A Guide to Government Purchasing

TABLE OF CONTENTS

Introduction
Public Tender Act
Intergovernmental Agreements
Bid Opportunities
Contract Awards
Standing Offer Agreements
Payment of Invoices
The Central Purchasing Authority
Addresses and Telephone Numbers

The Government Purchasing Agency (Agency) is the central procurement unit for the Government of Newfoundland and Labrador and is responsible for purchasing more than $250 million in goods and services annually on behalf of provincial departments and agencies. The Government Purchasing Agency is further responsible for the Central Purchasing Authority which coordinates and administers a system of high volume procurement on behalf of government funded bodies.

Any individual, company or organization - regardless of size - that wants to expand its opportunities for sales is a potential supplier of government requirements. The business community should be aware of the purchasing policies and practices of the provincial government in the areas of tendering, security and evaluation of bids and opportunities available through public sector procurement.

As the largest buying unit in the public sector, the Government Purchasing Agency is also responsible for:

• the application and administration of the Public Tender Act in the acquisition of goods and services;

• the administration of the corporate charge card system on behalf of government departments;

• the disposal of crown assets;

• the importation of goods through Canada Customs;

• the coordination of advertising for all government departments;

• the application and administration of Intergovernmental Procurement Agreements;

• the administration of electronic tendering.

This publication provides an overview of the purchasing procedures of the Agency and information on competing for public sector business. The staff of the Agency has extensive knowledge of procurement matters, and offers guidance to suppliers interested in selling to the provincial government.

PUBLIC TENDER ACT

The Government Purchasing Agency functions under the legislative provisions of the Public Tender Act. The Act defines the legislative framework within which the Agency operates. The main goal of the public tender legislation is to ensure procurement is conducted in an open and competitive environment while maintaining fair and equitable opportunities for suppliers to compete for government business.

Competitive Bidding

The Government Purchasing Agency purchases all requirements possible on a competitive basis, in accordance with the Public Tender Act. The general exceptions are listed in Sections 3 and 4 of this Act and include the following:

• Emergency - procurement within time-frame constraints that does not permit normal purchasing procedures to be used, and where delayed delivery would be injurious to the public interest.

• Sole source - the dealer, supplier or contractor providing the work or acquisition is the only source of that work or acquisition.

INTERGOVERNMENTAL AGREEMENTS

The Government of Newfoundland and Labrador’s involvement with intergovernmental procurement agreements has become a valuable means of reducing trade barriers among governments. The purpose of implementing trade agreements is to establish a framework that will ensure equal access to procurement for all suppliers. These agreements contribute to a reduction in purchasing costs and the development of a strong economy.

Atlantic Procurement Agreement

In September, 1992, the Province of Newfoundland and Labrador joined the Maritime provinces to sign The Atlantic Procurement Agreement. The Agreement outlines the conditions under which the four Atlantic governments will operate in order to eliminate all forms of discrimination among the participating governments.

Information regarding this agreement may be obtained by contacting the Government Purchasing Agency or be viewing www.gpa.gov.nl.ca/APA.stm

Agreement on Internal Trade

On July 18, 1994, the Agreement on Internal Trade was signed by all Canadian Provinces, Territories and the Federal Government. Effective July 1,1995, this agreement resolves to promote an open, efficient and stable domestic market for long-term job creation, economic growth and stability while enhancing the competitiveness of Canadian business.

Information regarding this agreement may be obtained by contacting the Government Purchasing Agency or by viewing www.gpa.gov.nl.ca/AgreementonInternalTrade/

BID OPPORTUNITIES

Eligibility

The requirements of government departments and agencies are extremely diverse, the Government Purchasing Agency buys many products and services - ranging from marine ferry services to computer systems, veterinary drugs to office furnishings, farm machinery to aircraft components. Every business and individual supplying goods and services that government may require has the opportunity to compete for government business.

Informing Suppliers of Bid Opportunities

The Public Tender Act requires tender calls to be publicly advertised for most goods and services acquisitions with a value exceeding $10,000. In an effort to solicit bids from suppliers, acquisitions valued at $2,500 and greater are advertised and made available at no cost through the Government Purchasing Agency’s website. This site may be accessed by logging on to www.gpa.gov.nl.ca.For acquisitions less than $2,500, quotations are invited through a written request for quotation or via telephone.

Terms and Conditions

Bidders should ensure that they are familiar with all of the terms and conditions applicable to an invitation to bid, including the standard terms and conditions for purchasing, which are available by contacting the Government Purchasing Agency or by viewing www.gpa.gov.nl.ca/termsandconditions

CONTRACT AWARDS

When bids are received from a number of suppliers, it is assumed that market forces have held prices and profits to reasonable levels. Bids are evaluated to determine the lowest prices for the items meeting specifications, to verify acceptable delivery conditions and dates and to identify the preferred bidder(s). In case of highly technical requirements, bids may be referred to the customer department for a recommendation, or an outside consultant may be asked to provide an evaluation. The ultimate responsibility, however, for the award of any tender/quotation invited by the Government Purchasing Agency rests with the Agency.

STANDING OFFER AGREEMENTS

Standing Offer Agreements are contracts issued for specified periods of time. These contracts enable departments and agencies to order goods and services directly from suppliers at both prearranged prices and delivery conditions. Standing Offer Agreements cover a wide variety of items - fuels, paints, tires, furniture, office equipment - and are normally tendered annually.

PAYMENT OF INVOICES

Prompt payment to suppliers depends to a large extent upon the following:

• receipt of goods and/or services in satisfactory condition by the customer department/agency.

• receipt of an official invoice by the appropriate division for the goods and /or services at the prices quoted on the relevant purchase order or contract. It is imperative that purchase order numbers are stated on all invoices.

Ultimately, it is the responsibility of the customer department/agency to process invoices for payment.

THE CENTRAL PURCHASING AUTHORITY

The Central Purchasing Authority (CPA) operates as a separate entity within the Government Purchasing Agency and was established to coordinate and administer a system of high volume procurement on behalf of all government-funded bodies. The mandate of CPA incorporates two primary objectives:

• the realization of cost savings as a result of a centralized procurement system;

• the identification of business development opportunities associated with government procurement.

CPA is directed by a board of management consisting of representation from government-funded bodies. The board actively participates in all major decisions affecting the identification of potential contract commodities, tendering of requirements and the awarding of contracts.

CPA operates under the concept of cooperative purchasing whereby government-funded bodies are solicited for purchasing requirements. Specific commodities are identified for consolidation into appropriate tender invitations and contracts are awarded to preferred bidders. One tender is issued by CPA for each commodity or set of commodities, and one or more contracts may be awarded for each tender. Each government-funded body is then responsible for the remaining procurement functions: issuing purchase orders and/or establishing user contracts, expediting, receiving, inspection, warehousing, and processing of payment.

For further information or a listing of contracts in place, please contact the Central Purchasing Authority.