Government Procurement Info-Guide

1. WHAT IS PROCUREMENT?

Procurement is government purchasing of goods and services required to serve the needs of the public. Procurement policies have been developed by government for two main reasons: first, government strives to make all opportunities available to interested businesses. They allow government officials to purchase supplies and services in an unbiased atmosphere. Second, procurement generally results in more cost-effective purchases for the government, thus saving taxpayer dollars. It is also used by government organizations for budget control purposes. You may also hear procurement referred to as government bidding, government opportunities, and tenders.

The procurement process varies depending on the level of government and generally follows these steps:

Request for Proposals (RFP)
A request for proposal is used when a supplier is invited to propose a solution to a problem, requirement, or objective. Suppliers are requested to submit detailed proposals (also referred to as bids) in accordance with predefined criteria. The selection of the successful proposal is based on the effectiveness, value and price of the proposed solution. Negotiations with suppliers may be required to finalize any aspect of the requirement.

Bid
The business proposal is submitted by an aspiring contractor in response to a call for tenders or request for proposals issued by a purchaser. This proposal expresses the aspiring contractor's interest and sets out the planned conditions of supply.

Opening of Bids
Bid submissions are open to the public in accordance with the closing time, date, and place stipulated in the bid request. Members of the public may attend bid opening or may receive the information electronically after bid opening.

Evaluation
Bids may be evaluated not only on the price submitted but also on quality, delivery, servicing, and the capacity of the bidder to meet the requirements and criteria stated in the bid request documents. The bid request documents must clearly identify the requirements of the procurement, the criteria that will be used in the evaluation of bids, and the methods of weighing and evaluating the criteria.

Awarding of Contract
After contracts have been awarded all tender documents are available to the public, subject to the provisions of the Freedom of Information and Protection of Privacy Act. On request, bidders are entitled to receive an explanation and a debriefing on their bid submission.

2. FEDERAL GOVERNMENT

In Canada, government procurement of goods, services and construction work totals approximately $100 billion annually.* The various levels of governmental and paragovernmental bodies account for more than 80 000 transactions each year.** This market is extremely attractive but highly complex for companies which, while monitoring bidding processes, must take into account a demanding regulatory context and compete with equally motivated businesses. A number of resources do exist, however, to facilitate companies' access to these markets. Moreover, within a structured approach, the resources invested in evaluating whether it would be worthwhile for a company to compete for government contracts can reveal substantial strategic benefits, regardless of whether the final decision is yes or no.

*Les Affaires, August 29, 1998 , p. 19.
** Public Works and Government Services Canada , 1999 - Doing Business with PWGSC, p. 1.

GLOSSARY

Call for tenders: specific form in which the projected procurement needs and conditions of a body or company are set out.

Vendor file: a register identifying and containing various information on businesses that are qualified to perform a particular type of work or provide a given good or service. Some files rotate the names of suppliers or hide the names of those entered on the list.

Government contract: refers to a transaction for the procurement of goods, services (specialized, technical, general, etc.) or construction work by a government purchaser from a private, individual or corporate supplier.

Advertising or posting threshold: presumed amount of a transaction used to determine the administrative or regulatory terms and conditions applicable in the purchasing process.

Bid: business proposal submitted by an aspiring contractor in response to a call for tenders or request for proposals issued by a purchaser, expressing the aspiring contractor's interest and setting out the planned conditions of supply.

Intelligence: "PT0 Ongoing and largely repetitive activity aimed at actively monitoring technological, commercial, competitive or other environments in order to anticipate any changes in these environments."* Intelligence with respect to government contracts includes monitoring of the advertising or posting done by government bodies, monitoring of the bodies themselves and of the environment (e.g., legislative and regulatory) that surrounds them.

2.1 General Information

What is the attraction for business?
The needs of government bodies are widely diversified: from the procurement of office supplies to the construction of hydroelectric power stations; from shoelaces to remote sensing equipment. Government buyers procure more than 17,000* different types of products.

* Public Works and Government Services Canada , Opportunities for Business, August 1998.

