Acquisitions

Acquisitions are the activities involved in obtaining goods, services, or construction for government purposes. In Government of Canada terminology, an acquisition is also a transaction that adds assets or services to a department's or the government's program or service-delivery capabilities, as defined in the Treasury Board policy on the planning and management of investments.

Acquisition is closely related to procurement, but the two terms are not identical. Procurement is the process of obtaining goods, services, or construction from planning through completion of the procurement life cycle. Suppliers regularly see the word in tender notices on CanadaBuys, where titles use "acquisition" for the purchase of equipment and other goods.

How the Government of Canada defines Acquisition Services

The Government of Canada defines Acquisition Services as activities undertaken to acquire a good or service in response to a properly completed request. These activities include defining requirements, soliciting bids, entering into or amending a contract, and managing the contract. The full description is published by Library and Archives Canada.

Acquisition Services is one of three internal-services activities under Asset Management. The other two are Materiel Services and Real Property Services. It was formerly called Procurement Services. The activity covers both goods acquisition and services acquisition, and it runs through these stages:

• Requirements definition
• Sourcing-method selection
• Implementation of the sourcing method
• Contract award
• Contract administration
• File closure

The Treasury Board definition and its legal mechanisms

Under the Treasury Board policy, an acquisition is not limited to buying something outright. It may occur through purchase, lease, licence, exchange, gift, transfer of administration, expropriation, or other listed legal mechanisms. The test is whether the transaction adds assets or services to the capabilities a department or the government uses to deliver programs and services. Broader government procurement policy uses acquisition in the context of obtaining goods, services, and construction through contractual arrangements.

Who buys, what they buy, and where the thresholds sit

Public Services and Procurement Canada (PSPC) is the main federal procurement arm. It conducts or supports acquisitions for federal departments and agencies, as described in its guide on how government buys. Federal buying covers goods, services, and construction, from office supplies to materials and services used in major infrastructure projects, according to Global Affairs Canada.

The federal procurement guidance identifies purchases below $25,000 for goods and below $40,000 for services and construction, including applicable taxes, as low-dollar-value procurements. Procurements above those amounts are generally conducted through solicitation of bids or quotations. The thresholds are set out in the PSPC introduction to the procurement process.

What acquisitions mean for a supplier

A supplier responding to a federal acquisition normally needs to do the following:

• Read the solicitation and provide the requested goods or services in accordance with the stated requirements.
• Submit a compliant bid or quotation when the procurement is competitive.
• Meet the mandatory requirements, contract terms, certifications, security requirements, and delivery or performance conditions in the solicitation.
• Comply with the Code of Conduct for Procurement, which applies to vendors and subcontractors that respond to federal bid solicitations or provide goods and services to Canada.
• If awarded a contract, perform the work and meet the contract-administration requirements through completion.

This describes the federal process. Provincial buyers and defence programs can set their own terms, so read each solicitation closely before you bid.