5 Steps to Doing Business with the Government of Canada

5 Steps to Doing Business with the
Government of Canada
Introduction
Presentation by
Michèle Marcoux
Head Supply Specialist
Office of Small and Medium Enterprises
Quebec Region
May 2012
Presentation outline
•  Step 1 – Understand the Process
•  Step 2 – Register Your Business
•  Step 3 – Promote Yourself
•  Step 4 – Find Opportunities
•  Step 5 – Bid on Opportunities (introduction)
•  Appendix: Resources for Small and Medium Enterprises
2
Visit buyandsell.gc.ca
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STEP 1
Understand the
Process
4
Step 1: Understand the Process
1.1
What does the government buy?
1.2
Who does the buying?
1.3
How is purchasing done?
•  Competitive process
•  Contracts
•  Standing offers
•  Supply arrangements
•  Non-competitive process
5
1.1 What does the government buy?
•  The Government of Canada buys over 70,000 products
and services ranging from aircraft to office supplies to
training and scientific research services:
–  Architectural and engineering consulting services
–  Real property services
–  Construction services
–  Goods and services
6
1.2 Who does the buying?
•  Government departments and agencies
Usually for goods or services below $25,000 (low dollar
value), based on their delegation of authority limits
•  Public Works and Government Services Canada
(PWGSC)
–  Goods and services exceeding the department or
agency’s delegation of authority limits (delegations of
authority vary)
–  At the request of federal departments and agencies, to
offset procurement risks or to access volume discounts
7
1.2 Who does the buying? (cont’d)
•  List of goods and services that PWGSC buys and
key procurement contacts:
•  Procurement Allocation Directory (PAD)
http://pad.contractscanada.gc.ca/
•  Contract History
http://csi.contratscanada-contractscanada.gc.ca/
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1.3 How is purchasing done?
Competitive approach
Non-competitive approach
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1.3 How is purchasing done?
•  Competitive approach
–  Whenever possible, purchasing is done through a competitive
approach, regardless of the dollar value of the requirement:
•  Obtain the best quality-price ratio
•  Choose good suppliers (efficient and effective)
•  Maintain fairness and transparency in the processes
–  Supply methods include
•  Contracts
•  Standing offers (SOs)
•  Supply arrangements (SAs)
–  Buyers have to determine whether purchases can be made
through existing SOs or SAs.
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1.3 How is purchasing done?
•  Competitive approach
•  Contracts
Up to $25,000 (goods and services)
Whenever possible, buyers have to obtain at least three bids
through appropriate bid invitations (eg, telephone, request
for quotation, invitation to tender, call for proposal)
Over $25,000 (goods)
Over $78,500 (services, incl. architecture and engineering serv.)
Over $100,000 (construction)
Buyers have to post federal government requirements on the
MERXTM Web site (www.merx.com).
11
1.3 How is purchasing done?
•  Competitive approach
•  Standing offers (SOs)
A standing offer (SO) is a supply method used by
the Government of Canada to purchase goods
and services.
12
1.3 How is purchasing done?
•  Competitive approach
•  Standing offers (SOs)
Characteristics
•  For clearly defined, repetitive requirements for
which it is hard to estimate demand (quantity or
delivery date).
•  At prearranged prices (the supplier is usually paid
based on firm prices or rates) under set terms and
conditions.
•  Valid for a specific time period.
•  Purchases authorized on an “as and when requested”
basis through a call-up against a standing offer.
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1.3 How is purchasing done?
•  Competitive approach
•  Standing offers (SOs)
Characteristics (cont’d)
•  An SO is not a contract. A contract exists when a
call-up is issued to a supplier (the supplier must then
offer the goods or services, as per the terms and
conditions of the SO).
•  A call-up does not involve any negotiations. It is an
unconditional acceptance by the government of the
supplier's offer to supply goods and services specified
in the SO.
•  There are several types of standing offers.
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1.3 How is purchasing done?
•  Competitive approach
•  Standing offers (SOs)
Geographic Coverage
Authorized Users
National Master Standing Offer (NMSO)
National
All departments
Regional Master Standing Offer (RMSO)
Regional
All departments
National Individual Standing Offer (NISO)
National
Designated
departments
Regional
Designated
departments
Departmental
PWGSC*
Types of Standing Offers
Regional Individual Standing Offer (RISO)
Departmental Individual Standing Offer (DISO)
• Only PWGSC may issue call-ups against this type of standing offer on behalf of
specified departments.