Apart from the financial benefits that can be derived, recognition of the status of a business as a supplier to a government provides it with a measure of credibility and an aura of competence in its dealings with other national or international markets. In addition, the ability to manage commissions in a complex regulatory environment comprising stringent requirements with respect to deadlines and terms and conditions of delivery is a positive element attested to by a business' status as a government supplier.

Other benefits may also emerge from government contract intelligence: a better appreciation of how markets evolve, identifying and qualifying the competition, identifying strategic opportunities, developing tools and models to assist in internal decision-making.

Making an informed choice
When seeking entry into the government market, and indeed all types of markets, businesses should do their homework and be well prepared. Access to government contracts must rest on a precise appreciation of the target market, a serious assessment of the business' own resources and of its strategic and competitive positioning, and on a structured plan of attack that is consistent with the prior choices made by the company and its goals.

Direct procurement, the use of supplier files, grouping of purchases, publicly advertised tender calls or limited tendering, standing offers - businesses must learn to recognize all of these approaches and decide whether or not to participate in them.

This decision must rest upon a serious evaluation of company resources. Human, physical and technical resources, research and development, supply and production capabilities, possibilities in terms of distribution, delivery and after-sales service will be central to the evaluation of a company's positioning with respect to government contracts.

This diagnostic assessment, in conjunction with the affirmation of its strategic and competitive choices and positions, will guide the company towards its preferred targets, which have been carefully selected according to the product offering, the company's delivery capacity and development plans and the relative place that government contracts occupy in the company's corporate strategy.

The plan of attack for government contracts will vary for each company: some will target direct access to national publicly advertized tender calls; others will initially approach government contracts via the local procurement route (below public advertising thresholds and via registration in vendor files). Others will monitor government procurement for strategic purposes only, that is, without seeking to access such contracts but simply to identify and keep track of the competition.

What tools are available to business?
For acquisitions of estimated amounts exceeding certain thresholds (called advertising or posting thresholds), the purchaser must necessarily advertise the request for proposals publicly. Such advertisement is done by posting on specialized electronic bulletin board services (BBS) such as MERX^TMand/or on the Web sites of the procuring body, or by publication in specialized and general newspapers. For procurement activities of an estimated value below the advertising thresholds, practices may vary from one body to the next, with vendor files remaining the most frequently used approach*.

* Info-Opportunités, Études sur les habitudes d'achats des organismes parapublics de l'Île de Montréal, April 2000.

Market intelligence on contracts can be provided internally. More and more businesses are finding that the use of an intelligence centre considerably reduces costs and significantly increases the effectiveness of the service. The use of an outside intelligence service will free resources that could then be used to respond to requests for proposals. Businesses may thus focus on their primary function while effectively relegating complementary services to intelligence specialists.

Moreover, the activities of some centres of expertise in government procurement go well beyond simple intelligence work and include consulting resources with respect to regulations governing government contracts, dispute settlement, information and training on advanced subjects, documentation centres on trade treaties and agreements, support to businesses in their dealings with buyers, development of personalized strategic tools, and intelligence centres. These centres of expertise constitute a vital resource for the business community.

Contracting for Services
Every year, the Canadian government contracts for thousands of services from the private sector to satisfy immediate needs or in connection with the purchase of goods. Services being contracted relate either to goods or to intangible services. A sizeable part of service contracting is directly done by the end users: Special Operating Agencies (SOAs), individual departments and Crown corporations. Public Works and Government Services Canada (PWGSC) only contracts for a portion of all services bought from the private sector by the federal government.
For more information - see the document Contracting for Services for Services

Request for Proposal - RFP
A Request for Proposal (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. Suppliers are usually expected to submit detailed technical, managerial and cost proposals.
For more information - see the document Request for Proposal - RFP for Proposal - RFP

Bidding Process
Public Works and Government Services Canada (PWGSC) primarily uses its own databases with information extracted from the Supplier Registration Information (SRI) or the Electronic Tendering Service (MERX^TM) to buy on behalf of federal departments and agencies. Federal government departments and agencies have a number of ways to find sources of supply for requirements they handle directly. They can:

