIAS);
C. disseminating the proposed changes in the Canada Gazette at least 30 days before they are
implemented; and
D. preparing a submission to seek Treasury Board approval of user charges. Appendix 1 of the
TB policy on External User Charges contains a checklist to be consulted when preparing
submissions proposing approval of new or amended user charges. The Treasury Board
Submissions Guide (issued August 1991) provides additional guidance in cases where an
Order in Council or regulation is required. You can also contact your program analyst for
more information.
Again, departmental legal services and Treasury Board submission units in departments (where
available) are key points of contact for the manager.
Retaining revenues/receiving incentives
The policy on External User Charges (December 1989) sets out ways in which departments can
share in the returns generated through electronic dissemination initiatives. Specifically, Treasury
Board will consider within the parameters of the proposed Spending Control Act:
A. providing start-up funds to defray the costs of implementing user charges;
B. allowing a portion of increased user fee revenues to be applied to improve services but
benefits must be greater than expenditures;
These "incentives" will be less any new expenditures required to generate the additional
revenues. Departments can negotiate incentives with Treasury Board to provide start-up funding
and other arrangements (see above) to provide existing, new or enhanced levels of activity. Bear
in mind, however, that given the current climate of restraint, Treasury Board is reluctant to
provide funding for new initiatives; thus, new or enhanced levels of activity should be introduced
on full cost-recovery basis. A Treasury Board submission will be required. The same submission
that was used to request approval of new or amended user charges (see Process and
Documentation to set charges) can be used to request the "incentives" under the External User
Charge policy.
C. For details on how departments can retain royalties fees collected from the licensing of
Crown-owned intellectual property i.e. databases, refer to Section D of Part II - Treasury
Board Policies and Practices.
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(1) GSC "boilerplate", i.e., standard clauses included by GSC in similar types of RFPs;
(2) statement of work, i.e., background and what the contractor or licensee will be required/will
be allowed/will not be allowed to do with the information;
(3) the prescribed format of the proposals to be received from the vendors;
(4) the evaluation methodology and criteria to be used in choosing the most effective proposal;
and
(5) samples, exhibits and other information supporting the statement of work or the method of
evaluating the proposals.
A few useful considerations for the manager contemplating a procurement action follow:
(1) proposals received from vendors are normally broken up into (a) the "technical/managerial"
proposal and (b) the "financial" proposal. The manager gets the technical/managerial
proposal for technical evaluation, GSC keeps the financial proposal and does the financial
evaluation; and
(2) a typical evaluation process has three steps: (a) compliance with mandatory requirements
(non-compliance with any mandatory requirement disqualifies the proposal); (b) technical
evaluation according to a pre-defined rating system (only desirable requirements are
rateable); and (c) financial evaluation.
It is suggested that you contact GSC (directly or through the Materiel Management area in the
department) early in the process. They will assign and officer with experience in the type of
procurement required. Government Services Canada has already handled a relatively wide
variety of procurement actions in electronic information dissemination. As a result, they have
developed considerable expertise and a substantial collection of tendering documents and
resulting contract and licensing agreements that may be helpful in preparing the
RFP documentation. The GSC procurement officer is your best source of advice in
(1) developing a tendering strategy, (2) structuring the RFP document, and (3) developing the
evaluation methodology.
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I. help your disseminating partner, where appropriate, to provide adequate support to users in
both official languages, where and when required.
Manage the agreement (contract/licence/MOU)
The requirements on you and your staff will vary greatly, depending on the specific terms of the
agreement and your disseminating partner's role and responsibilities. However, it would not be
uncommon for you or your staff to have to:
A. monitor the performance of your disseminating partner in relation to the terms of the
agreement; monitor complaints and the quality of support the disseminating partner provides
to users;
B. take action to correct situations involving non-performance, misuse of the information or
abuses by your disseminating partner;
C. schedule periodic status review meetings with your disseminating partner to review progress,
track ongoing and outstanding issues, review changes; and
D. request an audit of the revenues declared by your disseminating partner (e.g., where gross
revenues are the basis for calculating royalties due your organization).
Supply the information (ongoing)
In most cases, there is an ongoing component to an electronic dissemination initiative. As such,
expect to be required to provide the electronic information in the format and according to the
timetable and frequency outlined in the agreement with your disseminating partner. Naturally, an
on-line database whose success depends on it being current will have a frequent update cycle
(e.g., daily), while for a CD-ROM, updating the information prior to re-mastering a new disc will
suffice (e.g., quarterly, semi-annually or annually).
Track revenues (fees and royalties)
You will need to establish procedures to help you track the income received by your
organization. If you already track revenues from other sources, this should involve a simple
extension of your current procedures. If you do not currently receive revenues, you should
consult with your Finance area on how to set up such procedures and what your respective roles
will be in the process. This is critical if you intend to request annual appropriations from
Treasury Board based on revenues received from the licensing of Crown-owned intellectual
property.
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Annex A
Executive Summary
II.
The Corporation
III.
A.
Introduction
B.
Corporate Mission
C.
The Business
A.
B.
The Market
1. Overview
2. Market Analysis
C.
The Competition
D.
Distinctive Competence
E.
Description of Services
1. Collecting and Enrichment of Jurisdiction Data
2. Marketing and Selling Bulk Electronic Information
3. Providing Transaction-based Information
4. Liaising with Distribution Channels
5. Liaising with Contributing Jurisdictions
6. Assisting in Collecting New Information
7. Providing Access to Extra-Provincial Information
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Market Plan
G.
Revenue Projections
1. Sources of Revenue
2. Pricing
3. Tentative Revenue Projections
H.
IV.
Distribution of Profits
Operations
A.
General
B.
Company Operations
1. Starting Up
2. The Post-Startup Stage
3. Evolution of the Business
C.
Operating Components
D.
Operating Models
1. Models Available
2. Analysis of the Models
E.
V.
Recommendations
Assumptions
B.
Management
1. Startup
2. In the Long Run
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C.
D.
Operations
1. Startup
2. In the Long Term
E.
F.
Contracting
1. Dealing with the Host
2. Dealing with Clients
VI.
Financial Projections
A.
Infrastructure Requirements
B.
Projected Costs
1. Principles
2. Assumptions
VII.
VIII.
C.
Projected Expenses
D.
Benefits
A.
Benefits to Stakeholders
B.
C.
D.
Other Considerations
A.
Issues
1. Vendors will Differentiate on Products
2. There will be Positive Effects on Competition
IX.
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Annex B
Additional Information
Obtaining further information and assistance
To obtain further information or assistance with your needs in the area of disseminating your
database information:
A. Contact the Interdepartmental Working Group on Database Industry Support (IWGDIS) at
(613) 990-4316.
B. Contact Canada Communication Group - Publishing (CCG-P) Services, Licensing and
Crown Copyright Program at 819-956-4680 for queries related to:
Crown copyright,
using CCG-P as a facilitator or intermediary,
co-publishing and licensing agreements,
dissemination in multiple forms and media, and
requesting relevant publications.
Contact New Product Development, at (819) 956-5782 for information about:
assistance with electronic publishing projects, and
using CCG-P as distributor of electronic publications.
C. Contact the Information, Communications & Security Policy Division of the Treasury Board
at (613) 957-2538: for questions regarding information on:
relevant legislation,
relevant TBS administrative policies,
the legislative or regulatory amendment process (e.g. Orders in council), and
TB submissions (your TBS program analyst is your prime contact).
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