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1.3 How is purchasing done?
•  Competitive approach
•  Supply arrangements (SAs)
An SA is a method of supply used by the
Government of Canada to establish a prequalified list of suppliers to obtain quotes for
goods, or, more commonly, services.
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1.3 How is purchasing done?
•  Competitive approach
•  Supply arrangements (SAs)
Characteristics
•  For repetitive requirements that cannot be clearly
defined and for which the Government of Canada
obtains quotes from a list of pre-qualified suppliers.
•  At ceiling prices (the supplier is usually paid on the
basis of ceiling prices, subject to downward revision),
under SA terms and conditions.
•  Valid for a specific time period.
•  Purchases authorized on an “as and when requested”
basis.
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1.3 How is purchasing done?
•  Competitive approach
•  Supply arrangements (SAs)
Characteristics (cont’d)
•  Is not a contract. A contract exists when a call-up is
issued to a supplier (the supplier must then offer the
goods or services, as per the terms and conditions of
the SA).
•  A separate contract is issued on an “as and when
required” basis, authorizing the supplier to provide
goods/services specified in each contract in
accordance with the terms and conditions of the SA.
•  SAs can be issued for geographic regions or specified
users.
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1.3 How is purchasing done?
•  Competitive approach
•  SO and SA – Rationale for use
Advantages of SOs and SAs
•  Direct access to a supplier
•  Better prices through consolidation of requirements
and increased competition among suppliers
•  Reduction of administrative costs
•  Reduction in lead time
•  Reduction in inventory investment
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1.3 How is purchasing done?
•  Competitive approach
•  SO and SA – Examples
•  Task and Solutions Professional Services (TSPS)
–  Human resources services
–  Business consulting and change management services
–  Project management services
http://www.tpsgc-pwgsc.gc.ca/app-acq/spc-cps/spcts-tsps-eng.html
•  Task-Based Informatics Professional Services
(TBIPS)
–  Specific information technology services
http://www.tpsgc-pwgsc.gc.ca/app-acq/sptb-tbps/index-eng.html
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1.3 How is purchasing done?
•  Competitive approach
•  SO and SA – Examples (cont’d)
•  Temporary Help Services for the NCA
–  Temporary resources in the National Capital Area
http://www.tpsgc-pwgsc.gc.ca/app-acq/sat-ths/index-eng.html
•  Directory of Linguistic Services Suppliers
–  Translation, interpretation, terminology
http://www.btb.gc.ca/btb.php?lang=eng&cont=164
(Online registration not available)
Canada’s Aboriginal languages
http://www.btb.gc.ca/btb.php?lang=eng&cont=1448
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1.3 How is purchasing done?
Mandatory SOs and SAs
•  The use of SOs and SAs within the 12 commodity groups listed
below is mandatory.
1.  Fuels, lubricants, oils and waxes
2.  General purpose automatic data processing equipment (including
firmware), software, supplies and support equipment
3.  Communication, detection, coherent radiation equipment
4.  Office supplies and devices
5.  Office machines, text processing systems and visible recording
equipment
6.  Furniture
7.  Personnel recruitment
8.  Administrative and management support services
9.  Professional services
10.  Information processing and related telecom services
11.  Ground effect vehicles, motor vehicles, trailers and cycles
12.  Clothing, accessories and insignia
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1.3 How is purchasing done?
Competitive approach
Non-competitive approach
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1.3 How is purchasing done?
•  Non-competitive approach
Must be fully justified by the department or agency and is used only in certain
special circumstances:
–  Pressing emergencies: Disaster threatening quality of life or involving
fatalities (earthquake, pandemic).
–  Public interest: Nature of the work is such that it would not be in the
public interest to solicit bids (purchase of munitions, explosives).
–  Intellectual property (IP): Only one person is capable of performing
the work (eg, for reasons related to the protection of IP, copyright,
patent protection).
–  Dollar value of the need: Does not exceed $25,000 (goods) or
$78,500 (services) or $100,000 (construction) – no advantage in the
competitive process for a low dollar value (LDV) purchase.
