Overview
The Government of Canada buys approximately $14-billion
worth of goods and services every year from thousands
of suppliers. As a common service agency and the government's
largest purchasing organization, Public Works and Government
Services Canada (PWGSC) buys over $10 billion in goods
and services from aircraft to paper clips, to training
services and scientific research. PWGSC issues over
60,000 contractual documents annually on behalf of federal
government departments and agencies.
Policy Framework and Objectives
The overall procurement and contracting policies of
the Government of Canada are established by the Treasury
Board. The objective of government contracting is to
acquire goods and services, and to carry out construction,
in a manner that enhances access, competition and fairness
and results in best value to the Canadian government.
Government policy requires that contracting be conducted
in a manner that will:
- stand the test of public scrutiny,
increase access, encourage competition and reflect
fairness; and,
- comply with Canada's trade obligations under the
North American Free Trade Agreement (NAFTA), the World
Trade Organization Agreement on Government Procurement
(WTO-AGP), the Agreement on Internal Trade (AIT),
and the Canada-Korea Telecommunications Equipment
Agreement (CKTEA).
How The Buying Process Starts
The process starts when an organization in a department
or agency has a valid requirement for goods or services
and raises a requisition for the purchase of such goods
and services. Subject to the value of the requisition
the department may have the delegated authority to make
the purchase itself, if not, the requisition will be
sent to PWGSC for action.
The Government Electronic
Tendering Service (GETS)
GETS is an on-line tendering service that advertises
government contracting opportunities to potential bidders.
GETS is being operated by Mediagrif Interactive Technologies
Inc. as MERX™ which provides the service to the
federal government under contract. Departments must
use MERX for requirements subject to any of the trade
agreements, and are encouraged to use MERX for other
requirements.
This broad and open form of procurement promotes suppliers'
access to bidding opportunities, provides transparency
in the procurement process and facilitates the Crown's
ability in achieving best value.
The Bidding Process
In PWGSC, bid opportunities for most requirements worth
$25,000 or more are advertised on MERX, including all
requirements subject to international trade agreements.
All potential bidders have access to the same information:
any one may ask for clarifications, in which case the
answers are provided to all potential bidders by way
of addenda to the bid package. This ensures a level
playing field for all potential bidders.
In lieu of using GETS, federal government departments
and agencies have a number of ways to find sources of
supply for requirements they handle directly. They can:
- access the SRI (Supplier Registration Information)
service;
- refer to publications such as telephone books and
trade directories;
- maintain their own source lists of companies;
- use SELECT (for Architectural and Engineering Consulting
Services, Services related to Real Property and Construction
Services only) SELECT is a computerized system that
contains a list of pre-qualified real property firms
identified by their expertise and the services they
provide.
Bid Methods
Depending on the dollar value and the particular requirements
of the proposed contract, the procurement officer and
the client may choose among several bid solicitation
methods outlined below. For low dollar value requirements
(less than $25,000), procurement officers are to use
the electronic tools available (e.g. e-Purchasing),
followed by standing offers or supply arrangements,
a request for quotation or a telephone buy, and finally
GETS.
Telephone buy (T-buy):
The department uses T-buys for competitive purchases
valued at less than $25,000 when a requisition is received
for something that can be easily identified over the
phone and must be delivered quickly. A verbal contract
may be entered into by telephone but must be confirmed
in writing.
Request for Quotation (RFQ):
PWGSC normally sends out RFQs when a requisition is
received for goods and services valued at less than
$25,000. The bid documents are kept simple so that the
contract can be awarded quickly. Quotations are not
technically offers to supply. To form a contract, there
must be an offer and formal acceptance of the offer.
Invitation to Tender (ITT):
PWGSC sends out ITTs to bidders when the opportunity
is worth $25,000 or more and has fairly straightforward
requirements, such as a request for off-the-shelf goods
and many construction requirements. The lowest-priced
responsive bid, (the lowest bid that complies with all
the mandatory requirements specified in the ITT document)
will be awarded the contract.
Request for Proposal (RFP):
An RFP, while generally used for requirements of $25,000
or more, is often employed for purchases where the selection
of a supplier cannot be made solely on the basis of
the lowest price. An RFP is used to procure the most
cost-effective solution based upon evaluation criteria
identified in the RFP.
Request for Standing Offer (RFSO):
When PWGSC sets up a standing offer with a supplier,
the supplier is offering to provide a given product
or service at a specified price during a certain time
period. Standing offers are a method of supply that
permits the government to issue a call-up. A contract
is then awarded in accordance with the call-up.
Request for Supply Arrangement (RFSA):
An RFSA is a method of solicitation where clients, under
the framework of the resulting Arrangement, may solicit
bids from a pool of pre-screened vendors. A Supply Arrangement
is used when a commodity is procured on a regular basis
and when clients can negotiate price reductions from
the ceiling price quoted by the supplier.
Sole-sourcing:
Whenever possible, the government seeks to award contracts
through competition. However, a contract may be awarded
without competition subject to obligations under the
trade agreements and Government Contracting Regulations
(GCRs).
When client departments indicate there is only one
source for a project, PWGSC verifies the justification
provided to ensure compliance with applicable trade
agreements and GCRs. Advance Contract Award Notices
(ACANs) are published on MERX where warranted. An ACAN
is a notice to the supplier community that the government
plans to direct a procurement to a pre-identified supplier.
If a supplier feels it is capable of carrying out the
procurement as advertised in an ACAN, it can submit
a statement of capabilities for the requirement. If
the statement meets the requirements, the contracting
officer will then proceed with a full tendering process.
The ACAN is posted for 15 calendar days and the company
must submit its statement within this period.
Bid Receipt and Evaluation
Bids are received in the designated bid receiving area
identified in the bid solicitation. All bids submitted
to PWGSC are rigorously controlled, date and time stamped
and released only to the official authorized to undertake
the evaluations. Late bids are not accepted. The bids
received are evaluated using criteria specified in the
bid document. If a bidder does not meet a mandatory
criteria, then the bid is not given further consideration.
Once the evaluation is complete, a bidder will be recommended
for contract award.
Contract Approval and Award
Before a contract is awarded, the expenditure has to
be approved by the appropriate level of authority, usually
within PWGSC. In the case of large and complex contracts,
Treasury Board approval must be obtained.
The bidder who meets all the terms and conditions of
the requirement, and offers the best value or lowest
price (or as stipulated in the bid documentation) will
be awarded the contract. If only one bidder is responsive,
PWGSC may negotiate contract terms and prices with that
individual or company.
Resolving Concerns About
a Procurement Process
If a supplier has concerns about the procurement process
they can contact the contracting officer identified
in the bid documents. An unsuccessful bidder can also
request a debrief to find out who won and why and what
improvements could be made to future submissions. If
the procurement was covered by any of the trade agreements
and the complaint cannot be solved with the contracting
officer, the supplier has the right to submit its complaint
to the Canadian International Trade Tribunal. The Tribunal
receives, investigates and makes determinations on all
challenges arising under Canada's trade agreements.
For more information: http://contractscanada.gc.ca/en/busin-e.htm
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