|
|
|
The Bidding Process
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;
- publicly advertise their requirements using the electronic tendering service, MERX™.
Public Works and Government Services Canada (PWGSC) primarily uses its own databases with information extracted from SRI or MERX to buy on behalf of federal departments and agencies.
Federal departments do a lot of their own contracting for goods up to $5,000 and for most of their services requirements. Therefore, it is important to promote your products and/or services to them. You should also access MERX to keep track of requirements that departments publicly advertise.
PWGSC's Bidding Process
In PWGSC, bid opportunities for most requirements worth $25,000 or more are advertised on MERX, including requirements subject to international trade agreements. You can contact the MERX Call Centre to order bid packages for opportunities you're interested in. For more information, please see Electronic Tendering.
PWGSC uses databases to find bidders for certain types of opportunities, including:
- regional and some headquarters opportunities valued at less than $25,000;
- specialized opportunities requiring pre-qualified bidders; and
- architectural and engineering consulting and construction services and services related to real property opportunities requiring pre-qualified bidders.
For more information see Registering as a supplier to the federal government.
PWGSC Bid Methods
PWGSC uses several methods to solicit bids:
Telephone buy (T-buy)
The department uses these for small competitive purchases valued at under $25,000 when we get a requisition for something that can be easily identified over the phone and must be delivered quickly. The PWGSC officer phones at least three companies who give their bids over the phone. The one that offers the lowest price and fulfills all of the terms of the requirement wins the contract.
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.
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. 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)
A Request for Proposal, 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)
This bid method is very different from the others. When PWGSC sets up a standing offer with your company, you're offering to provide a given product or service at a specified price during a certain time period. Standing offers are not contracts. If and when the government issues a call-up against your standing offer, then you have a contract. For more information see Standing Offers.
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
PWGSC tries to avoid going to only one company with a bid opportunity. Under government policy, this non-competitive method is used, subject to obligations under the trade agreements only when:
- the product or service is required immediately due to pressing emergency and there isn't enough time to issue a competitive tender;
- The estimated expenditure is less than:
- $25,000 for goods and services (buyers are still expected to solicit bids below this value whenever it is cost effective to do so); or
- $100,000 for architectural and engineering services and other services required in respect of the planning, design, preparation or supervision of the construction, repair, renovation of a work; or
- $100,000 for the Canadian International Development Agency (CIDA) service contracts related to international development programs or projects;
- there's only one qualified company, such as a business that has developed a patented or copyrighted product or service; or a prototype; or
- it's not in the public interest to hold a competition, for example, for requirements of national security such as classified military or national defence projects.
When client departments say there's only one source for a project, PWGSC scrutinizes the situation very carefully. Advance Contract Award Notices (ACANs) are published on MERX for many sole source requirements. If you feel your company can do the work destined for a sole source as advertised in an ACAN, you can submit a statement of capabilities for the requirement. The ACAN is posted for 15 calendar days and you must submit your statement within this period. If your statement meets the requirements, the contracting officer will then proceed with a full tendering process.
Bidding Tips
- Each bid document is unique. Read it very carefully. Everything you need to know about doing the job should be in it.
- If you don't understand something, call the contracting officer listed on the front of the document. Don't call your contacts in the client department -- you might jeopardize the competitive process. All bidders are entitled to the same information -- if the contracting officer discovers that one bidder has used contacts to get extra information, the tender will be cancelled and reissued.
- Pay attention to the mandatory requirements. You must meet all of them, otherwise your bid will be considered non-responsive.
- Bid documents specify the dates, times and locations of the bidders' conferences, if any. Bidders' conferences are intended to ensure that bidders have a clear understanding of the technical, operational and performance specifications, as well as the financial and contracting requirements.
- Use the Standard Acquisition Clauses and Conditions (SACC) manual. In the bid document, PWGSC and other departments will refer to standard clauses and conditions only by name and number to save paper. You can access the SACC manual or buy your own copy from Canadian Government Publishing. To do so, phone them at (819) 956-4802 or fax them at (819) 994-1498. You can also consult the SACC manual at your local or public library.
- Be accurate with figures: make sure you know what expenses you're responsible for, add them correctly and quote the specified amount per unit (i.e. each box, package).
- Deliver your bids on time and to the right place, as specified in your bid document. Bids will be accepted only if they are received prior to the contract award, and they are postmarked by Canada Post (or the national equivalent of a foreign country) prior to the bid closing date. Bids received after contract award will be returned to the sender. Late bids are not accepted AND will be returned.
- You can also fax your bid, unless the bid document specifies otherwise. Again, bids won't be accepted unless the delay is caused by the department. (A busy fax line is not considered a PWGSC-caused delay.) Make sure you immediately send the contracting officer a "hard copy" of your bid.
Facility Security Clearances
Some contracts and standing offers require that you and your employees be cleared or screened for security or reliability. You will need an industrial facility security clearance if you want to bid on contracts requiring access to sensitive or classified material, information or government buildings.
For more information about getting a facility security clearance, contact the Canadian and International Industrial Security Directorate of PWGSC at (613) 948-4176 or 1 866 368-4646 (toll free) or visit their Internet site. It can take as long as a year for senior company officials to be cleared or screened to the required level.
For More Information
The Business Access Canada has a continuing program of
seminars and information on key topics which include information about the bidding process. For more information about the purchasing process, contact your nearest PWGSC office or the
Business Access Canada
Public Works and Government Services Canada
Portage III, Tower C, 6C1
Gatineau, Quebec K1A 0S5
InfoLine: 1-800-811-1148
Fax: (819) 956-6123
|
