Government Procurement Guide

TABLE OF CONTENTS

1. What is Government Procurement?
2. Federal Government Procurement
3. Provincial and Municipal Government Procurement
4. International Procurement
5. Specific Industry Information
6. Aboriginal Procurement
7. Online Government Procurement Tools
8. Seminars and Workshops
9. Other Resources

1. What is Government 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. Procurement is sometimes referred to as government bidding, government opportunities, and tenders.

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.

For further information:
see the document: Selling to Governments

2. Federal Government Procurement

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.

The Government of Canada buys just about every kind of product and service, from aircrafts to paper clips, from training services to scientific research. Public Works and Government Services Canada (PWGSC) is a common service agency responsible for a significant portion of these government requirements which it categorizes under the following:

• Architectural and Engineering Consulting Services
• Services Related to Real Property
• Construction
• Goods and Services

Ontario Region - Public Works and Government Services Canada

If your company is located in Ontario, but outside the National Capital area, you will probably deal with the Ontario Region of Public Works and Government Services Canada. The Ontario Region buys goods and services for federal departments and agencies throughout the province.

The Region's Supplier Promotion section organizes basic seminars that provide potential suppliers with information essential to an understanding of the federal procurement and contracting process. Also available to the supplier community are specialized seminars covering more detailed information on specific topics of interest to suppliers such as proposal writing.

For further information:
visit the website: PWGSC - Contact Us

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.

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.

For further information:
see the document: Bids, proposals and contracts

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.

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 further information:
see the document: Register to be 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.

For further information:call 1-800-668-5378
visit the website: Supplier Registration Information

Business Number

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 further information:
see the document: Business Number - BN

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 further information:
visit the website: Standing Offers and Supply Arrangements

Business Access Canada

The Canadian federal government is a huge market for businesses large and small. As a supplier wanting to sell to the government, you need basic information on how the purchasing is done, who the contacts are and, most importantly, how you can find opportunities.

Business Access Canada is an inter-departmental initiative to improve supplier and buyer awareness and simplify access to federal government purchasing information. Currently there are 31 participating departments and agencies.

For further information:
visit the website: Business Access Canada

Goods and Services Identification Number

The Goods and Services Identification Number (GSIN) is a code used by the Federal Government to identify generic product descriptions for its purchasing activities.

For further information:
call 1-800-811-1148
visit the website: Goods and Services Identification Number (GSIN) codes

Federal Contractors Program

The Federal Contractors Program ensures that federal contractors who do business with the Government of Canada achieve and maintain a fair and representative workforce.

For further information:
visit the website: Federal Contractors Program

Office of Small and Medium Enterprises (OSME)

The Office of Small and Medium Enterprises (OSME) supports SMEs by working to reduce barriers and by simplifying requirements for SMEs that want to do business with the Government of Canada.

For further information:
see the document: Office of Small and Medium Enterprises (OSME)

3. Provincial and Municipal Government Procurement

Other Ontario Public Sector Procurement Opportunities

In this section of its website, the Procurement Policy and IT Procurement Branch lists other public sector organizations' calls for proposals sites and other electronic tendering services.

For further information:
visit these websites:
Other Ontario Public Sector Opportunities
Association of Municipalities in Ontario
Municipalities in Ontario

bidsCanada.com

bidsCanada.com helps you sell to the Canadian public sector by providing free e-mail notification and search capabilities of the most recent business opportunities including Tenders, Requests for Proposal, Requests for Quotation and other contracts.

For further information:
visit the website: bidsCanada.com

Newspaper Advertising

In conjunction with or as an alternative to the electronic tendering service, a ministry may also advertise a procurement opportunity in Ontario newspapers. The following comply with the trade agreements' provisions:

• the Globe and Mail, for goods and services;
• the Daily Commercial News, for construction projects.

In addition, ministries may use other daily or local papers to request bids for procurements, including those not covered by the trade agreements. English is used in advertising unless otherwise required by legislation.

4. 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 further information:
see the document: Selling to foreign governments

IFInet-International Financial Institutions

The System provides Canadian exporters with information about international business opportunities funded by the International Financial Institutions (IFIs) such as the World Bank and major Regional Development Banks.

For further information:
visit the website: IFInet

IFInet - Projects in International Development

The new IFInet is your gateway to procurement business in transitional and developing countries funded by the International Financial Institutions (IFIs) and UN agencies.

For further information:
visit the website: IFInet

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 further information:
call 613-992-1469 or 1-800-748-8191 (in Canada)
visit the website: Canadian Commercial Corporation
see the document: Prime Contractor Service

Search FedBizOpps

Issued by the U.S. Government Printing Office (GPO), and published on the web by Community of Science, FedBizOpps (FBO) lists notices of proposed government procurement actions, contract awards, sales of government property, and other procurement information over $25,000 - all updated daily.