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1.3 How is purchasing done?
•  Non-competitive approach
Advance contract award notice (ACAN)
–  Public notice posted on MERXTM for a specified period
indicating to the supplier community that a department/agency
intends to award a contract to a pre-identified supplier.
–  Allows other suppliers to signal their interest in bidding by
submitting a statement of their capabilities
–  If no supplier submits a statement of capabilities that meets the
requirements set out in the ACAN, on or before the closing
date, the contract can be awarded.
Only 5% of ACANs are challenged.
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Step 2
Register Your
Business
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Step 2: Register Your Business
2.1
Supplier Registration Information – SRI
2.2
Professional Services Online – PS Online
2.3
SELECT
2.4
Translation Bureau – Directory of Linguistic Services
Suppliers
2.5
SNC-Lavalin O&M (for subcontractors)
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Registering in SRI
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2.1 Supplier Registration Information – SRI
•  Database of suppliers interested in doing business with the
Government of Canada.
•  Free registration by suppliers, who are also responsible for
keeping their information up to date.
•  A Business Number (BN) from the Canada Revenue Agency
(nine-digit business identification code) is mandatory to
register in SRI.
•  A Procurement Business Number (PBN) is mandatory for
registration in other supplier databases.
BN: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/rgstr/menu-eng.html
SRI: https://buyandsell.gc.ca/for-businesses/register-as-a-supplier
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2.1 Supplier Registration Information – SRI (cont’d)
Registering in SRI is a two-step process.
Step 1: Create an account in SRI
• 
Enter your Business Number BN.
• 
Create an account in SRI: Supplier Registration Information (SRI)
- 
- 
• 
Enter your firm’s name
Enter the registrant’s name, telephone number and email address
* Create a username and password
* Don’t forget to make a note of your username and password because you will need this
information for Step 2 of the registration process and to access your files.
• 
Once you have completed Step 1, you will receive your Procurement Business Number (PBN)
by email the same day.
• 
The PBN consists of the first nine digits of your Business Number, plus two letters and four
numbers to identify your procurement account.
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2.1 Supplier Registration Information – SRI (cont’d)
Step 2: Add your goods and services to your account:
• 
Access your SRI account by entering your PBN, username and password.
• 
Follow the instructions and complete your company profile.
Don’t forget to enter the commodity codes for your goods and services.
These codes identify the goods and services your company provides.
Government buyers use the list to search by commodity to find suppliers in SRI.
Access the complete list of commodities through the following Web site:
https://buyandsell.gc.ca/for-businesses/register-as-a-supplier/find-a-commoditycode
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2.2 Professional Services Online – PS Online
•  For potential suppliers of professional services not exceeding
NAFTA’s $78,500 threshold.
•  Targeted professional services categories
IT: http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/categories-category-eng.html
(Information Technology)
Non-IT: http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/non/index-eng.html
(Human Resources Management and Organizational Development)
•  Prior registration in SRI is mandatory to obtain a Procurement
Business Number (PBN)
•  Registration in PS Online:
http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/fournisseurs-suppliers/
inscription-registration-eng.html
Contact
Sharon Dent: 819-956-1684
[email protected]
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2.2 Professional Services Online – PS Online
• 
Suppliers interested in registering in PS Online must carry out the following steps:
-
Register in SRI before registering in PS Online.
Read the Trading Partner Agreement (TPA).
Complete the TPA Signature Page form.
Meet the Mandatory Requirements.
1. 
2. 
3. 
4. 
Provide a corporate profile.
The supplier must have been in business for a minimum of one (1) year.
Provide a human resources plan.
The supplier must have successfully completed at least three (3) relevant professional
services projects within the last three (3) years with the federal or provincial governments or private
sectors.
- Sign the certifications that apply to your firm.
- Send all the documents to PWGSC (at the address indicated on the site)
NB: Please allow three or four weeks for your registration to be processed.
IMPORTANT: The company must meet the mandatory requirements and provide the required
certifications to obtain an account in the PS Online database. Companies that do not provide the
additional information will be considered as not having accepted the TPA, and their applications will be
rejected.
•  If you have any questions concerning PS Online, please contact Denise St-Clair by telephone at
819-956-1178 or by email at [email protected].
