The Basics of Selling to Government

The Government of Canada buys approximately $14 billion worth of goods and services every year from thousands of suppliers. There are over 85 departments, agencies, Crown Corporations and Special Operating Agencies. Public Works and Government Services Canada (PWGSC) is the government's largest purchasing organization, averaging 60,000 contracts totalling $10 billion annually. While PWGSC buys goods for most departments of the federal government, the departments buy most services themselves.

There are several ways of doing business with us:

1. By selling directly to government departments and agencies via cash, acquisition card (credit card), local purchase order or contract.
   • Goods: Departments have authority to buy up to $5,000 directly from suppliers. Over $5,000 they must go to PWGSC.
   • Services: Departments can buy services directly (with a few exceptions).
     
2. By accessing MERX™, the electronic tendering service.
   
3. By registering on-line as a supplier for goods and services

The overall procurement and contracting policies of the Government of Canada are established by 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;
  
• comply with Canada's trade obligations under the North American Free Trade Agreement (NAFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP), and the Agreement on Internal Trade (AIT).