• access the Supplier Registration Information service
• refer to publications such as telephone books and trade directories;
• maintain their own Source Lists of companies
• publicly advertise their requirements using the Electronic Tendering Service

For more information - see the document Bidding Process Process

Registering as a Supplier
Public Works and Government Services Canada (PWGSC) maintains lists of private sector vendors of goods and services used to select suppliers. These lists are still used by PWGSC regional offices for purchases under $25 000 under the area-buy policy.
For more information - see the document Registering as a Supplier as a Supplier

Supplier Registration Information (SRI)
The Supplier Registration Information (SRI) is a database of registered suppliers. The information provided by suppliers is used by federal government departments to identify sources of supply for the goods and services they buy. By registering in the SRI, the suppliers make their company's name and supply capabilities widely available to federal government buyers.

Effective September 10, 2001 , suppliers and contractors doing business with Public Works and Government Services Canada (PWGSC) will be required to have a Procurement Business Number (PBN) before they can be issued a contract. Firms can obtain their PBN through the Supplier Registration Information (SRI) service.
For more information - see the document Supplier Registration Information (SRI) Registration Information (SRI )

Standing Offers and Supply Arrangements
Standing Offers and Supply Arrangements are two types of non-binding agreements between the federal government and potential suppliers for the supply of specified goods or services. These agreements outline the terms and conditions that will apply to future requirements to be ordered on an "as and when required" basis.
For more information - see the document Standing Offers and Supply Arrangements

For further information: on the above programs:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

2.2 Procurement Tools

MERX- Electronic Tendering Services
MERX^TM is an on-line service that advertises government procurement opportunities to potential bidders. It is owned and operated by Mediagrif Interactive Technologies which provides the service to the federal government under contract.
For more information - see the document MERX: Electronic Tendering Service- Electronic Tendering Services

Contracts Canada
Contracts Canada is an interdepartmental initiative to improve supplier and buyer awareness and simplify access to federal government purchasing information. Currently there are 29 participating departments and agencies.
For more information - see the document Business Access Canada Canada

SELECT
SELECT is a new online procurement tool used to identify firms and individuals for low-dollar value construction, maintenance and real property consulting (architecture and engineering) services. (SELECT replaces PWGSC's previous Real Property contracting systems - SPEC and ACCORD).

SELECT is used by Public Works and Government Services Canada (PWGSC) to invite firms to bid on Real Property opportunities for Consulting up to $84 400 and Construction up to $100 000.
For more information - see the document SELECT

For further information:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

SourceCAN
In addressing the need to boost Canadian e-commerce, SourceCAN was developed by the federal government as a resource meant to educate, prepare and place Canadian businesses within the global marketplace. A public-private partnership, SourceCAN is a multi-jurisdictional e-marketplace where, through an international tender feeding system, Canadian companies can source bids, follow new business leads and post opportunities, all within a secure trading environment. SourceCAN membership is free and offers business opportunities and partnering networks, marketing tools and links to e-business resources.
For more information - see the document SourceCAN

For further information:
Please call Mr. David Chase, (613) 957-9977 or 1-866-850-2383
Visit the Web site: http://www.sourcecan.com

2.3 Sector Specific Procurement

Architectural and Engineering Services
Public Works and Government Services Canada (PWGSC) solicits, on behalf of government departments and agencies, various architectural and engineering consulting services. PWGSC is a common service agency responsible for a significant portion of government requirements. To qualify firms must be eligible to practice in the province or territory of the location of the project.
For more information - see the document Architectural and Engineering Services

Aerospace Marine and Electronics Systems - AMES
The Aerospace, Marine and Electronics Systems Sector (AMES) of Public Works and Government Services Canada (PWGSC) provides procurement services relating to the aerospace, marine, armament, electronics and communications systems requirements of Federal Departments, Crown Corporations and other government organizations. The Sector also provides project and professional services.
For more information - see the document The Land, Aerospace and Marine Services (LAMS) Marine and Electronics Systems - AMES