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2.3 SELECT
•  Prior registration in SRI is mandatory to obtain a Procurement
Business Number (PBN)
•  Database of approved suppliers providing services in the
following areas:
–  Consulting and architecture and engineering for requirements
below the North American Free Trade Agreement (NAFTA) threshold
of $78,500
–  Construction for requirements below the Agreement on Internal
Trade (AIT) threshold of $100,000
•  Registration in SELECT: https://select.pwgsc-tpsgc.gc.ca
Contacts
Solange Labrie at 418-649-2872 or [email protected] (Eastern Quebec)
Anne Stinziani at 514-496-3390 or [email protected] (Western Quebec)
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2.3 SELECT (cont’d)
SELECT – Construction
1 – GENERAL CONTRACTING (civil)
9 – FINISHES
2 – SITE WORK
10 – SPECIALTY WORK
3 – CONCRETE
11 – FURNISHINGS
4 – MASONRY
12 – SPECIAL CONSTRUCTION
5 – METALWORK
6 – CARPENTRY/WOODWORK
7 – THERMAL & MOISTURE PROTECTION
8 – DOORS AND WINDOWS
13 – CONVEYING SYSTEMS
14 – MECHANICAL WORK
15 – ELECTRICAL WORK
16 – MAINTENANCE
17 – MOVING
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2.3 SELECT (cont’d)
SELECT – Maintenance and Consulting
1 – Built Works – Buildings
2 – Built Works – Marine Infrastructure
3 – Built Works – Transportation
Infrastructure
4 – Built Works – Site Works /
Infrastructure
5 – Built Works – Heritage
6 – Built Works – Interior Fit-up
7 – Built Works – Sites/Parks/Other
8 – Activities and Systems – Sites
9 – Activities and Systems –
Buildings
10 – Activities and Systems –
Environmental
11 – Activities and Systems – Other
12 – Studies – Buildings
13 – Studies – Infrastructure
14 – Studies – Transportation
Infrastructure
15 – Studies – Site Works / Infrastructure
16 – Studies – Environmental
17 – Studies – Other
18- Surveying and Geomatics Activities
19 – Inspections and Analysis – Buildings
20 – Verification and Inspection – Marine
Infrastructure
21 – Verification and Inspection –
Transportation Infrastructure
22 – Inspections and Analysis – Other
23 – Project/Construction Management
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2.4 Translation Services
•  Suppliers interested in offering translation services to the
Translation Bureau – a special operating agency reporting to
PWGSC – must
–  first register their firm in SRI
–  apply to register in the Translation Bureau’s Directory of
Linguistic Services Suppliers
•  Registration:
http://www.btb.gc.ca/btb.php?lang=eng&cont=1445
Contacts
Translation Bureau, at 819-953-2588
[email protected]
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2.5
•  SNC Lavalin Operations and Maintenance (O&M) is
mandated by the Government of Canada to operate and
maintain federal buildings.
–  Suppliers must register at the following Web site:
http://www.snclavalinom.com/en/Home/
SupplierRegistration.aspx
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Step 3
Promote
Yourself
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Step 3: Promote Yourself
3.1 How to Find Clients
3.2 Government Contacts
3.3 Previous Contract Award Notices
3.4 Pre-qualified Supplier Database
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3.1 How to Find Clients
•  PWGSC is the main buyer for the Government of Canada, but other
departments and agencies also purchase goods and services.
•  To reduce the number of potential clients to a more manageable
number, use the following tools to target your search:
–  Departmental Materiel Managers
https://buyandsell.gc.ca/for-businesses/contacts/departmental-materielmanagers
–  Government Electronic Directory Services (GEDS)
http://sage-geds.gc.ca/cgi-bin/direct500/eng/TE?FN=index.htm
–  Procurement Allocation Directory (PAD)
http://pad.contractscanada.gc.ca/index-fra.cfm?
af=ZnVzZWFjdGlvbj1pbmZvLmludHJvJmlkPTI=&lang=eng
•  Resources: https://buyandsell.gc.ca/for-businesses/contacts
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3.1 How to Find Clients
•  To promote your goods and services, get in touch with the right
contacts.
•  Establish networks in a variety of ways: telephone calls, email,
meetings, brochures, business cards, word of mouth.