For further information:
visit the website: FedBizOpps

Agreement on Internal Trade

This site is an initiative of Canadian governments under the Agreement on Internal Trade (AIT). Signed by the First Ministers of the federal, provincial and territorial governments in 1994, the AIT came into effect in 1995. Its objective is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market.

The AIT covers only those tenders where the procurement value exceeds a specified amount.

For further information:
visit the website: Agreement on Internal Trade

CIDA Contracting Information

The online documents listed on this page explain the procedures for entering into contracts with CIDA and other related information.

Your Guide to Working with CIDA

General information for firms, individual consultants, voluntary organizations and institutions who would like to explore opportunities with CIDA.

For further information:
visit the website: Your Guide to Working with CIDA

5. Specific Industry Information

Construction Contracting with the Canadian Government - Fair Wages and Hours of Labour

The Fair Wages and Hours of Labour Act specifies that persons who enter into a contract with the federal government regarding construction, remodelling, repair or demolition, must follow certain rules in relation to their employees.

For further information:
visit the website: Employment Standards

Architectural and Engineering Services

PWGSC solicits, on behalf of government departments and agencies, various architectural and engineering consulting services.

For further information:
visit the website: Architectural and Engineering Services

PWGSC - Acquisitions - Professional Services Online

Professional Services Online is an electronic procurement tool that assists federal departments in the procurement (below the NAFTA threshold) of professional services.

For further information:
see the document: Professional Services (PS) Online

6. Aboriginal Procurement

Ninety percent of all government contracts are worth less than $100,000, and many are awarded locally across the country. Federal contracting is an important market for small and medium-sized businesses. The Procurement Strategy for Aboriginal Business (PSAB) helps Aboriginal firms do more contracting with the Government of Canada. Contracts worth more than $5,000 that primarily serve Aboriginal people are open only for competition among qualified Aboriginal businesses.

The strategy works to increase the number of Aboriginal suppliers bidding for, and winning, federal contracts. It also promotes sub-contracting to Aboriginal firms and encourages joint ventures with other Aboriginal and non-Aboriginal businesses.

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

For further information:
visit these websites:
Indian and Northern Affairs Canada - Procurement Strategy for Aboriginal Business
Indian and Northern Affairs Canada - Doing Business with the Federal Government

CIDA's Aboriginal Procurement Strategy (CAPS)

The Procurement Strategy for Aboriginal Business is an initiative of the Government of Canada aimed at increasing contracting between the federal government and Aboriginal businesses. The procurement strategy is intended to make use of the government's purchasing system to help Aboriginal businesses develop and grow.

For further information:
visit the website: Aboriginal Procurement Strategy

7. Online Government Procurement Tools

MERX- Electronic Tendering Services

MERX^TM is an internet based electronic tendering system that advertises government contracting opportunities to potential bidders across Canada.

For further information:
visit the website: MERX - Interested in doing business with the public sector?
see the document: MERX: Electronic Tendering Service

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 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 further information:
see the document: SELECT

8. Seminars and Workshops

Business Access Canada

Business Access Canada offers the following seminars:

• How to do business with the Federal Government
• Writing an Effective Proposal

These seminars also include:

• an online demonstration of the Supplier Registration Information (SRI) service and
• a demonstration of the Government Electronic Tendering system (MERXâ?¢).

For further information:
visit the website: Business Access Canada - Schedule of Seminars

9. Other Resources

MARCAN

MARCAN has been developed to help Canadian companies identify internet sites that may publish tender notices for procurement opportunities within the Canadian public sector.

For further information:
visit the website: MARCAN

Contract information

On March 23, 2004, the government announced a new policy on the mandatory publication of contracts over $10,000. This website provides information on contracts issued by or on behalf of the Statistics Canada.

For further information:visit the website: Statistics Canada - Contract information

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 further information:
visit the website: The National Aboriginal Capital Corporation Association (NACCA)

The National Aboriginal Capital Corporation Association (NACCA)

The National Aboriginal Capital Corporation Association (NACCA) is a growing network of Aboriginal Financial Institutions dedicated to promoting economic growth across Canada through the Aboriginal communities it serves. Owned by 116 lending institutions known as Aboriginal Financial Institutes (AFI's), NACCA provides programs, products and services designed to promote and stimulate growth of Aboriginal business in Canada. Business loans, Aboriginal financial consulting services, and youth business programs are just some of the services NACCA supports through its member AFI's.

For further information:
please call 613-688-0894
visit the website: The National Aboriginal Capital Corporation Association (NACCA)

Related Reading

• Business Guides

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DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.