Science Informatics and Professional Services Sector - SIPSS
The Science Informatics and Professional Services Directorate (SIPSS) is an arm of the Supply Operations Services Branch, whose mandate is to provide common services for acquiring goods and services on behalf of departments and agencies of the Government of Canada. SIPSS manages contracting for goods and services as well as providing other specialized services on behalf of a wide range of federal governments department and agencies.
For more information - see the document Services and Technology Acquisition Management Sector (STAMS) Informatics and Professional Services Sector - SIPSS

Informatics Professional Services (IPS)
The PS is an electronic procurement tool to assist federal departments and agencies, in the National Capital Area, in their procurements for informatics professional services, below the NAFTA threshold of $84 400 and for services of 100 days or less. It is accessible 24 hours a day, 7 days a week through the Internet at http://www.pwgsc.gc.ca/acquisitions/text/prof_svcs-e.html. This procurement tool is for Canadian Suppliers only.
This procurement tool is for Federal Departments and Agencies in the National Capital Area.
For more information - see the document Informatics Professional Services (IPS) Marketplace

For further information:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

2.4 Aboriginal Procurement

Aboriginal Contract Guarantee Instrument (ACGI)
The Aboriginal Contract Guarantee Instrument (ACGI) gives Aboriginal contractors the help they need to qualify for more business opportunities. The ACGI proves to the project owners that their contractors can guarantee satisfactory job completion.
For more information - see the document Aboriginal Contract Guarantee Instrument (ACGI) Contract Guarantee Instrument (ACGI )

For further information:
Please call the National Aboriginal Capital Corporation Association (NACCA), (613) 688-0894
Visit the Web site: http://www.nacca.net

Set-Aside Program for Aboriginal Business
The government recognizes that Aboriginal business is under-represented when it comes to bidding for and winning government contracts. The hope is to change that by making it easier for the government and Aboriginal firms to do business with each other while still meeting the principles of fairness, openness and best value for the Canadian public. In accordance with the Procurement Strategy for Aboriginal Business (PSAB) and the Set-Aside Program for Aboriginal Business (SPAB), contract requirements ($5 000 and over) designated by client departments as set aside will be restricted to qualified Aboriginal businesses.
For more information - visit the Web Site Set-Aside Program for Aboriginal Business

For further information:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

Procurement Strategy for Aboriginal Business
The government launched the Procurement Strategy for Aboriginal Business (PSAB) to help Aboriginal firms do more contracting with all the federal departments and agencies.
How does it work?

• Setting aside contracts for Aboriginal firms--reserving all contracts that serve a primarily Aboriginal population and that are worth more than $5 000 for competition among qualified Aboriginal businesses. Federal buyers are encouraged to set aside other contracts for competition among Aboriginal businesses whenever practical.
• Joint venturing--encouraging Aboriginal firms to create joint ventures with other Aboriginal or non-Aboriginal firms in bidding for and executing government contracts.
• Sub-contracting--whenever contractors need assistance to fulfill a government requirement, the government is encouraging them to sub-contract to Aboriginal businesses, as long as the prime contract is not subject to the North American Free Trade Agreement or the World Trade Organization Agreement on Government Procurement.
• Getting the word out--the government is making sure that Aboriginal businesses and federal public servants are aware of this strategy. Across the country, Aboriginal businesses are being told about federal procurement opportunities and contracting procedures. Federal public servants are being informed about the initiative and about Aboriginal suppliers: who they are, where they can be found, and the goods and services they provide.