•  Keep these questions in mind when establishing contacts:
–  What is the government purchasing cycle for your goods or services?
–  How does the department buy your goods or services? Does it use PWGSC or
does it purchase on its own?
–  What method or tool is used for purchasing your goods or services? Is there a
standing offer or supply arrangement? Is it mandatory? When will it next be up
for competition?
–  Does PWGSC buy on behalf of other departments or agencies? Which ones? 43
3.2 Government Contacts
44
45
46
47
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3.3 Previous Contract Award Notices
• 
The Contract History database contains information on contracts awarded by
PWGSC over the last three years. (http://csi.contractscanada.gc.ca/)
–  Search by commodity, customer, vendor or contract number.
–  Find out which departments and agencies go through PWGSC for the procurement of goods
and services, the value of the contracts and the names of successful bidders.
• 
Awards Database on MERXTM in the last 9 years (
http://www.merx.com/English/SUPPLIER_Menu.asp?
WCE=Show&TAB=1&PORTAL=MERX&State=4&hcode=aP3iE6x8o3NPTOUej9
yK7Q%3d%3d)
–  Find out the dollar value of the contract and the successful bidder’s name, as well as what to
expect based on previous requirements.
• 
Proactive Disclosure, Treasury Board Secretariat of Canada (TBS)
(http://www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp)
–  All contracts over $10,000 awarded by federal departments and agencies.
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Accessing the Awards Database on MERX™
50
3.3 Previous Contract Award Notices (cont’d)
Treasury Board Secretariat of Canada (TBS) / Proactive Disclosure
• 
Visit Treasury Board Secretariat of Canada – Proactive Disclosure or
http://www.tbs-sct.gc.ca/scripts/contracts-contrats/reports-rapports-eng.asp.
• 
Links to departmental sites that disclose all contracts over $10,000.
• 
Organized by year or quarter.
• 
Find the dollar value of contracts and the names of successful bidders.
• 
There is also a “Proactive Disclosure” link on the public Web sites of every
department and agency concerned.
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TBS – Proactive Disclosure
52
3.4 Pre-qualified Supplier Database
Pre-qualified Supplier Data (PQSD)
•  List of active standing offers and supply arrangements for goods and/
or services held by pre-qualified suppliers.
CAN BE USED TO
•  Identify current standing offers and supply arrangements in a given
industry.
•  Choose partners to pursue Government of Canada opportunities.
•  Help with business planning.
Click on the “Access the weekly updated Pre-Qualified Supplier Data” link under
“For Businesses” on the buyandsell.gc.ca Web site.
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3.4 Pre-qualified Supplier Database (cont’d)
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Step 4
Find
Opportunities
55
Step 4: Find Opportunities
4.1
Government Electronic Tendering Service (GETS)
4.2
Financial Thresholds for Posting on MERXTM
4.3
Free Registration on MERXTM Using PBN
4.4
Find Opportunities on MERXTM
Other relevant information
4.5
4.6
4.7
Security Requirements
Canadian Innovation Commercialization Program (CICP)
Supplier Performance
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4.1 Government Electronic Tendering Service
•  GETS is the Government of Canada's tendering system that allows
suppliers to search for bid opportunities online. This service is
currently hosted on MERXTM (
http://www.merx.com/English/SUPPLIER_Menu.asp?
WCE=Show&TAB=1&PORTAL=MERX&State=4&hcode=aP3iE6x8o3
NPTOUej9yK7Q%3d%3d).
•  Federal government opportunities are identified by a Canadian flag
•  Procurements that fall above the dollar thresholds set out in the
Agreement on Internal Trade (AIT), North American Free Trade
Agreement (NAFTA) and World Trade Organization – Agreement on
Government Procurement (WTO- AGP) are posted on MERXTM when
one or a combination of these agreements apply.
57
4.1 Government Electronic Tendering Service
•  Procurements that fall below the AIT, NAFTA or WTO-AGP trade
agreement dollar thresholds do not have to be posted on MERX™.
•  Government of Canada buyers can use the following electronic
databases to invite suppliers to bid on opportunities for
procurements that fall below the trade agreement dollar
thresholds:
–  Supplier Registration Information (SRI)
–  Professional Services Online (PS Online)
–  SELECT
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4.2 Financial Thresholds for Posting on MERXTM
•  The Government of Canada is a signatory to various trade
agreements, and these have an impact on procurement activities.
