Procurement in the CRA

• The Canada Customs and Revenue Agency Act 1999
• Organization
• Guiding Principles
• Types of Procurements
• Low Dollar Value Goods and Services
• Strategic Sourcing Initiative
• CRA Obligations
• Government Electronic Tendering System
• Supplier Business Number

The Canada Customs and Revenue Agency Act 1999

Since the creation of the Canada Customs and Revenue Agency (CCRA) in November 1, 1999, the Agency has full accountabilities and contracting authority for goods, services, leases, and construction. At its discretion, the CRA uses the services of Public Works Government Services Canada (PWGSC) when there are benefits to using government-wide contracting tools, services and expertise.

Organization

The functional authority for all CRA procurement is the Headquarters Materiel Management Directorate (HQ MMD) of the Finance and Administration Branch. HQ MMD is located in the national capital region and is responsible for providing functional leadership for Procurement, Assets Management, Warehousing, Policies, and Compliance. Although the bulk of Agency procurement takes place in HQ MMD, procurement is decentralized to all 10 Branches and six Regions at thresholds that support operational requirements. The CRA issues and manages contracts in the range of $400-500M annually.

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Guiding Principles

The management of materiel and assets throughout the CRA is based on key principles contained in the Materiel Management Program Framework:

• acquisition is conducted in a fair, open and cost effective manner in accordance with the trade agreements;
• operational requirements are met;
• disputes are resolved;
• best value is achieved; and,
• the acquisition, storage, transportation and disposal of materiel and assets support environmental objectives and are in accordance with federal, provincial and municipal legislation.

In order to comply with the above key principles, the majority of CRA contracts are awarded as the result of a competitive process in accordance with the CRA Contracts Directive.

An internal and responsive dispute resolution system - Alternative Dispute Resolution (ADR) – is designed to resolve contract disputes in a timely and efficient manner. Contracts, standing offers, and supply arrangements issued by the CRA have an ADR clause, which, as a minimum, offers negotiation followed by mandatory mediation if necessary when a dispute arises during the execution of a contract.

The CRA also supports Sustainable Development (SD) and Green Procurement initiatives. The principles of SD are incorporated into CRA programs, policies and operations. Where available and cost effective, green products and services, including construction, that are of equal or better performance and quality, will be purchased. CRA employees must apply the four R's (Reduce, Reuse, Recycle and Recover) at each phase of the materiel management life cycle from the planning phase through acquisition, use and disposal to help protect the environment and reduce costs.

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Types of Procurements

The CRA purchases a broad range of goods and services to support Canada's tax legislation and regulations. Some common goods and services purchased by the CRA are office supplies and furniture, IT equipment and services, training, temporary help and professional services.

Low Dollar Value Goods and Services

It is the CRA's objective to use acquisition cards for the procurement and payment of goods and services where it is efficient, economical and operationally feasible for all transactions with a value of $5,000 or less, including taxes.

Strategic Sourcing Initiative

Strategic sourcing is a contractual arrangement that establishes a long-term relationship with a vendor or groups of vendors to supply goods and/or services on a best value basis. Strategic sourcing is directly linked to the CRA e-procurement initiative and enables the Agency to fully optimize processes, service delivery, and product availability by providing users with easy-to-use online access to goods and services.

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CRA Obligations

The Trade Agreements: The CRA, as part of the federal government of Canada, is subject to the following national and international trade agreements: North American Free Trade Agreement (NAFTA), World Trade Organization - Agreement on Government Procurement (WTO-AGP), and the Agreement on Internal Trade (AIT). These trade agreements required the CRA to comply with specific procedures when carrying out certain procurements. Potential suppliers who believe that the trade agreements were not properly followed, can seek redress through the Canadian International Trade Tribunal (CITT). CITT is an administrative tribunal with authority to conduct inquiries into complaints by potential suppliers concerning procurement by the federal government that is covered by the trade agreements.

Procurement Strategy for Aboriginal Business: The CRA supports the Procurement Strategy for Aboriginal Business (PSAB), a federal government policy to increase the number of Aboriginal firms competing for federal procurement contracts. The PSAB fosters Aboriginal business development by making it easier for the government and Aboriginal firms to do business with each other. The CRA supports the PSAB in conjunction with its policy on procurement that emphasizes competition and value for money.

Federal Contractors Program for Employment Equity: The CRA also supports the Federal Contractors Program for Employment Equity (FCP-EE). Under the FCP-EE, employment equity is one of the socio-economic objectives pursued through government contracting. The FCP-EE sets out the framework for meeting this objective. The Program targets non-federally regulated federal Canadian and foreign contractors with a resident workforce in Canada of 100 or more permanent full-time or part-time employees that receive federal government contracts for goods or services of $200,000 or more. Contractors subject to the Program are obliged to achieve on-going equality in the workplace and maintain a fair and representative workforce. Contractors that fail to meet their obligations may lose the right to receive further federal government contracts. The FCP does not apply to the purchase or lease of real property or to construction contracts.

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Government Electronic Tendering System

Like other government entities, the CRA uses the Government Electronic Tendering System GETS (presently MERX) to advertise its procurement solicitations, such as requests for proposals or requests for standing offers and supply arrangements.

Supplier Business Number

Suppliers require a business number to do business with the CRA. Each unique registration number remains the same across all types of accounts.

For more information on how the CRA conducts its business, please see the CCRA Partner information on Contracts Canada Website.