For more information - see the document Procurement Strategy for Aboriginal Business

For further information:
Please call Manson Gloade, (902) 661-6361
E-mail: gloadem@inac-ainc.gc.ca

3. PROVINCIAL PROCUREMENT

Nova Scotia Procurement Branch
The Nova Scotia Procurement Branch provides assistance to businesses and entrepreneurs interested in obtaining business opportunities with the Nova Scotia government. The Nova Scotia Procurement Branch also provides guidance with regards to the understanding of the Nova Scotia Procurement Policy, the Atlantic Procurement Agreement, as well as any questions relating to procurement activity.
For more information - see the document Nova Scotia Procurement Services

Atlantic Canada Procurement Agreement
This Agreement applies to public sector procurement in matters relating to goods, services, and construction within the provinces of New Brunswick , Newfoundland and Labrador , Nova Scotia and Prince Edward Island . Procurement contracts awarded by government funded bodies including departments, agencies, commissions and crown corporations, academic institutions, schools and health and social services organizations as well as any newly created department, agency, commission, crown corporation or any new body of a comparable status to those already covered above are subject to this Agreement.
For more information - see the document Atlantic Canada Procurement Agreement Canada Procurement Agreement

For further information:
Please call the Nova Scotia Office of Economic Development, 1-800-424-5418
Visit the Web site: http://www.gov.pe.ca/tenders/procurement.php3

Summary: Province of Nova Scotia Policy on Government Procurement
The Nova Scotia Procurement Policy was established in order to ensure that procurement is carried out in an open,fair, consistent, efficient, and competitive manner. Except as otherwise noted within the full documentation of the policy, this policy applies to all goods, services, construction, and facilities procured by purchase, contract, lease, or long-term rental.
For more information - see the document Procurement with the Provincial Government: Province of Nova Scotia Policy on Government Procurement

For further information:
Please call Rick Draper, (902) 424-4557

4. MUNICIPAL PROCUREMENT

HRM Procurement Opportunities Notice Board:
For further information:
Please call the Procurement office, (902) 490-4170
For long distance calls within NS call: 1-800-835-6428
Internet: http://www.region.halifax.ns.ca/procurement

Nova Scotia Communities
Nova Scotia has 55 municipalities: 3 regional municipalities, 21 rural municipalities and 31 towns. There are 22 incorporated villages, that are part of the rural municipalities and not municipalities themselves.
Contact your local municipality for further information

5. INTERNATIONAL PROCUREMENT

Bidding Opportunities Under Trade Agreements
Procurement opportunities are open also to Canadian businesses under the provisions of the Agreement on Internal Trade (AIT), the North American Free Trade Agreement (NAFTA), the Canada-Korea Telecommunications Equipment Agreement (CKTEA) and the World Trade Organization Agreement on Government Procurement (WTO-AGP).
For more information - see the document Bidding Opportunities Under Trade Agreements Opportunities Under Trade Agreements

For further information:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

IFInet- IFI Procurement and Capital Projects Opportunities
The new IFInet is your gateway to procurement business in transitional and developing countries funded by the International Financial Institutions (IFIs) and UN agencies. The following IFIs are covered in the database:

• http://www.worldbank.org
• http://www.afdb.org
• http://www.adb.org
• http://www.caribank.org
• http://www.iadb.org
• http://www.ebrd.org

For more information - see the document IFInet - IFI Procurement and Capital Projects Opportunities- IFI Procurement and Capital Projects Opportunities

For further information:
Please call Mr. Randy Wile, (902) 496-5436
E-mail: randy.wile@pwgsc.gc.ca
Visit the Web site: http://www.pwgsc.gc.ca

Canadian Commercial Corporation
The Canadian Commercial Corporation (CCC) provides Canadian exporters with a range of contracting services which enhances their access to market opportunities and significantly increases their ability to land export sales on the best possible terms and conditions. CCC puts the power of Canada behind export sales.
For more information - see the document Canadian Commercial Corporation - Mandate Commercial Corporation - Mandate

Sales to the U.S. Department of Defense and NASA
The Canadian Commercial Corporation (CCC) specializes in sales to the U.S. Department of Defense (DoD) and NASA, and is responsible for maintaining the Canada/U.S. Defense Production Sharing Arrangement (DPSA). This service provides Canadian exporters with privileged access to one of the largest procurement markets in the world. CCC helps put the power of Canada behind export sales.
For more information - see the document Sales to the U.S. Department of Defense and NASA to the U.S. Department of Defense and NASA

For further information:
Please call the http://www.ccc.ca/eng/home.cfm, (613) 996-0034 or 1-800-748-8191 (in Canada )