•  Procurements that fall above the AIT, NAFTA or WTO-AGP dollar
thresholds are published on MERX™ when one or a combination
of these trade agreements apply.
•  .
Trade Agreement Dollar Threshold Summary
Agreement
Goods
Services
Construction
North American Free Trade Agreement
(NAFTA)
$25,300
$78,500
$10,200,000
Agreement on Internal Trade (AIT)
$25,000
$100,000
$100,000
$205,100
$205,100
$7,800,000
World Trade Organization – Agreement on
Government Procurement (WTO- AGP)
Dollar thresholds are periodically revised and are subject to change.
60
4.3 Free Registration on MERXTM Using PBN
•  You can register on MERXTM with a Procurement Business
Number (PBN) instead of a credit card number.
•  Federal government opportunities can be downloaded for free.
61
4.4 Find Opportunities
On MERXTM You Can
Action
Registration?
Cost?
Not required
Free
Download – Tender documents
Yes
Free
Receive updates – of downloaded
documents
Yes
Free
View – contract awards
Yes
Free
Match opportunities automatically –
with the corporate profile
Yes
Free/Cost
Search – View opportunities
62
4.4 Find Opportunities
Complete MERXTM demonstration
available (online)
63
4.4 Find Opportunities
•  Closing date and time
•  Region of delivery
•  Preview or order tender documents
The Canadian flag
indicates a federal
government
requirement
Check the closing date to
ensure you have enough
time to prepare your
proposal
Check the region of
delivery
64
Find Opportunities
•  Opportunities sorted
by industry type
•  Shows new tenders
published each day
65
4.5 Security Requirements
•  Some bid solicitations and contracts require that the bidders/suppliers
have a security clearance.
•  Address all questions about security to the following:
Canadian Industrial Security Directorate (CISD)
Industrial Security Program
Public Works and Government Services Canada
Central Mail Room
Place du Portage, Phase III, Room 0B3
11 Laurier Street, Gatineau, Quebec K1A 0S5
2745 Iris Street, 2nd Floor
Ottawa, Ontario K1A 0S5
Toll free: 1-866-368-4646
National Capital Region: 613-948-4176
Email: [email protected]
66
4.6 Canadian Innovation Commercialization
Program (CICP)
•  Originally announced in Budget 2010 as a two-year pilot
project, Budget 2012 committed $95 million over three
years, starting in 2013–14, and $40 million per year
thereafter to make the Canadian Innovation
Commercialization Program permanent and to add a
military procurement component.
67
4.6 Canadian Innovation Commercialization Program
(CICP)
•  The CICP targets four priority areas: Environment, Safety and
Security, Health and Enabling Technologies.
•  Innovative firms could sell their pre-commercial products and
services to the Government of Canada.
•  CICP calls for proposal were posted on MERXTM in fall 2010
(closed), summer 2011 (closed) and in 2012 (in progress).
•  $500,000 limit per proposal.
•  Information:
https://buyandsell.gc.ca/initiatives-and-programs/canadianinnovation-commercialization-program-cicp.
68
4.7 Supplier Performance Policy
Goal of the Vendor Performance Corrective Measure Policy:
•  Mitigation of procurement risk for future contracts and further
standardization of processes and procedures to be able to apply
corrective measures against vendors that do not fulfil their contractual
obligations.
•  The application of corrective measures against vendors that do not
fulfill their contractual obligations. These measures have an impact on
a vendor’s ability to bid on future opportunities with or receive contracts
from PWGSC.
