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The Buying Process of PWGSC

Public Works and Government Services Canada (PWGSC), the government's principal purchasing arm, uses a step-by-step process to buy goods and services. These steps include checkpoints for clearance at various levels of authority, depending on the value of the contract. Here is an overview of how the process works:

How the Buying Process Is Started

It starts when a government department or agency sends a requisition to PWGSC. Depending on the requirements, the requisition may be handled by a procurement officer at headquarters or in a regional office.

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Electronic Tendering Service

Goods and services
PWGSC advertises most opportunities worth $25,000 or more on MERX, the electronic tendering service. Increasingly, however, opportunities valued at less than $25,000 are also advertised on MERX.

Architectural and engineering consulting services
PWGSC advertises most architectural and engineering consulting services worth $84,000 or more on the electronic tendering service MERX.

Services related to real property
PWGSC advertises on MERX, most opportunities worth $84,000 or more for services related to real property.

Construction
PWGSC advertises most construction opportunities valued at $100,000 or above on MERX.

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Databases and Lists of Suppliers

Goods and services
For some requirements valued at less than $25,000, source lists of known suppliers may be used. Normally the previous supplier will be among those invited to bid. PWGSC uses sources lists for regional opportunities valued at less than $25,000; and for certain contracts that require pre-qualified bidders.

Architectural and engineering consulting services
Requirements valued at less than $84,000 are handled through the computer-assisted selection and contract award system SELECT (see below).

Services related to real property
Requirements valued at less than $84,000 are handled through the computer-assisted selection and contract award system SELECT (see below).

Construction
Requirements valued at less than $100,000 are handled through the computerized system SELECT.

SELECT contains lists of pre-qualified real property firms (such as architects, engineers and construction trade contractors) identified by their expertise and the services they provide. When there is a requirement for any of these services, SELECT matches the specifics of the requirement with firms having the required expertise that are within a geographic range and have the least points of opportunity. Depending on the requirement, either one firm may be given the opportunity to accept or decline the work, or multiple firms may be given the opportunity to compete for the requirement. In order to register with SELECT, firms and individuals first require a Procurement Business Number (PBN) which can be obtained by registering in the Business Access Canada (formerly Contracts Canada) Supplier Registration Information (SRI) service.
For more information, please see The Bidding Process, MERX and Registering as a supplier to the Federal Government.

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How Bids Are Solicited

Depending on the dollar value and the particular requirements of the proposed contract, the procurement officer and the client may choose one of the following bid solicitation methods:

  • Telephone Buy (T-buy)
  • Request for Quotation (RFQ)
  • Invitation to Tender (ITT)
  • Request for Proposal (RFP)
  • Request for Standing Offer (RFSO)
  • Request for Supply Arrangement (RFSA)

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How Bids Are Evaluated

The bids received are evaluated using criteria specified in the bid document. As a rule, the bidder who fulfils all the terms and conditions of the requirement, and offers the lowest price, is generally selected. If only one bidder is responsive, we may negotiate contract terms and prices with that individual or company.

Contract Approval

Before we award the contract, the expenditure has to be approved by the appropriate level of authority, usually within PWGSC, but in the case of large and complex contracts by Treasury Board.

Contract Award

If you are the successful bidder, you will receive a contract at this point.

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.

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When Do You Get Paid

PWGSC's policy is to pay you within 30 days of the time your invoice is received at the place specified in the contract. If you don't get paid within 30 days and PWGSC is at fault, you are entitled to interest on your overdue money.

Interest will be paid on overdue money after 30 days and will be paid at 3% above the average Bank of Canada rate for the month before payment.

If you don't get your cheque after 30 days, you should try to trace it. Start with the client department and work your way back to the PWGSC contracting officer.

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How Disputes Are Resolved

If you feel your bid was not properly evaluated, or if you have any other concerns about the contract award, you should do the following:

Talk to your PWGSC Contracting Officer

Talk to the PWGSC Contracting Officer identified on the bid document. Most problems can be worked out if you come to us first. PWGSC is very open about the procurement process and ensures that:

  • procurement policy manuals are available to the public;
  • bid documents are easy to understand, give you enough time to prepare, and contain information about how we will evaluate the bids;
  • all bidders know when bid requirements change; and
  • contract awards are based on the criteria outlined in the bid documents.

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Debriefing

You may also come in for a debriefing session. We'll tell you who won and why, what we were looking for, and where improvements should be made for your future submissions. We can also provide you with the individual unit pricing information on standing offers issued for goods and services. However, we cannot reveal individual pricing information for contracts or purchase orders for goods, services or construction.

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Contract Claims Resolution Board (CCRB)

CCRB resolves claims resulting from contract disputes and provides a more economical, quicker and less formal process than taking PWGSC to court. This Board takes a common sense alternative dispute resolution approach to problems and seeks to reach settlements that are acceptable to all parties.

For more information, contact the:
Contract Claims Resolution Board
Portage III
Gatineau, Quebec K1A 0S5
Tel: (819) 956-0983
Fax: (819) 934-2523

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Contracts Covered by National and International Trade Agreements

Canada is subject to various trade agreements, the most recent being the Agreement on Internal Trade (AIT). The World Trade Organization Agreement on Government Procurement (WTO-AGP), the North American Free Trade Agreement (NAFTA) also have implications for suppliers to the Government of Canada. The Canada-Korea Telecommunications Equipment Agreement (CKTEA) has been terminated at the request of the Korean government. (see TB Policy Notice)

If you have problems with the way a bid opportunity covered by any of the four agreements was handled, talk to the contracting officer.
If this fails to resolve the issue to your satisfaction, you may file a bid challenge with the Canadian International Trade Tribunal. The Tribunal deals with complaints for Canadian government contracts. The Tribunal receives, investigates and rules on all bid challenges arising under these agreements.

For more information, contact the:
Canadian International Trade Tribunal
Procurement Review Division
Standard Life Centre
333 Laurier Avenue West, 15th Floor
Ottawa, Ontario K1A 0G7

Tel.: (613) 990-1988
Fax: (613) 992-3686

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Termination for Convenience Claims

Contractors' claims arising from the partial or complete termination for convenience of goods and services contracts by PWGSC or CCC (on behalf of the US Government) are processed by the Risk Management and Quality Assurance Directorate (RMQAD) of PWGSC.

For more information contact:
RMQAD
Portage III, 14A1
11 Laurier Street
Gatineau, Quebec K1A 0S5

Tel.: (819) 956-5030
Fax: (819) 956-6416

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Access to Information and Privacy

For more information about a contract award, contact our Access to Information and Privacy Directorate. The directorate protects third-party, personal and government rights when releasing contract information. Each request under Access to Information costs $ 5.00.


Access to Information and Privacy
Public Works and Government Services Canada
5C1, Portage III
Gatineau, Quebec K1A 1H2
General Inquiries: (819) 956-1820
Fax: (819) 994-2119

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Last Updated: 2006-01-05

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