Advance Contract Award Notice (ACAN) Challenge Period

An Advance Contract Award Notice (ACAN) challenge period is the time a Canadian federal department or agency leaves a notice open after saying it intends to award a goods, services or construction contract to a pre-identified supplier. During that window, other suppliers can respond with a Statement of Capabilities showing they can meet the requirement. The period is normally at least 15 calendar days, according to CanadaBuys guidance for buyers.

The challenge is not a formal appeal. A supplier challenges the proposed award by sending a written Statement of Capabilities to the contact named in the notice before the stated closing date and time. If that statement meets the requirements of the ACAN, the contracting authority proceeds to a competitive process instead of awarding the contract directly. The Treasury Board describes the ACAN as a competitive tool for this reason, in its contracting policy notice on ACANs.

How the 15-day posting period works

Federal policy requires an ACAN to stay posted for no less than 15 calendar days. Statements of Capabilities are submitted during that same period, so the posting period and the challenge period are one and the same. CanadaBuys instructs buyers to post ACANs on the government's electronic tendering system for at least that long.

The notice sets the exact deadline. Each ACAN states a closing date and time, and a submission that arrives after it does not count. Bid teams should treat the closing time printed in the notice as the controlling deadline.

What an ACAN notice tells you

Individual ACANs published on CanadaBuys follow a consistent pattern. A typical notice, such as this Department of National Defence ACAN, identifies:

• the pre-identified supplier;
• the requirement and the mandatory qualifications;
• the contact for submissions;
• the closing date and time for Statements of Capabilities; and
• what happens next if a qualifying statement is, or is not, received.

The notice applies to goods, services and construction contracts, and the Treasury Board policy framework applies the process across federal government contracting.

What happens when the period closes

There are two outcomes. If no Statement of Capabilities meets the ACAN requirements, the contracting authority may award the contract to the pre-identified supplier. If at least one statement meets them, the contracting authority proceeds to a full tendering process, as set out in this ACAN for a request for standing offers.

The test is whether the supplier's statement demonstrates that it meets the requirement as the notice describes it. A statement that does not address the mandatory qualifications leaves the proposed award in place.

ACANs in defence and standing offer procurement

ACANs appear regularly in defence procurement. The notices invite suppliers who consider themselves qualified and available to submit a Statement of Capabilities by the deadline. They also appear in standing offer arrangements. Public Services and Procurement Canada states on its military tires collaborative procurement page that an ACAN may be challenged until the relevant National Master Standing Offer is awarded. That timing is specific to the arrangement, so the applicable notice controls the precise deadline.

What an ACAN challenge period means for suppliers

If you can meet a requirement that a department plans to sole-source, the challenge period is your opening to compete. Monitor CanadaBuys for ACANs in your product or service area, and read the mandatory qualifications first. Prepare a Statement of Capabilities that addresses each one directly, and send it to the named contact before the closing date and time. If you are the pre-identified supplier, expect that a qualifying challenge will turn your direct award into a competition.