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Step 5
Bid on
Opportunities
(Summary)
70
What Buyers Should Consider Before
Initiating a Procurement Process
• Socio-economic issues
• Aboriginal set-aside and
Land Claims Agreement
• Green procurement
• Small and medium
enterprises (SMEs)
• Obligations under trade
agreements
• Canadian International
Trade Tribunal
• Competition Act:
Conspiracy (section 45) and
Bid-rigging (section 47)
• Revised Vendor
Performance Policy
71
Step 5: Bid on Opportunities (Summary)
5.1 Structure of an Invitation to Tender
5.2 Decision to Bid
5.3 Preparation of the Bid
5.4 Bid Evaluation
5.5 Follow-up
5.6 Best Bidding Practices and Advice
72
5.1 Structure of an Invitation to Tender
•  PART 1 –
General Information
•  PART 2 –
Offeror Instructions
•  PART 3 –
Offer Preparation Instructions
•  PART 4 –
Evaluation Procedures and Basis of Selection
•  PART 5 –
Certifications
•  PART 6 –
Security Requirements, financial criteria and other criteria
•  PART 7 –
Resulting Contract Clauses
•  Annex A –
Statement of Requirements – List of Products (if
applicable)
•  Annex B –
Basis of Payment (if applicable)
•  Annex C –
Security Requirements Checklist (if applicable)
•  Annex D –
Insurance Requirements (if applicable)
73
5.1 Structure of an Invitation to Tender (cont’d)
Review the bid documents
•  The Requirement
•  Statement of work
•  Period of contract
•  Pricing format
•  Standard Acquisition Clauses
Standard Acquisition Clauses and Conditions (SACC)
•  Goods 2030
•  Services (2030-2035)
•  Science 2040
• 
• 
• 
General conditions
Evaluation criteria
Selection methods
74
5.2 Decision to Bid
Once you decide to bid, ask yourself the following questions:
•  Can I prepare my bid before the closing date?
•  Can I provide the specified products or services?
•  Do I meet the evaluation criteria?
•  Do I agree with the terms and conditions?
•  Do I like the pricing method?
•  What advantages do I have over my competitors?
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5.3 Preparation of the Bid
•  Technical Section
•  Financial Section
•  Administration Section
•  Certifications
•  Other Documents
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5.3 Preparation of the Bid (cont’d)
•  Don’t make assumptions; obtain clarification by directly contacting
the buyer (Contracting Authority).
•  Make sure you have all the documents and modifications when
preparing your proposal.
•  What are the security requirements?
•  Will there be a site visit? Is it mandatory?
•  Will there be a bidders’ conference?
•  What are the evaluation criteria?
•  Have there been any changes to the original tender document?
(Check the MERXTM Web site for modifications and for answers to
potential bidders’ questions.)
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5.4 Bid Evaluation
• 
Proposals are evaluated against requirements.
They are either
–  Mandatory (must-have) or
–  Point-rated (nice to have)
• 
Three Methods of Evaluation may be used:
•  You must meet all mandatory requirements.
•  You must obtain a passing score.
•  You must meet all mandatory requirements and obtain a
passing score.
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5.4 Bid Evaluation (cont’d)
• 
Selection on the basis of the lowest price
• 
• 
• 
The company that submitted a responsive proposal with the lowest
price wins.
Selection on the basis of best overall value
• 
The company that submitted a responsive proposal with the best
overall value.
• 
The cost-per-point is one of the methods used to determine best
overall value.
Selection on the basis of highest technical proposal within a
stipulated budget
• 
Used when seeking the best possible technical solution within a
stipulated budget.
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5.4 Bid Evaluation (cont’d)
Evaluation Methods – Example
Evaluation Criteria
Max Points Min Points
Mandatory Criteria
A
B
C
D
Responsive
Responsive
Nonresponsive
Responsive
Rated Requirements
Technical Aspect
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26.3
32
27
30
Performance
25
18.7
24
19
22
Team
25
18.7
25
19
16
Company
15
11.3
15
12
100
75
96
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Responsive Responsive
Only companies A and B will make it to
the selection step.
Nonresponsive
Nonresponsive
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5.5 Follow-up
•  You will receive a copy of Part 7, Resulting Contract Clauses, with a
cover page stating, “YOU ARE REQUESTED.”
•  You must sign and return it, then PWGSC will send the same Part 7,
Resulting Contract Clauses, with a cover page stating, “YOUR
PROPOSAL IS ACCEPTED.”
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5.5 Follow-up
Debriefings
•  Request a debriefing from the Contracting Authority.
•  Try to understand the strengths and weaknesses of your bid and why the
contract was awarded to a given bidder.
•  Allow up to three weeks.
Complaints
• Procurement Ombudsman http://opo-boa.gc.ca/
–  Reviews any complaint with respect to the award of a contract for the acquisition
of goods below the value of $25,000 and services below the value of $100,000.
