Advance Contract Award Notice (ACAN)

An Advance Contract Award Notice, abbreviated ACAN, is a public notice that a Government of Canada department or agency intends to award a contract for goods, services or construction to a supplier it has already identified. The notice also gives other suppliers a chance to demonstrate that they can meet the requirement. CanadaBuys buyer guidance describes the named supplier as the entity the department believes is the only one capable of delivering.

An ACAN is not a contract award. It is a public test of the department's proposed approach to a non-competitive or sole-source purchase. The process was established by the Treasury Board of Canada Secretariat in Contracting Policy Notice 2000-4. If another supplier proves it can do the work, the contract goes to a full competition instead.

How the ACAN process works

The department posts the notice for at least 15 calendar days. During that period, any supplier that believes it can perform the work may respond. The notice states the requirements and a closing date, and the response is a statement of capabilities.

What happens next depends on the responses received:

• If another supplier submits a statement of capabilities that meets the requirements in the notice, the department or agency must conduct a full tendering process.
• If no supplier submits a qualifying statement, the contracting officer may award the contract to the pre-identified supplier.

Both outcomes are set out in the Treasury Board policy notice and in the CanadaBuys guidance for buyers.

What a statement of capabilities must show

A statement of capabilities is a written explanation of how your company meets the requirements listed in the ACAN. General expressions of interest do not qualify. The statement has to demonstrate that you meet the requirements set out in the notice, so each mandatory requirement needs a clear, evidenced answer.

The statement must reach the department before the closing date in the notice. A strong response follows the structure of the notice and lets the contracting authority see, requirement by requirement, that your firm can deliver.

Examples of federal ACANs

ACANs are used across many departments and agencies. Published examples include:

• Public Services and Procurement Canada: an ACAN for vessel life-extension work on the Canadian Coast Guard Ship Louis S. St-Laurent, signalling an intention to contract with Chantier Davie.
• National Defence: an ACAN for research and advisory services on the defence supply chain.
• Health Canada: an ACAN stating that the notice lets the department post its intention to award a contract to a pre-identified contractor for at least 15 calendar days.
• Canadian Nuclear Safety Commission: an ACAN stating its intention to award a services contract to a named supplier.
• Natural Resources Canada: an ACAN that uses the same statement-of-capabilities process.

What an ACAN means for your bid team

An ACAN is a narrow window to compete for work that would otherwise go to one supplier without a competition. If your company can meet the stated requirements, respond with a statement of capabilities before the closing date. A qualifying response can force the department to run a full tendering process, which opens the contract to you and to other suppliers.

If you are the pre-identified supplier, the notice tells you the department intends to contract with you, but the award is not final until the posting period ends without a qualifying challenge. Either way, review the requirements and closing date as soon as a notice appears, and watch CanadaBuys for ACANs in your sector.