–  Reviews any complaint with respect to the administration of a contract,
regardless of dollar value.
• Canadian International Trade Tribunal (CITT)
–  http://www.citt.gc.ca/
–  Conducts inquiries into complaints concerning federal government procurement
covered by trade agreements (NAFTA , AIT and WTO-AGP).
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5.6 Best Bidding Practices and Advice
•  Make sure you meet all the mandatory requirements.
•  You have to obtain the minimum rating score.
•  Bids must not exceed the value of the project specified in the
tender documents.
•  Check your bid: you may not add information to your bid after
the closing date.
•  Get a colleague’s opinion in reviewing your bid.
•  Make sure your proposal has no missing information, such as
signatures, prices, résumés and certifications.
•  Make sure you meet the deadline.
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APPENDIX
Resources
for SMEs
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Resources for SMEs
• 
• 
Buy and Sell
https://buyandsell.gc.ca/
Office of Small and Medium Enterprises – Quebec Region
http://www.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/index-eng.html
• 
Public Works and Government Services Canada
• 
Supplier Registration Information (SRI)
• 
• 
• 
http://www.tpsgc-pwgsc.gc.ca/
https://srisupplier.contractscanada.gc.ca/
Professional Services Online (PS Online)
http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps/index-eng.html
Other Professional Services
http://www.tpsgc-pwgsc.gc.ca/app-acq/sp-ps-fra.html
Communication and Printing Services
http://www.tpsgc-pwgsc.gc.ca/app-acq/communications-eng.html
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Resources for SMEs (cont’d)
• 
• 
SELECT – Firm Registration and Maintenance
https://select.pwgsc-tpsgc.gc.ca
MERXTM
www.merx.com
• 
Procurement Allocation Directory (PAD)
http://pad.contractscanada.gc.ca/
• 
Departmental Materiel Managers
• 
• 
• 
https://buyandsell.gc.ca/for-businesses/contacts/departmental-materiel-managers
Government Electronic Directory Services (GEDS)
http://sage-geds.tpsgc-pwgsc.gc.ca/
Contract History
http://csi.contractscanada.gc.ca/
List of commodity codes in the “Supplier Registration Information (SRI) site”
https://buyandsell.gc.ca/for-businesses/register-as-a-supplier/find-a-commodity-code
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Resources for SMEs (cont’d)
• 
Procurement Strategy for Aboriginal Business (PSAB)
http://www.aadnc-aandc.gc.ca/eng/1100100032802/1100100032803
• 
Aboriginal Business Directory
http://www.ic.gc.ca/app/ccc/sld/cmpny.do?tag=248&profileId=381&lang=eng
• 
Canadian Company Capabilities
http://www.ic.gc.ca/eic/site/ccc-rec.nsf/eng/home
• 
Proactive Disclosure – Treasury Board Secretariat
http://www.tbs-sct.gc.ca/pd-dp/gr-rg/index-eng.asp
• 
Industrial Security Program
http://ssi-iss.tpsgc-pwgsc.gc.ca/
• 
Standard Acquisition Clauses and Conditions (SACC) Manual
https://buyandsell.gc.ca/policy-and-guidelines/
• 
PWGSC Supply Manual
https://buyandsell.gc.ca/policy-and-guidelines/supply-manual
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Resources for SMEs (cont’d)
• 
Office of the Procurement Ombudsman
http://opo-boa.gc.ca/
• 
Canadian International Trade Tribunal
www.citt-tcce.gc.ca
• 
Office of the Privacy Commissioner of Canada
http://www.priv.gc.ca/
Other sites
•  Canada Business
http://canadabusiness.ca
•  Service Canada – For Employers
www.servicecanada.gc.ca/employers
•  Canada Revenue Agency – Business Topics
www.cra-arc.gc.ca/tx/bsnss/
•  MARCAN
www.marcan.net
•  US General Services Administration
www.gsa.gov
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Copyright
Minister of Public Works and Government Services, Canada 1999.
All rights reserved. Permission is granted to electronically copy and to print in hard copy
for internal use only. No part of this information or these images may be reproduced,
modified or redistributed in any form or by any means, for any purposes other than those
noted above (including sales), without the prior written permission of the Department of
Public Works and Government Services Canada, Ottawa, Ontario K1A 0S5.
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